US corporate bankruptcies showed no signs of slowing in September, closing out the quarter with the most bankruptcies so far in 2023.
S&P Global Market Intelligence recorded 62 bankruptcy filings in September, bringing the third quarter's total to 182. September's total was up from a revised 56 bankruptcies in August as expectations for the Fed to maintain its benchmark interest rate at a higher level for longer than previously anticipated added to economic pressures.
Notable filings
Oral care company SmileDirectClub Inc., which manufactures clear aligners and facilitates clinical monitoring through its teledentistry platform, sought bankruptcy protection Sept. 29. The company plans to recapitalize and strengthen its financial position through a transaction, with its founders committing to an investment of at least $20 million and up to $60 million in capital additionally available "upon satisfaction of certain conditions, including the favorable conclusion of a marketing process."
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Capstone Green Energy Corp. filed for bankruptcy Sept. 28 to reduce the company's debt and improve liquidity. Through the restructuring, the manufacturer of microturbines intends to become a private company while subsidiary Capstone Turbine International Inc will be renamed and act as the company’s successor for SEC reporting and other purposes, according to a company statement.
SmileDirectClub was the only company with over $1 billion in liabilities to file for bankruptcy protection in September, down from two in August.
Sector breakdown
Healthcare saw the most bankruptcies for a second consecutive month in September, bumping the sector into second place on total year-to-date filings for 2023.
The consumer discretionary sector recorded an additional seven bankruptcies, while six industrials companies sought bankruptcy protection in September.
Leading states
California and Texas each added five bankruptcies in September, bringing their totals to 1,200 and 978 filed since 2010, respectively.
Florida and Massachusetts both recorded six companies filing for bankruptcy protection over the month, raising their total bankruptcy counts to 582 and 130, respectively. Most other states saw fewer than two bankruptcies in September.
This Data Dispatch is updated on a regular basis. The last edition was published Sept. 12.
Bankruptcy figures include public companies or private companies with public debt with a minimum of $2 million in assets or liabilities at the time of filing, in addition to private companies with at least $10 million in assets or liabilities. S&P Global Market Intelligence may remove companies from this list if it discovers that their total assets and liabilities do not meet the threshold requirement for inclusion.
