{"id":165308,"date":"2025-09-24T07:32:14","date_gmt":"2025-09-24T07:32:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/165308\/"},"modified":"2025-09-24T07:32:14","modified_gmt":"2025-09-24T07:32:14","slug":"debt-overload-creeps-into-corporate-america","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/165308\/","title":{"rendered":"Debt overload creeps into corporate America"},"content":{"rendered":"<p>Fears are rising of a corporate debt wipeout as lenders scramble to fix a pair of companies in the car economy. Parts supplier First Brands is <a href=\"https:\/\/www.ft.com\/content\/003012bb-43ef-426a-8631-4ef6bb09c229\" class=\"styles_linkEmbed__SNmaX\" rel=\"noopener nofollow\" target=\"_blank\">over its skis<\/a> on a $6 billion debt pile and an additional, murky pile of off-balance sheet debt, days after a dealership catering to subprime buyers filed for Chapter 11. More US companies <a href=\"https:\/\/www.spglobal.com\/market-intelligence\/en\/news-insights\/articles\/2025\/8\/july-us-corporate-bankruptcy-filings-hit-highest-monthly-total-in-5-years-91873904?utm_source=semafor\" class=\"styles_linkEmbed__SNmaX\" rel=\"noopener nofollow\" target=\"_blank\">went bankrupt in July<\/a> than in any month since 2020, offering some proof that corporate America\u2019s borrowing binge couldn\u2019t long survive this era of higher interest rates.<\/p>\n<p><img alt=\"A chart showing year-to-date US corporate bankruptcies until the end of July 2025.\" loading=\"lazy\" width=\"800\" height=\"760\" decoding=\"async\" data-nimg=\"1\" class=\"styles_imageEmbed__QsLwb styles_fullContentArea__zXct_\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/9f21663c7ab5dc679f350aad3ddc342fed69b98d-1960x1864.png\"\/><\/p>\n<p>Investors (and journalists!) often look for patterns where none exist, so hold the panic. But financial irregularities \u2014 which appear to be a factor in both companies\u2019 struggles, as the Justice Department reportedly investigates Tricolor and Deloitte does triage on First Brands\u2019 accounting \u2014 <a href=\"https:\/\/business.missouri.edu\/about\/news\/recession-looming-look-accounting-fraud-answers\" class=\"styles_linkEmbed__SNmaX\" rel=\"noopener nofollow\" target=\"_blank\">tend to be a bad sign for the economy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Fears are rising of a corporate debt wipeout as lenders scramble to fix a pair of companies in&hellip;\n","protected":false},"author":2,"featured_media":165309,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-165308","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/165308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=165308"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/165308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/165309"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=165308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=165308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=165308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}