Corporate bankruptcies in the U.S. continue to grow during the coronavirus crisis as 24 companies joined 2020's list of casualties and pushed the year-to-date total closer to 500, according to an S&P Global Market Intelligence analysis.
A total of 470 companies have gone bankrupt this year as of Sept. 7, more than the number of filings during any comparable period since 2010.
Market Intelligence's analysis is limited to public companies or private companies with public debt where either assets or liabilities at the time of the bankruptcy filing are at least $2 million. Private companies without public debt must report at least $10 million in either assets or liabilities at the time of filing.
Companies that went bankrupt between Aug. 24 and Sept. 7 include managed care insurer Advanzeon Solutions Inc., K&W Cafeterias Inc., Raleigh, N.C.-based Avivar Hospitality LLC, coal company FM Coal LLC and Destination Hope Inc., which operates a dual-diagnosis treatment center. Most of the companies that declared bankruptcy during this period did so voluntarily, but none claimed more than $1 billion in liabilities.
Advanzeon Solutions, which was founded in 1969, filed for Chapter 11 bankruptcy reorganization on Sept. 7, while K&W Cafeterias filed a voluntary Chapter 11 petition Sept. 2. Alabama-based FM Coal filed for bankruptcy protection Sept. 1, citing declining liquidity, among other issues.
Additionally, supermarket operator KB US Holdings Inc., crane service provider TNT Crane & Rigging Inc. and Providence Hospital of North Houston LLC, which owns and operates a hospital, have been added to the current list because Market Intelligence discovered that their total assets and liabilities meet the threshold requirement for inclusion. The companies went bankrupt prior to Aug. 24.
Even as overall bankruptcies continue to rise, the pace of filings slowed in August to 55 companies from 71 in July.