Here's what we are reading this morning:
DTLA’s Bank of America Tower Faces “Maturity Default Risk”: Brookfield, which has already lost three office towers in LA, has trouble with $400 million in loans tied to building at 333 South Hope Street.
Junk-Rated Companies Accept Tougher Terms to Borrow - WSJ: Low-rated companies are finding ways to tap bond markets while minimizing the hit to their borrowing costs.
Two More China Developers Say They Can’t Meet Debt Obligations - Bloomberg: Central China, Leading Holdings fail to make bond payments
Vice Media to Be Acquired Out of Bankruptcy by Fortress, Soros Fund - WSJ: The bankrupt media company’s lenders are poised to take over the business in a deal that values it at $225 million.
Justices Skip Review of ‘Hypothetical Jurisdiction’ in Tronox-Tied Case: The US Supreme Court turned down a request to examine a federal appellate court’s use of “hypothetical jurisdiction” to end a legal malpractice case brought by Pennsylvania residents allegedly exposed to Tronox Inc.'s toxic chemicals.
Forman Mills avoids bankruptcy thanks to acquisition by Shoppers World | Retail Dive: The warehouse-style discounter recently laid off hundreds of employees and warned it might have to file for Chapter 11 if it couldn’t find a buyer.
Crypto Custodian Prime Trust Teeters on the Brink of Collapse - WSJ: The company previously stored assets and provided banklike services to crypto firms Binance.US, FTX and Celsius.
Cargo Airline Western Global Weighs Bankruptcy as Cash Dwindles - Bloomberg: Creditors had begun confidential talks with company last month; Truist seeks to sell loan, accepts bid of 40 cents on dollar
The Fed - Distressed Firms and the Large Effects of Monetary Policy Tightenings: The stance of U.S. monetary policy has tightened significantly starting in March 2022. At the same time, the share of nonfinancial firms in financial distress has reached a level that is higher than during most previous tightening episodes since the 1970s
Latest FTX bankruptcy report provides lurid details into alleged fraud | The Block: Contradicting past excuses by Sam Bankman-Fried that customer funds were not knowingly misdirected, FTX debtors said in a Monday report that Bankman-Fried and a senior lawyer lied to banks and auditors.
FTX’s New Management Recovers $7 Billion in ‘Substantial Progress’: Sam Bankman-Fried’s crypto conglomerate made “false statements” to banks about accounts commingling customer funds and fired an employee who raised concerns about the practice, the new management of bankrupt FTX alleged in a report Monday.
Four Days of Hearings Begin Over Dismissal of J&J's Talc Bankruptcy 2.0 : Starting on Tuesday, U.S. Chief Bankruptcy Judge Michael Kaplan will hear four days of arguments and testimony on whether to dismiss the second Chapter 11 case of Johnson & Johnson subsidiary LTL Management
Senior Attorney Helped FTX Founder Misuse Customer Funds, Report Says - WSJ: The unnamed lawyer in a document released by FTX Chief Executive John J. Ray III appears to be the crypto exchange’s former chief regulatory officer say people familiar with the matter.
Bankruptcy court judge sides with Detroit on pensions | Bond Buyer: The Police and Fire Retirement System lacks authority to shift to a 20-year amortization of unfunded legacy liabilities from the 30-year term laid out in the city's bankruptcy exit plan, according to a judge's ruling that eases one fiscal pressure point for the city.