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The fall in American business failures that we have seen since 2001 continued during the first half of 2005. From 40,000 cases in 2001 the numbers dropped steadily to 32,400 at the end of the second quarter of 2005 in annual terms (-9 percent over the same period the previous year), which is the Lowest Level for 25 years. Nevertheless a number of events threaten to break this trend or at Least upset the statistics.
For a start, the amendments to the bankruptcy Law came into force on October 17, 2005, making Chapter 11 conditions weigh more heavily on debtors. For this reason some businesses (airlines, car equipment manufacturers), starting with the biggest, applied for Chapter 11 protection during the third quarter, just before the change came into force. ...
Source: HighBeam Research, The world slow-down that began in 2005 will continue in...