Bankruptcy & Restructuring News Headlines for Thursday Feb 16, 2023

Here's what we are reading this morning:

Diamond Sports prepares for possible bankruptcy: Diamond has been in negotiations with creditors in recent months, and is preparing a prearranged bankruptcy filing for some point during the 30-day grace period, sources said.

Store openings outpace closures in 2022: Coresight | Retail Dive: Discount stores — driven by dollar stores — led retail openings, while apparel stores saw the most closures.

FTX Judge Declines to Tap Bankruptcy Examiner to Probe Collapse: An outside investigation of the collapse of FTX Group would likely cost creditors more than $100 million and interfere with the company’s effort to repay its debts, a federal judge said Wednesday in refusing to appoint a bankruptcy examiner to probe the collapse of the crypto exchange.

Harrisburg Diocese’s Bankruptcy Plan With Victim Payout Approved: The Roman Catholic Diocese of Harrisburg received court approval of a bankruptcy plan that establishes an $18.25 million trust to pay clergy abuse victims and puts in place stipulated child protection protocols.

Celsius Network chooses NovaWulf bid for bankruptcy exit | Reuters: Crypto lender Celsius Network will seek to exit bankruptcy under the guidance of asset manager NovaWulf Digital Management, which will take over the operations of a new company that will be owned by Celsius customers, the company said at a court hearing in Manhattan on Wednesday.

Bankrupt Crypto Lenders Hit Investors With Tax Bills for Frozen Funds - Bloomberg: For people with assets trapped on bankrupt platforms, the possibility they’ll have to pay the IRS is another blow.

Credit Suisse Exits Distressed-Debt Trading as Bank Cuts Risk - Bloomberg: Portfolio valued at $250 million has up to 30 positions

Shutterfly Lenders Working With Houlihan Lokey - Reorg: An ad hoc group of lenders to Shutterfly has hired Houlihan Lokey as the company’s performance and liquidity position continue to deteriorate.

FTX Negotiates for Return of $400 Million From Obscure Hedge Fund - The New York Times: The founders of the trading firm Modulo Capital are in talks with FTX about returning the investment that Sam Bankman-Fried made in the fund.

Podcast Companies Face Layoffs, Budget Cuts and Scuttled Deals - The New York Times: “The dumb money era is over” as layoffs, budget cuts and scuttled deals challenge a long-booming industry.

NBA Makes Backup Plans as Local Sports Channels Face Bankruptcy - Bloomberg: League prepares to show games on its app or local TV stations; company vows to still broadcast while addressing balance sheet

Sam Bankman-Fried’s Old Friend, Co-founder Gary Wang Is Key to Case Against FTX - Bloomberg: Gary Wang and Sam Bankman-Fried are offering dueling accounts of the FTX fiasco and of who’s ultimately to blame

Investors Move to Foreclose on Pyramid’s Palisades Center Mall: Investors are looking to foreclose on one of the country’s largest malls after changing shopping trends and the pandemic left it struggling to pay down its debt.

Lyft’s Financial Woes Thrust It Into the Spotlight - The New York Times: Lyft recovered from pandemic restrictions slower than Uber, and critics said it lacked the kind of ambitious investments that could distinguish itself from its rival.

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