Bankruptcy & Restructuring News Headlines for Tuesday May 10, 2022

Here's what we are reading this morning:

Uber to cut down on costs, treat hiring as a 'privilege': CEO email: “It’s clear that the market is experiencing a seismic shift and we need to react accordingly,” Khosrowshahi said.

Lordstown’s future is at stake as it burns through cash and faces a crucial deal deadline next week: Lordstown’s near-term survival hinges on a $250 million deal to sell its Ohio factory to Foxconn that must close by next Wednesday. Even if that deal closes on time, Lordstown will need to raise additional cash by year-end.

Delaware Bankruptcy Court Decision Highlights Potential Defenses to Equitable Subordination Claim | News & Insights | Arnall Golden Gregory LLP: On March 25, 2022, the United States Bankruptcy Court for the District of Delaware dismissed a complaint filed against a lender and other entities. An individual (and others) formerly in control of the bankrupt companies sued the creditor to seek equitable subordination of the lender’s claims under 11 U.S.C. § 510(c).

Amazon is shutting down Selz, the e-commerce startup it acquired last year - GeekWire: Amazon is shutting down Selz, GeekWire has learned, about a year after acquiring the small e-commerce startup. Founded in 2013, Selz helps entrepreneurs sell products online.

Armstrong Flooring Files Voluntary Chapter 11 Petitions: In a continuation of its ongoing sale process, the Company intends to continue pursuing an efficient and value-maximizing sale of its business through a competitive Chapter 11 sale process. The Company’s businesses in China and Australia will not be included in the Chapter 11 filing, but they are part of the sale process.

Cypress Environmental Partners Announces Pre-Packaged Court Restructuring and Expected Delisting of Common Units From the NYSE: On May 8, 2022, Cypress entered into a Restructuring Support Agreement with Argonaut Private Equity, a Tulsa-based private equity firm and the sole senior secured lender of the Company, pursuant to which Argonaut agreed to vote in favor of a joint pre-packaged plan of reorganization of the Company and its subsidiaries under Chapter 11 of the U.S. Bankruptcy Code.

Tech Industry Braces for Cost Cutting, Layoffs. Who's Most at Risk.: The tech downturn is escalating as public companies are facing massive valuation cuts, and late-stage startups are seeing venture capital dry up.

Goldman to Stop Working With Most SPACs Over Threat of Liability (GS) - Bloomberg: Goldman Sachs Group Inc. is pulling out of working with most SPACs it took public, spooked by new liability guidelines from regulators and throwing into doubt the fate of billions raised for those blank-check vehicles.

Party City Bonds Tumble After Retailer Cuts Revenue Forecast: Bonds issued by Party City drop on Monday after the retailer reported poor earnings and cut its full-year revenue forecast, as it continues to contend with supply-chain disruptions.

Vacancy Announcement – Term Law Clerk (United States Bankruptcy Court for the Northern District of Mississippi): The United States Bankruptcy Court for the Northern District of Mississippi is accepting applications for the position of Term Law Clerk to the Honorable Jason D. Woodard, Chief United States Bankruptcy Judge. This is a full-time, 40 hours per week position that requires some travel (including overnight). A law clerk to a United States Bankruptcy Judge performs substantive review, research, and writing on matters pending before the Court.

Fed Warns of Worsening Market Liquidity in Stability Report - Bloomberg: The Federal Reserve warned of deteriorating liquidity conditions across key financial markets amid rising risks from the war in Ukraine, monetary tightening and high inflation in a semi-annual report published Monday.

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