Recently, some US giants are seeking bankruptcy protection as they struggle to meet rising costs and changes in consumer spending. According to an analysis by the American Bankruptcy Institute, Chapter 11 lawsuits by businesses that have at least $100 million in debt or assets or are nationally significant were 29 and 43 respectively in the same periods in 2022 and 2021, compared to at least 82 cases through June this year. reached .
According to the Wall Street Journal’s report, some of this year’s corporate applicants cited rising costs and supply chain disruptions as the reasons for their difficulties. According to the news, the removal of government support and incentives, especially during the Covid-19 epidemic, adversely affected the financial situation of the companies. In addition, rising interest rates accelerate the bankruptcy processes of businesses that are already in a difficult situation.
According to the data of the American Bankruptcy Institute, 17 hospital operators, pharmaceutical companies and related businesses filed for bankruptcy in the first six months, and the health sector accounted for more than 20 percent of all bankruptcy cases.
As an example of this trend, in May, Tennessee-based Nashville-based healthcare company Envision Healthcare filed for one of the largest healthcare-related bankruptcies ever to restructure $7.7 billion in debt after falling hospital visits.
