Here's what we are reading this morning:
Bed Bath & Beyond Is Burning Through Its Cash Reserves - WSJ: As it searches for a new CEO, the retailer is working with financial advisers and looking to sell Buybuy Baby.
Risky Borrowers Largely Dodged Bankruptcy So Far This Year. Now the Easy Money Is Ending. - WSJ: U.S. corporate defaults and bankruptcies stayed muted in the first five months of this year but market volatility, rising interest rates and a potential economic slowdown are making investors nervous about low-rated debt.
Crypto’s Domino Effect Is Widening, Threatening More Pain - WSJ: Losses in the digital-assets industry are blowing holes in balance sheets and pushing firms to near bankruptcy.
Celsius Customers Are Losing Hope for Their Locked-Up Crypto - WSJ: Three weeks since the crypto lender said it was halting withdrawals, users want answers.
A $1 Billion Junk Bond Down 38% in Less Than a Year Shows Just How Much the Market Has Changed - Bloomberg: Payday lender Curo Group Holdings Corp. sold $750 million of junk bonds about a year ago, offering investors a juicy yield of 7.5% in return for the risk of taking on exposure to a wide variety of consumer lending. It then sold another $250 million of the securities in November at slightly above face value. The bonds — now rated CCC+ by S&P Global Ratings — yield a whopping 17.9% and are trading at just 62 cents on the dollar.
Rite Aid Tender Offer Tantamount to Default, S&P Says: Rite Aid’s below-par tender offer constitutes a distressed debt exchange tantamount to default, according to a statement from S&P Global Ratings.
Bonds flash recession warning light as key part of the yield curve inverts again: The bond market is flashing a warning that the economy may be falling or already has fallen into recession, according to one closely watched measure.
Evergrande canvassing creditors' support against winding-up petition -source | Reuters: China Evergrande Group is reaching out to its offshore creditors for their support to fight a lawsuit in a Hong Kong court aimed at liquidating the embattled property developer, according to a person with direct knowledge of the matter.
Voyager Digital Holdings Files for Chapter 11 in New York: Voyager Digital Holdings files for Chapter 11 bankruptcy in the Southern District of New York, according to a filing.
Voyager Seeks Bankruptcy Protection Amid Crypto Credit Crisis: The Toronto-based Voyager filed for Chapter 11 bankruptcy protections Tuesday in the Southern District of New York, estimating that it had more than 100,000 creditors and somewhere between $1 and $10 billion in assets. It also recorded the same range for its liabilities.
Voyager Digital Commences Financial Restructuring Process to Maximize Value for All Stakeholders: The proposed Plan of Reorganization ("Plan") would, upon implementation, resume account access and return value to customers. Under this Plan, which is subject to change given ongoing discussions with other parties, and requires Court approval, customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens. The plan contemplates an opportunity for customers to elect the proportion of common equity and crypto they will receive, subject to certain maximum thresholds.