Bankruptcy & Restructuring News Headlines for Friday Sep 2, 2022

Here's what we are reading this morning:

Babylon Finance is shutting down: Babylon is a community-led asset management protocol that enables users to create investment clubs and invest in DeFi together.

University Housing Bankruptcies Show Rare Misfires in Hot Market: Luxury college student housing projects, once feared to be in jeopardy at the onset of the pandemic, have since become a magnet for real estate investors—even as some notable properties have stumbled into bankruptcy.

Snap confirms 20% job cuts and announces business restructuring: Snap CEO Evan Spiegel told employees in a memo that the changes were necessary to deal with financial challenges and lower-than-expected growth.

Jobless claims total 232,000, the lowest level in two months: Claims totaled 232,000 for the week ended Aug. 27, a decline of 5,000 from the previous period and the lowest since June 25.

Will Bed Bath & Beyond’s new turnaround plan work any better than the previous one? - RetailWire: Bed Bath & Beyond yesterday went public with the struggling retailer’s new plan to get its business on solid footing. What are the key challenges that Bed Bath & Beyond faces at this moment in time?

Sri Lanka, IMF Reach Deal on $2.9 Billion Rescue Package - WSJ: Sri Lanka reached a preliminary agreement for a financial rescue package of about $2.9 billion with the International Monetary Fund, a milestone as it plots a path out of its worst economic crisis in decades.

Distressed-debt investors are preparing to pounce | The Economist: A toxic cocktail of rising interest rates, slowing growth and high inflation is already creating pockets of distress. High-yield debt issuance has dried up (see chart), and it is increasingly difficult for companies to refinance their liabilities or raise fresh funds. In July the amount of distressed debt, which includes bonds yielding more than ten percentage points over Treasuries and loans trading at heavy discounts, surpassed $240bn, nearly three times as much as at the start of May.

Boy Scouts Bankruptcy Judge Backed Chapter 11 as Mass Tort Solution: A bankruptcy judge also put limits on the youth group’s settlement plan for the largest-ever litigation related to sexual abuse.

Produce delivery debts not exempted from bankruptcy discharge - 11th Circuit | Reuters: A federal appeals court on Wednesday ruled that bankrupt Florida grocery store owners could discharge debts owed to a produce supplier, resolving a "tug-of-war" between U.S. bankruptcy law and a federal law intended to protect companies delivering perishable foods.

1MDB Unit Brazen Sky Files for Bankruptcy Protection in US - BNN Bloomberg: The document listed voluntary liquidation pending in the British Virgin Islands, where Brazen Sky is incorporated. Debtors may seek orders under Chapter 15 in the US to have foreign proceedings enforced there.

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