Ashford lands $200M Oaktree commitment to avoid bankruptcy
The three-year loan will boost the hotel-centered REIT's dwindling cash reserves battered by the COVID-19 global impact on travel.
By
Glen Fest
Law and legal issues
CFPB finalizes disclosure requirements for debt collectors
The agency's rule outlines steps collectors must take to inform consumers about an outstanding debt, and prohibits companies from pursuing lawsuits after a statute of limitations has ended.
Fast-tracked bankruptcies leave some creditors in the dark
Investment firms and hedge funds are increasingly engineering bankruptcy loans and side deals to take control of Chapter 11 reorganizations from the outset, locking in rich rewards for themselves while potentially locking out rivals and lower-ranking creditors with little transparency. The trend is sure to speed up cases, but it also forces judges to make quick decisions that may shortchange some valid claims.
Mr. Cooper, U.S. Bank & PNC settle claims regarding bankrupt borrowers
The three companies agreed to pay a total of $74 million in remediation.
Bank error in your favor: Citi’s fight to reclaim $900 million
A trial to get underway this week over one of the biggest banking errors in recent memory will be closely watched on Wall Street, and its outcome could have a significant impact on the industry.
Hertz plans to issue up to $4B in bonds for delay-draw ABS notes offer
The proceeds from funds drawn from the notes will be used to replenish the rental car firm's 2021 fleet as it winds through bankruptcy court.
By
Glen Fest
U.S. bankruptcy tracker: March of the zombies is coming soon
U.S. bankruptcy filings have slowed nearly to a halt, but they’re expected to pick up next year, led by companies that piled on debt to survive this year’s pandemic and election-related volatility.
GOP readies counterpunch if Biden removes CFPB chief
The president-elect has legal backing to fire Director Kathy Kraninger thanks to a recent court ruling, but Republicans are prepared to challenge his ability to choose her successor.
Virus shatters retail holiday hopes, could lead to more bankruptcies
A spike in coronavirus infections through the U.S. holiday shopping season could trigger more bankruptcies from retailers, even after the biggest surge in Chapter 11 filings on record this year.
Biden win would hammer distressed energy borrowers, FTI says
Bankruptcy filings hit a three-month high as investors brace for economic shifts from the U.S. election that could force more large corporations to seek protection from creditors.
Bond defaults deliver 99% losses in new era of U.S. bankruptcies
Bankruptcy filings are surging due to the economic fallout of Covid-19, and many lenders are coming to the realization that their claims are almost completely worthless. Instead of recouping, say, 40 cents for every dollar owed, as has been the norm for years, unsecured creditors now face the unenviable prospect of walking away with just pennies – if that.
CFPB staff shake-up seen hampering investigations
The agency’s consolidation of supervision and enforcement policy into one office could compromise the independence of those deciding when to investigate alleged wrongdoing by banks and others, critics of the move say.
Escalating debt brawls add to headache for distressed companies
As the pace of large U.S. company bankruptcies stabilizes, escalating tensions between distressed companies, private equity owners and creditors signal more bruising Chapter 11 filings to come.
Weekly Wrap: Will flex-space opportunities trump current COVID-19 woes?
Deals, trends and research in structured finance and asset-backed securities for the week of Sept. 18-24
By
Glen Fest
Hertz weighs plans from two creditor groups for bankruptcy loan
The rental-car company is mulling two tentative offers for loans of about $1 billion to $1.5 billion. The proposals came from a group of Hertz’s unsecured creditors and a separate set of first-lien creditors.
Pandemic borrowing seen driving the next bankruptcy surge in 2021
After a boom in corporate distress when economies shut down to deal with the pandemic, 2020 had been expected to be the biggest bankruptcy year ever. The pace of bankruptcies was widely expected to pick up after last month, which was slower than May-July, but still the worst August on record.
Weakest junk companies struggle to sell debt, fueling defaults
This year has already seen a glut of corporate failures: there were 177 U.S. bankruptcy filings year-to-date by companies with over $50 million in liabilities, according to data compiled by Bloomberg
Will Citi snafu bring fresh scrutiny to custodial banks?
Citigroup’s $900 million payment blunder in a normally low-profile part of the financial market dominated by a handful of banks has experts wondering if regulators will uncover a deeper problem.
Citigroup cites $900 million human error. Lenders are puzzled.
The bank — which said it has been upgrading its loan operations platform after a review it undertook last year — said it mistakenly transmitted the payments after an employee didn't manually select the correct system options in its loan operation software.
Citigroup gets almost half of $900 million Revlon funds frozen
Citigroup scored court orders freezing almost half of the more than $900 million it says was accidentally sent to Revlon lenders this month.
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