Government Business – Milwaukee County First http://milwaukeecountyfirst.com/ Mon, 19 Sep 2022 06:03:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://milwaukeecountyfirst.com/wp-content/uploads/2021/06/icon-7-1.png Government Business – Milwaukee County First http://milwaukeecountyfirst.com/ 32 32 IBBI: Changes to Insolvency and Bankruptcy Code to Accelerate and Maximize Recovery https://milwaukeecountyfirst.com/ibbi-changes-to-insolvency-and-bankruptcy-code-to-accelerate-and-maximize-recovery/ Sun, 18 Sep 2022 18:55:00 +0000 https://milwaukeecountyfirst.com/ibbi-changes-to-insolvency-and-bankruptcy-code-to-accelerate-and-maximize-recovery/ Multiple amendments and clarifications to the Insolvency and Bankruptcy Code by the Indian Board of Insolvency and Bankruptcy (IBBI) will help creditors get better value for distressed assets and increase recovery rates down, consultants and bankers said. In separate notices over the weekend, IBBI authorized creditors to sell partial assets in the event that they […]]]>
Multiple amendments and clarifications to the Insolvency and Bankruptcy Code by the Indian Board of Insolvency and Bankruptcy (IBBI) will help creditors get better value for distressed assets and increase recovery rates down, consultants and bankers said.

In separate notices over the weekend, IBBI authorized creditors to sell partial assets in the event that they obtain more value. More importantly, the regulator also announced a performance-based compensation structure for resolution (RP) professionals. Both moves will lead to profound changes in recoveries, consultants have said.

“Allowing PRs an incentive based on salvage value aligns with the goals of all stakeholders. Creditors have until now been reluctant to work with a performance-based compensation plan, which has led to a decline in quality resolution and therefore salvage value. The incentives will encourage resolution professionals to strive to maximize the value of the debtor business,” said Nikhil Shah, Managing Director of Alvarez & Marsal (A&M) India.

In a notification, IBBI has for the first time set a minimum fixed fee for PRs. Depending on the size of admitted claims, PRs can now earn between ₹1 lakh and ₹5 lakh per month. Most importantly, incentives have been built in for quick resolution and maximizing value.

A PR is now entitled to 1% of the realizable value if the resolution plan is submitted to the National Company Law Tribunal (NCLT) in less than 165 days. Conversely, he gets nothing if the plan is submitted after more than 330 days.

The PR is also entitled to 1% of the difference between realized value and liquidation value as an incentive to maximize value. This change is effective from October 1st.

Consultants said the changes will push creditors to opt for higher quality professionals and will also require PRs to speed up the process.

“Fees should not be a constraint to getting the best value for money. It was found that lenders were reluctant to opt for performance-based incentives and in many cases had to settle for lower achievement due to the poor quality of the work While this is a welcome decision I would say that getting professional help should not be a problem and these costs should be covered separately in the resolution plan as it makes a difference in both value and time,” said Abizer Diwanji, Head of Financial Services at EY.

The IBBI also allowed creditors to sell assets separately in cases where no resolution plan was received for the debtor business as a whole, thereby maximizing value.

Bankers and consultants say there have been instances where the piecemeal sale of assets was a better option. As in the case of DHL which was finalized last year, where the retail portfolio was highly sought after for its high yield, strong asset quality and extensive network. But lenders opted to sell it along with the bad debt-infested wholesale trade, which drove the value down.

“There were instances where the aggregate value could have been higher, but it could not be achieved because all of the debtor company’s assets were being offered to the resolution seekers as a whole. These two changes are significant and will help achieve better outcomes for all stakeholders in the insolvency process,” said Shah of A&M India.

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Pan Sutong’s battle to save his real estate empire https://milwaukeecountyfirst.com/pan-sutongs-battle-to-save-his-real-estate-empire/ Sat, 17 Sep 2022 04:00:00 +0000 https://milwaukeecountyfirst.com/pan-sutongs-battle-to-save-his-real-estate-empire/ Pan Sutong bet billions on a massive project to build opulent homes in Tianjin for China’s new rich, but the bet backfired and now Pan’s creditors want to seize his assets. PA Sutong’s empire at its height had few rivals. The 59-year-old property mogul once amassed a $12.2 billion fortune that included a lavish mansion […]]]>

Pan Sutong bet billions on a massive project to build opulent homes in Tianjin for China’s new rich, but the bet backfired and now Pan’s creditors want to seize his assets.


PA Sutong’s empire at its height had few rivals. The 59-year-old property mogul once amassed a $12.2 billion fortune that included a lavish mansion in Hong Kong virtually next door to the city’s richest person, Li Ka-shing. He owned vineyards in California and France, as well as a horse breeding and training ground in Australia spanning over 1,200 acres.

Although he never finished high school, Pan managed to grow his Goldin Group into a sprawling conglomerate spanning consumer electronics, winemaking, financial services and, most importantly, real estate. Its master plan was to build Goldin Metropolitan, a sprawling mini-city in Tianjin, a port of about 14 million people about 85 miles southeast of Beijing. His project would include 12 towers, 33 mansions and the tallest skyscraper in China, rising 117 stories in the air.

But Pan’s plans are now crumbling under a mountain of debt. Work on his favorite project is largely halted and creditors are calling for the liquidation of his companies in Hong Kong and Bermuda. Even his mansion in Hong Kong had to be re-mortgaged several times to raise much-needed funds. The once flamboyant entrepreneur, who rose to sixth in Hong Kong’s wealth rankings just five years ago, now faces an uphill battle just to stay afloat.

In July, the Hong Kong High Court ordered Pan to declare bankruptcy and liquidate one of its holding companies for unpaid debts of HK$8 billion ($1 billion) owed to Citic Bank. The order is being appealed because the tycoon and his holding company have the ability to repay the debt in full, according to a Pan representative. But Pan’s problems don’t end there. The Bank of China has filed a separate bankruptcy petition against him in Hong Kong for an additional 740 million yuan ($109 million) of unpaid debts he failed to pay.

That case, which was heard on August 2, is currently on hold pending the outcome of Pan’s appeal against the earlier decision. Meanwhile, Chinese bad debt manager Cinda Asset Management has compounded Pan’s legal troubles by suing it and several of its associated companies for another 7.4 billion yuan ($1.1 billion) in loans. unpaid debts and accrued interest related to the Tianjin project. .

A unit of Deutsche Bank has filed a petition in Bermuda seeking the liquidation of Goldin Financial Holdings, the Hong Kong-listed company that owns Pan’s real estate, financial and real estate development business.

“He needs to find a way to pay off those debts or make a new deal with the lenders,” says Kenny Ng, securities strategist at Everbright Securities. “Otherwise, he has no choice but to go bankrupt.”


“He needs to find a way to pay off those debts or make a new deal with the lenders. Otherwise, he has no choice but to go bankrupt.

Kenny Ng of Everbright Securities

Pan, who spent his teenage years in the United States but moved to Hong Kong when he was 21, first ventured into consumer electronics. He founded the Matsunichi brand in the Asian financial hub in 1993 to produce MP3 players as well as karaoke TV monitors. In 2002, he took over Hong Kong-listed Emperor Technology Venture and renamed it Matsunichi Communication Holdings. Then a booming property market in China in the 2000s caught his eye, and he decided to pivot.

Matsunichi was renamed Goldin Properties in 2008, the same year Pan acquired another Hong Kong-listed company called Fortuna International, which was later renamed Goldin Financial. Years later, shares of sister companies soared, including a 40% rise in a single day, giving Pan a net worth of $12.2 billion in 2016. Hong’s financial watchdog Kong, however, issued a warning about the high concentration of ownership in Goldin Properties after wild price swings.

Citic’s $1 billion loan, personally guaranteed by Pan, was intended to fund its $1.5 billion privatization of Goldin’s real estate arm in 2017. Such a move is usually made when controlling shareholders believe the public market undervalues ​​their business, says Everbright’s Ng.

Goldin Properties had primarily focused on high-end real estate. It is the unit responsible for the construction of the mega-project in Tianjin. Development began in 2007 because Pan was confident in Tianjin’s prospects of becoming a regional economic center, according to Goldin’s website.

Since then, however, Tianjin’s economic importance has only faded, and Pan’s investment holding company, Silver Starlight, has failed to repay a loan that fell due in 2019. It also failed to made no further payments except for a portion of overdue interest in 2020, court documents show.

Construction on the skyscraper had largely halted in 2015 after receiving what Goldin claimed was a $5.9 billion investment, which is still far short of the roughly $10 billion needed to complete the building. project. Today, the high-rise tower is known on Chinese social media as the tallest in the country lan wei lou, Where abandoned building.



Yan Yuejin, research director at the Shanghai-based E-house China Research Institute, said Pan would seek to avoid selling the assets and land in Tianjin to repay creditors because it would be an acknowledgment of failure. It would also mean the dissolution of his real estate company.

“The Tianjin project is grand and it’s hard for Pan to give up,” Yan said. “But if all else fails, he has to sell it for cash to solve his debt problems.”

The price, however, is another issue. Chinese President Xi Jinping has been pushing to lower property prices and reduce financial debt, which has dealt a severe blow to the country’s property market. Developers are now reluctant to acquire land, especially as many have run into their own cash flow problems and have recently defaulted on their debts.

For Pan, the prospect of losing control of the Tianjin project would reflect a fate that has already struck another trophy. The 28-story Goldin Financial Global Center in Kowloon Bay was seized by creditors in 2020 after the company failed to honor debts totaling more than $1.3 billion secured by the building.

Now Goldin Financial Global Center is looking for a new buyer after a previous deal to sell it for $1.8 billion was terminated in May for unspecified reasons.

The building had served as the headquarters of Goldin Financial, which has lost more than 90% of its value over the past five years. The company reported a nearly 40% drop in revenue to $47.2 million for the 12 months ending June 2021, according to the latest available financial report. It also said it had $956 million in current liabilities due within 12 months, compared to cash and cash equivalents of just $2.1 million.

Pan stepped down in June as the company’s chairman and chief executive and handed over the reins to former vice chairman Abraham Shek Lai Him.

Meanwhile, Pan has repeatedly mortgaged his mansion in Hong Kong’s exclusive Deep Water Bay neighborhood for at least $85.6 million. In fact, just a few years after Pan bought the property for $319 million in 2017, he was turning to his famous neighbor for help. Li Ka-shing’s CK Asset Holdings agreed to bail out Pan with a loan in 2020, but the deal ran into problems and both sides were close to taking the matter to court before they could resolve their differences .

Pan also has an apartment project in the Ho Man Tin district of Hong Kong, the presales of which were banned last year in an unprecedented move by authorities due to concerns over funding for the venture. The aforementioned Pan representative said that the Grand Homm project had already received its certificate of compliance from the Hong Kong authorities at the end of August and that it aims to deliver all its houses within 30 days. The schedule, however, has been pushed back several times since Pan first acquired this plot of land in 2016.

In recent years, Pan has had to step away from several other projects in Hong Kong. He gave up his right to develop a separate residential project in Ho Man Tin in 2020 and lost a $3.2 million deposit in 2019 to give up his stake in a $1.4 billion bid for a plot of land on the former site of Kai Tak Airport. Goldin Financial had spent nearly $1.2 billion to acquire separate land in Kai Tak in 2018 which was sold in 2020 in a heavily discounted $446.5 million cash deal, which also included a profit-sharing deal giving Goldin 30% of any future revenue from the site’s development, after a previous $898 million sale ended.

“Judging from the debt disputes and Pan’s plans in Hong Kong, it faces severe cash shortages,” E-house’s Yan said. “He is on the verge of bankruptcy, and it depends on whether he can sell more assets in Hong Kong to prevent that from happening.”

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Happy Joe’s Pizza files for Chapter 11 bankruptcy in Delaware | Business & Economy https://milwaukeecountyfirst.com/happy-joes-pizza-files-for-chapter-11-bankruptcy-in-delaware-business-economy/ Thu, 15 Sep 2022 03:53:44 +0000 https://milwaukeecountyfirst.com/happy-joes-pizza-files-for-chapter-11-bankruptcy-in-delaware-business-economy/ Happy Joe’s Pizza has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. Dynamic Restaurant Acquisition, Inc., doing business as Happy Joe’s Pizza, of 5239 Grand Ave., Davenport, filed the petition on September 2. Thomas A. Sacco, president and CEO of the company, signed the petition. The […]]]>

Happy Joe’s Pizza has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.

Dynamic Restaurant Acquisition, Inc., doing business as Happy Joe’s Pizza, of 5239 Grand Ave., Davenport, filed the petition on September 2.

Thomas A. Sacco, president and CEO of the company, signed the petition. The company is represented by Mark Menuti of Saul Ewing Arnstein & Lehr LLP of Wilmington, Del.

The pending bankruptcies to which Sacco’s signature is attached relate to HJ Dynamics Holdings, LLC, TS Dynamic Acquisition, Inc. and TS Dynamic Holdings, LLC.

Happy Joe’s Pizza files for Chapter 11 bankruptcy


Thomas Geyer



According to the company’s income statement attached to the bankruptcy petition, Happy Joe’s recorded a loss of net income of $1,196,579.18 for fiscal year 2022. In fiscal year 2021, the company realized a net profit of $766,523.50.

People also read…

The company reports total assets of $1,908,481.29 for fiscal year 2022.

The total liability for fiscal 2022 was $2,455,766.29.

This is a developing story.

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Missfresh, haunted by bankruptcy, dumps user’s products and balance in app https://milwaukeecountyfirst.com/missfresh-haunted-by-bankruptcy-dumps-users-products-and-balance-in-app/ Tue, 13 Sep 2022 13:12:25 +0000 https://milwaukeecountyfirst.com/missfresh-haunted-by-bankruptcy-dumps-users-products-and-balance-in-app/ Nasdaq-listed Chinese retailer Missfresh appears to be on the verge of bankruptcy. On September 13, Chinese media outlet Sina Tech reported that all product information in the Missfresh app had been purged by the company, and many user balances were now showing “0”. Regarding this problem, the company replied that there were failures in the […]]]>

Nasdaq-listed Chinese retailer Missfresh appears to be on the verge of bankruptcy. On September 13, Chinese media outlet Sina Tech reported that all product information in the Missfresh app had been purged by the company, and many user balances were now showing “0”. Regarding this problem, the company replied that there were failures in the servers of the system and that the staff was doing everything possible to recover the data.

As of July 27 this year, Missfresh’s on-demand Distributed Mini Warehouse (DMW) business has been shut down across China. Since then, many products labeled “next day delivery” for several major cities are now displayed as “out of stock”. According to a report by Jiemian News, at present, several “next day delivery” products found on the Missfresh app have disappeared, and all categories are out of stock.

As the app does not currently support checkouts, many users’ balances cannot be used for purchases. Since July 28, consumer complaints related to “Missfresh Refund” have appeared on Black Cat Complaint, a service for customers to file complaints in China. As of September 13, all complaints related to refunds on Missfresh initiated after July 28 are in “processing” status, and none of them have been completed.

Considering the difficulty for consumers to reimburse their expenses, the Beijing Consumers Association has scheduled a meeting with the Beijing-based grocery delivery platform on August 4, asking the company to properly handle the consumer complaints. The company replied that it had returned the rectification plan to the organization.

Missfresh said consumers can raise questions through its customer service hotline and the app. After calling the customer service hotline, company staff said that the user’s top-up balance can be registered for refund, but the balance generated by gift cards does not support refund for the moment. At the same time, as the system is being updated, the time required to process a refund cannot be guaranteed after check-in.

SEE ALSO: Struggling Missfresh implements corporate restructuring plan

In addition to consumers, former employees of the company also had the problem of safeguarding their rights. On July 28, through an online meeting, the company announced the end of working hours for many employees and a deferral of wages for some employees. At that time, according to the dismissed employees, the company still owed salaries for the months of June and July, and the social insurance of employees in May, June and July had also been cut off.

Supplier payments aren’t looking too rosy either. A supplier of aquatic products Missfresh appointed a local law firm to sue Missfresh in April this year. After mediation by the court, Missfresh promised to pay in three phases within nine months. The last payment date is July 29, but so far the supplier has not received any payment.

As for Missfresh’s other business lines, the Bianligou, a vending machine company, was sold to Shenzhen Daily Convenience Technology for 30 million yuan ($4.38 million), while the market smart food and cloud-based retail companies failed to post a profit. and still need more investment. Users cannot place next day delivery orders or 30-minute delivery orders. Many ex-Missfresh employees have said that in-app product dumping and user balance may be caused by no one running the company internally.

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Floyd Mayweather ‘disrespectful’ sends stark reminder amid bankruptcy rumors https://milwaukeecountyfirst.com/floyd-mayweather-disrespectful-sends-stark-reminder-amid-bankruptcy-rumors/ Sun, 11 Sep 2022 12:30:00 +0000 https://milwaukeecountyfirst.com/floyd-mayweather-disrespectful-sends-stark-reminder-amid-bankruptcy-rumors/ Floyd Mayweather is on his way back to Japan. On September 25, in an exhibition bout, “Money” will face Mikuru Asakura, a mixed martial artist from Rizin. As fans eagerly awaited Mayweather’s planned return to Saitama Super, he took to Instagram and shared a brief clip where a fan profusely praised Mayweather and his achievements […]]]>

Floyd Mayweather is on his way back to Japan. On September 25, in an exhibition bout, “Money” will face Mikuru Asakura, a mixed martial artist from Rizin. As fans eagerly awaited Mayweather’s planned return to Saitama Super, he took to Instagram and shared a brief clip where a fan profusely praised Mayweather and his achievements in the sport.

According to the fan, Mayweather is the most disrespectful GOAT in sport. And although he fought and won all of his fights, he barely received the credits he truly deserved. Recently, there have been bankruptcy rumors involving Mayweather.

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In the clip, the fan said, “Floyd Mayweather is the most disrespectful GOAT I’ve ever seen in sports. And I mean that sincerely. Floyd Mayweather gets an incredible amount of praise, but he also gets an incredible amount of disrespect when it comes to of “Who is the greatest boxer of all time. Floyd Mayweather is the greatest boxer of all time. And that shouldn’t really be a discussion.

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The fan continued and even brought big names, such as Ali, Chavez, Robinson and Leonard. Here’s what sets Mayweather apart, according to the fan.

Why Floyd Mayweather is different from Muhammad Ali and Sugar Ray Leonard

The fan continued to plead his case. Floyd Mayweather also expressed in his caption that although he didn’t know who the fan was, he was talking “real shit”!

The fan continued, “Now listen, there are other greats – Muhammad Ali, Julio Cesar Chavez, Sugar Ray Robinson, Sugar Ray Leonard – all of them are amazing fighters. But none of them did what Floyd Mayweather did. To go 50-0 in a professional boxing career when more than half your fights are world title fights. Not only for doing this, but for never having been officially let down in your entire career. I can count on one hand the number of times Floyd Mayweather has been injured in a professional boxing match.

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“Floyd Mayweather also gets a lot of shit because he picks his opponents. Floyd has fought 24 world champions in his career, and we’re talking about him picking fights like he’s fighting scrubs? Are you serious This man was the greatest of his generation and did things that I don’t think we will ever see again in our lifetime.he concluded by saying.

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Mayweather, apparently, after the Asakura fight, will fight a third time this year. Well, what’s your take on Mayweather? Let us know in the comments.

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Saudi LCGPA programs help Sudair Pharma avoid bankruptcy, says CEO https://milwaukeecountyfirst.com/saudi-lcgpa-programs-help-sudair-pharma-avoid-bankruptcy-says-ceo/ Tue, 06 Sep 2022 13:25:25 +0000 https://milwaukeecountyfirst.com/saudi-lcgpa-programs-help-sudair-pharma-avoid-bankruptcy-says-ceo/ Saudi Arabia’s oil demand growth will moderately slow to 20,000 bpd in 2023 (KAPSARC report) RIYADH: Saudi Arabia is expected to keep oil demand growth moderately low at 20,000 bpd in 2023 compared to forecast demand growth of 24,000 bpd this year, as the Kingdom continues on its path to energy efficiency, limiting oil demand, […]]]>

Saudi Arabia’s oil demand growth will moderately slow to 20,000 bpd in 2023 (KAPSARC report)

RIYADH: Saudi Arabia is expected to keep oil demand growth moderately low at 20,000 bpd in 2023 compared to forecast demand growth of 24,000 bpd this year, as the Kingdom continues on its path to energy efficiency, limiting oil demand, according to a report by the King Abdullah Petroleum Studies and Research Center.

The report titled “KAPSARC Oil Market Outlook Q3” predicts that the Kingdom is expected to see demand growth of 380,000 bpd quarter-on-quarter in the third quarter.

Total global oil consumption is expected to rise by 2.15 million bpd year-on-year in 2022 to 99.8 million bpd as the world recovers from the pandemic, he added.

The KAPSARC report, however, noted that this projection is 320,000 barrels lower than its previous projection made in the second quarter of 2022.

“Consumption growth is led by Saudi Arabia, with an additional 380,000 bpd expected for cooling and power generation, followed by the United States with an expected growth of 320,000 bpd due to its cooling season. summer driving,” the report said.

He predicted that global oil consumption would increase by an additional 2.16 million bpd in 2023, 30,000 bpd higher than KAPSARC’s previous projection made during the second quarter.

“Despite great uncertainty in oil markets, a reduction in supply expected from Russia and a reduction in global demand since our previous quarterly outlook, we expect oil supply growth to continue in 2022, with production close to parity with demand in 2022 and exceeding in 2023,” KAPSARC said in the report.

He added: “While the current high oil prices should encourage more production and less consumption, supply risks are largely on the upside and demand risks are mostly on the downside, which would lower prices. price.”

As for supply balance sheets, the report projects significant quarterly growth of 1.61 million bpd in Organization for Economic Co-operation and Development countries for the third quarter.

KAPSARC, however, noted that oil demand growth in non-OECD countries is expected to slow in the third quarter to around 250,000 bpd.

According to the report, supply will grow by 2.2 million bpd in the third quarter of 2022, the highest level of quarter-over-quarter growth in several years.

Production growth for the third quarter, however, is only expected to be 870,000 bpd, and surprisingly, non-OPEC+ will account for 68% of that production growth.

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U.S. leveraged loan defaults hit two-year high after $4.5 billion in deposits in August https://milwaukeecountyfirst.com/u-s-leveraged-loan-defaults-hit-two-year-high-after-4-5-billion-in-deposits-in-august/ Sun, 04 Sep 2022 13:47:00 +0000 https://milwaukeecountyfirst.com/u-s-leveraged-loan-defaults-hit-two-year-high-after-4-5-billion-in-deposits-in-august/ Default activity in the US leveraged loan market revived in August after bankruptcy filings by four Morningstar LSTA US Leveraged Loan Index issuers pushed $4.46 billion in debt from institutional loan to non-performing status. After historic lows, the index’s default rate fell to 0.69% by number of issuers and 0.60% by amount, from 0.43% and […]]]>

Default activity in the US leveraged loan market revived in August after bankruptcy filings by four Morningstar LSTA US Leveraged Loan Index issuers pushed $4.46 billion in debt from institutional loan to non-performing status.

After historic lows, the index’s default rate fell to 0.69% by number of issuers and 0.60% by amount, from 0.43% and 0.28% respectively in July.

There was more defaulted loan volume in August than in the previous 17 months combined.

Leader in size among the default indices, international endo filed for Chapter 11 protection in the Southern District of New York Bankruptcy Court to reduce its debt and settle lawsuits stemming from its alleged role in the opioid epidemic in the United States.

The drugmaker’s Term Loan B, placed in 2021 to refinance existing debt, had $1.975 billion outstanding at the time of filing, marking the largest issuer default since SeaDrill Partners‘ $2.6 billion loan in July 2020.

According to Endo International’s Chapter 11 petition, the company has total assets of $6.33 billion and total debts of $9.54 billion. The shareholders listed on the petition include The Vanguard Group, with a 12.07% stake; BlackRock, with a 7.93% stake; Paulson & Co., with a 7.37% stake; and Renaissance Technologies, with a 7.07% stake.

Endo’s India-based entities are not part of the Chapter 11 proceeding, the company said, adding that it plans to file recognition proceedings in Canada, the United Kingdom and Australia.

The drug company is the latest in high-profile Chapter 11 filings to address opioid claims. Of the other loan index issuers, Mallinckrodt recently emerged from bankruptcy after placing $1.9 billion in index-linked loans into bankruptcy in October 2020.

Also under the umbrella of Health, Medical Imaging Society Carestream Health filed for bankruptcy in the District of Delaware. The recapitalization envisioned by the pre-packaged plan will eliminate about $470 million in debt. The Carestream term loan had $507.7 million outstanding, according to court documents.

Citing rising printing costs and reduced mail demand, OSG Billing Services filed for Chapter 11 bankruptcy with a plan that would leave all creditors intact or with assessed recovery at 100%.

According to the company’s disclosure statement, the proposed plan of reorganization would amend and restate the company’s existing senior term loan, outstanding in the amount of approximately $599 million, with a slightly larger facility to an amount of $601.4 million. The restated loan would mature in June 2026, and the new interest rate would be an adjusted Sofr+225 bps (including 75 bps paid in cash and 150 bps paid in kind), subject to a Sofr floor of 1%, according to a term sheet attached to the company’s RSA, also filed with the commercial court.

Rounding out the busiest month for default business since July 2020, the fixture maker Lumileds filed for Chapter 11, citing challenges caused by supply chain constraints, Covid-related issues, and the dispute in Ukraine over the company’s excessive leverage. Lumileds, a developer and manufacturer of lighting products that primarily serve the automotive, smartphone, and industrial end markets, had $1.61 billion outstanding on its Term B loan maturing in 2024, according to court documents.

Imminent situation?
Looking at potential short-term situations, a UK-based cinema operator cineworld confirmed that it was considering a Chapter 11 filing in the United States and ancillary proceeding in other jurisdictions as part of a possible balance sheet restructuring.

Cineworld last warned of its ability to continue in business when it released its 2021 annual results in March. Among other headwinds — including the pandemic and competition from online movie streaming — the company is appealing more than $900 million in damages awarded to former merger partner Cineplex after it waived an agreement to buy the Canadian group in June 2020.

With $3.49 billion in loans across three facilities in the Loan Index, a Cineworld Chapter 11 filing would be the largest loan default by a single issuer since McDermott International placed $3.52 billion in term loans into bankruptcy in 2018.

In theory, a Cineworld default would bring August’s default rate (in amount) to 0.87%.

A potentially less immediate, but still urgent situation has emerged from the long-time loan originator Avaya. The telecommunications and software company – which entered the loan market for LBO financing in 2008 – has already made its way to Chapter 11. Once again, the company warns of its ability to continue its operating after announcing a nearly 70% year-over-year decline in adjusted EBITDA in preliminary results for the third quarter of fiscal 2022, and at the same time announcing that it is working with advisers to evaluate options on its 2.25% convertible notes due June 2023. Avaya has three term loans in the Morningstar LSTA US Leveraged Loan Index totaling $1.89 billion.

More generally, stress indicators continue to increase, but remain well below long-term averages.

According to data from LCD, the “below 80” cohort of performing index loans nearly doubled in the past six months, to $45 billion, but for context, at the height of the pandemic market crash in March 2020 , it skyrocketed to $672 billion.

August’s distressed volume translates to 3.19% performing loans in the Morningstar LSTA US Leveraged Loan Index. Although this is the highest month-end reading since October 2020, it is still well below the 10-year average of 4.23%.

In a latest measure of credit risk trends, downgrades outpaced upgrades for a third consecutive month (a 16-month upgrade cycle for the asset class was halted in June). On a rolling three-month basis, the downgrade of loan facilities in the Morningstar LSTA US Leveraged Loan Index topped upgrades of 1.89x in August, down from 1.74x in July and 1.32x in June.

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For another month, NH bankruptcy filings remain at near record highs https://milwaukeecountyfirst.com/for-another-month-nh-bankruptcy-filings-remain-at-near-record-highs/ Thu, 01 Sep 2022 13:35:15 +0000 https://milwaukeecountyfirst.com/for-another-month-nh-bankruptcy-filings-remain-at-near-record-highs/ But will inflationary pressures end the trend? Bankruptcy filings in New Hampshire appear to have plateaued over the summer after dropping to record lows during the pandemic. The question is whether this is a temporary break or if they will start climbing again. The summer has brought high inflation, especially in the price of basic […]]]>
But will inflationary pressures end the trend?

Bankruptcy filings in New Hampshire appear to have plateaued over the summer after dropping to record lows during the pandemic. The question is whether this is a temporary break or if they will start climbing again.

The summer has brought high inflation, especially in the price of basic necessities that could push people over the edge. On the other hand, the unemployment rate remains at a record level of 2% and wages are increasing (by 4.2% in July), but not as much as inflation (7.3% in July).

There were some 62 bankruptcy filings in August – nine more than in July, 10 more than in June and two less than in August 2021.

The state is still on track for a banner year. Since the beginning of the year, deposits have averaged 53 per month. Last year the average was 61. To put things into perspective, there were some 447 bankruptcy filings in August 2009 in the midst of the Great Recession. The average monthly deposit that year was 427.

While there were no corporate filings in June or July, there was one in August:

  • Animetrics Inc., Conway, filed Aug. 2, Chapter 7. Assets: $780,982. Liabilities: $222,119.

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Debt consolidation vs bankruptcy: what’s the difference? https://milwaukeecountyfirst.com/debt-consolidation-vs-bankruptcy-whats-the-difference/ Tue, 30 Aug 2022 13:07:37 +0000 https://milwaukeecountyfirst.com/debt-consolidation-vs-bankruptcy-whats-the-difference/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Debt consolidation with personal loan or bankruptcy: […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Debt consolidation with personal loan or bankruptcy: Both are debt solutions, but one is better than the other. (Shutterstock)

Debt consolidation and bankruptcy are two options for dealing with overwhelming debt. Both offer a long-term solution to your debt, but they work very differently and have varying consequences for credit.

A personal loan can be a good tool for consolidating high-interest debt. Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

Debt consolidation vs bankruptcy

Debt consolidation and bankruptcy can both help you manage your debts, but it’s important to understand how each works before deciding which option is right for you. Here are some key differences between debt consolidation and bankruptcy.

Debt Consolidation

Debt consolidation merges multiple debts into one, usually by taking out a new loan or a balance transfer credit card to pay off your existing debt balances. This option is best suited for those who can pay off their debt but have difficulty managing multiple monthly payments or high interest rates.

Debt consolidation can hurt your credit in the short term since it requires taking on new debt. But it can increase your long-term credit as you pay off your debt. Debt consolidation may have a small associated cost in the form of loan origination fees or balance transfer fees, if you are using a balance transfer credit card to consolidate.

How long it will take to get rid of your debts depends on the debt consolidation path you choose, how much debt you have and how much you can afford to pay each month. But it may be possible to be debt free within five years.

Bankruptcy

Bankruptcy is another solution to debt, but with a very different process and different ramifications. Unlike debt consolidation, bankruptcy is a legal proceeding. And instead of helping you consolidate debt or get lower interest rates, it helps you get rid of debt altogether.

If it sounds too good to be true, know that there are some serious downsides. First, not all types of debt can be discharged in bankruptcy, so you may still find yourself stuck with some debt.

What you need to know about debt consolidation

In most cases, debt consolidation involves take out a personal loan to settle your other debts. You will then have only one debt with only one monthly payment to settle. In some cases, you may qualify for a lower interest rate than you’re paying on your other debts, which can also save you money in the long run.

Debt consolidation can also be done in other ways, including using a balance transfer card to manage credit card debt or a home equity loan or home equity line of credit (HELOC) to pay off your debt.

Advantages of debt consolidation

  • Streamlines debt repayment — Debt consolidation can help you go from multiple monthly payments and interest rates to one. Not only is it easier to track your debts, but you might also end up paying less each month.
  • Can get a lower interest rate — Debt consolidation can lead to lower interest rateespecially if you are consolidating high interest debt like credit cards or using secured debt like a home equity loan to consolidate your debt.
  • Can improve your credit — Although you may see a temporary drop when you open new debt, debt consolidation can improve your credit usage and make it easier to make on-time payments each month.
  • Getting Out of Debt Earlier — With a potentially lower monthly payment and interest rate, debt consolidation could help you pay off your debt faster. Depending on the amount of your debts, it can take up to several years or as little as a few months to become debt free.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

Disadvantages of debt consolidation

  • May pay fees — Debt consolidation may incur additional costs in the form of origination fees on a Personal loan or a home equity loan, or a balance transfer fee on a credit card. Consider additional fees to ensure that consolidating your debt will make financial sense.
  • The interest rate cannot be lower — There is no guarantee that debt consolidation will result in a lower interest rate. Personal loans can have high interest rates, especially for borrowers with bad credit. If you already have low interest rates on your current debts, debt consolidation might not be beneficial.
  • Assets could be at risk — Depending on the type of debt consolidation you use, you could be putting other assets at risk. For example, a home equity loan is secured by your home, which means your lender could foreclose on your home if you stop making your payments.
  • May not reach root cause of expense — If you haven’t addressed the root cause of your debt, your debt consolidation loan could help you pay off your credit cards, but encourage you to use them for additional purchases. As a result, you can find yourself in an endless cycle of debt.

What you need to know about bankruptcy

If your financial situation is dire and you are considering bankruptcy, here are the two different types:

  • Chapter 7 Bankruptcy — This type of bankruptcy allows you to pay off certain debts. In return, your non-exempt assets will be sold to help provide compensation to your creditors. What is considered exempt property depends on your state, but can include work-related items, a personal vehicle, equity in your personal residence, and household furniture.
  • Chapter 13 Bankruptcy — With Chapter 13 bankruptcy, a court representative will help you create a repayment plan rather than paying off your debts. You will pay installments to your creditors for a number of years and, in exchange, you will be able to keep all your assets. Any outstanding debt at the end of the repayment term will be discharged.

It is important to note that some debts cannot be discharged in a Chapter 7 bankruptcy. Debts that will not be discharged include child support, alimony, taxes, and student loans. Chapter 7 bankruptcy also has an income limit. Those who wish to declare bankruptcy and are not eligible for Chapter 7 can use Chapter 13 instead.

Advantages of bankruptcy

  • Can provide debt relief — Bankruptcy can relieve you of your debt and, in the case of a Chapter 7 bankruptcy, help you pay off some of your debts entirely.
  • Can help you avoid foreclosure — Bankruptcy can help you avoid a legal judgment or foreclosure due to unpaid debts.
  • Some goods will be taken – While some of your personal assets will be liquidated to pay off loans, others will be exempt from liquidation.
  • May not lose all your possessions — In the event of a Chapter 13 bankruptcy, you may be able to keep your assets while having some of your debts discharged.

Disadvantages of bankruptcy

  • Sustainable credit effects — Bankruptcy stays on your credit report for up to 10 years and could prevent you from borrowing money, renting an apartment, getting insurance, or even getting certain jobs.
  • Could lose your property — Depending on the type of bankruptcy, you could end up with a lot of your personal assets seized and liquidated to make payments on your debts.
  • Not all debts are eligible for discharge — Certain debts, including student loans and child support, cannot be discharged in bankruptcy.
  • May have to pay a fee — Bankruptcy can result in additional court, administrative and attorney fees during a time when you are already struggling to pay what you owe.

Bankruptcy should be considered a last resort. Consider a personal debt consolidation loan instead. You can quickly and easily compare personal loan rates with Credible to find the one that meets your needs.

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What is “civil bankruptcy”? https://milwaukeecountyfirst.com/what-is-civil-bankruptcy/ Sun, 28 Aug 2022 15:11:10 +0000 https://milwaukeecountyfirst.com/what-is-civil-bankruptcy/ Meetings help bring people together and make sure everyone is on the same page. But having too many meetings can cause more problems than they’re supposed to prevent. Overloading meetings can drain people’s energy and destroy morale. The purpose of meetings is to help people complete their work, but sometimes they actually prevent them from […]]]>

Meetings help bring people together and make sure everyone is on the same page. But having too many meetings can cause more problems than they’re supposed to prevent. Overloading meetings can drain people’s energy and destroy morale.

The purpose of meetings is to help people complete their work, but sometimes they actually prevent them from completing tasks. So what should you do if your employees are overloaded with meetings?

Declare “civil bankruptcy”

The Harvard Business Review surveyed 182 senior executives about how many meetings they had and what they thought of them. The review found that 65% said meetings kept them from finishing their work. 71% said their meetings weren’t productive and 62% said meetings weren’t bringing the team together.

If you see that your employees are overwhelmed with the number of meetings per week, it’s time to reduce the schedule to nothing. In other words, ruin your work schedule. After each meeting is cancelled, carefully assess the scope and purpose of each meeting you have eliminated. Asana, a collaborative organization software, calls this “doomsday meeting.”

Do not add any meetings to the calendar until you have determined that they are essential.

Productivity improves with fewer meetings

Employee productivity increases when there are fewer meetings. For example, the Harvard Business Review surveyed 76 companies and found that productivity was 71% higher when meetings were reduced by 40%.

Fewer meetings allow workers to be more autonomous. They now have time to write down their “to-do lists” and stay on top of messages or emails.

How to Eliminate Meetings

Before a meeting is scheduled, the first question should be, “What is the purpose?” If it’s just disseminating information, there are other, less intrusive ways to do it without killing time. And if there’s no specific goal, drop the meeting and send an email.

You also need to ask yourself if everyone in the meeting really needs the same information to do their jobs. For example, does the sales manager need to know what’s going on in the IT department? It can be just a conversation or a Slack email.

Asynchronous communication sometimes does better than a synchronous meeting. A synchronous meeting is scheduled so everyone has to be there at the same time. This can be a face-to-face meeting or a videoconference. But asynchronous communication like email, a project management tool, or even a messaging app allows employees to access information on their terms. The goal is always achieved, but time is not wasted sitting in a meeting.

If you must have meetings, schedule at least one day a week without a meeting. For example, make it a policy to have a “no-meeting Wednesday” or a “no-meeting Friday.” This will be the one day of the week when you are likely to be assured of peak productivity.

Use project management software

Project management software helps your employees track projects, meet deadlines, and meet budgets. The software is a great way for employees to communicate without having to meet in person. Plus, communication and follow-up happens in real time, which is more productive than stopping productivity to have a meeting.

There are many tools available that can meet all needs and budgets.

What meetings remain

Some meetings need to be organized to keep people in a team spirit and to achieve goals. But before you start a meeting or ask one of your managers to lead a meeting, make sure there’s an agenda. Everyone should receive this agenda before the meeting in order to prepare.

Agendas keep meetings on track. A sales item meeting can be hijacked quickly over IT issues if an agenda is not developed and kept up to date.

There are other meetings, such as a weekly or bi-weekly one-on-one with key employees, that should be kept.

Brainstorming or innovation meetings may also be necessary. But be sure to set clear goals for a brainstorming session. You’re here to come up with new advertising ideas, not to complain about what’s wrong with the business. Be sure to be clear that employees should come up with ideas that can be discussed. Again, have an agenda, although it can be looser, to keep the meeting on track.

A refresher meeting is often requested. If there are any changes in a company’s goals, plans or budgets, these should be communicated in person. Be sure to be clear and organized with the information. Allow time for questions and comments.

Project details do not need to be discussed in a meeting. These should be left to written communication so that everyone is always on the same page. When it’s time to develop them, they can be discussed in an update meeting.

Bankruptcy Calendar This is just the beginning

Declaring bankruptcy on your calendar is just the start of eliminating unnecessary meetings. Once you’ve cleared all meetings from your calendar, restore only what’s absolutely necessary to run your business or department.

When you have a meeting, make sure it’s scheduled, with an agenda and a time limit. Eliminating time-consuming meetings will allow your employees to become more productive.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are intended for general informational purposes only and should not be construed or construed as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or other personal finance advice. Epoch Times assumes no responsibility for the accuracy or timeliness of the information provided.

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