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Insight: New bankruptcy ripples may emerge in tough economy

(Reuters)-three years later by the collapse of lehman brothers filed for bankruptcy, the wave of business failures may again to take some big companies struggle for survival.
In the past few months, the company in a series of service, including the barbershop, restaurants, renewable energy, paper industry, have dropped to chapter 11.
Economic weakness, sluggish consumer spending, a ramshackle junk bond market and the growing tensions lending practices, also threatening shipping, tourism, media, such as energy and real estate different industry struggling company.
AMR group's American airlines may need to go to court to try to restructuring the labor contract, but airline spokesman on Monday reiterated that the goal of the company is not bankruptcy or preferences.
Kodak confirmed that the company through the bankruptcy law firm has set up a file in the strategic advice, trying to overcome traditional photography business losses to be moved. It refused to any file for bankruptcy plan.
Some bankruptcy and restructuring experts warn that a new American recession could cause failure, second, apply for one of the rival in 2008 in the United States the largest in the history of the lehman brothers bankruptcy of a string.
"This is I know people busy, gough, said:" jay Chou's law firm Skadden, ARPS, SLATE, MiGe and fromm's global restructuring group joint executive. "I think that 2012 will be a busy year, in 2013 and 2014 will be particularly busy DuoNian restructuring."
No one predicted the second type lehman collapse. In the investment bank's confidence lost its $63.9 billion after bankruptcy assets value slump, lead to dry the credit limit.
Experts said, in fact, prediction of all the bankruptcy wave, is a difficult task. This may depend on how much money a few unknown:, Banks and other institutions willing to lend to mess up enterprise, the economy's land is in a recession and the double bottom in the European debt crisis happened.
The sovereign debt crisis in Europe is probably the most important of the X factor. Even the experts say, bankruptcy, because the current crisis not to the low interest rates can easily get cash for the enterprise financial way out of the difficult position, the euro area, said the problem could trigger a default value in here.
Phillips, simmons turnover consulting company's north American area President Peter said: "this is possible, one or two sovereign debt default increased pressure, we will find in the United States credit market, then. We may see a environment, as we in 2008," AlixPartners law firm.
Application for more
Chapter 11 bankruptcy application was picked up, the data show. Ten enterprises of at least $10 billion of assets in September file for bankruptcy, 17 th on the proposed most, this April since 2009, was the busiest month, according to Bankruptcydata.com.
http://link.reuters.com/nuw34sp for a graphics, click here:
The latest failures including renewable energy company evergreen solar and Solyndra company. The latter in political bankruptcy collapsed, from the federal government to the $5.35 million of loans.
Other recent bankruptcy, including fashion magazine paper mills NewPage company, this is the biggest bankruptcy this year, since 2009, the largest non-financial class company submit; Graceway pharmaceutical company, which makes skin cream; Hector west copper company, which makes copper in the bar, and the national hockey league switch the Dallas stars.
So far this month, more than $10 billion in assets of the company has been submitted, including friendly ice cream chain-wireless broadband company open range communications companies
In the application trend is unpredictable. For example, the key point is to macroeconomic credit index, and in 2006 or 2007 years of default prediction of the experts, they won't in many cases, have already prepared the seriousness of the fault, then.
In 2009, general motors, Chrysler group, lyondell Basel industry and general growth properties are filed for bankruptcy, the number of records to contribute the record, and the biggest bankruptcy on the list.
At the same time, some experts predict enterprise collapse, even deeper, more long list. But record the bankruptcy application in a year, the bank and other financial institutions to buy bonds and loans, so easily on the way out of the financial difficulties.
After two months, lehman fail, the United States federal reserve slash interest rates close to zero. Once confidence began to return to the bond market, investors to flock to the plight of the company selling high-yield bonds and ask them to financing.
Other failed to company "revised and extend"-or criticism ", the revision and pretend to "and the lender in the hope that the economy will rebound clever and business delay due debts then picked up the new compelling borrowing conditions.
These measures have tended to avoid business overhaul, create some experts so-called "zombie" company cut workers and the survival of the price, but too sick investment new project.
Bankruptcy court allows mess up enterprise out of debt, also become more operating efficiency, they renegotiated labor contract, airlines do, or refuse to expensive store leases, retailers often.
But these changes are not always work, especially when their turnaround plan of enterprise found supplier or creditors of a little support between. The bankrupt chain bookstore, Byrd, for example, recently closed after the door to find buyers.
In addition, in the economy and easy availability of debt and companies in 2009 and completed in 2010 restructuring and business plan and the debt burden of the foundation of the economy picks up, and now have shaken confidence. In the restructuring of enterprises has the potential of the once can cause trouble.




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