U.S. bankruptcies to see modest rise in 2020: industry insider

Source: Xinhua| 2019-08-25 14:18:59|Editor: ZX
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NEW YORK, Aug. 24 (Xinhua) -- The number of insolvencies in the United States would see a modest increase in 2020 as the environment is getting more challenging, said Matthew Dundon, principal of Dundon Advisers LLC on Friday.

More retailers and energy companies would become financially distressed but, by and large, most companies have reasonably good capital structure, Dundon told Xinhua.

"So I'm not anticipating that there will be likely a surge on insolvencies, even if we see a small uptick in unemployment," added Dundon, who is a long-term player in managing and advising holders of distressed, litigation and liquidation assets.

The number of business bankruptcies totaled 22,483 in the year ending Jun. 30, 1.1 percent higher from that in the previous 12 months, according to recent data issued by the Administrative Office of the U.S. Courts.

U.S. insolvencies reached a new low in 2018 after a ninth year of steady fall reflecting the robust performance of the economy then and in particular the positive impact on businesses of the massive fiscal stimulus in 2018, according to an earlier release by credit insurance company Euler Hermes.