Tuesday, October 25, 2011

Bankruptcies Are Down, But the Business Picture Still Isn't Rosy

Corporations in America may be struggling, but they're not filing for bankruptcy. In fact, since hitting a 15-year peak in the second quarter of 2009, filings have dropped an average of 3.2 percent per quarter, according to figures released by the American Bankruptcy Institute.

Sounds like a beacon of light in an otherwise dark and dismal economic landscape, right?

Don't be fooled, says Llloyd Palans, a bankruptcy expert in the New York office of Bryan Cave. "The dilemma that we are in with the downward spiral of business bankruptcies is a result of what I'd call a perfect storm," says Palans. He says the drop—from 16,014 in 2009 to 12,304 in the most recent quarter—is the result of a confluence of conditions never before experienced.

Read the rest of the article at Law.com

No comments:

Post a Comment