Column chart showing the sum of pre-petition assets of top 20 public company bankruptcies from 1945 to 2008. Assets reach 28,365 in 1995, 15,057 in 1996, 19,439 in 1997, 32,380 in 1998, 62,253 in 1999, 78,200 in 2000, 235,752 in 2001, 393,868 in 2002, 84,249 in 2003, 45,211 in 2004, 140,099 in 2005, 21,431 in 2006, 70,264 in 2007, and 1,137,568 in 2008, all in million constant US dollars, 2008 = 100.

The value of the assets destroyed by the 20 largest company failures could be a pointer to the economy setbacks. The total for 2008 represents about 89% of the sum of the GDP (gross domestic product) of Finland, Norway and Sweden taken together.
The 2000-2002 peaks follow the burst of the Internet bubble, and the 11 September Twin Towers attack.
The 2005 peak coincides with the catastrophic consequences of the late 2004 Asian tsunamis and the devastating hurricanes Katrina and Rita.
The out-of-scale 2008 peak betrays the appalling meltdown of the world economy following the subprime financial crisis.

 

Total value destroyed by the 20 top bankruptcies, 1995-2008

Year

Sum of pre-petition assets of top 20 public company bankruptcies
million current US$ million constant US$ (2008=100)
1995 21,388 28,365
1996 11,569 15,057
1997 15,184 19,439
1998 25,573 32,380
1999 49,877 62,253
2000 64,019 78,200
2001 197,630 235,752
2002 335,943 393,868
2003 73,388 84,249
2004 40,514 45,211
2005 129,642 140,099
2006 20,470 21,431
2007 68,921 70,264
2008 1,137,568 1,137,568

 

Source: see BankruptcyData

 

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