Bankruptcy & Restructuring News Headlines for Tuesday Dec 13, 2022

Here's what we are reading this morning:

Hilco Podcast: Signs Suggest Increased Restructuring Activity in 2023: On this podcast, Geoff Frankel of Hilco Corporate Finance discusses how adverse market date accumulated throughout 2022 is indicative of a potential surge in restructuring in the coming year.

New FTX Chief John Ray Blasts Crypto Firm’s Previous Leadership: The person in charge of restructuring crypto giant FTX told lawmakers that the company’s spectacular collapse was due to failures by its previous leaders.

Intermix Asking Brands for Steep Cuts in Payments – WWD: Under new owners Regent L.P., Intermix has been asking brands to take a steep cut in what they’re owed on current merchandise and future orders through the second quarter, wreaking havoc on some small brands that were expecting payments, WWD has learned.

Testimony of Mr. John J. Ray III CEO, FTX Debtors, House Financial Services Committee December 13, 2022: "Although our investigation is ongoing and detailed findings will have to await its conclusion, the FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets."

U.S. Justice Dept is split over charging Binance as crypto world falters, sources say | Reuters: Splits between U.S. Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation into the world's largest cryptocurrency exchange Binance, four people familiar with the matter have told Reuters.

Crypto Punked? Industry Bankruptcies Rattle Markets and Expose Major Sector Vulnerabilities | ArentFox Schiff - JDSupra: The fallout from these bankruptcies and the crypto “ice age” is likely to reshape the industry and spur a new wave of legal and regulatory scrutiny.

Bankruptcy Provides A 1,700% Return  - Zer0esTV: : In this Short Story, Freddy Brick of Muddy Waters Capital sits down with Thomas Braziel from 507 Capital to uncover how his firm made a 1,700% return from a boring old bankruptcy claim. It all began with the downfall of Mt. Gox when his team identified one of the most convex opportunities they’ve ever seen.

Argo Blockchain Says Company at Risk of Having Insufficient Cash: Hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in US; Hired McDermott Will & Emery as legal advisers, Berkeley Research Group, as financial advisers, and Stifel GMP and its affiliate, Miller Buckfire & Co. as investment bankers

Bahamas Told Bankman-Fried to Mint New Crypto as FTX Collapsed, Lawyers Say - Bloomberg: Bahamas government officials are working closely with failed crypto magnate Sam Bankman-Fried and trying to help him regain access to key computer systems of bankrupt FTX Trading, lawyers for FTX said in a court filing.

FTX’s Sam Bankman-Fried Arrested in the Bahamas, Officials Say - The New York Times: Prosecutors for the Southern District of New York confirmed that Mr. Bankman-Fried had been charged and said an indictment would be unsealed on Tuesday. The charges included wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering, said a person with knowledge of the matter.

Sears Hometown Stores Files Bankruptcy to Liquidate Merchandise: Sears Hometown Stores filed for bankruptcy, planning to sell off inventory at the dealer-owned stores that sell its home goods after a dispute with its owner, which it relied on for inventory and financing.

SEC | Statement on Arrest of Sam Bankman-Fried: "We commend our law enforcement partners for working to secure the arrest of Mr. Sam Bankman-Fried in the Bahamas on federal criminal charges. The Securities and Exchange Commission has separately authorized charges relating to Mr. Bankman-Fried’s violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York."

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