Large companies in the U.S. have sought bankruptcy protection at a faster pace this year, as they struggle to meet rising costs and shifts in consumer spending, WSJ Pro Bankruptcy reported. Chapter 11 cases of businesses with at least $100 million in debt or assets, or those with national prominence, totaled at least 82 through June, up from 29 and 43 in the same periods of 2022 and 2021, respectively, according to an analysis by the American Bankruptcy Institute. Some of this year’s corporate filers have cited growing costs and supply-chain disruptions as reasons for their difficulties. In addition, government subsidies provided during the COVID-19 pandemic have largely dried up. And rising interest rates hastened the demise of enterprises that were already doomed to fail. Healthcare companies accounted for more than 20% of all bankruptcy cases, with 17 hospital operators, pharmaceutical companies and related business filing in the first six months, the ABI data show. “Distress in healthcare is outpacing other industries,” said ABI President-Elect Chris Ward, chair of the bankruptcy and restructuring practice at law firm Polsinelli. “No one has been immune from distress in healthcare, from pharmaceutical companies to medical supply businesses to hospitals.” One factor affecting the faltering pharmaceutical startups is that venture capital backers are pulling back from making investments. “The funds that were available this time last year aren’t available now,” said Ward.
