PricewaterhouseCoopers sees fewer companies filing for Chapter 11

By Jeff Pines

Washington, June 15 - PricewaterhouseCoopers sees 110 public companies filing for Chapter 11 in 2004, which it says is substantially fewer than in any of the last six years.

The professional services firm attributes this to improving economic conditions.

Other factors that helped were lower borrowing costs and companies successfully reducing their inventories.

Public company Chapter 11 filings have fallen 48% since 2001, to 113 companies in 2003 from 257 in 2001

Similar conditions in 1992 preceded an eight-year decline in total bankruptcy filings, and PricewaterhouseCoopers expects another long-term decline is already in progress.

PricewaterhouseCoopers also believes the pharmaceuticals, computer and airline industries will benefit from the recovery. It attributes this outlook to government financial support to help seniors buy prescription drugs, the recent recovery in information technology spending and an expected increase in business travel.

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