Article

Hundreds more US firms likely to default in next two years

Despite signs that the recession is bottoming out, default rates in the U.S. are likely to worsen as some big companies run out of cash.

Par Bain's Corporate Renewal group

First published on janvier 28, 2010
min


Despite signs that the recession is bottoming out, default rates in the U.S. are likely to worsen as some big companies run out of cash, according to Bain & Company. As many as 287 companies with more than $100 million in assets defaulted on their debt in 2008 and 2009, compared with 116 for the four-year period from 2004 to 2007. As many as 300 more companies are likely to default by the end of 2011. Source: Bain & Company

Despite signs that the recession is bottoming out, default rates in the U.S. are likely to worsen as some big companies run out of cash, according to Bain & Company. As many as 287 companies with more than $100 million in assets defaulted on their debt in 2008 and 2009, compared with 116 for the four-year period from 2004 to 2007. As many as 300 more companies are likely to default by the end of 2011.

Source: Bain & Company