As the coronavirus pandemic slammed the U.S. economy, The Wall Street Journal reports that corporate bankruptcies saw a significant spike in May 2020, pushing the number of filings to levels recorded in the wake of the 2007-09 recession. In the article “U.S. Business Bankruptcies Rose 48% in May,” The Journal turned to Faegre Drinker restructuring partner James Conlan for his outlook on the economic situation.
Conlan, a leading restructuring lawyer who recently joined Faegre Drinker, said his colleagues kept busy during May with work across a range of sectors, including energy, airlines, aircraft lessors, real estate, top automotive suppliers, hospitality and retail.
While many of those firms struggled because of the pandemic-related downturn, some had borrowed heavily leading up to the trouble, he added.
Conlan told The Journal that he does not expect the pace of corporate bankruptcies to slow in the coming months.
“I think we’re going to see an extraordinary number of large corporate bankruptcies, not just in the U.S. but across the globe,” he said.