Boris Johnson will feel Gupta steel jitters too 10 Mar 2021 GFG Alliance says it has adequate funding, but key financing partner Greensill is collapsing. If Sanjeev Gupta’s industrial empire were to struggle, the UK leader has little economic reason to save its British operations. Yet domestic politics may still force him to step in.
Greensill exposes perils of Credit Suisse strategy 10 Mar 2021 The supply-chain financier’s collapse affects almost every division of the Swiss bank. While the financial hit appears manageable, cooperation between its fund, wealth and lending arms increases risk. That’s worrying as CEO Thomas Gottstein’s growth plans hinge on collaboration.
Next Hertz drivers face a hairy ride 4 Mar 2021 Hedge funds Knighthead and Certares want to lead an injection of up to $4.2 bln in equity to take the wheel at the bankrupt car-rental firm. It would restart less indebted and should be more efficient. The rise of ride-sharing, however, puts a speed limit on potential returns.
HNA’s final agonies deserve investor study 29 Jan 2021 The indebted Chinese travel group looks set to enter bankruptcy. That’s unusual but unsurprising: Beijing already let a bank go under last year, and allowed market-rattling bond defaults. Given the empire’s complexity and broad creditor base, distributing haircuts could get ugly.
Revlon may take shareholder rights full circle 18 Nov 2020 The cosmetics company controlled by Ron Perelman became a case study on shareholder value maximization following a 1980s lawsuit. Last week it narrowly avoided bankruptcy. Its business and stock price have been sliding for several years. A sale looks like the best final chapter.
Politics may turn bankruptcy wave into a tsunami 6 Oct 2020 U.S. Chapter 11 filings are up by a third this year, with small firms flailing and billion-dollar bankruptcies above 2009 levels. But total filings – including personal and business – are down almost 30%. Stimulus has kept many afloat. Political gridlock may open the floodgates.
The Exchange: China’s bad debt opportunity 15 Sep 2020 Beijing is letting lenders go belly-up as it attacks systemic risk. That’s all fine for Benjamin Fanger, founder of ShoreVest, a manager $1.8 bln of soured loans. He talks with Pete Sweeney about the message China is sending bankers, and the opportunity for foreign investors.
E-commerce is a life raft for sinking real estate 10 Sep 2020 The surge in digital sales from the likes of Walmart, Target and Amazon is driving up demand for warehouses. No wonder mall owner Simon is after the likes of J.C. Penney. Creating a fall back plan to turn malls into industrial space with higher rents has a decent payoff.
China bank failure fires quiet warning shot 10 Aug 2020 Beijing will let Baoshang Bank go under in the first such insolvency since 2001. The liquidation of the lender, used as a piggy bank by an insurer, will raise credit costs for small peers, pushing more of them to the brink. It’s an overdue cleansing, but a risky time to do it.
Retail’s WeWork escape hatch is sealed shut 3 Aug 2020 Real estate used to be a valuable asset for troubled retailers: Lord & Taylor sold its flagship store to the office share startup. But a spate of bankrupt apparel chains shows the sector’s last ditch for value is on the fritz. It is bad news for the likes of Simon Property.
Merger tricks no match for rolling up the sleeves 3 Aug 2020 The parent of Men’s Wearhouse has filed for bankruptcy after Covid-19 halted in-person shopping and a need for suits. Just six years ago it was a Wall Street plaything, successfully pulling off a so-called Pac-Man defense. It’s a reminder M&A games are no match for good strategy.
UK insolvency shakeup stops at Chapter 10.5 23 Jul 2020 A fast-tracked new bankruptcy code gives Covid-hit firms, like Virgin Atlantic, precious breathing space. As with the U.S. Chapter 11, directors can get protection from creditors as they try to restructure. It’s better than the systems used by EU peers, but can still be improved.
Corona Capital: Expense accounts, Zoom’s new box 15 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.
Fast food franchise model has burnt edges 1 Jul 2020 NPC International, the U.S.’s largest Pizza Hut franchisee, filed for bankruptcy. An LBO flip, heated competition, and higher labor costs left it larded with debt. Parent company Yum appears resilient. But its restructuring portends sizzling problems in the franchise model.
Bankrupt shale pioneer’s backers need new model 29 Jun 2020 Chesapeake enters Chapter 11 with funding to come out again. Supportive creditors may be right that there’s a future in U.S. fracking, which the firm helped develop. But making money was hard when borrowing and dealmaking were easy. It’ll be even tougher as climate risk bites.
PG&E’s $58 bln bankruptcy exit is no clean sheet 22 Jun 2020 America’s largest utility emerged from Chapter 11 for the second time with about $16 bln more debt, a torched reputation, continuing political demands, and reduced but not eliminated wildfire liabilities. PG&E is out of court, but not necessarily out of trouble.
Hertz shares may yet be roadworthy 18 Jun 2020 The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.
Wall Street underwriters get their day in the sun 16 Jun 2020 Investors are going bananas for new shares. Even bust rental-car firm Hertz can sell stock. Re-equitizing companies is bringing a bonanza of fees to global equity capital markets desks at investment banks. But the window is only open now thanks to central banks and governments.
Hertz throws equity wrench in bankruptcy melee 12 Jun 2020 The car-hire firm wants to raise up to $1 bln by selling shares to replace debt that usually finances a restructuring. It may pay off, but equity usually crashes into a wall in Chapter 11. The stock market’s irrational exuberance is letting Hertz test-drive an unusual vehicle.
Mall-to-retailer relationships will get creative 29 May 2020 Brookfield Asset Management launched a $5 bln fund to invest directly in retailers. It’s an effort to salvage some of the Canadian mall owner’s top customers. As Neiman Marcus and J.C. Penney march into bankruptcy, other real estate owners will rethink traditional rents, too.