Bankruptcy Risk in the Supply Chain

摘要

On Jan. 29,2018, Rand Logistics Inc., one of the largest bulk freight shipping providers in the Great Lakes region, filed for bankruptcy. The CreditRiskMonitor FRISK score had warned of financial stress at the company for more than a year. This meant that there was ample time for their customers to make other plans or switch carriers, and plenty of alternatives because the rest of the water transportation industry has maintained a steadv FRISK score over the last year. Other indicators such as free cash flow and debt to equity ratios also signaled trouble on the horizon from Rand Logistics. In fact, the company issued a press release in November 2017 that a Chapter 11 filing was imminent as part of a restructuring support agreement with private equity firm American Industrial Partners (AIP), who acquired Rand on March 1,2018.