This year could be a record for the number of megabankruptcies – experts

A wave of bankruptcies should be expected this year, experts say. The coronavirus pandemic has hit many famous and little-known companies. According to the calculations of Edward Altman, the author popular method of predicting bankruptcies, this year may become a record for the number of bankrupt companies with debts of $ 1 or more billion and more. And the number of bankruptcies of organizations with debts in the amount of $ 100 million will be comparable to the 2008 crisis. At the same time, according to a professor of finance at the New Business School York University Edward Altman, the situation will not change even if the economy picks up actively in the coming months Damage suffered during the pandemic for many representatives the business turned out to be too serious to recover. Among companies on the verge of bankruptcy - gas company Chesapeake Energy, previously ranked second in the country in terms of size; its debts amount to 9 billion. Financial state of the corporations Tailored Brands, Weatherford International. Number of companies filing for bankruptcy protection, is approaching 7000.