[ad_1]
Expecting relief on the economic front, the world is going to be disappointed. After the US Banking Crisis in America, now many companies are facing the threat of bankruptcy. This has come to the fore in a recent report by Bloomberg.
Bankruptcy coming out of these big names
According to the report, 7 US companies, including media firm Vice Media LLC and home security company Monitronics International Inc, are preparing to be declared bankrupt. These companies have applied under the Bankruptcy Protection Act of America in the last one or two days. These companies say that due to the rapid increase in interest rates in the last one year, they have to face the problem of credit crunch.
These companies sought protection
It has been said in the report that when the interest rates were low, these companies took huge amount of loans. Now after increasing the interest rates, they are reeling under the burden and all efforts to restructure are being shelved. According to Bloomberg, companies that have filed under the bankruptcy protection law include KKR’s Envision Healthcare Corp, UK chemical producer Venator Materials Plc, oil company Cox Operating LLC LLC), Kidde-Fenwal Inc and Athenex Inc.
Struggling to pay off liabilities
It is being told that almost all the sector companies are struggling in America right now. Due to increase in interest rates, the challenge of funding has come in front of them. They are unable to refinance to pay the outstanding loan installments and bonds. On the other hand, the latest banking crisis has also tightened the funding environment. This is the reason why companies are choosing the path of declaring themselves bankrupt, so that they can get rid of the payment of liabilities for the coming months.
the value was estimated
Some companies which are choosing the path of bankruptcy had got huge valuations. Vice Media raised $450 million in funding from TPG in 2017 and was then valued at $5.7 billion. This company is also trying to sell itself. Its potential buyers include names such as Fortress Investment Group, Soros Fund Management and Monroe Capital.
read this also: These 4 countries are taking the world forward, India’s contribution is more than America
[ad_2]
Source link