NEW YORK (Reuters) - Corporate defaults are going to rise dramatically this year, a top executive in the turnaround business said on Tuesday, predicting the pain will be worst in the transport, automotive, housing, retail and construction businesses.
"There is no question that there is going to be an increase in defaults this year," said Peter Fitzsimmons, co-president of AlixPartners, which has successfully advised National Car Rental Systems, Oxford Health Plan, and Zenith Electronics on restructuring.
Industry experts expect bank and corporate loan defaults to rise to about 4 percent in 2008 from less than 1 percent last year.
The trucking sector in particular may feel the agony and face fresh defaults as companies face higher energy costs and slowing economic growth.
(For summit blog: summitnotebook.reuters.com/)
(Reporting by Svea Herbst-Bayliss; Editing by Braden Reddall/Jeffrey Benkoe)
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