At least five new companies have either filed for Chapter 11 Bankruptcy protection or defaulted on loans during the week of July 20 – July 24, 2020. These filings and defaults caused credit issuers to lower ratings for all five companies. The Consumer Discretionary sector saw the majority of defaults this week.
Sources: S&P, Moody’s, The Buttonwood Tree
Briggs & Stratton Corp., a manufacturer of small gasoline engines, filed for a bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The company has around $677.5 million of debtor-in-possession financing that will help fund operations during ongoing bankruptcy proceedings. Accordingly, credit issuers have lowered the company’s credit rating to D.
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