Bankruptcy & Restructuring News Headlines for Wednesday May 11, 2022

Here's what we are reading this morning:

Lincoln College in Illinois to Close, Hurt by Covid and Ransomware Attack - The New York Times: The historically Black Lincoln College will cease operations Friday after 157 years, having failed to raise millions to recover from the pandemic and a cyberattack that originated in Iran.

Sandy Hook Families Pull Claims in Infowars Units’ Bankruptcy: Sandy Hook victim families withdrew their claims against three bankrupt corporate entities tied to Alex Jones’ Infowars, aiming to remove their creditor-status that may hinder separate damages trials.

Talen Energy Corporation Announces Recapitalization Of Talen Energy Supply To Strengthen Balance Sheet, Fund ESG And Data Center Growth Initiatives, And Maximize Value To Stakeholders: The Consenting Noteholders collectively hold approximately 62% of principal amount of TES' unsecured notes. Pursuant to the RSA, certain of the Consenting Noteholders have agreed to enter into a backstop commitment with respect to a common equity rights offering of up to $1.65 billion, subject to certain adjustments at closing. The Consenting Noteholders have also agreed to equitize more than $1.4 billion of their unsecured notes pursuant to the Plan. TES expects additional senior unsecured noteholders will join the RSA in the coming weeks.

Talen Energy Supply Files for Bankruptcy to Tame Debt Load: Talen Energy Corp. placed its Talen Energy Supply unit in Chapter 11 bankruptcy on Monday as it seeks to rework its finances after being squeezed by a high debt load, rising gas prices and larger hedging collateral requirements.

Peloton shares fall after company posts huge loss and offers weak guidance: Peloton reported a wider-than-expected quarterly loss and a steep decline in sales, as inventory piled up in warehouses and ate away at the company's cash. 

Upstart shares plummet 50% after company cuts full-year revenue forecast: “After remaining at historically low levels for the past 18 months, loan default rates rose quite abruptly towards the end of last year, and are now back to or in some cases above pre-pandemic levels,” said CFO Sanjay Datta.

Fifth Circuit Doubles Down on Right to Reject Filed-rate Contracts, but With an Exception – Harvard Law School Bankruptcy Roundtable: By Ronald Silverman, John Beck and Katherine Lynn (Hogan Lovells)

Bolt Built $11 Billion Business With Inflated Metrics and Eager Investors - The New York Times: The start-up has had a meteoric rise, thanks to its charismatic co-founder, Ryan Breslow. But he sometimes stretched the truth to get there.

War in Ukraine and inflation slow growth in EBRD regions | European Bank for Reconstruction and Development: This year’s forecast for Ukraine is now negative growth of 30 per cent

Household Debt and Credit Report - New York Fed: The Quarterly Report on Household Debt and Credit for the first quarter of 2022 shows a solid increase in total household debt of $266 billion, to $15.84 trillion. Balances now stand $1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic. Mortgage and auto loan balances rose by $250 billion and $11 billion, respectively, in the quarter, although originations for both subsided from historically high levels in 2021. Credit card balances declined by $15 billion, in line with seasonal trends typically seen at the start of the year, but are still $71 billion higher than in 2021:Q1, representing a substantial year-over-year increase.

Treasury Weighing Whether to Let Kremlin Payment Exemption Expire, Yellen Says: The Treasury Department is actively examining whether to let expire an exemption that allows U.S. financial institutions and investors to process and receive payments made by the Kremlin on its debts, Treasury Secretary Janet Yellen said Tuesday.

Inside the opioid sales machine of Mallinckrodt Pharmaceuticals - Washington Post: More than a quarter of top prescribers ranked by Mallinckrodt Pharmaceuticals during the height of the pain pill epidemic, in 2013, were later convicted of crimes related to their medical practices, had their medical licenses suspended or revoked, or paid state and federal fines after being accused of wrongdoing, according to a Washington Post analysis.

Puerto Rico teachers want challenge to Plan of Adjustment reheard | Bond Buyer: Puerto Rico teachers’ associations took an additional step to challenge the court-approved Plan of Adjustment Tuesday, filing a petition for rehearing en banc with the U.S. Court of Appeals for the First Circuit.

Coinbase revenue drops 27% from a year ago, stock slides: Overall, usage declined from the fourth quarter. Retail monthly transaction users (MTUs) fell to 9.2 million, down from 11.4 million in the fourth quarter, while total trading volume dropped from $547 billion in Q4 to $309 billion.

Chicago convention agency puts a price tag on its scoop-and-toss plans | Bond Buyer: The public agency that manages Chicago’s convention center campus assumes it must scoop-and-toss $177 million of debt service owed between 2023 and 2025 to cover a gap between tourism-related tax revenues and a steep bond repayment ramp, according to its three-year financial plan.

In drought-ravaged California, water use is up dramatically: Californian’s drought is worsening and yet residents used more water in March than any month since 2015, defying pleas for conservation from Gov. Gavin Newsom and other authorities, state officials announced Tuesday.

Terra's Luna Plunges After Network Stablecoin Depegs From Dollar Again: Terra Network's luna token plunged by as much as 61% on Tuesday, after sister stablecoin TerraUSD lost its peg to the dollar for the second time in as many days. TerraUSD is an algorithmic stablecoin whose value is fixed to $1. Unlike traditional stablecoins that are backed up by fiat currency and hard assets — including government bonds or even gold — UST, as it's known, has its value set by a computer algorithm.

Carvana cuts 2,500 jobs, execs to forego pay for severance | WGN-TV: Online automotive retailer Carvana Co. says it’s letting go about 2,500 workers, roughly 12% of its workforce

Older Post Newer Post