Steep Increase Recorded In Corporate Bankruptcy Filings
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Corporate bankruptcy filings in New York City have skyrocketed in the first five months of the year, adding to the proof that the economic slowdown is affecting the local economy.
Through the end of May, Chapter 11 filings at the federal bankruptcy courts more than tripled versus the same period last year. The number of filings in the first five months climbed to 335 from 104 over the same period last year, according to a report in Crain’s.
Much of the increase came from filings at the U.S. Bankruptcy Court for the Southern District of New York, which includes Manhattan and the Bronx.
Through May, there have been 288 filings in that court, up from 60 filed in the period last year. The number of filings for the first five months of this year has already surpassed the total of 231 filings for all of 2007.
Several factors have contributed to the jump in filings, according to the report in Crain’s. A tightening credit market, rising food and fuel prices, and costs of construction have all contributed to the weakening of the local economy and the increase in bankruptcy filings.
