US corporate bankruptcies tracking higher than 2024 through April

Year-to-date US corporate bankruptcies remained at a historically elevated level in April, with filings through the first four months of the year at their highest since 2010, according to S&P Global Market Intelligence data.

For the year through April 30, large public and private companies filed 246 bankruptcies, up from 206 in the first four months of 2024. The data included companies with public debt and assets or liabilities of at least $2 million or private companies with assets or liabilities of at least $10 million at the time of filing.

As bankruptcies stay relatively high, companies with large volumes of near-term maturing debt or variable interest debt may face higher debt payments in the coming months after interest rates rose in April. This could particularly impact speculative-grade companies with weaker credit ratings that are often subject to higher-yield debt.

The S&P US High Yield Corporate Bond Index yield to maturity ended April at 7.88% after a volatile month, according to S&P Dow Jones Indices data. The index's yield to maturity rate started April at 7.63% and spiked as high as 8.49% on April 9 as investors priced in higher debt risk premiums amid a slew of US tariff announcements and related market volatility.

Notable filings

Two companies entered the bankruptcy process in April with more than $1 billion in liabilities at the time of their filings: Global Clean Energy Holdings Inc. and Ascend Performance Materials Holdings Inc. Both companies plan to continue operations during their bankruptcy proceedings.

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Alongside its bankruptcy filing, Global Clean Energy entered into a restructuring support agreement with Vitol Americas Corp., CTCI Americas Inc. and an ad hoc group of its term loan lenders. The term loan lenders and CTCI Americas agreed to provide the renewable fuel company with $100 million in new money debtor‑in‑possession financing.

Ascend Performance Materials received a commitment for $250 million in debtor-in-possession financing from its lenders, which the company said is expected to provide it with sufficient liquidity during the bankruptcy process. The materials and chemicals manufacturer is majority-owned by SK Capital Partners LP.

Other notable bankruptcies in April included a filing from Publishers Clearing House Inc., the direct-to-consumer company known for its nationwide prize sweepstakes, direct mail business, and subscription services for retail merchandise and magazines. The company said during bankruptcy proceedings it would modify its business strategy to focus more on digital advertising and consumer insights, though it will continue offering its sweepstakes programs.

Sector breakdown

There were 41 bankruptcy filings among companies in the industrials sector through April, more than any other sector. The consumer discretionary sector had the second-most bankruptcy filings, with 31.

Together, the industrial and consumer discretionary sectors have accounted for nearly 30% of total US bankruptcies so far this year. Consumer discretionary companies in particular have been susceptible to ongoing market volatility, tariff uncertainty and inflation concerns. The S&P 500 consumer discretionary sector was down 13.33% year to date through market close on May 6.

The utility sector had only two bankruptcies so far this year. Out of 11 market sectors, investors surveyed in the April S&P Global Investment Manager Index survey indicated the highest degree of optimism toward utilities companies.

Of the 246 companies that filed for bankruptcy for the year through April, 140 had primary sector designations tracked by Market Intelligence.

This Data Dispatch is updated regularly. The previous edition was published April 10.

Bankruptcy figures include public companies or private companies with public debt with a minimum of $2 million in assets or liabilities at the time of filing, in addition to private companies with at least $10 million in assets or liabilities. S&P Global Market Intelligence may remove companies from this list if it discovers that their total assets and liabilities do not meet the threshold requirement for inclusion.