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Get ready for a boom—in bankruptcies.
“We are seeing an acceleration in bankruptcies that is unprecedented,” said James Hammond, CEO of New Generation Research which runs BankruptcyData. For 2020, he says, “I’m pretty confident we will see more bankruptcies than in any business person’s lifetime.”
Ranked by assets alone, says Hammond, the magnitude of bankruptcies this year has already surpassed that of 2008. And that’s not including what could happen when the government’s Paycheck Protection Program, which aims to keep small businesses up and running with loans that can be converted to grants if certain terms are met, runs out.
The largest Chapter 11 bankruptcy so far has been that of car-rental company, Hertz. Unable to hold on after the travel industry effectively hit the brakes, the company is now selling off much of its fleet in a bid to meet demands from creditors. Others in sectors ranging from oil and gas, to retail, to aviation have similarly suffered to navigate the pandemic.
Editor’s note: Chesapeake Energy, an oil and …