Corporate Bankruptcies on the Rise: A Look at Recent Filings.
Seven major companies, including Vice Media, have filed for bankruptcy in a recent 48-hour period, highlighting the exposure of highly indebted firms in the wake of interest-rate hikes. Moody's and S&P Global predict that the trend could continue throughout the year, with defaults for companies with speculative-grade debt expected to rise. The financial sector is under duress, and no industry is safe from balance-sheet bogeys. However, a bankruptcy filing is not necessarily a death knell for a company, as it can give them an opportunity to restructure their debt and come out with a healthier balance sheet.
