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US company bankruptcies could exceed 100 next year
Corporate bond defaults are on track to quadruple this year and company bank-ruptcies may soar to more than 100 in 2009, a senior Bain & Co consultant said.
- Reuters
- Published: 00:04 August 2, 2008
New York: Corporate bond defaults are on track to quadruple this year and company bank-ruptcies may soar to more than 100 in 2009, a senior Bain & Co consultant said.
Bain, a financial consultancy, expects as many as 75 corporate bankruptcies this year, a figure that will rise as high as 105 in 2009 for US public companies with more than $100 million in assets.
"Our forecast is for high defaults and bankruptcies this year and next," Sam Rovit, head of Bain's corporate renewal group, said.
The group was formed about a year ago to advise distressed companies. Rovit, former CEO of Swift & Co, a Colorado-based beef and pork processor, has headed the unit from Chicago since January.
Bain & Co, which spun off private equity firm Bain Capital in 1983, believes there may be as many as 95 defaults from speculative-grade US issuers this year, versus 21 defaults in 2007. Defaults may soar to as many as 160 next year, Rovit said.
He said bankruptcies are set to swell after 13 filings in 2007 and 14 in 2006, although it was too early to forecast if the current bank-ruptcy wave will eclipse records seen in 2001.
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