 | | Featured Premium Content | | | | | Debtwire: Los Angeles Wildfires Could Present Risks to Holders of Local Government Lease Revenue Bonds
Wildfires in the City of Los Angeles metropolitan area are affecting not only that city but other area jurisdictions as well. The city and other local governments may see partial or total destruction of public projects that were financed with lease revenue bonds, according to a Debtwire analysis. In the State of California, these types of bonds carry abatement risk: the obligor has the right to stop paying debt service in whole or in part if the project financed with proceeds is, similarly, entirely or partially unavailable for use. READ MORE | | | | | SPONSORED CONTENTPrivate Credit and BSL: Peaceful CoexistenceAs private credit continues to expand, it maintains a relatively peaceful coexistence with broadly syndicated loans. SRS Acquiom offers insights into the current state of the lending landscape, as anchored by two viable sources of financing. GET THE INSIGHTS | | |  | | Editor's Picks | | | | | CarePoint, Bankrupt New Jersey Hospital System, to Seek Restructuring Plan Approval
CarePoint Health, a nonprofit healthcare system in New Jersey, will seek bankruptcy court approval on Thursday for a restructuring plan that will open the door to alternative bids to a proposal by Hudson Regional Health, the landlord for one of its facilities, to take over the system, WSJ Pro Bankruptcy reported. CarePoint, which operates Hoboken University Medical Center, Christ Hospital in Jersey City and Bayonne Medical Center, filed for bankruptcy in November in Wilmington, Del., after years of financial struggles, with a deal to combine CarePoint’s three hospitals with Hudson Regional. READ MORE | | Small Businesses Find Workaround Amid Bankruptcy Debt Limit Drop
Small businesses are revising strategies to meet a bankruptcy filing eligibility limit after a higher threshold expired last year, narrowing the pool of qualifiers for faster reorganization, Bloomberg Law reported. After a temporary provision allowing Subchapter V bankruptcy filings for debts up to $7.5 million expired in June, bankruptcy practitioners say businesses are now trying to “creatively” reduce their debt to the reinstated $3 million threshold. READ MORE | | Vertex Energy Emerges from Chapter 11 Bankruptcy with New CEO, Board
Vertex Energy Inc., which filed for chapter 11 protection in September, has emerged from its financial restructuring with new leadership, the Houston Business Journal reported. Benjamin Cowart and Chris Carlson "concluded their respective tenures" as Vertex's CEO and CFO, respectively, with Mark Smith becoming CEO, the refined fuels company said Jan. 22. Vertex will be under the ownership of certain of Vertex’s lenders, including funds managed by BlackRock Financial Management Inc., Highbridge Capital Management LLC, Whitebox Advisors LLC and CrowdOut Capital LLC. READ MORE
MORE NEWS BELOW | | |  | | Upcoming Events | | | | | ABI International Caribbean Insolvency SymposiumThe Westin Grand Cayman Seven Mile Beach Resort & Spa
January 23-25 | Grand Cayman, Cayman Islands | | ABI Distressed Real Estate Symposium Pendry Newport Beach
March 26-28 | Newport Beach, Calif. | | | | |  | | Daily Roundup | | | | | Northvolt Yet to Get Commitments From Investors as Cash Runs Low
Northvolt AB has yet to line up investors willing to commit funds to allow the Swedish battery maker to emerge from chapter 11 protection, Bloomberg News reported. The electric vehicle supplier’s cash position is dwindling as investors wait for others to step forward first in the ongoing funding talks. READ MORE | | Gibson Dunn Rides Lender Deals to Top of Restructuring Market
Wall Street credit funds are doing complex debt-shuffling maneuvers that can offer an advantage over rival lenders. One law firm has built a lead in the business of advising them — and has sowed fear among market participants of being on the wrong end of its deals, WSJ Pro Bankruptcy reported. Gibson Dunn & Crutcher and its lead restructuring partner, Scott Greenberg, have emerged as the nation’s top legal counsel for investors holding risky syndicated loans, and are at the center of many of the biggest and most controversial debt transactions. Greenberg has also exported his business model to Europe, where he advises one of the largest-ever corporate debtholder groups. READ MORE | | New York Proposes Plan to Stabilize Broken Taxi Insurance Market
New York Governor Kathy Hochul proposed measures to stabilize the city’s taxi and rideshare insurance industry, which is reeling from the insolvency of its largest provider American Transit Insurance Co., Bloomberg News reported. Two of the bills would make it easier to adjust insurance rates and allow regulators to phase increases after American Transit was criticized for offering drivers premiums far lower than its competitors. READ MORE | | South Carolina Utility Seeks Buyers for Failed Nuclear Project
A major power provider in South Carolina started accepting bids from buyers on Wednesday to finish two nuclear reactors, hoping to take advantage of the recent interest in the energy source from technology companies. Santee Cooper said it was working with the investment firm Centerview Partners to field proposals from potential buyers until May 5. The company added that it did not intend to own or operate the reactors once they are complete. READ MORE | | Trump Push to Use Tariffs to Pay for Tax Cuts Faces Opposition in Congress
U.S. President Donald Trump is pushing a plan to explicitly use revenue from higher tariffs on imported goods to help pay for extending trillions of dollars in tax cuts, an unprecedented shift likely to face opposition from many of his fellow Republicans in Congress, Reuters reported. Trump has threatened across-the-board import tariffs, but has yet to impose any. The president and his allies say he wants to use them much like the personal and corporate taxes that account for the vast majority of U.S. revenues, notching up tariffs to help pay for government programs and cover promised tax cuts. READ MORE | | Preliminary-Round Judges Needed for the Duberstein National Bankruptcy Moot Court Competition!
The Duberstein National Bankruptcy Moot Court Competition, now in its 33rd year and widely recognized as one of the nation’s preeminent moot court competitions, will be held in New York March 1-3, 2025. Fifty-three teams from law schools across the country will compete through written briefings and oral argument. Please find the fact pattern by clicking here. Volunteers are needed to judge the preliminary rounds (sign up here) of the competition. Click here for more information and to volunteer. | | | |
