NEW YORK, Sept. 07, 2022 (GLOBE NEWSWIRE) -- Although general distress remains low compared to prior years, there are emerging signs that filings are starting to pick up, as detailed in the newest Polsinelli-TrBK Distress Indices Report.
“We have yet to see the effects of the economic issues we are facing, as they don’t take effect immediately. People need time to find solutions to inflation and rising interest rates, and those solutions may involve filing for bankruptcy. We anticipate that the bankruptcy filing numbers will continue to increase, especially in the real estate industry, as we finish 2022,” said Polsinelli Shareholder Jeremy Johnson, a bankruptcy and restructuring attorney and co-author of the report.
The Polsinelli-TrBK Distress Indices are the backbone of a quarterly research report series that uses Chapter 11 filing data – bankruptcies with more than $1 million in assets – as a proxy for measuring financial distress in the overall U.S. economy and breakdowns of distress specifically in the real estate and health care services sectors. It is the only current measurement that tracks both Main Street and Wall Street statistics.
Other significant updates in the report include:
- The Chapter 11 Distress Research Index was 29.75 for the second quarter of 2022. The Chapter 11 Index decreased less than one point since the last quarter. Compared with the same period one year ago, the Index has decreased over 36 points and compared with the benchmark period of the fourth quarter of 2010, it is down over 70 points.
- The Real Estate Distress Research Index was 19.98 for the second quarter of 2022. The Real Estate Index increased less than one point since the last quarter. Compared with the same period one year ago, the Index has decreased over two points and compared with the benchmark period of the fourth quarter of 2010, it is down over 80 points.
- The Health Care Services Distress Research Index was 213.33 for the second quarter of 2022. The Health Care Index decreased over eight points since the last quarter. Compared with the same period one year ago, the Index has increased 150 points and compared with the benchmark period of the fourth quarter of 2010, it is up over 113 points. After a few quarters during the pandemic with low filing numbers, distress in health care has returned to close to pre-pandemic levels.
The Polsinelli-TrBK Distress Indices track the increase or decrease in all Chapter 11 filings with more than $1 million in assets since the fourth quarter of 2010. Unlike the public markets, the Polsinelli-TrBK Distress Indices include both public and private companies, creating a broader economic view and one that may show developing trends on Main Street before they appear on Wall Street.
To access the full report, graphs and all past analyses, visit www.distressindex.com.
About Polsinelli
Polsinelli is an Am Law 100 firm with 950 attorneys in 23 offices nationwide. Recognized by legal research firm BTI Consulting as one of the top firms for excellent client service and client relationships, the firm’s attorneys provide value through practical legal counsel infused with business insight, and focus on health care, financial services, real estate, intellectual property, middle-market corporate, labor and employment and business litigation. Polsinelli PC, Polsinelli LLP in California.
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