Bankruptcy & Restructuring News Headlines for Tuesday Jul 12, 2022

Here's what we are reading this morning:

Fed's Bullard: Solid US economy can handle rising rates | AP News: Last week’s jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates, St. Louis Federal Reserve president James Bullard said Monday.

Home Sales Are Getting Canceled at Highest Rate Since Start of Pandemic: Nationwide, roughly 60,000 home-purchase agreements fell through in June, equal to 14.9% of homes that went under contract that month. That’s the highest percentage on record with the exception of March and April 2020, when the housing market all but ground to a halt due to the onset of the coronavirus pandemic. It compares with 12.7% a month earlier and 11.2% a year earlier.

Big Bankruptcies Pile Up as Grab Bag of Stressors Takes Hold: Borrowing costs have surged. Goods can’t get from factory to retail floor fast enough. Investors have lost their appetite for money-losing startups.

Klarna valuation plunges 85% as 'buy now, pay later' hype fades: Klarna said it raised $800 million in fresh funding at a $6.7 billion valuation — down sharply from $45.6 billion a year ago.

Texans Asked to Conserve Power as Extreme Heat Threatens Electric Grid - WSJ: State officials asked people to turn up their thermostats even as temperatures in Texas were forecast to reach as high as 112 degrees.

Three Arrows Founders Davies, Su's Whereabouts Unknown, Foiling Liquidators - Bloomberg: The founders of bankrupt crypto hedge fund Three Arrows Capital haven’t been cooperating in the firm’s liquidation process and their whereabouts were unknown as of Friday, according to court papers.

In re TPC Group Inc: Delaware Bankruptcy Court Determines that Issuance of Priming Senior Notes is Not Prohibited Absent Express Anti-Subordination Provision | Bracewell LLP: Following a July 6, 2022 memorandum opinion from the United States Bankruptcy Court for the District of Delaware, lenders and noteholders seeking to preserve the priority of their liens must make any desired subordination protections explicit in their security documents

Evergrande unit Hengda's onshore bondholders reject repayment delay - Nikkei Asia: Developer sought approval to further extend date on returning $670m to 2023

Crypto Exchange Faces $270M Hit on Loans to Three Arrows Capital: “remains liquid, solvent and our customers will not be impacted,” wrote CEO Peter Smith in a letter to shareholders

Former Hong Kong Real Estate Billionaire Pan Sutong Gets Bankruptcy Order - Bloomberg: Distressed Hong Kong property tycoon Pan Sutong was told by the city’s high court to go bankrupt, marking another blow to the former billionaire.

Interest Rates Loom Over $33B Of Soon-To-Mature Office CMBS Debt: Approximately $33B of CMBS debt is due to mature within the next 18 months on office towers in nine U.S. metro areas, according to a new report from Colliers.

How the fall of Three Arrows, or 3AC, dragged down crypto investors: As recently as March, Three Arrows Capital managed about $10 billion in assets, making it one of the most prominent crypto hedge funds in the world.

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