ABI poll: Leveraged transaction shakeup will prompt increase in corporate bankruptcies in 2007

By Caroline Salls

Pittsburgh, Aug. 8 - An American Bankruptcy Institute online poll showed that 67% of respondents feel that despite a recent sharp drop in public company filings, corporate bankruptcies will be up in 2007 because of a shakeup of many highly leveraged transactions over the last several years, according to a Tuesday news release.

According to the release, 40% of respondents agreed somewhat that corporate bankruptcies will rise, while an additional 27% agreed strongly that corporate bankruptcies would climb in 2007 despite a drop-off that brought public company filings last year to levels not seen since 1996.

ABI said there were 86 public company filings in 2005, down from a high of 263 in 2001.

Conversely, 19% of respondents disagreed that corporate bankruptcies would rise again in 2007, 11% strongly disagreed and 8% disagreed somewhat.

A total of 14% of the respondents did not know or had no opinion on the issue.

This latest ABI Quick Poll was open to the public for voting from July 28 to Aug. 3.

ABI is an Alexandria, Va., multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.