India unlocks a $200 bln stressed debt market 22 Jul 2019 The country’s first comprehensive bankruptcy code has hit bumps with cases like the drawn-out takeover of Essar Steel. But the framework is starting to offer better recovery, prompting creditors to act sooner. That’s good news for lenders and investors like Apollo and Oaktree.
PG&E’s hands may slip on bankruptcy steering wheel 2 Jul 2019 The California utility is, for now, in charge of its exit from Chapter 11, where it landed with $30 bln of wildfire liabilities. But the less new capital it seeks, and the more it ties future cash flow to past costs, the more credible a rival plan from creditors will become.
Parent’s bankruptcy loosens its grip on Casino 24 May 2019 The French grocery giant’s debt-riddled controlling shareholder, Rallye, sought protection from its creditors. For now, Casino will keep sacrificing growth to pay large dividends to owner Jean-Charles Naouri. But a debt restructuring might eventually free the 3.5 bln euro group.
U.S. pension backstop is sinking under own weight 7 Mar 2019 The government’s insurance fund for certain retiree pay faces bankruptcy by 2025, potentially affecting millions. Charging the likes of UPS and Albertsons more could hasten the decline. That leaves Congress to find a way to cover a $54 bln hole. All sides will feel the pain.
PG&E governance brownout calls for a jump start 14 Feb 2019 The troubled California utility wants to replace half its board, but shareholder BlueMountain proposes a full reset. A complete overhaul is rarely wise, but in PG&E’s case it could be helpful. The catch is, looming bankruptcy means the activist fund may not be the best advocate.
Viewsroom: Why did PG&E file for bankruptcy? 31 Jan 2019 The California utility may face up to $30 bln in wildfire costs. But shareholders see value and lenders were willing to stump up cash. The board’s desire to cut other expenses may have driven the decision. Plus: How U.S. charges against Huawei may affect the telco industry.
PG&E takes pre-emptive bankruptcy to a new level 29 Jan 2019 The California utility has filed, despite having a $20 bln surplus of assets over liabilities, offers of finance, and one less big wildfire to worry about. The company hasn’t yet made a persuasive case for choosing a process that will surely be lengthy, expensive and distracting.
BlueMountain is tardy with PG&E activism 24 Jan 2019 The hedge fund firm wants to oust the California utility’s directors, who are heading toward bankruptcy. It has a point: The hit from wildfires is not yet defined, and PG&E has stumbled in other ways. But BlueMountain is running out of time to rouse bigger, longer-term owners.
Lampert tightens grip in slow strangle of Sears 16 Jan 2019 The hedge-fund manager’s $5.2 bln bid won the bankruptcy auction for the embattled retailer. That may keep the doors open for now. But in his 13-year tenure atop Sears, Lampert has starved it of cash and sold assets. Unless he changes tack, a slow-motion liquidation looks likely.
PG&E takes one for the California wildfire team 14 Jan 2019 The utility is readying a bankruptcy filing, facing $30 bln of fire-related liabilities partly thanks to the Golden State’s questionable legal norms. Poor planning, including inadequate insurance, was its own fault. But state and other government actors have also fallen short.
Warren Buffett finds value in Sears wreckage 7 Jan 2019 The Berkshire Hathaway boss owns a stake in Seritage, the real-estate firm spun off from the bankrupt retailer. Revamping vacant Sears properties is driving growth and reducing dependence on the ailing chain. But true to form, Buffett has protected his investment with a loan.
Investors’ J.C. Penney discount is familiar spiral 2 Jan 2019 The outfitter’s stock, like Sears’, has fallen below $1. With debt mounting and sales dwindling, its decline follows a familiar pattern. From Bill Ackman to Eddie Lampert to KKR, ailing retailers have drained many a deep pocket. What looks like a bargain is rarely the case.
Sears gets right kind of message from wrong person 6 Dec 2018 Chairman Eddie Lampert is offering $4.6 bln to buy the U.S. retailer out of bankruptcy and save 50,000 jobs. Focusing on employees is laudable. But Lampert failed to turn Sears around in more than a decade of trying. Its staff and advisers would be better off with new ideas.
Motown shifts recovery up a gear 4 Dec 2018 Detroit is selling its first bonds since taking back full financial control from the state. The city that went bankrupt in 2013 now has balanced budgets, higher tax revenue and a surplus. But issues like blight and a crumbling school system present tricky speed-bumps to negotiate.
Toys R Us buyout firms offer crumbs for holidays 20 Nov 2018 KKR and Bain are giving $20 mln to employees who lost jobs in the retailer’s bankruptcy. That’s better than nothing, and an intriguing precedent. But it won’t go far among tens of thousands of people. It’s also a pittance compared with the fees the firms took over the years.
Lampert now at mercy of Sears, not vice versa 15 Oct 2018 The bankrupt retailer’s top owner dragged investors along for over a decade as he kept it alive against the odds. Now although he’s owed some $2.6 bln, he’s no longer in charge and he’ll have to fight with other lenders and the government’s pension guarantor for every dollar.
Sears’ checkout moment is a lesson in timing 11 Oct 2018 The retail chain is on the brink of bankruptcy after creditors lost patience. Its fate may follow that of Toys R Us, which is being liquidated. Retail failures are common but not inevitable. Sears might have had a shot if boss Eddie Lampert had grasped the nettle six years ago.
Mattress Firm is the stuff of retail nightmares 5 Oct 2018 The bed store owned by South Africa’s Steinhoff is filing for bankruptcy protection, and blame spreads wider than a king-sized duvet. Overexpansion, underpricing, predatory online rivals and Chinese dumping make for a fable about how retailers can fail even in a healthy economy.
Financial crisis mostly put “D” in dealmaking 18 Sep 2018 Many of the bank investments and takeovers inked as markets cratered a decade ago brought at least as much pain as progress to the instigators. Think JPMorgan buying Bear and WaMu. Breakingviews looks back at some of the flops – and a couple of high-flyers.
Lehman is long-term champion in Wall Street hubris 12 Sep 2018 Take a firm with leaders seasoned from previous crises. Add a bubble in an asset they considered their specialty. Let them ignore their own risk rules and throw in supine watchdogs. How Dick Fuld crashed Lehman should scare sense into generations of bankers and overseers.