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Bankruptcy

Chinese Property Developer Evergrande Not 'Too Big to Fail' — Global Times

Reuters | Equities.com |

The editor-in-chief of state-backed Chinese newspaper Global Times warned debt-ridden property giant Evergrande Group that it should not bet on a government bailout on the assumption that it is "too big to fail."

It was the first commentary to appear in state-backed media casting doubt on a government bailout for the country's second largest property developer, whose shares fell on Friday for the fifth consecutive day amid concerns it is heading for default.


Appeals Court Rules That Bernie Madoff Trustee Can Pursue Clawback Lawsuit vs Citigroup

Reuters | Equities.com |

A U.S. appeals court said the trustee liquidating Bernard Madoff's firm can pursue a $343.1 million clawback lawsuit against Citigroup Inc, a decision that could help the late swindler's customers recover close to the estimated $17.5 billion they lost in his Ponzi scheme.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled on Monday that lower court judges incorrectly required the trustee Irving Picard to prove Citigroup lacked good faith by being "willfully blind" to "red flags" suggesting a high probability of fraud.


J&J Explores Offloading Talc Liabilities Into New Business and Seeking Bankruptcy Protection

Reuters | Equities.com |

Johnson & Johnson is exploring a plan to offload liabilities from widespread Baby Powder litigation into a newly created business that would then seek bankruptcy protection, according to seven people familiar with the matter.

During settlement discussions, one of the healthcare conglomerate’s attorneys has told plaintiffs’ lawyers that J&J could pursue the bankruptcy plan, which could result in lower payouts for cases that do not settle beforehand, some of the people said. Plaintiffs’ lawyers would initially be unable to stop J&J from taking such a step, though could pursue legal avenues to challenge it later.


Alibaba and State-Backed Companies Weighing $7.7 Billion Bid for Tsinghua's Unisplendour Stake

Kimberly Redmond | Equities.com |

Debt-saddled Chinese chip manufacturer Tsinghua Unigroup is looking to divest almost half of its stake in Shenzhen-listed Unisplendour Corporation, a cloud computing infrastructure firm, in a deal that could generate up to $7.7 billion.Interested parties include Alibaba Group (NYSE: BABA) along with several state-owned Chinese companies, Reuters reported Tuesday, citing people familiar with the matter.


Norwegian Air Shuttle Names New CEO as It Emerges From Bankruptcy

Kimberly Redmond | Equities.com |

Norwegian Air Shuttle ASA (OTC: NWARF) named Geir Karlsen as its new chief executive officer Monday, a day after the company’s board decided to immediately terminate the contract with former head Jacob Schram.

In a statement, Norwegian Air’s board chair Svein Harald Øygard said Karlen – the company’s chief financial officer – “has the competencies, focus, trust and dedication that makes him the best choice” to lead the Oslo-based airline.


Jewelry Retailer Alex and Ani Files for Chapter 11 Bankruptcy Protection

Kimberly Redmond | Equities.com |

Rhode Island-based jewelry retailer Alex and Ani LLC has filed for Chapter 11 bankruptcy protection and put itself up for sale.

On Thursday, the company said it entered into a restructuring support agreement (RSA) with debt holders and equity sponsors as it works to reorganize and strengthen its online and retail businesses.


Hertz To Emerge From Bankruptcy This Summer With $4.2 Billion in New Investment

Reuters | Equities.com |

Two investment firms will buy a majority stake in Hertz Global Holdings Inc for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer, the car rental company said in a filing on Tuesday.

Under the proposed investment, Knighthead Capital Management LLC and Certares Opportunities LLC will buy up to 100% of Hertz’s shares, with the funds expected to finance its U.S. vehicle fleet and slash corporate debt.


Century 21 Stores Planning To Relaunch in 2021

Kimberly Redmond | Equities.com |

After filing for bankruptcy protection in September 2020 and shuttering its 13 locations, Century 21 Department Stores plans to make a comeback.

In a press release on its website, the off-price luxury retailer said it is planning a relaunch that will include stores in the US and its e-commerce site in 2021.  

“Never count out a New Yorker,” the company said in a statement, adding that its return is “in response to the outpouring of love...


Months Before GameStop, There Was Hertz Global Holdings

Reuters | Equities.com |

Months before the irrational trading in GameStop Corp, there was Hertz Global Holdings Inc.

Operating under bankruptcy protection last spring once the COVID-19 pandemic wiped out its business, the car-rental giant confronted an extraordinary situation: Its stock price was skyrocketing for no apparent reason.

Conversations at the time among Hertz management and directors on its board, reported here for the first time, turned from shock to a vigorous debate about whether the company should capitalize on its unexpected good fortune and sell shares to fund itself during bankruptcy proceedings, according to three people familiar with the deliberations.


AMC Raises $917 Million in Equity and Debt Capital To Stave Off Bankruptcy

Kimberly Redmond | Equities.com |

While entertainment venues continue to struggle due to the ongoing effects of the COVID-19 crisis, AMC Entertainment Holdings Inc has found a way to keep its theater chain afloat for a little while longer.

On Monday, the world’s largest theater chain announced that it raised $917 million in new equity and debt capital, funding that will allow the chain to keep functioning throughout most of 2021 and hopefully give theaters time to fully reopen.


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