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Dozens of large American companies have filed for bankruptcy and this news is also giving Romanian investors chills.
Despite massive state aid, bankruptcy filings from large companies increased 244 percent in July and August from the same period in 2019, according to Jefferies Investment Bank. Some companies, like JC Penney, managed to save the business and avoid bankruptcy, but fate did not make everyone smile.
And growing bankruptcy lawsuits show that despite the return to Wall Street, the pandemic has hit businesses, workers and shareholders hard. “There are many companies that are suffering. We are working non-stop. We have not even reached the end, unfortunately. We will see the real figures when the government no longer provides state aid. We expect problems to arise due to lack of liquidity.” Joseph Acosta, a bankruptcy specialist at a law firm, told CNN.
And sadly, the State Protection Program can only postpone the inevitable. “I will continue until it is no longer possible. But the situation will get worse,” Acosta said.
Specialists in Romania, warning signs
“We destroyed the past as it was and we were satisfied with a certain state, which means, in the end, a certain bankruptcy. How can we see it? I am with the economy and I give you an indicator, I give you an indicator that shows the situation we are in and that will lead us to ruin: the trade balance, which shows that we are a country that does not produce as much as we eat, as much as we dress, as much as we consume and that we live on service. Development would have been based on a classic concept of about 200 years ago, developing by ourselves, of what we are now talking about liberals, means taking control at a more advanced level of productivity and efficiency of the resources you have. After all, that’s the economy. Does Romania have resources? Of course you have resources. Do you process them? It doesn’t process them, no, ”stated Mircea Coşea.
SEE Mircea Coșea, Devastating: Insuring Bankruptcy. We go downhill, we live on service!
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