Banks Encourage More Bankrupt Companies to Liquidate

More than 100,000 companies—about one in every 270 American businesses—have landed in bankruptcy court since the downturn began 18 months ago, according to data compiled by Oklahoma City-based Jupiter eSources, which tracks bankruptcy filings through its AACER database.

With a 40% annual increase in bankruptcies, some banks are encouraging companies to liquidate their assets rather than launch turnaround plans. Two reasons for the push: Consumer spending is expected to continue to lag, and credit remains tight. BusinessWeek