22 Jun 2009: Year of the Mega-Case?
Last Monday’s “Credit Slips” blog features a brief piece by Seton Hall’s Steve Lubben, who cites bankruptcydata.com for what by any measure is a remarkable statistic: Year-to-date, US Bankruptcy Courts have seen no less than 35 Chapter 11 cases involving debtors with assets of $1B or more.
That’s nearly six billion-dollar filings per month.
According to Lubben, it’s also more than all of 2008’s “mega-cases” combined. Just as interesting, however, is Lubben’s comment on the “ripple effect” created by these cases:
I think we can expect that the collective, collateral effect of these cases on trade creditors, landlords, and employees will equal, if not exceed, the effects of the better-known cases. This will in turn create a ripple of small business bankruptcy cases . . . .
Here at South Bay Law Firm, we couldn’t agree more.