The Bankruptcy Landscape
As the economy and financial markets continue on their downward slide and consumer pessimism grows, experts are in agreement that a deluge in U.S. Chapter 11 bankruptcy filings (as well as out-of-court workouts) is looming on the horizon. For example, as early as last September Moody's forecasted that the rate of bankruptcies of highly leveraged companies would more than double over the following 12 months. Through the first four months of 2008, 2,700 companies have filed for Chapter 11 protection - approximately 6,200 petitions were filed in all of 2007. Also quite telling is the fact that 27 companies have defaulted on their debt so far this year, already exceeding 2007's total of 16.
http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=June&artYear=2008&EntryNo=8337
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