With the aftereffects of the 2008 recession, 2014 has not been a good year for many a company. These eight major companies have known the worst of it, as they were forced to file for bankruptcy this past year.
1. Energy Future Holdings Corp.
In April, this company filed for one of the largest chapter 11 bankruptcies in corporate history. The largest power company in Texas, Energy Future came to bankruptcy status because of a natural gas boom that caused a collapse in energy prices.
2. NII Holdings, Inc.
When this investment company was forced to file for chapter 11 bankruptcy, they had more than four billion dollars in debt and several past bankruptcy warnings. Deteriorating performance within the company caused a series of missed payments, leading to the filing of bankruptcy in September.
3. Genco Shipping & Trading Ltd
This operator of dry-bulk cargo ships voluntarily filed for chapter 11 bankruptcy in April after a weakness in charter rates made it difficult to pay the company’s creditors. The company owed a significant amount of debt because of an excess of vessels that were purchased right before the 2008 recession hit (which made it impossible to pay the creditors as planned).
4. Momentive Performance Materials Inc.
In April, this manufacturer of silicone and quartz products filed for chapter 11 bankruptcy. Luckily for them, they were able to reorganize their finances, and in October, they emerged from the bankruptcy period. The company initially filed with an estimated four million in debt and emerged having paid off three million of it.
5. USEC Inc.
USEC was a large supplier of enriched uranium for nuclear power plants. They were forced to file bankruptcy in March after a collapse in uranium prices, which steadily dropped nearly 46 percent following the tsunami that crippled the Fukushima nuclear power plant in Japan.
6. Eagle Bulk Shipping Inc.
Genco wasn’t the only bulk cargo shipping company to suffer from the price collapse. Eagle Bulk also experienced a significant hit, causing them to file for bankruptcy in August. Their $950 million in assets wasn’t quite enough to cover the $1.2 billion they held in debt.
7. Endeavor International Corporation
A U.S. oil and gas exploration company with operations based in the North Sea, Endeavor International filed bankruptcy, largely as a result of natural disasters and operational difficulties. The company is currently working with creditors to restructure and pay off its debt of $1.2 billion.
8. First Mariner Bancorp
The company filed for bankruptcy in early February in order to sell its bank subsidiary. If the sale is successful, the company will enjoy a $100 million increase, which will help them pay off their debt and strengthen their holdings in Maryland community banks.