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The sky is falling! (Feature Article).(bankruptcy stats)

Business Credit

| April 01, 2003 | Goudy, Gene | COPYRIGHT 2003 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

One would think with all the negative economic news that the sky is falling on the creditworthiness of our customers! Based on a few facts, these are "interesting" times, but not exactly catastrophic. In early 2002, Kmart collapsed, then came Adelphia Communications, UAL, WorldCom and Conseco. According to BankruptcyData.com, 191 public companies filed Chapter 11, with assets of over $368 billion, beating the 2001 record of $259 billion. Knowing there is a natural tendency for a trickle down effect from bankruptcy events, one could surmise that there are still a few announcements to be made.

A few of the hot spots are easy to pick, such as the airlines, telecom, ...

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Source: HighBeam Research, The sky is falling! (Feature Article).(bankruptcy stats)

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