Although the US economy is performing well, the largest bankruptcies in 2014 are proof that business is not booming for everyone. Some businesses did not manage to survive the year, filing for bankruptcy after realizing they had no other option but to give up. Of course this is a shame for the companies involved, as well as for their former employees, who are going to have to find new jobs.
Some might wonder what factors brought about the largest bankruptcies of the current year, and if they could have been avoided somehow. Well, the reasons businesses fail are various, but in most cases, an excessive debt-burden and a lack of ability to meet payment obligations are the main factors that force companies to close shop. Regarding what could have been done to avoid this situation is another matter completely. After all, it is simply the natural flow of capitalism, which requires some firms to fail, while others enjoy success. If this were not the case, then everyone would start their own business, whilst there would be no motivation to improve, expand, or invest.
Entrepreneurs are always aware of the risk they are taking when pouring their hard-earned money into a company. Thus, those who invested in the firms which experienced the largest bankruptcies in 2014, cannot act like they were unaware of the stakes. Naturally, everyone likes to keep their hopes high and not contemplate the worst-case scenario, yet this does not translate to an absence of risk.
In a previous article we presented you with the 12 largest bankruptcies in US history, and due to the interest it provoked amongst readers, we decided to make a more specific list. Hence, it is time to focus on the present and let you know which were the largest bankruptcies in 2014. The following ranking was determined according to the sum of the pre-petition assets belonging to the firms involved, and includes companies from a wide range of industries. Although this might not be the brightest of topics, we still hope to interest you in learning more about the firms presented on the list.
10. GT Advanced Technologies Inc.
The first company on our list of largest bankruptcies is GT Advanced Technologies, which is an electronics equipment manufacturer that used to trade on the NASDAQ. Before filing for bankruptcy in June, the firm had assets worth more than $1 billion.
9. James River Coal Company
The coal industry is not what it used to be, especially since environmental regulations have made it much harder to make profits. James River Coal Company is just one of the many coal producers who have gone out of business over the past few years.
8. First Mariner Bancorp
First Mariner Bancorp had $1.4 billion in assets before it voluntarily filed for bankruptcy in early October. As we know from the 2008 financial crisis, even the banking industry is not immune to failure.
7. Endeavour International Corporation
Although most people view oil and gas production as a highly profitable industry, not all firms manage to stay afloat. Endeavor International Corporation, which was valued at $1.5 billion, is one such company.
6. Eagle Bulk Shipping Inc.
Despite owning a large and modern fleet of vessels, Eagle Bulk Shipping was unable to survive 2014, declaring itself bankrupt in June. Apparently it takes more than expensive assets to make it in the ocean transport business.
5. USEC Inc.
One rarely hears about companies dedicated to the enrichment of uranium, and one surely wouldn’t expect them to go bankrupt. Nevertheless, USEC has done exactly that, and was forced to sell the $2.2 billion it had in assets.
4. Momentive Performance Materials, Inc.
The reason this silicone product manufacturer went bust is not because it failed to deliver. The firm is actually organized as two separate entities, and a restructuring was simply necessary.
3. Genco Shipping & Trading Limited
It seems the shipping industry is getting very competitive, since Genco Shipping & Trading is the second ocean transport firm to make it onto our list. Its bankruptcy dates back to April, when it was forced to sell off the $2.9 billion it had in assets.
2. NII Holdings, Inc.
Although the presence of wireless internet is growing at an accelerated pace, not all providers have managed to profit from this scenario. The $8.6 billion NII Holdings had in assets will no longer serve the telecommunication industry, going straight to debtors instead.
1. Energy Future Holdings Corp.
The largest bankruptcy on our list is that of Energy Future Holdings. This utility provider filed for bankruptcy in late April, after it failed to keep itself, and its $40.9 billion worth of assets, in business.
