Middle-Market Business Bankruptcies to Substantially Increase in 2007 According to Latest ABI Poll
MIDDLE-MARKET BUSINESS BANKRUPTCIES TO SUBSTANTIALLY INCREASE IN 2007, ACCORDING TO LATEST ABI POLL
January 12, 2007, Alexandria, Va. — A strong majority (71 percent) of respondents in a recent American Bankruptcy Institute online poll agreed that bankruptcies for middle-market businesses, such as private companies, family businesses and smaller listed companies, will substantially increase in 2007. Twenty-seven percent of respondents “agreed strongly” and another 44 percent “somewhat agreed” that middle-market business bankruptcies will substantially increase this year.
Twenty-one percent of respondents disagreed that middle-market business bankruptcies will substantially increase in 2007. Fifteen percent of respondents “disagreed somewhat,” while six percent “disagreed strongly” that business bankruptcies in the middle market will substantially increase in 2007. Seven percent did not know or had no opinion on the issue.
Business bankruptcies were down in 2006, owing to a strong economy, low interest rates and excess liquidity via hedge funds and other sources. The decline has led to much speculation on when the next restructuring “boom” will occur.
ABI members and members of the public were welcome to submit their response to the statement: “Business bankruptcies in the middle market will increase substantially in 2007.” The latest ABI Quick Poll was open for voting from Jan. 5 - Jan. 11.
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.
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.