Chapter 11 Bankruptcy Filings – 770 As Of March, 2018 – Highest In 7 Years

*** UPDATE *** (See prior article on this blog – “Chapters in Bankruptcy, a Short Primer…”) The number of Chapter 11 (“reorganization” bankruptcy) filings has reached an all-time high since 2011. In that year, there were 789 Chapter 11 filings as the nation was still trying to recover from the “great recession” of 2008 – 2009. According to data from the American Bankruptcy Institute (“ABI”), the year-over-jump (that tracks the number of such filings in comparison to previous reporting periods) was the second highest to be Read More +

Leveraged Buyouts… Bain Capital… And The “art” Of Bankrupting Companies

lev·er·aged buy·out ˌlev(ə)rijd ˈbīˌout/ – noun Plural noun: leveraged buyouts The purchase of a controlling share of a company by its management, using outside capital A leveraged buyout (“LBO”) is the acquisition of one company (or division of a “target” company) by another outside company using a significant amount of borrowed money to finance the acquisition. The purpose of a leveraged buyout is to allow companies to make very large acquisitions without having to commit a lot of upfront capital. The assets of the “target” Read More +