Ten Big Companies That Are Veering Toward Bankruptcy

Vincent Fernando and Joe Weisenthal
Yahoo! Finance
September 23, 2009

[efoods]From The Business Insider, Sept. 18, 2009:

Despite a few green shoots in the economy and a rocketing stock market, many large companies are still struggling to avoid bankruptcy.

A new report by Audit Integrity identifies some high-profile names “that have the highest probability of declaring bankruptcy among publicly traded firms.”

Which companies appear the worst off? We took the list and removed any company with a market cap under $3 billion. We then ranked the remaining names by a simple measure of the market’s perceived bankruptcy risk – Market Cap (MC) divided by Enterprise Value (EV). The less MC vs. EV, the less residual shareholders’ value (above what debt holders can claim) the market is pricing-in for the company. Thus a lower MC/EV means the market thinks the company is more likely to go bankrupt.

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