At least three major companies have either filed for Chapter 11 Bankruptcy protection or defaulted on loans during the week of September 21 – September 25, 2020. These filings and defaults caused credit issuers to lower ratings for two out of the three companies. This week the Consumer Discretionary sector has experienced the majority of defaults.
Sources: S&P, Moody's, CNN
Sizzler USA Inc., one of America’s first casual steakhouse chains, has filed for Chapter 11 Bankruptcy. The 62-year-old company hopes to reorganize its balance sheet, after struggling to acquire business under Covid-19 restaurant restrictions. A majority of Sizzler's restaurants are located in California, and six of them have been permanently closed.
Garrett Motion Inc. is a...