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IPFS News Link • Economy - Economics USA

Default Wave Arrives: Weekly Bankruptcy Filings Suddenly Soar Most In 11 Years

• by Tyler Durden

It appears that the wave has now arrived, because according to Bloomberg data, no less than 13 US companies sought bankruptcy protection last week, matching the peak of the global financial crisis. The filings, led by the perennially weak consumer and energy sectors, were the most for any week since May 2009.

At a time of pervasive service closures, it is not surprpising that there were four consumer non-cyclical filings last week, taking to 28 the sum for 2020. That according to Bloomberg is the most since 2009 and the sector remains under pressure from lockdowns that have crushed demand.

And while energy has been the second-biggest contributor to this year's bankruptcy surge, there is much more coming here. Chesapeake is preparing for a filing while California Resources got an extension until June 30 to make interest payments originally due May 29. Seadrill  is also considering bankruptcy.