US corporate bankruptcies have surged to their highest levels since the aftermath of the global financial crisis, as persistently high interest rates and weakened consumer demand place severe pressure on struggling businesses. At least 686 companies filed for bankruptcy in 2024, an 8% increase from the previous year and the highest number since 2010, according to S&P Global Market Intelligence.
Out-of-court restructuring efforts aimed at avoiding insolvency have also risen, outpacing formal bankruptcies two-to-one, Fitch Ratings reported. These liability management exercises often delay rather than solve underlying operational challenges, leaving many…
