Bankruptcy & Restructuring News Headlines for Thursday May 5, 2022

Here's what we are reading this morning:

Armstrong Flooring says it's likely to file for bankruptcy : Armstrong said no definitive decision has been made and no course of action has been approved by its board of directors but based on the on the state of discussions with the company’s lenders and the liquidity needs of the company, it is likely that the company will seek bankruptcy protection under Chapter 11 and will seek to implement one or more such transactions through a competitive sale process in bankruptcy.

PSS Industrial Aims for Out-of-Court Restructuring With Lenders - Bloomberg: The Houston-based industrial equipment supplier is weighing options that could include raising new money and ceding control to certain lenders, said the people, who asked not to be identified because the talks are private.

American Dream lost $60M last year | Retail Dive: On top of the pandemic's challenges, the sprawling, experience-rich, debt-ridden mall has been beset by several delays and mishaps.

Office Depot owner close to decision on sale of retail business as revenue falls | Retail Dive: Sycamore Partners and an unnamed suitor have offered to buy the retailer as consumer-facing office supplies specialists wrestle with declining demand.

Hon. Kevin J. Carey (ret.) Named ABI President | ABI: The American Bankruptcy Institute (ABI) announces that Hon. Kevin J. Carey (ret.) of Hogan Lovells US LLP (Philadelphia) has been selected by the ABI Board of Directors to be President for a one-year term.

ADP National Employment Report: Private Sector Employment Increased by 247,000 Jobs in April: U.S. nonfarm private employment at companies with less than 50 employees fell, however.

Seventh Circuit Provides Rare Guidance On “Statutory Liens” | Cadwalader: On April 21, 2022, the U.S. Circuit Court of Appeals for the Seventh Circuit issued a decision interpreting the Bankruptcy Code’s definitions of “statutory lien” and “judicial lien,” holding that a lien imposed by the Chicago Municipal Code was “judicial” rather than “statutory” because it arose partly as the result of a “quasi-judicial” process rather than “solely by force of a statute.”

Nick Timiraos (WSJ): "How the FOMC statement changed" / Twitter: A new line about Covid disruptions in China and increased attention on inflation risks

CMBS Investors Fear URW Will Default on Malls as It Exits U.S. - Bloomberg: Unibail-Rodamco-Westfield, a mall owner based in Paris, is looking to get rid of its 29 U.S. properties, and debt investors fear it will default on more of its mortgages in the process.

Thrasio Makes Layoffs and Announces New CEO: Thrasio, the largest Amazon aggregator, is making significant layoffs and announced its CEO and cofounder, Carlos Cashman, would step down.

Cameo, a Celebrity Shoutout App, Lays Off 25% of Workforce — The Information: Cameo, an app that became a pandemic darling by letting people pay celebrities to send them customized video greetings, told its employees that it was laying off more than 80 employees, about a quarter of its workforce, according to one of the employees.

Gulf Coast Health Bankruptcy Plan Rejected Because of Releases: Bankrupt former nursing home operator Gulf Coast Health Care LLC lost its bid for approval of a liquidation plan that would have guaranteed unsecured creditors at least $10 million.

Sri Lanka’s Finance Minister Says Country’s Available Reserves Near Zero - WSJ: Rocked by a severe economic crisis, the island nation is working on a sovereign debt restructuring with the IMF and other international creditors.

Expanded Talc Claim Committee Nixed In J&J Unit's Ch. 11 - Law360: A New Jersey bankruptcy judge denied a slate of motions seeking to expand the talc claimants committee in the Chapter 11 case of a Johnson & Johnson unit, saying Wednesday that the panel's current composition adequately represents the interest of people allegedly injured by the company's talc products.

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