Corporate Bankruptcies Down, But For How Long?

Law360, New York (February 1, 2006, 12:00 AM EST) -- Corporate bankruptcies plunged last year to the lowest level since 1997, marking the fourth year in a row that Chapter 11 filings have declined. But some experts warn the low tide is funded in part by hedge funds, and that a liquidity crunch could cause a sharp rise in bankruptcies in the future.

The number of publicly traded companies that declared bankruptcy last year dropped to 86 in 2005 from 92 in 2004, according to a survey released Wednesday by bankruptcydata.com.

But despite the drop in...
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