Bankruptcy & Restructuring News Headlines for Wednesday Jan 18, 2023

Here's what we are reading this morning:

CoinDesk Broke Big News About FTX. Now the News Is Closer to Home. - The New York Times: The parent company of CoinDesk, one of the first news sites focused on the industry, faces questions about the operations and financial health of some of its subsidiaries.

Rising Interest Rates Hit Landlords Who Can’t Afford Hedging Costs - WSJ: Property owners are paying 10 times as much to insure loans against rising interest rates as a year ago.

FTX Debtors Provide Additional Information to Customers and Other Stakeholders: Identified Approximately $5.5 Billion of Liquid Assets to Date, Confirmed Material Shortfalls at Both International and US Exchanges

FTX Discloses ‘Substantial Shortfall’ of Customer Assets: Bankrupt cryptocurrency exchange FTX has said it hasn’t found enough cash and cryptocurrency assets to make customers whole, suggesting a long road ahead as the company works to get money back to customers.

A Crypto Magnate Saw the Risks and Still Was Hammered - WSJ: CEO Barry Silbert of Digital Currency Group, a finance veteran who built a crypto conglomerate, now is fighting to keep its lending firm out of bankruptcy.

FTX Executives Expressed Concern Over Use of Customer Funds, Documents Show - The New York Times: Documents obtained by The New York Times provide new details about the discussions among FTX’s top leaders before the cryptocurrency exchange collapsed in November.

Party City (PRTY) Seeks to Borrow Up to $200 Million for Possible Bankruptcy - Bloomberg: It’s negotiating with holders of its first-lien bonds, a group that includes Capital Group Cos. Inc. and Silver Point Capital, for debtor-in-possession financing. Those investors are being represented by Davis Polk & Wardwell and Lazard, the people said.

PCHI Enters into Restructuring Support Agreement with Senior Secured Noteholder Ad Hoc Group to Advance Transformation and Enhance Market Leadership from Strengthened Financial Position: To implement the Company's pre-negotiated restructuring, PCHI and certain of its domestic subsidiaries filed voluntary Chapter 11 petitions for relief in the U.S. Bankruptcy Court for the Southern District of Texas. The Company's subsidiaries outside of the U.S., its Party City franchise stores, and its Anagram business, which is the global market leader in foil balloons, are not part of the Chapter 11 proceedings and will continue as core components of the PCHI enterprise.

Carvana adopts 'poison pill' and sells $4 billion of auto loans: Carvana has adopted a “poison pill” to limit shareholders from raising their stakes and has reached an agreement to sell up to $4 billion of auto loans, the struggling used car retailer said on Tuesday.

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