U.S. Company Bankruptcies Drop More Than 70 Percent From A Year Ago

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NEW YORK (Reuters) - The number of U.S. companies with public stock or debt that filed for bankruptcy protection last month dropped more than 70 percent from a year ago, as companies have benefited from strategies to stay out of court.

In February, just five public companies filed for Chapter 11 or Chapter 7 bankruptcy protection, down from 19 in the same period in 2009, according to BankruptcyData.com.

Those figures were consistent with January, when just 12 companies with publicly held securities filed for bankruptcy, down from 18 a year earlier. Even at the end of last year in December just 11 companies filed, compared with 23 in 2008, BankruptcyData.com said.

Many companies have avoided bankruptcy in the past few months by taking advantage of more robust high-yield debt markets to raise capital, securing agreements from lenders to delay or amend credit agreements, or through debt exchanges that allow companies to cut their debt levels.

However, some experts say these fixes may be only temporary and there are still more bankruptcies to come.

"Last year was like a tsunami, but this next phase will be more like a rising tide; consistent and steady," William Snyder, a managing partner with turnaround firm CRG Partners, said in a statement.

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http://www.reuters.com/article/idUSTRE6205F520100301