Here's what we are reading this morning:
J. Crew, Nine West, and the Complexities of Financial Distress – Harvard Law School Bankruptcy Roundtable: The Nobel laureate Herbert Simon describes a complex system as one “made up of a large number of parts that interact in a nonsimple way.” The modern large Chapter 11 fits this definition quite well.
Intelsat, SES Trial Starts as Rivals Dispute C-Band Payments: Intelsat SA and competing satellite company SES Americom Inc. took to court to hash out how to divide billions in federal payments for surrendering access to C-Band spectrum so mobile carriers can use it for 5G technology.
Peloton's C.E.O. Change Raises Questions About a Sale - The New York Times: Rumors, restructuring and resignations loom over the former high-flying fitness company.
Peloton CEO John Foley to Step Down, Firm to Cut 2,800 Jobs - WSJ: The once-hot bike maker will name former Spotify CFO Barry McCarthy to succeed John Foley, cut roughly 2,800 jobs and other costs and overhaul its board after a slowdown in demand caused its value to plummet.
Peloton slashes full-year outlook as company replaces CEO, cuts jobs: Peloton on Tuesday slashed its financial outlook for the full year as the company announced CEO John Foley will be stepping down.
Burger King Operator Gets Forbearance After Contentious Dividend: Dhanani Group reached a forbearance agreement with its lenders, lessening tensions, at least for now, over an $85 million dividend the restaurant franchisee recently distributed to its family owners, according to people with knowledge of the situation.
U.S. arrests couple for allegedly laundering $4.5 bln in crypto tied to Bitfinex hack | Reuters: The FBI arrested a husband and wife on Tuesday morning, alleging they conspired to launder cryptocurrency stolen from the 2016 hack of virtual currency exchange Bitfinex, and said law enforcement has already seized over $3.6 billion in cryptocurrency tied to the hack.
Opioid Settlement: Sackler Family, States Are ‘Even Closer’ to a Bigger Deal - Bloomberg: Members of the billionaire Sackler family that own Purdue Pharma LP are “even closer” to a deal that would increase their contribution to the OxyContin maker’s embattled opioid settlement, a court-appointed mediator said in a report Tuesday.
Bondholders for Aerospace Supplier Incora Hire Legal Counsel - WSJ: Akin Gump-represented group of bondholders seeks talks with company about how to restructure $2 billion of debt.