Tobacco giant Pyxus International, Inc. has filed for bankruptcy, citing COVID-19-related supply chain disruptions and an overall decline in cigarette sales and consumption.
One of the world's largest suppliers of tobacco, the Morrisville, N.C.-based company had been on our subscribers' radar for more than a year, as their FRISK® score had been rooted at a "1" since the start of 2019:
Relying on tobacco farming from more than 300,000 farmers from 30 countries, the coronavirus' impact on global trade hit Pyxus International quite hard - yet the real story was their rapid accumulation of debt, which stood at $1.3 billion USD in March of 2020.
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CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.
In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.
Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.