The Wall Street Journal reports that U.S. consumer retail spending rose 1.9% in September 2020. September is the fifth straight month of retail sales growth according to the United States Department of Commerce. [WSJ; Oct. 16, 2020]
The U.S. Supreme Court heard oral arguments in City of Chicago, Illinois v. Robbin L. Fulton, et al.
Can state regulatory agencies move ahead with lawsuits against businesses who file for bankruptcy in order to enforce consumer protection and business laws, or does the automatic stay’s broad injunctive sweep capture those actions? The answer depends on whether the state is acting in its regulatory capacity or simply like another creditor – and the distinction is not always clear.
Continue Reading Regulator or Creditor: When is Enforcement of Consumer Protection Laws Exempt from the Automatic Stay, and Who Makes That Determination?
CNN reports that fast-casual dining chain Ruby Tuesday, Inc. filed for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware on October 7, 2020. Ruby Tuesday reportedly plans to close approximately 45% of its locations as part of its restructuring efforts. [CNN; Oct. 7, 2020]
Bloomberg reports that the
Since filing for Chapter 11 in May 2020, Hertz and its major stakeholders have been in negotiations and, at times, disputes over how best to reduce Hertz’s nearly half-a-million vehicle fleet. These negotiations and disputes have caught the eye of investors in asset-backed securities (“ABS”) and market watchers alike, as the outcome of the case could have rippling effects across the ABS industry and capital markets, generally.
Continue Reading E Pluribus Unum or Ex Uno Plures? Attempted ABS Master Lease Rejection in the Hertz Bankruptcy
Research from the Brookings Institute finds that the COVID-19 pandemic’s impact on firm profits and revenues thus far is comparable to the worst quarter of the 2008-2009 financial crisis. The researchers further project that bankruptcy filings will increase by as much as 140 percent this year compared with last year. [Brookings; Sept. 23, 2020]
Reuters reports that retailer Neiman Marcus Holding Co. emerged from chapter 11 bankruptcy on September 25, 2020. The Company’s confirmed plan of reorganization eliminated more than $4 billion of debt and $200 million of annual interest expense. [Reuters; Sept. 25, 2020]
In an opinion piece for Bloomberg, columnist Justin Fox reports on the uptick
The Wall Street Journal reports that on September 17, 2020, GNC Holdings, Inc. obtained authorization from the United States Bankruptcy Court for the District of Delaware to sell substantially all of its assets to one of its largest shareholders, China-based Harbin Pharmaceutical Group Co., for approximately $760 million in spite of national security concerns raised
Judge James Garrity of the United States Bankruptcy Court for the Southern District of New York rejected LatAm Airlines’ approximately $2.4 billion DIP financing arrangement, citing, among other things, concerns over terms of the financing arrangement that would allow certain DIP lenders to swap their debt for shares in the reorganized company at an approximately
Bloomberg reports that Neiman Marcus Group Inc.’s plan of reorganization was confirmed on September 4, 2020 by the United States Bankruptcy Court for the Southern District of Texas. The confirmed plan revolves around a debt-for-equity swap, which will eliminate approximately $4 billion of the company’s $5.5 billion pre-petition secured debt. [Bloomberg; Sept. 4, 2020]
AMC
Houston, TX-based oil services provider SAExploration Holdings Inc. has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, reports the Wall Street Journal. SAExploration reportedly owes $6.8 million on a unsecured loan it received through the Paycheck Protection Program of the CARES Act. [WSJ; Aug.