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John Penn in Law360: Commercial Bankruptcies Slip 22% in 2012, ABI
The American Bankruptcy Institute on Wednesday said U.S. commercial bankruptcy filings were down 22 percent in the first three quarters of 2012 against the same span last year, citing persistent low interest rates, though experts say the unusual length of the economic slump and other factors may be at work as well.
According to Alexandria, Va.-based ABI, this year has seen 44,750 business bankruptcy filings through September, compared with 57,613 for the same nine months in 2011. The data, compiled by Epiq Systems Inc., also show an 11 percent decline in Chapter 11 bankruptcies, ABI said...
Against this backdrop, debtors are less likely to face a “triggering event” leading to a bankruptcy — such as a foreclosure action, asset seizure by a creditor or a sharp drop in available cash, according to John Penn of Haynes and Boone, LLP.
“The economy is just bumping along, not being too hot or too cold, so there is nothing that is really driving any kind of triggering events,” he said.
Excerpted from Law360, October 4, 2012. To view full article, click here (subscription required).