Bankruptcy & Restructuring News Headlines for Wednesday Mar 9, 2022

Here's what we are reading this morning: plans to lay off about 4,000 people this week, sources say | TechCrunch: Online mortgage lender is poised to lay off roughly 50% of its staff of about 8,000 this week, according to sources familiar with internal happenings at the company. The move comes just over three months after the New York-based startup laid off 9% of its staff — or 900 people — during a Zoom call that went viral.

Grocery Delivery Company Buyk Temporarily Shuts Down After Fallout From Russian Sanctions: The Russian-backed company expanded to Chicago in December, opening seven locations in the city. Nearly all of its employees have been temporarily furloughed.

Startups like Naked Retail that hoped to reinvent department stores have shuttered: About a year before the pandemic hit, a number of hot new startups were raising millions in venture capital and snapping up leases in trendy neighborhoods like Soho and Chelsea, all of which had a similar goal: to reinvent the department store.

Cancer Victims Appeal Decision to Allow J&J Talc Bankruptcy Case: A committee representing people who say they got cancer from Johnson & Johnson’s baby powder asked a federal court to overturn a recent ruling that lets a unit of the consumer products giant use bankruptcy to resolve lawsuits related to the talc-based product.

Radio Free Europe Shuts Down In Russia After Being Pushed Into Involuntary Bankruptcy - WSJ: RFE/RL is among media outlets hit by new law that cracks down on war reporting.

Puerto Rico Governor Axes $8.3 Billion Power Utility Restructuring Deal - WSJ: The move reflects a lack of political support for raising electricity rates to pay off bondholders.

Bankrupt Chilean Power Plant Has CarVal, Cerberus Support: Alto Maipo SpA, a bankrupt hydroelectric power plant project in Chile, has the support of CarVal Investors and Cerberus Capital Management for its restructuring plan.

Times Square Sheraton Hotel sells at massive loss | Crain's New York Business: The sale is the city's biggest hotel trade since the pandemic began

Stitch Fix shares plummet after company cuts guidance for the year: Chief Executive Elizabeth Spaulding said the company’s active client count is not where she wants it to be. That’s despite a recently introduced option for shoppers to buy single items from its website, without a subscription, known as Freestyle.

FTI Consulting Podcast: Restructuring Talk - FTI Strategic Communications: In this episode, we’re excited to bring you a reporters’ roundtable and discuss what’s expected to make news in 2022. Angelo Thalassinos is joined by several experienced and well-informed journalists that have their finger on the pulse when it comes to restructuring, bankruptcy, distressed debt, and leveraged finance.

US Corporate Exposure to Russia Is Low, but Indirect Risks Are Broad: Fitch: Investment-grade corporates should be more resilient to potential macro risk scenarios given greater financial flexibility. However, high-yield issuers may be more vulnerable to potential indirect macroeconomic transmission feed throughs from the war, including sustained high inflation, more aggressive Fed tightening or slower economic growth.

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