Before the Covid-19 outbreak, from late 2019 to early 2020, the market was already witnessing a significant increase in the number of companies applying for court-supervised insolvency proceedings, including bankruptcy, an insolvent liquidation proceeding, and rehabilitation, a proceeding somewhat akin to a Chapter 11 bankruptcy proceeding in the US. The number of distressed companies was significantly higher in 2019 compared to 2018. This trend can be partly attributed to the impact that recent failures of large corporations, notably in shipping and shipbuilding, have had on their vendors and suppliers, most of which were small and medium-sized enterprises (SMEs). SMEs was the category of debtor that made up the brunt of bankruptcy …
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