Designed by: Mohsin Shaikh
Produced by: Harshita Tyagi
The consistent interest rate hikes by the US Federal Reserve, a less certain economic environment along with Silicon Valley Bank collapse have flared credit crunch concerns in the US
A recent survey by the Federal Reserve showed that the US economy is in bad shape. The Fed survey pointed to difficulties in getting loans as banks are tightening their lending standards
According to a Bloomberg report, at least seven large companies in the US filed for Chapter 11 bankruptcy protection in less than 48 hours, a breakneck pace of restructurings that included digital-broadcaster Vice Media LLC, and KKR & Co.-backed Envision Healthcare Corp
The weekend gone by also saw bankruptcy filings from home security company Monitronics International Inc., chemical producer Venator Materials Plc, oil producer Cox Operating LLC, fire protection firm Kidde-Fenwal Inc., and biotechnology company Athenex Inc
11 bankruptcy filings in 48 hours is the largest number of filings on record during a two-day period since at least 2008, according to Bloomberg-compiled data on companies with at least $50 million of liabilities
Vice Media listed both assets and liabilities in the range of more than $500 million to as much as $1 billion in a Chapter 11 petition. The company struck a deal to sell itself to creditors including Fortress Investment Group, Soros Fund Management and Monroe Capital
Monitronics, which had more than $1 billion in debt coming due in 2024, said earlier this month that it planned to start a Chapter 11 bankruptcy to help implement its restructuring. The company said it would cut its debt by $500 million under the pre-arranged and partially prepackaged plan
Envision Healthcare, a medical staffing company backed by KKR, raised more than $1 billion in fresh cash just last year, but has still been struggling to make good on its debt obligations. It listed both assets and liabilities in the range of $1 billion to $10 billion, as per Bloomberg report
Venator Materials' upcoming debt maturities included a roughly $350 million first-lien term loan due in August 2024 and around $600 million of notes due in 2025. It reportedly listed both assets and liabilities in the range of more than $1 billion to $10 billion in a petition filed in Southern Texas
Cox Operating had been attempting to reach an agreement with its creditors on reducing or deferring payments to avert filing for bankruptcy, according to Bloomberg. The company has estimated liabilities and assets of $100 million to $500 million each, as per the report
Pharmaceutical company Athenex had reached agreement with its lenders to move forward with an expedited sales process of its assets across its primary businesses. The company has $100 to $500 million in estimated liabilities
Industrial fire protection and suppression company Kidde-Fenwal will seek options including a sale of the company. The company has $1 billion to $10 billion in estimated liabilities, and filed after mounting litigation related to “forever chemicals", as per Bloomberg
The impact of a recession and a credit crunch could be that $1 trillion worth of corporate debt ends up defaulting, Bank of America credit strategists said in a note recently