Another wave of megabankruptcies is coming, experts say
June 22, 2020
Already, companies large and small are succumbing to the effects of the coronavirus. They include household names such as Hertz and J. Crew and comparatively anonymous energy companies such as Diamond Offshore Drilling and Whiting Petroleum.
And the wave of bankruptcies is going to get bigger.
Edward Altman, creator of the Z score, a widely used method of predicting business failures, estimated that this year will easily set a record for so-called megabankruptcies - filings by companies with $1 billion or more in debt. And he expects the number of merely large bankruptcies - at least $100 million - to challenge the record set the year after the 2008 economic crisis.