DEBTWIRE: Liability Management Professionals Debate Lender Co-Ops, Talk ‘LME 2.0’ as Out-of-Court Restructurings Gain Steam
As out-of-court restructurings and mandates picked up speed in 2024, liability management professionals are grappling with the growing number of debtholder co-ops and the potential of parties pursuing “LME 2.0” — a second-stage liability management exercise (LME) with companies that have already had an LME. Two groups of panelists including bankers, financial advisors, asset managers and attorneys covered the rise of LMEs and decline in chapter 11 filings at Debtwire’s Restructuring Forum in Miami in December. |
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U.S. Regulator Warned Banks on Crypto But Did Not Order Halt to Business, Documents Show
A U.S. bank regulator told banks to pause dabbling directly in crypto in 2022 and 2023, but did not order them to stop providing banking services to crypto companies contrary to industry complaints of widespread "debanking," according to documents released on Friday, Reuters reported. A judge ordered the Federal Deposit Insurance Corp. to provide versions of supervisory "pause letters" it sent to unidentified banks after History Associates Incorporated, a research firm hired by crypto exchange Coinbase, sued the agency to release them. MORE NEWS BELOW |
| Pennsylvania County Monitoring Bankruptcy of Prison Inmate Medical Services Provider
Luzerne County’s (Pa.) prison inmate medical services provider — Wellpath LLC — has filed for bankruptcy, raising questions about the potential impact on the county, the Times Leader reported. The provider must supply a range of medical and mental health services and personnel, including prescription and nonprescription drugs and emergency ambulance transport, officials have said. |
| Commercial Chapter 11 Filings Increase 20 Percent in Calendar Year 2024
Commercial chapter 11 filings increased 20 percent in calendar year 2024 to 7,879 from 6,583 filings the previous year, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Overall commercial filings increased 17 percent to 30,009 from the 25,731 registered the previous year. |
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Biden Signs Bill to Boost Social Security Payments for Millions
President Joe Biden yesterday signed into law a measure that boosts Social Security payments for current and former public employees, affecting nearly 3 million people who receive pensions from their time as teachers, firefighters, police officers and in other public service jobs, the Associated Press reported. The bill rescinds two provisions — the Windfall Elimination Provision and the Government Pension Offset — that limit Social Security benefits for recipients if they get retirement payments from other sources, including public retirement programs from a state or local government. |
| Unemployed Office Workers Are Having a Harder Time Finding New Jobs
The U.S. economy has added more than two million jobs over the past year. But more people who are out of work are having a hard time getting back in, the Wall Street Journal reported. As of November, more than seven million Americans were unemployed, meaning they didn’t have work and were trying to find it. More than 1.6 million of those jobless workers had been job hunting for at least six months, according to the Labor Department. The number of people searching for that long is up more than 50% since the end of 2022. (Subscription required.) |
| Parent Company of Rick's Dessert Diner Files for Bankruptcy Protection
The parent company of Rick's Dessert Diner has filed for chapter 11 bankruptcy, but an owner said that the situation will not impact operations, the Sacramento Business Journal reported. Youssef Corp., which has owned Rick's Dessert Diner since September 2022, filed for bankruptcy reorganization last week, listing its liabilities at $1,958,979. Its largest creditor is Umpqua Bank with a claim of $1.28 million for a Small Business Administration loan. (Subscription required.) |
| Following Bankruptcy, Melt Bar and Grilled Closes Permanently
The once-13-unit Melt Bar and Grilled chain is no more. After filing for chapter 11 bankruptcy protection in June 2024 and attempting to relaunch and rebuild the Cleveland, Ohio-based concept, owner Matt Fish said he has decided to permanently close the last remaining location in Lakewood, Ohio, which was also the original unit, RestaurantBusinessOnline.com reported. |
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