Pandemic Continues to Bring Increases to Chapter 11 Filings. See the press release.
For the fourth quarter of 2020, the Polsinelli|TrBK Distress Indices generally showed an increase in the Chapter 11 Distress Index by 5 points and a decrease in the Real Estate Distress Index and Health Care Services Distress Index of 1 point and 51 points respectively. The indices are contrarian indicators of economic performance, so that a low index value is likely to occur in a strong economy, and a higher index value is likely to occur when financial distress is escalating. The rise in the fourth quarter Chapter 11 Index indicates a decline in economic performance or more economic distress. This fact that the Distress Indices are moving in different directions suggests turmoil in the US economy.
Polsinelli|TrBK Distress Indices released the 4th Quarter 2020 Report on February 15, 2021. The indices use filtered Chapter 11 filings as a proxy for distress in the overall U.S. economy and certain subsectors. The summary of the data for the fourth quarter of 2020 is below.