More companies backed by private-equity firms filed for bankruptcy in the U.S. in 2022 compared to the previous year, but the total number of restructurings remained relatively low, according to data from S&P Global Market Intelligence.
The... More companies backed by private-equity firms filed for bankruptcy in the U.S. in 2022 compared to the previous year, but the total number of restructurings remained relatively low, according to data from S&P Global Market Intelligence. The share of private equity-backed companies to go bankrupt compared to the total number of bankruptcies increased to 6.6% of total filings in the U.S. in 2022, from 3.5% of the total in 2021.
Until you stop these private equity firms from taking out huge balloon note loans to buyout these companies and then allow them to continue to operate after while wiping the debt off their books the trend will continue. The companies can barely afford the interest payments.