Search

Vesttoo, an ILS InsurTech company, is facing a motion from its unsecured creditors seeking the early termination of its court procedure and fast liquidation. The creditors argue that Vesttoo's proposed reorganization plan is a wasteful pursuit and has depleted the company's available cash. They claim that terminating exclusivity now would save at least $8.5 million and allow them to file a liquidation plan that maximizes the value of the debtor's estates. The creditors also accuse Vesttoo of failing to provide financial information, retaining unnecessary employees, and making payments to professionals while promoting a narrative that exonerates the current board members and management. The motion reveals that approximately $4 billion of purported letters of credit were fabricated, and the defrauded insurance company counterparties likely hold claims exceeding $1 billion. [Extracted from the article]

Vesttoo, an Israel-based InsurTech company, is facing a request from its unsecured creditors to terminate its exclusivity period for developing a reorganization plan. The creditors argue that Vesttoo's efforts to restructure have been wasteful and have depleted available cash. However, Vesttoo claims that the creditors are ignoring the value of its technology, business plan, and experienced team. The company believes that it can create value for all stakeholders and is disappointed by the creditors' actions. The bankruptcy court is expected to rule on the matter in November. [Extracted from the article]

The CEO of Swedish landlord SBB, Leiv Synnes, has stated that no other creditors have made a similar claim to that of US hedge fund Fir Tree Partners, which alleged that SBB breached a key term in its debt. Synnes criticized Fir Tree's method of calculating the alleged breach, stating that it goes against the spirit of the agreement. While Fir Tree's holdings represent only 1% of SBB's overall bond stock, the situation highlights the challenges faced by over-leveraged property borrowers like SBB. SBB denies the accusations and considers the claim groundless. The company reported a decline in property values and outlined its liquidity situation, including capital sources and potential refinancing. SBB recently announced a reorganization plan to split the company into three units and secure fresh funds. The CEO expects the transaction with Brookfield Asset Management to be completed in November. SBB also plans to carve out its residential and community portfolios into separate entities. [Extracted from the article]

Swedish real estate firm SBB is facing a demand for bond repayment from Fir Tree Partners, a New York-based hedge fund. The demand comes after Fir Tree claimed that SBB breached a key debt term. The holdings in question amount to about €46 million ($49.2 million) and represent approximately 1% of SBB's total bond stock. SBB, which is at the center of Sweden's property crisis, denies the claim and considers the acceleration notice ineffective. The company recently announced a major reorganization to secure fresh funds and stabilize its finances. [Extracted from the article]

(Bloomberg) -- One of the nation's top bankruptcy judges will drop hundreds of corporate reorganization cases while he is being investigated by the federal appeals court over allegations that he failed to properly disclose a relationship. Houston Bankruptcy Judge David R. Jones has come under fire in recent days for failing to disclose that his girlfriend was a bankruptcy attorney at a prominent Texas law firm with business before his court. For the last several years, Jones has been one of the premier bankruptcy judges in the US, issuing rulings in various multibillion dollar reorganization cases. [Extracted from the article]

(Bloomberg) -- Drugmaker Mallinckrodt Plc won court approval for a new debt-reduction plan that will slash about $1 billion from the sum the company must pay victims of America's opioid epidemic. They claimed that Mallinckrodt's management incentive plan is unfair to creditors and that the manufacturer of opioid pain medication should have tried harder to resolve its debt woes without filing a Chapter 11 case. [Extracted from the article]

Popular vegan restaurant chain By Chloe is filing for bankruptcy, as the coronavirus pandemic led to a drop in revenue and reduction of staff. The chain has 14 locations in [...]

Byline: Liz Wolf Mall landlords CBL & Associates Properties Inc. and Pennsylvania Real Estate Investment Trust (PREIT), both of which are generally focused on class-B and -C malls, were already [...]

Byline: Beth Wright JCPenney has emerged from Chapter 11 bankruptcy after completing the sale of its retail and operating assets to Brookfield Asset Management and Simon Property Group. With yesterday's [...]

Byline: Michelle Russell US clothing retailer Francesca's Holdings has filed for Chapter 11 bankruptcy protection and inked a letter of intent to sell its business to investment firm TerraMar Capital. [...]

Byline: Beth Wright US menswear retailer Tailored Brands, owner of the Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G, has emerged from Chapter 11 protection having completed [...]

'NAFTA is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country' (September 26, 2016) 'Because NAFTA... is perhaps the greatest disaster trade deal in [...]

The primary purpose of procuring insurance coverage for a company's directors and officers (D&O Insurance) is to protect the personal assets of directors and officers from lawsuits arising out of [...]

THE PACESETTER: Established in 1977, Tharpe & Howell is the largest law office in the greater Valley area with 55 attorneys. The firm is headquartered in Sherman Oaks and has [...]

An unsecured creditors' committee plays a major role in Chapter 11 cases. The committee actively participates in many matters that could significantly influence the case's direction and the recovery to [...]

An interview with George J. Schultze the Chief Investment Officer and Founder of Schultze Asset Management, LP is presented. Topics include talks about firm that is an alternative investment specialist and focus on event-driven and distressed securities investing as they invest long and short, up and down the capital structure of U.S. companies.

Byline: Leonie Barrie A US bankruptcy court has approved JCPenney's plan to create separate property holding companies for its 160 of its real estate assets and all of its owned [...]

Guitar Center, the largest musical instrument retailer in the US, has filed for bankruptcy. The company announced Saturday it was entering the Chapter 11 restructuring process, during which it'll stay [...]

A gauge of Chapter 11 bankruptcies surged 12 points to 81 in the third quarter and hit its highest level since 2010, according to a report from law firm Posinelli. [...]

Byline: Beth Wright Francesca's Holdings Corporation is to close about 140 of its predominantly mall-based stores and warned it will likely need to seek a restructuring under bankruptcy protection if [...]

Byline: Alfred Chua AirAsia Japan has filed for bankruptcy, more than a month since it ceased all operations.* AirAsia Japan has filed for bankruptcy, more than a month since it [...]

Byline: Beth Wright US menswear retailer Tailored Brands, owner of the Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G, expects to emerge from Chapter 11 protection by [...]

Byline: AARON ELSTEIN Purdue Pharma has developed a habit that's hard to quit: paying out bankruptcy bonuses to top executives. The company at the heart of the opioid crisis got [...]

The COVID-19 pandemic has caused the filing of many Chapter 11 bankruptcy proceedings in industries such as consumer retail, restaurants and movie theaters.While the commercial real estate industry has been [...]

Byline: Beth Wright JCPenney is on track to begin operating under new ownership and outside of Chapter 11 by late November after a US bankruptcy court approved its sale agreement [...]

Byline: Special to the RBJ In February 1988, Leonard Cohen released an album entitled 'I'm Your Man.' As I read a piece published today in the Washington Post regarding millions [...]

(https://www.businessinsider.com/friendlys-files-for-bankruptcy-amid-coronavirus-pandemic-2020-11) Friendly's, the fast-casual chain known for its ice cream and diner-style menu items, opened in 1935. Founded by brothers Prestley and Curtis Blake, Friendly's has gone through a number [...]

Byline: Kurt Nagl The Grand Rapids-based parent company of HopCat has sold its assets through a Chapter 11 bankruptcy to a previous lender in a $17.5 million deal. A pair [...]

Byline: NREI Staff America's malls under pressure: CBL, Pennsylvania REIT, file for bankruptcy 'Mall owner CBL & Associates filed for Chapter 11 bankruptcy protection late Sunday, after its business was [...]

Friendly's filed for chapter 11 bankruptcy on Sunday. The chain simultaneously announced it had reached an agreement to be acquired for nearly $2 million by the parent company of Red [...]

Byline: Beth Wright JCPenney has inked an asset purchase agreement (APA) with Brookfield Asset Management, Simon Property Group and a majority of its lenders in a move that paves the [...]

Frontier Communications announced that it has secured approval from the New York Public Service Commission for its Chapter 11 restructuring. Frontier now has regulatory approvals, or favorable determinations, for its [...]

Byline: Beth Wright Ascena Retail Group, owner of the Ann Taylor, Loft and Lane Bryant chains, has struck a deal to sell the intellectual property, e-commerce business and other assets [...]

Mallinckrodt announced that it has voluntarily initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to modify its capital structure, including restructuring portions of its [...]

Hello and happy Friday! I'm happy to bring you another week of Insider Retail, Business Insider's weekly round-up of everything that's happening in restaurants and retail. If you haven't already [...]

After closing dozens of restaurants in 2020, casual dining chain Ruby Tuesday has filed for bankruptcy. Business Insider previously reported that the chain stopped paying pensions for at least 112 [...]

Byline: Cirium Colombia-based*Avianca*has received approval from the US Bankruptcy Court for the Southern District of New York to access the $2 billion debtor-in-possession financing for which it had secured funding [...]

Oasis Petroleum (OAS) announced that it has entered into a restructuring support agreement, or RSA, with substantially all of its lenders in Oasis Petroleum's revolving credit facility and holders of [...]

Garrett Motion has entered into an agreement with KPS Capital Partners with respect to a potential purchase of its business and commenced voluntary Chapter 11 cases with the United States [...]

Impresa Aerospace, a parts maker involved in the production of Boeing's 737 MAX airliners, has filed for bankruptcy protection after losing revenue due to the aircraft's grounding in the wake [...]

Byline: Catie Clark The granddaddy of allcost-conscientious steakhouse chains, Sizzler, filed for Chapter 11 on Sept. 21. The company cited rent demands and lost revenue from restaurant closures in its [...]

Avianca Holdings has come under public scrutiny in Colombia for paying its top two executives over $6M in bonuses in May during a time when the airline had furloughed most [...]

Byline: just-auto plus Garrett Motion Inc. announced that it has entered into an agreement with KPS Capital Partners, LP ('KPS') with respect to a potential purchase of its business and [...]

Byline: Michelle Russell Ascena Retail Group, owner of the Ann Taylor, Loft and Lane Bryant chains, has reportedly sold its Catherines brand for more than double what it was initially [...]

Casual dining chain Sizzler filed for Chapter 11 bankruptcy on Monday. 'Our current financial state is a direct consequence of the pandemic's economic impact due to long-term indoor dining closures [...]

Garrett Motion announced that it has entered into an agreement with KPS Capital Partners with respect to a potential purchase of its business and commenced voluntary Chapter 11 cases with [...]

Denbury (DEN) announced that it has successfully completed its financial restructuring and emerged from Chapter 11. Denbury's common stock is expected to commence trading on the New York Stock Exchange [...]

Centric Brands (CTRC) announced that the United States Bankruptcy Court for the Southern District of New York issued a ruling confirming the company's plan of reorganization. The plan was supported [...]

Byline: Pilar Wolfsteller Colombia's Avianca, which filed for bankruptcy protection in a New York court in May, has appealed an injunction preventing disbursement of a major loan needed to keep [...]