The firms that can't stop falling

摘要

At last, a new growth industry in America: corporate bankruptcy. Last year, 95 big, publicly owned companies filed to restructure themselves under Chapter 11 of America's bankruptcy code. Failing telecoms firms, energy traders and airlines should set fresh records this year. This week, UAL, the parent company of United Airlines, hastily hired a new boss as it struggled to stay out of bankruptcy. Of the ten biggest bankruptcies since America introduced the modern version of Chapter 11 in 1978, seven are in the courts now. These warm bodies promise years of feasting for the lawyers, accountants, financial advisers, public-relations firms and consultants who specialise in the "restructuring" business. For a typical filing, this industrious little cottage industry can expect to leech fees worth 1-2% of a bankrupt company's assets. By this yardstick, America's bankruptcy industry could book sales of $6 billion this year.