Bloomberg and CNN reported on the potential impact the pause in the use of Johnson & Johnson’s Covid-19 shot could have. In the wake of the announcement, stay-at-home company stocks bounced, while travel company stocks fell as investors worried about the potential long-term impact. [Bloomberg; April 13, 2021 & CNN; April 14, 2021]
A recent New York Times article highlights the challenges oftentimes faced by smaller vendors in large bankruptcy cases. The article profiles a couple, who owns a warehouse leased to Brooks Brothers, who were left holding a $240,000 cleanup fee bill when Brooks Brothers rejected their warehouse lease and refused to clear the equipment and other
Reporting from the Wall Street Journal details an independent monitor’s conclusion that Texas’ Public Utility Commission overcharged market participants by approximately $16 billion dollars during Texas’ recent energy crisis by electing to keep wholesale prices raised for 33 hours longer than the monitor deemed necessary. Although the monitor urged the Public Utility Commission of Texas
Reuters reports that the involuntary bankruptcy proceeding filed against Navient by three student loan borrowers on February 8, 2021 was dismissed on February 25, 2021. In dismissing the case, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York noted that there was no evidence Navient was not paying its
As Texas recovers from its winter energy crisis, hard hit consumers and retail power providers may be facing potential bankruptcies caused by the extreme price fluctuations experienced during the cold. The New York Times describes the plight faced by consumers who may face energy bills in the thousands. And retail power companies that supplied power
The Wall Street Journal reports that high demand for corporate debt has allowed even the riskiest of companies to refinance their debt at interest rates that have typically been reserved for only the safest types of debt. Since the beginning of the year through February 10, over $13 billion of new debt has been issued,
Bloomberg reports that at least seven new-issue CLOs are currently marketing, with January new-issue volume at nearly $9 billion. The rise in sales comes as risk premiums for new transactions have tightened to pre-pandemic levels, prompting managers to market new deals at favorable terms and refinance and reset existing bonds at cheaper costs. [Bloomberg; Feb.
The Wall Street Journal analyzes the challenges and prospects of Gamestop Corp., AMC Entertainment Holdings Inc., Bed Bath & Beyond Inc., Nokia Corp., and Blackberry Ltd. In recent weeks, investors have bid up the share prices of these companies, as hedge funds and short sellers have bet against them. [WSJ; Jan. 31, 2021]
CNBC reports that slow rollout of the vaccines and more contagious strains of Covid-19 may threaten investor outlook that have been buoyed by optimism about a swift economic recovery. A possible K-shaped recovery may see companies of certain type and size start to recover while leaving out low-income families, and companies in the airline, restaurant,
The New York Times reports that the National Rifle Association (“NRA”) filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court in Dallas with plans to reincorporate in Texas. The New York attorney general’s office has been conducting an investigation into corruption at the NRA and has been seeking to dissolve the group.