The Wall Street Journal reports that on November 17, the Biden Administration released new guidelines that may make it easier for student loan borrowers to discharge their debt in bankruptcy. The guidelines from the Justice Department and Education Department delineate specific requirements for borrowers to prove they are experiencing economic distress. The government will calculate
On November 8th, Fortune reported on the sudden implosion of FTX, the second biggest crypto exchange. The value of FTX’s proprietary token — FTT — started dropping precipitously this week as various news reports came out about it and more and more owners began to sell. The owner of FTX, known as SBF
On October 19th, the Wall Street Journal reported that the electric vehicle startup Mullen Automotive Inc., gained court approval to buy an Indiana manufacturing plant and assets from Electric Last Mile Solutions for $92 million. Such deal, which boosted Mullen’s share prices by 64%, includes Electric Last Mile Solutions’ manufacturing plant in Mishawaka
On October 12th, Bloomberg reported that Alex Jones will join his bankrupt media production company, Free Speech Systems, in a court-supervised settlement with the families of the Sandy Hook school shooting victims. Specifically, Jones’ media company had filed a chapter 11 petition for bankruptcy in July of this year, in the Southern District
Reuters reports that the markets in the US have faced their third straight quarterly decline, the longest period of decline for the S&P 500 and Nasdaq indices since 2008. This comes amid a period of rising interest rates and persistently high inflation (including double-digit inflation in the Eurozone), contributing to fears that a recession is
CNN reports on the Federal Reserve’s decision to raise its target interest rate by an additional 75 basis points to a range of 3.00% to 3.25% in an effort to combat persistent inflation in the US. This is the fifth time the Federal Reserve has raised rates this year. [CNN; Sept. 21, 2022]
Reporting from Reuters indicates that the German government plans to relax certain corporate insolvency rules in response to rising energy costs so that companies with financially sound business plans can avoid being required to file for protection under Germany’s insolvency laws. [Reuters; Sept. 9, 2022]
Bloomberg reports that the United States Court of Appeals for
Bed Bath & Beyond announced a series of measures to address declining sale performance, as announced by press release and reported by Yahoo! Finance. The company has received commitments for $500 million in additional financing. It also plans to sell up to 12 million additional shares of common stock, close 150 underperforming stores and
Judge David Jones in the Southern District of New York has rejected a request for an official committee of equity holders in Revlon’s chapter 11 proceedings, as reported by Reuters. Debtor’s counsel argued that the equity holders “cannot possibly” prove that they are entitled to a meaningful recovery at this stage of the bankruptcy