Propelled by the bankruptcy of Silicon Valley Bank’s parent SVB Financial Group and other deals, U.S. bankruptcies jumped in March to the highest level in three years, in a sign of a cooling economy.
S&P Global Market Intelligence reported 71 U.S. bankruptcy filings in March, up from 58 in February and more than double the year-ago March total of 33. It’s also the highest month since 74 bankruptcies in July of 2020 early in the coronavirus pandemic.
U.S. bankruptcies accelerated further in March after a jump starting in December
Source: S&P
With March included, the first-quarter bankruptcy total came to 183, which is more than any comparable period in the past 12 years, S&P said in a report.
SVB Financial Group
SIVBQ,
filed for Chapter 11 bankruptcy on March 17, with unsecured claims including $3.3 billion in senior notes, as “the most noteworthy” filing in March, S&P said.
Sinclair Broadcast Group Inc.’s
SBGI,
regional sports unit Diamond Sports Group LLC filed plans to reorganize its debt under Chapter 11 , as one of five bankruptcies with $1 billion to $10 billion in assets and liabilities so far this year.
Other major companies to file for bankruptcy court protection from creditors this year include undefined
PRTYQ,
Serta Simmons Bedding LLC and undefined
AVYAQ,
Consumer discretionary currently ranks as the sector with the most bankruptcies so far this year, but the financial sector’s increase in filings has brought it into a second-place tie with the healthcare sector, with 14 each.
This post was originally published on Market Watch
