Aluminum recycling company Real Industry, Inc. filed for Chapter 11 bankruptcy protection on November 17, 2017. While some analysts believed the company would survive, CreditRiskMonitor's FRISK® score indicated elevated bankruptcy risk for 10 months leading up to the restructuring. Crowdsourced subscriber data was an important factor that helped signal extreme distress as credit managers displayed research patterns of concern.
This Bankruptcy Case Study provides a post-mortem review of the company's deteriorating financial condition. For example, a litany of concerning headlines, offered within the CreditRiskMonitor service, also illustrated the warning signs that subscribers were alerted to well in advance of the bankruptcy.
About Bankruptcy Case Studies
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.