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.

Bloomberg confirms that 2020 was the biggest year for large commercial bankruptcies since the Great Recession in 2009.  Led by the energy, retail, and consumer services sectors, 224 companies with liabilities exceeding $50 million filed Chapter 7 and 11 cases, far exceeding the number of large filings each year in the preceding decade. Bloomberg also

As reported in Yahoo Finance, the first trading day of 2021 was off to a rocky start in the U.S.  Despite progress on COVID vaccine distribution, markets reacted to the discovery of a highly transmissible strain of COVID in the US, which comes with a greater risk of lockdowns, along with uncertainty surrounding the

The Wall Street Journal reports on the growth of dividend recapitalization transactions during the COVID-19 pandemic by private equity controlled companies. That growth stands in contrast to prior economic downturns. [WSJ; Dec 17, 2020]

Reporting from Yahoo Finance addresses the growing control that investment firms and hedge funds exert over commercial restructuring efforts as a

Business Insider reports that AMC Theaters recently sought to raise up to $844 million through stock sales to improve its financial condition, which has been substantially weakened due to restrictions on indoor gatherings put in place in response to the COVID-19 pandemic. AMC’s stock price took a major hit after Warner Bros. announced it would

Reuters reports that the Brazilian government will forgive approximately US$1.3 billion worth of debt owed to it by telecommunications firm Oi SA, which has been involved in a pending bankruptcy proceeding in Brazil since 2016. [Reuters; Nov. 27, 2020]

Reporting from Bloomberg indicates that boutique apparel chain Francesca’s Holdings Corp. is preparing to file for

Reporting from Bloomberg shows that during the first eight months of the COVID-19 pandemic, approximately $52 billion of rent under retail leases went unpaid.  The reporting further indicates that in many instances, these rent obligations have been deferred through out-of-court agreements between landlords and tenants and that there may be an appetite for further relief

Bloomberg reports that Revlon Inc. was able to exchange approximately $236.5 million of its $343 million in outstanding bonds that were scheduled to mature in 2021 in a deal that the company said should eliminate the need for a chapter 11 bankruptcy filing in the near future. [Bloomberg; Nov. 11, 2020]

The Washington Post reports

In the November 2020 statement issued by its Federal Open Market Committee, the Federal Reserve committed to use the full range of tools available to it to alleviate the economic hardship caused by the COVID-19 pandemic. To that end, the Federal Reserve indicated that it intends to keep the target range for the federal reserve

BJ Services, a Texas-based provider of hydraulic fracturing (i.e., “fracking”) and cementing services for upstream oil and gas companies, filed for chapter 11 protection on July 20, 2020, in the US Bankruptcy Court for the Southern District of Texas, along with three of its affiliates.  Their chapter 11 filings were prompted by unsuccessful restructuring negotiations with one of their equity sponsors—CSL Capital Management—which would have provided a $75 million new money investment, including $30 million in the form of DIP financing, in exchange for the majority of the reorganized equity.  Citing commodity price volatility and an unmanageable capital structure, the debtors have been pursuing an orderly wind-down and confirmation of a chapter 11 liquidation plan, the cornerstone of which was a sale process for six asset packages:  (a) cementing business; (b) fracking business; (c) certain equipment related to the cementing business; (d) certain equipment related to the fracking business; (e) shared lab equipment; and (f) other miscellaneous equipment (e.g., tractors).

Continue Reading BJ Services, LLC, et al.: Not-So-Smooth Sailing for Credit Bidders