Bankruptcy & Restructuring News Headlines for Thursday Nov 10, 2022

Here's what we are reading this morning:

Redfin Cuts 13% of Staff, Shuts Down Home-Flipping Business - Bloomberg: The company’s workforce has shrunk by 27% since the end of April as a slowdown grips the US housing market.

Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source: Binance’s nonbinding letter of intent for the takeover – announced Tuesday as FTX’s financial position appeared to be spiraling out of control – hinged on Binance performing due diligence. Roughly half a day into that process of reviewing FTX’s internal data and loan commitments has led Binance to strongly lean against completing the transaction, the person said.

Sam Bankman-Fried's FTX Empire Faces US Probe Into Client Funds, Lending - Bloomberg: US regulators are investigating whether beleaguered crypto-exchange mishandled customer funds, and they’re looking into the firm’s relationships with other parts of Sam Bankman-Fried’s crypto empire.

Revlon’s sales down 10% as it tries to right itself in Ch. 11 | Retail Dive: Revlon’s sales fell 10.1% year over year to $468.4 million in the third quarter, while its gross margin shrunk by nearly 2 percentage points, according to a press release.

FTX’s Financial Black Hole Leaves Binance Balking at Rescue Plan - Bloomberg: Binance unlikely to complete takeover, person familiar says; Gap between FTX assets and liabilities may be in the billions

Asset Level Valuations Drive Recovery Analysis for U.S. Gaming Companies: The typical enterprise value multiple range of 6.0x – 8.0x is supported by data from historical gaming bankruptcies and reorganizations, whose median upon reorganization was 7.3x.

Acquisitions & Investments Led Bankruptcy Drivers for Health Care & Pharma, and FBC: Bankruptcies for Health care & Pharmaceutical (HC) and Food, Beverage & Consumer (FBC) were largely individual in nature and associated with acquisitions or investments, according to a new Fitch Ratings report.

Binance Is Said to Be Likely to Walk Away from Deal to Buy FTX - WSJ: Crypto exchange is expected to walk away from deal to buy a collapsing competitor following a review of its structure and books, according to a person familiar with the matter. 

$1 Binance FTX deal is off unless FTX.US is part of the package: Source - Blockworks: Binance will not go ahead with the proposed deal to acquire FTX unless the US-based exchange partner FTX.US is part of the deal, according to a source with knowledge of the matter and text conversations reviewed by Blockworks.

Canada Housing: Mortgage Fund Halts Payouts Amid Liquidity Crunch - Bloomberg: Canadian real estate lender Romspen Investment Corp. has halted redemptions on its largest fund after a number of borrowers stopped making payments.

The Fall of FTX’s Sam Bankman-Fried Puts Crypto Industry on Edge - The New York Times: The rapid collapse of the cryptocurrency exchange built by the billionaire Sam Bankman-Fried suggests that no company in the freewheeling, loosely regulated crypto industry is safe.

Virgin Islands’ $150 Million Propane Fight Clouds Solar Plans: The U.S. territory’s troubled power monopoly wants to invest in green energy, but needs to placate its top gas supplier to keep the lights on

Carvana’s Earnings Crash Spurs Bond Selloff - WSJ: The used-car seller’s bonds are touching all-time lows, spotlighting investors’ concerns about its long-term trajectory as it burns cash and faces rising borrowing costs.

FTX Investors Are Told Bankruptcy Likely Without More Capital - Bloomberg: Before Binance pulled an about-face and bailed on its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $8 billion, said the person, who requested anonymity discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.

The Block: Sequoia says its investment in FTX is now worthless: Sequoia Capital said in a letter to its limited partners that it has marked down the value of all its investments in FTX to zero. The letter laid out details of its exposure to FTX across different entities under the Sequoia umbrella, which totaled $213.5 million.

SEC, DOJ Investigating Crypto Platform FTX - WSJ: The probe focuses on potential securities-law violations by the cryptocurrency platform’s U.S. subsidiary, FTX.US, which lists dozens of crypto tokens.

Without Details, Tron's Justin Sun Says He's 'Putting Together Solution' for FTX: Justin Sun, the founder of the Tron cryptocurrency network and Grenada's ambassador to the World Trade Organization, tweeted late Wednesday that he and his team were "putting together a solution" with beleaguered cryptocurrency exchange FTX, hours after Binance announced it would not move forward in a deal to acquire the company.

Is This Crypto’s Lehman Moment? - The New York Times: Here’s how to make sense of the industry-shaking collapse of FTX.

Crypto’s FTX Moment Shows Danger of Centralized Finance With No Central Bank - WSJ: After Binance agreed to takeover rival FTX, the danger is obvious: There’s no one big enough to rescue Binance.

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