Bankruptcy & Restructuring News Headlines for Thursday Apr 27, 2023

Here's what we are reading this morning:

Chrysler-parent Stellantis offering buyouts to 33,500 U.S. employees: The buyouts will be offered to 31,000 hourly employees and 2,500 salaried non-union U.S. employees, the automaker said Wednesday.

Carvana Bond Plan Another Setback Amid Stock Price Fall - Bloomberg: An unpopular proposal by the used-car dealer would cut the value of creditors’ holdings by almost 25% while leaving stockholders untouched.

Rooftop Solar: Ain’t No Sunshine - WSJ: Enphase Energy points out rising interest rates and new net metering rules in California are casting a shadow over rooftop solar growth prospects.

San Francisco Art Institute Reportedly Files for Bankruptcy: Founded in 1871, the SFAI claimed to be the oldest art school west of the Mississippi, but had been in decline for several years. In 2020, responding to budget shortfalls and declining enrollment, the school announced that it would not accept new students for that fall semester.

First Republic Bank Is a Problem With No Easy Solution - WSJ: It would be hard to find a buyer or create another rescue plan. A regulatory seizure would bring its own set of problems.

First Republic continues dramatic slide as it searches for rescue deal: This week's drop for First Republic comes after the San Francisco-based lender said it lost roughly 40% of its deposits in the first quarter.

Voyager Lawyers ‘Surprised’ Binance.US Canceled $1B Deal: Given the collapse of the Binance.US deal, likely recoveries for Voyager creditors are in the range of 40% to 65%, Okike said, depending on whether Voyager wins a parallel lawsuit involving bankrupt crypto exchange FTX, and how much recovery FTX offers its creditors.

First Republic Faces Potential Curb on Borrowing From Fed (FRC) - Bloomberg: FDIC considers lowering bank’s ratings if deal isn’t reached, doing so would likely limit firm’s access to Fed’s facilities

Binance Faces Mounting Pressure as U.S. Crypto Crackdown Intensifies - The New York Times: The scrutiny on Binance, the giant cryptocurrency exchange, has sent new tremors through a market that is still bruised by the implosion of FTX.

Celsius Creditors Seek to Unmask ‘Suspicious’ FTX Crypto Trades - Bloomberg: A committee representing Celsius creditors on Wednesday asked a bankruptcy judge for permission to subpoena FTX for information to identify users behind ten cryptocurrency wallets they say engaged in a pattern of suspicious trades of Celsius’ so-called CEL coin between April and August.

Boston Properties sees leasing activity plummet 60% in recent months | Crain's New York Business: But the occupancy rate has remained stable for its city portfolio, which includes the GM Building and other Midtown towers

SPACs Delivered Easy Money, but Now Companies Are Running Out - WSJ: The SPAC boom took hundreds of risky companies to the stock market. The next stop for many is bankruptcy court.

US companies in distress turn to debt exchanges to dodge bankruptcy | Financial Times: Private equity backers push out-of-court restructurings to preserve their stakes when businesses default

SVB's former parent may need new funding after $2 billion cash seizure | Reuters: Silicon Valley Bank's former owner may need to take out a bankruptcy loan amid uncertainty about the U.S. Federal Deposit Insurance Company's seizure of $2 billion in cash from the company, its attorney said Wednesday.

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