Bankruptcy news: 21 companies hit the hardest so far in 2020.
COVID-19, or the Chinese Virus as some call it, is creating a massive storm of bankruptcies throughout the U.S.
Some businesses now find themselves struggling to stay afloat and are forced to file for Chapter 11 bankruptcy.
Barclays chief U.S. economist Michael Gapen recently said:
I think what you’re seeing is what we’ll call the prolonged washout from COVID
Yahoo Finance
The virus is showing no sign of slowing down – with more bankruptcies announced everyday.
That said, here are 21 bankruptcies you should know about.
The Hertz Corporation
Category: Automotive
Year founded: 1918
The Hertz Corporation is a car rental company that operates in 150 countries, including North America, Latin America, Europe and others. The company was founded in 1918 by Walter L. Jacobs. On April 30, 2020, Hertz announced they were attempting to avoid bankruptcy after missed lease payments on its fleet. Hertz recently stated they are seeking to raise up to $1 billion in new equity.
Latam Airlines Group S.A
Category: Aviation
Year founded: 2012
Airline holding company, Latam Airlines Group S.A, recently filed for bankruptcy in the U.S. on May 26, 2020. The airline holdings group filed for bankruptcy due to the COVID-19 pandemic. The company is the largest airliner in Latin America.
Frontier Communications Corporation
Category: Telecom
Year founded: 1935
United States telecommunications giant, Frontier Communications Corporation, filed for bankruptcy on April 14, 2020. The company offers broadband Internet services, television, and computer technical support to residential/business customers in 29 states.
Intelesat S.A.
Category: Telecom
Year founded: 1964
Intelesat is a satellite communications provider, providing international broadcasting services. The company filed for bankruptcy protection on May 13, 2020. According to public documents, they hope to restructure the company and raise capital to launch a new satellite technology by 2022 – 2023.
McDermott International, Inc
Category: Oil & Gas
Year founded: 1923
McDermott International is a global engineering and construction company that operates in North America and the Middle East, primarily in the oil and gas industry. McDermott filed for bankruptcy January 21, 2020.
Update: July 13, 2020.
McDermott exits bankruptcy after shedding $4.6 billion in debt.
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Chapter 11 Bankruptcy
Chapter 11 bankruptcy is often referred to as a “reorganization” bankruptcy, and if that name seems to take a rather light tone with a serious financial situation, it’s because Chapter 11 doesn’t necessarily spell financial ruin for businesses that handle the situation tactfully.
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J.C. Penney
Category: Retail
Year founded: 1913
Department store giant, J.C. Penney declared bankruptcy protection on May 15, 2020. With over 840 locations in 49 U.S. states and Puerto Rico, the company recently announced that there would be an additional 242 store closings.
Whiting Petroleum Corporation
Category: Oil & Gas
Year founded: 1980
Whiting Petroleum Corporation is one of the largest companies engaged in hydrocarbon exploration in the United States. On April 1, 2020 the company announced their bankruptcy in the state of Texas due to the 2020 Russia–Saudi Arabia oil price war.
Neiman Marcus Group LTD LLC
Category: Retail
Year founded: 1907
Neiman Marcus is a chain of luxury department stores with company headquarters located in Dallas, Texas. In April 2020, the company was in preparations to submit bankruptcy documents. In March, Neiman Marcus Group laid off 14,000 employees.
Avianca Holdings S.A. (2020)
Category: Aviation
Year founded: 2010
Avianca and TACA airlines merged to form one airline in February 2010. Avianca Holdings operates in over 100+ destinations throughout America and Europe. The company recently claimed bankruptcy protection on May 10, 2020 after not being able to pay bond holders due to the COVID-19 pandemic.
Diamond Offshore Drilling, Inc
Category: Oil & Gas
Year founded: 1964
Offshore drilling contractor, Diamond Offshore Drilling, located in Katy, Texas, has filed for bankruptcy. The oil and gas industry took a major hit during the COVID-19 pandemic sweeping the world, with several oil and gas companies filing for protection.
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Chapter 11 Bankruptcy
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Extraction Oil and Gas, Inc
Category: Oil & Gas
Year founded: 2012
Extraction Oil and Gas, Inc is an energy exploration company headquartered in Denver, Colorado. Their main focus is on crude oil, natural gas, and NGL exploration and development.
Hornbeck Offshore Services, Inc
Category: Oil & Gas
Year founded: 1980
Hornbeck Offshore provides marine services and logistics to the offshore oil and gas industry. With more than $1.2 billion in debt as of May 2020, the company has filed for protection.
Foresight Energy LP
Category: Oil & Gas
Year founded: 2004
Foresight Energy is a mining company that has one of the largest holdings of coal reserves in the United States — with 2.1 billion in coal reserves. Foresight Energy filed for bankruptcy on March 10, 2020.
Unit Corporation
Category: Oil & Gas
Year founded: 1963
Unit Corporation is an energy company in the oil and gas industry focused on the exploration and production of oil and gas. On May 22, 2020, Unit Corporation announced their intent to file for bankruptcy.
CEC Entertainment, Inc (Chuck E. Cheese’s)
Category: Restaurant
Year founded: 1977
Chuck E. Cheese is a chain of entertainment centers and American restaurants owned by CEC Entertainment. Restaurants have been hit especially hard amid the coronavirus epidemic in 2020. And it’s not just local restaurants – the big chains are seeing a drop in revenue. The lockdowns due to the pandemic are the main cause. The company is in debt an estimated $1–2 billion dollars. On June 25, 2020, CEC Entertainment filed for a corporate restructure.
Stage Stores, Inc (2020)
Category: Retail
Year founded: 1992
Stage Stores has historically operated large national retail chains in the Uniteed States Bealls, Palais Royal, Peebles, Stage, and Goody’s. Now operating under the Gordman’s brand, the company was forced to restructure to handle a massive increase in debt.
LSC Communications, Inc
Category: Publishing
Year founded: 2016
LSC Communications is the largest book publisher in the United States. LSC Communications declared bankruptcy in 2020 amid the COVID-19 pandemic, which caused damaging financial issues.
Chinos Holdings, Inc (J. Crew)
Category: Retail
Year founded: 2010
Chinos Holdings, Inc is a holding company for multi-national retailer J.Crew Group, Inc. J.Crew is a clothing retailer with several locations throughout the United States and also located in malls around the world. Chinos Holdings Group, Inc officially filed for bankruptcy protection on May 4, 2020.
Quorum Health Corporation
Category: Healthcare
Year founded: 1985
Quorum Health Corporation invests capital into local community hospitals and provides operational management services to help hospitals navigate the complex and ever changing healthcare landscape. On April 7, 2020, Quorum Health Corporation announced their intent to file for corporate bankruptcy protection, with the goal of reducing its debt by $500 million.
Chesapeake Energy
Category: Oil & Gas
Year founded: 1989
Chesapeake Energy is a hydrocarbon exploration company in the United States. On June 28, 2020, Chesapeake Energy became financially stressed due to the massive drop in oil and gas prices and declared bankruptcy.
Liabilities | Industry | |||
January 21, 2020 | McDermott International, Inc | $8,754,000,000 | $9,863,000,000 | Oil and Gas |
May 10, 2020 | Avianca Holdings S.A. (2020) | $7,273,900,000 | $7,268,700,000 | Aviation |
May 15, 2020 | J.C. Penney | $7,989,000,000 | $7,160,000,000 | Retail |
May 7, 2020 | Neiman Marcus Group LTD LLC | $7,545,903,000 | $6,786,722,000 | Retail |
April 1, 2020 | Whiting Petroleum Corporation | $7,636,700,000 | $3,611,800,000 | Oil and Gas |
May 22, 2020 | The Hertz Corporation | $25,842,000,000 | $24,355,000,000 | Automotive |
April 14, 2020 | Frontier Communications Corporation | $17,433,201,422 | $21,855,602,151 | Telecom |
May 4, 2020 | Chinos Holdings, Inc (J. Crew) | $1,599,300,000 | $2,949,700,000 | Retail |
April 26, 2020 | Diamond Offshore Drilling, Inc | $5,834,044,000 | $2,601,834,000 | Oil and Gas |
June 14, 2020 | Extraction Oil and Gas, Inc | $2,926,957,000 | $2,242,581,000 | Oil and Gas |
May 18, 2020 | Centric Brands, Inc | $1,855,722,808 | $2,014,385,923 | Apparel |
May 25, 2020 | Latam Airlines Group S.A | $21,087,806,000 | $17,958,629,000 | Aviation |
May 14, 2020 | Intelesat S.A. | $11,651,588,000 | $16,805,844,000 | Telecom |
July 12, 2020 | Chesapeake Energy | $16,200,000,000 | $11,800,000,000 | Oil and Gas |
June 24, 2020 | CEC Entertainment, Inc (Chuck E. Cheese’s) | $1,743,518,039 | $1,998,548,744 | Restaurant |
March 10, 2020 | Foresight Energy LP | $2,385,563,000 | $1,877,628,000 | Mining |
April 13, 2020 | LSC Communications, Inc | $1,649,000,000 | $1,721,000,000 | Publishing |
April 13, 2020 | Quorum Health Corporation | $1,574,100,000 | $1,646,700,000 | Healthcare |
May 19, 2020 | Hornbeck Offshore Services, Inc | $2,691,806,000 | $1,493,912,000 | Oil and Gas |
May 22, 2020 | Unit Corporation | $2,090,052,000 | $1,034,417,000 | Oil and Gas |
May 10, 2020 | Stage Stores, Inc (2020) | $1,713,713,000 | $1,010,210,000 | Retail |
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Conclusion
With several companies filing for bankruptcy this year due to the pandemic, there will likely be more companies that follow suit, as the number of coronavirus cases continue to increase.
Follow GoLoans for more information on the latest Chapter 11 bankruptcies.
Brian Allen
Editor-in-Chief
Brian Allen has been helping people make smarter financial decisions for over 10 years. As the Editor-in-Chief for Goloans, Brian writes about sage financial advice, “how to” articles, and reviews about lenders and creditors.
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