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Corporate Bankruptcies Will Increase in 2007 Say Members in Latest ABI Poll

Contact: John Hartgen
             (703) 739-0800
             jhartgen@abiworld.org

 

CORPORATE BANKRUPTICES WILL INCREASE IN 2007, SAY MEMBERS IN LATEST ABI POLL

August 8, 2006, Alexandria, Va. — The majority of respondents (67 percent) to a recent American Bankruptcy Institute online poll agreed that despite a recent sharp drop in public company filings, corporate bankruptcies will be up in 2007 due to a shakeup of many highly leveraged transactions over the last several years. Forty percent “agreed somewhat,” while an additional 27 percent of respondents “agreed strongly” that corporate bankruptcies would climb in 2007 despite a drop-off that brought public company filings last year to levels not seen since 1996. There were 86 public company filings in 2005, down from a high of 263 in 2001.

Conversely, 19 percent of respondents disagreed that corporate bankruptcies would rise again in 2007. Eleven percent “strongly disagreed,” while 8 percent “disagreed somewhat.” Fourteen percent of the respondents did not know or had no opinion on the issue.

ABI membership and members of the public were welcome to submit their response to the statement: “Public company filings dropped last year to levels not seen since 1996. But corporate bankruptcies will be up in 2007 due to a shakeup of many highly leveraged transactions over the last several years.” The latest ABI Quick Poll was open to the public for voting from July 28 – August 3.

ABI’s weekly Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.