Bankruptcy & Restructuring News Headlines for Friday Nov 11, 2022

Here's what we are reading this morning:

WeWork to exit 40 U.S. locations to cut costs, revenue outlook disappoints: WeWork Inc said on Thursday it will exit about 40 locations across the United States and forecast current-quarter revenue below estimates as the flexible workspace provider faces high expenses and a strong U.S. dollar.

CPI Report Live Updates: Inflation Cooled More Than Expected in October - The New York Times: Consumer prices rose 7.7 percent in the year through October, slower than economists anticipated. Stocks jumped at the sign that the Federal Reserve’s campaign to tame inflation was taking effect.

Bankman-Fried seeks $9.4 bln package for FTX rescue-sources | Reuters: Sam Bankman-Fried is seeking to put together a rescue package of up to $9.4 billion for his troubled cryptocurrency exchange FTX, a person with direct knowledge of the matter said on Thursday.

FTX’s Sam Bankman-Fried Says He Is Trying to Raise More Money - The New York Times: Sam Bankman-Fried told employees that he wanted to reinforce his company’s finances after a collapse that is now drawing scrutiny from regulators.

Juul Secures Financing to Avoid Bankruptcy, Plans to Cut 30% of Jobs - WSJ: The vaping company says it will lay off about 400 people after getting a bailout from board members.

Rivian Lost $1.7 Billion in the Third Quarter - The New York Times: The electric truck maker said it had enough cash to fund its operations through 2025.

The Block: Which crypto companies have exposure to FTX?: More than a dozen crypto companies have taken to social media to confirm whether they have exposure to FTX since the exchange’s liquidity crunch came to light.

FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall - WSJ: Crypto exchange FTX lent billions of dollars worth of customer assets to fund bets by its affiliated trading firm, Alameda Research, setting the stage for the exchange’s implosion, a person familiar with the matter said.

The Block: Voyager has no assets on FTX, says deal not done: Voyager's Official Committee of Unsecured Creditors tweeted that Voyager has not transferred any assets to FTX, and confirmed that the company's planned deal to sell its assets to FTX has not been completed. 

Untangling the knotty empire of Bankman-Fried and FTX | Financial Times: The SEC’s post-mortem diagram of Lehman’s corporate structure looks a model of simplicity in comparison

Inside FTX.US, Employees Try to Sell Assets With Sam Bankman-Fried Away - Bloomberg: Assets pitched include Embed, Miami Heat arena naming rights; Bankman-Fried has said FTX.US ‘was not financially impacted’

Ontario Teachers’ statement on FTX: While there is uncertainty about the future of FTX, any financial loss on this investment will have limited impact on the Plan, given this investment represents less than 0.05% of our total net assets.

City of Chester, Pennsylvania, Files For Chapter 9 Bankruptcy: Chester, Pennsylvania, a city just outside of Philadelphia, filed for Chapter 9 bankruptcy in the Eastern District of Pennsylvania Court.

Musk Warns Twitter May Lose Billions Next Year — The Information: Elon Musk told Twitter employees on Thursday the company may have a “net negative cash flow of several billion dollars” next year, adding that “bankruptcy is not out of the question” if the company can’t “bring in more cash than we spend."

Chester’s receiver files for bankruptcy on behalf of the city - WHYY: The hope is Chapter 9 of the U.S. Bankruptcy Code will give Chester protection against creditors while it seeks to fix its growing debts. Doweary’s projections have the city falling into a $46.5 million deficit in 2023 — $39.8 million can be attributed to past due pension payments alone.

Twitter Buyout Loans Get Bid at 60 Cents as Banks Sound Out Investors - Bloomberg: Wall Street banks that lent $13 billion to help fund Elon Musk’s buyout of Twitter Inc. have been quietly sounding out hedge funds and other asset managers for their interest in a chunk of the buyout debt at deeply discounted prices.

FTX Announcement Regarding the Tron Credit Facility – FTX Exchange: We are pleased to announce that we have reached an agreement with Tron to establish a special facility to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets. This functionality will be enabled at 18:30 UTC, November 10, 2022.

Administrative actions against FTX Japan Co., Ltd.: Today, the director of the Kanto Local Finance Bureau issued a request to FTX Japan Co., Ltd.

The Block: FTX Japan ordered by country's financial regulator to suspend operations: Financial regulators have ordered FTX's Japan arm to suspend operations in the country amid its ongoing crisis.

FTX Digital Markets Assets Frozen in the Bahamas - WSJ: The Securities Commission of the Bahamas said that it froze the assets of FTX Digital Markets and related parties and appointed a provisional liquidator.

California Financial Regulator Announces FTX Investigation: California becomes the first state to officially announce an investigation

The Block: BlockFi suspends withdrawals after FTX collapse: BlockFi said it will suspend withdrawals on its platform until it has greater clarity regarding the status of FTX.

FTX US Legal Chief Tells Staff He’s Working to Preserve Platform - Bloomberg: “We should not be optimistic for an outcome that is positive,” Miller wrote. “I’m working with outside advisers to be best prepared to navigate FTX entities to next steps.”

Cancer drugmaker Clovis flags possible bankruptcy | Reuters: U.S. drugmaker Clovis Oncology said on Wednesday it was likely to file for bankruptcy "in the very near term", as the company struggles to sell its cancer drug Rubraca.

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