Bankruptcy & Restructuring News Headlines for Thursday Dec 15, 2022

Here's what we are reading this morning:

AIG to Officially Shut Unit That Failed in Financial Crisis - WSJ: The Financial Products unit filed for bankruptcy in a step toward its final shutdown.

Joann reports third quarter loss, suspends dividend | Retail Dive: “Increasingly, we’re seeing that consumers are feeling the sting of inflation, but the recent shift in shopping behavior has skewed much more towards essentials and basics with less emphasis on discretionary purchases”

FTX Is ‘Lehman of the Crypto Industry’ With Damage Contained to Sector - Bloomberg: The collapse of crypto exchange FTX can be compared to the bankruptcy of Lehman Brothers that shook Wall Street 14 years ago, according to former Lehman restructuring head Mark J. Shapiro.

B. Riley Financial Open Letter re: Core Scientific, Inc.: B. Riley has proposed to Core Scientific's Board of Directors that it would provide $72 million in new, non-cash pay financing on "favorable terms".

Fed Raises Rates at a Slower Pace - The New York Times: The Federal Reserve raised rates by half a point, the smallest increase since May, as signs emerge that inflation is beginning to cool. But officials make clear that they expect to continue their fight against high prices next year.

Fed rate decision December 2022: Fed raises interest rates half a point: The Federal Reserve raised its benchmark interest rate to the highest level in 15 years, indicating that the fight against inflation is not over yet.

Former Madoff attorney on Sam Bankman-Fried charges: Ira Lee Sorkin, partner at Law Firm Mintz and Gold, joins 'Closing Bell' to discuss the charges against Sam Bankman-Fried, whether he will cooperate and the mounting litigation against him.

Bankman-Fried Sits in Bahamas Jail After Lightning US Probe: US prosecutors usually grind away in obscurity for months or years before unveiling a criminal indictment. Their case against FTX founder Sam Bankman-Fried came together in a matter of weeks.

Opinion: Chapter 11 Is the Best Route for Troubled Auto Part Suppliers: Alston & Bird restructuring attorney J. Eric Wise analyzes nuances and benefits of bankruptcy proceedings for auto suppliers, where the inability to continue producing a part can disrupt the entire vehicle manufacturing process.

FTX's bankruptcy lawyers say they 'do not trust' Bahamas government | Reuters: Lawyers for the bankrupt crypto exchange opposed a demand for internal records from an insolvent affiliate.

Lenders to Apollo’s Covis Tap Advisers to Tackle Heavy Debt Load: Some lenders to Apollo Global Management’s Covis Pharmaceuticals Inc. have tapped advisers in hopes of addressing the company’s high debt load, less than a year after the financing was sold to investors.

The Block: Senators voice broader concerns around crypto, including Binance: Senate lawmakers are taking a closer look at Binance in the wake of FTX's collapse, with a hearing today frequently touching on the off-shore exchange while senators also expressed broader concerns around the whole digital asset industry.

Prepared Statement of Hilary J. Allen, Professor of Law, American University Washington College of Law: Hearing on Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs

Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers | Committee on Banking, Housing, and Urban Affairs: Witnesses: Professor Hilary J. Allen, American University Washington College of Law; Mr. Kevin O’Leary, Investor; Ms. Jennifer J. Schulp, Director of Financial Regulation Studies, Center for Monetary and Financial Alternatives, Cato Institute; and Mr. Ben McKenzie Schenkkan, Actor and Author.

FTX Digital Executive Warned of Client Fund Transfers to Alameda, Documents Show - WSJ: A top executive of FTX’s Bahamas subsidiary warned that country’s securities authority days before the company filed for bankruptcy Nov. 11 of customer fund transfers to Alameda Research, a cryptocurrency trading firm tied to FTX, according to documents made public Wednesday.

Let’s Stop Treating Crypto Trading as If It Were Finance | CLS Blue Sky Blog: "One way to think about crypto trading is as a multi-player e-sports gambling competition based on an emulation of a financial trading market"

Older Post Newer Post