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With 64 bankruptcies in the month of July, U.S. corporate bankruptcies rose to a year-to-date level of 402, the second-highest year-to-date total since 2010, according to data released Thursday by S&P Global Market Intelligence.
“High interest rates and a challenging operating environment continue to push U.S. companies over the brink,” S&P said.
The year-to-date total for U.S. corporate bankruptcies is now the second-highest since 2010, but only one large bankruptcy of $1 billion-plus took place in July, down from four in June.
S&P Global Market Intelligence
This year’s tally of 402 corporate bankruptcies as of July 30, is nearly double the 205 figure for the corresponding year-to-date level in 2022, but falls short of the 407 in 2020, when the COVID-19 pandemic wreaked havoc on company balance sheets.
To find a higher number of year-to-date bankruptcies, one would have to travel back in time to 2010’s figure of 530 bankruptcies at the tail end of the Global Financial Crisis following the collapse of Lehman Brothers nearly 15 years ago.
A total of 64 companies filed for bankruptcy in July, the largest tally since March’s figure of 70. In July of 2020, 74 companies filed for bankruptcy; 71 companies filed for bankruptcy in the month of June, 2020.
In the largest bankruptcy in July, Voyager Aviation Holdings LLC filed a $1 billion-plus restructuring as part of its acquisition by Azorra Explorer Holdings Ltd.
It was the only $1 billion-plus bankruptcy in July, down from four in June.
Companies in the consumer discretionary sector accounted for three filings in July, raising the sector’s year-to-date total to 48. The industrial and healthcare sectors rose by eight to 45 and by seven to 39, respectively, in July.
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