Releases

In a possible sign of further economic recovery, just five public companies filed for Chapter 11 or Chapter 7 bankruptcy protection last month, down from a total of 19 filings in February 2009. Those figures continue a consistent decline in such filings from the previous two months. "While we're seeing this pattern, you have to view these statistics with caution," says Rhett Campbell, head of the bankruptcy section in the Houston office of Thompson & Knight. "Some cash-starved companies are avoiding bankruptcy by raising capital through high-risk, high-yield sources and others are working with lenders to delay debt payments and change credit agreements. While the mega-corporations may have weathered the storm, many other publicly held companies with fewer tangible assets remain at risk in a volatile market." To interview Mr. Campbell on bankruptcy-related matters, contact Barry Pound at 800-559-4534 or barry@androvett.com.