 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Rite Aid’s Bank Lenders at Risk for Rare Losses
Rite Aid’s bank lenders risk taking losses as the company weighs a bankruptcy filing, a potential rarity among top-ranking loans backed by hard assets, WSJ Pro Bankruptcy reported. A slice of the more than $2.5 billion in asset-backed loans to Rite Aid were put up for sale two weeks ago by an unidentified loan holder and quoted by Barclays at 66 cents on the dollar of face value. The discount reflects market expectations that the loans may not be paid in full, a rare outcome for loans that are backed by receivables and the value of inventories and other tangible assets. READ MORE | | | | | SPONSORED CONTENTPrivate Credit and BSLs: Friends or Foes? With private credit and broadly syndicated loans (BSLs) competing for dominance, the lending landscape is in flux. But can these markets ultimately work hand in hand? SRS Acquiom, in partnership with Debtwire, surveyed 200 senior executives from alternative asset management firms across Europe and the U.S. to uncover the true dynamics of these two critical markets. Download the Report | | |  | | Editor's Picks | | | | | SK Capital-Backed Chemical Business Ascend Files Bankruptcy
Ascend Performance Materials Inc., a chemicals business backed by SK Capital Partners, has filed bankruptcy and said it intends to restructure with support from its lenders, Bloomberg News reported. Houston-based Ascend and its corporate affiliates sought court protection Monday in Texas listing assets and liabilities each of between $1 billion and $10 billion on its chapter 11 petition. Company lenders have agreed to provide $250 million in chapter 11 financing to support Ascend during the restructuring process. READ MORE | | Sunnova’s Creditor Troubles Mount as One-Day Default Clock Ticks
Sunnova Energy International Inc., the residential solar panel provider, is facing another round of creditor demands as it struggles to convince a separate lender group to inject fresh cash to help it stave off bankruptcy, Bloomberg News reported. The providers of a so-called warehouse loan to Sunnova put the company on notice, giving it as little as one business day — and up to five, pending day-by-day extensions — to cure a technical default on the loan, according to a Thursday filing. READ MORE | | Student Loans in Default to Be Referred to Debt Collection, Education Department Says
The Education Department will begin collection next month on student loans that are in default, including the garnishing of wages for potentially millions of borrowers, officials said Monday, the Associated Press reported. Currently, roughly 5.3 million borrowers are in default on their federal student loans. READ MORE
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May 14-15 | Las Vegas, Nevada | | | | | | |  | | Daily Roundup | | | | | GameStop CEO Must Face Bed Bath & Beyond Lawsuit
Ryan Cohen, the billionaire chief executive of GameStop, must face a lawsuit by the company once known as Bed Bath & Beyond to recoup $47.2 million of profit from trading its stock before the home goods retailer went bankrupt, Reuters reported. U.S. District Judge Naomi Reice Buchwald in Manhattan on Friday said Cohen and his RC Ventures must defend against a claim they bought and sold a more than 10% Bed Bath stake within six months, making them liable as insiders to repay "short-swing" profits. READ MORE | | U.S. Judge Confirms Red Tree's Offer as Starting Bid in Citgo Parent's Shares Auction
A U.S. federal judge on Monday confirmed a $3.7 billion offer by Contrarian Funds' affiliate Red Tree Investments as the starting bid in an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to pay creditors and bondholders, according to a court filing, Reuters reported. The offer had been recommended by a court officer overseeing the auction due to its certainty of closure. READ MORE | | Crypto Knocks on the Door of a Banking World That Shut It Out
Crypto is pushing deeper into the banking system. A regulatory crackdown on crypto in the wake of the meltdown of FTX and two crypto-friendly banks prompted some in traditional finance to break up with the industry two years ago. Now President Trump’s pledge to make America a “bitcoin superpower” has set the stage for crypto to become more intertwined with the banking system. A host of crypto firms including Circle and BitGo plan to apply for bank charters or licenses, according to people familiar with the matter. Crypto exchange Coinbase Global and stablecoin company Paxos are considering similar moves. (Subscription required.) READ MORE | | SEC Awards Joint Whistleblowers $6 Million for Enforcement Tip
Joint whistleblowers will receive $6 million for providing new information that prompted a U.S. Securities and Exchange Commission examination and helped lead to an enforcement action, Bloomberg News reported. Individuals who inform the agency of original, timely and credible information that leads to enforcement actions may be eligible for awards. Awards can range from 10 to 30 percent of money collected when monetary sanctions exceed $1 million. READ MORE | | | | |
