 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Tariff Uncertainty Could Cause More Distress, Restructuring Professionals Say
Uncertainty about U.S. tariffs could disrupt businesses and lead to increased financial distress, restructuring professionals said, WSJ Pro Bankruptcy reported. On Tuesday, 25% tariffs went into effect on all goods from Canada and Mexico. The tariffs ended decades of relatively free trade between the North American nations and threatened to upend the cross-border business models of retailers that depend on cheap imported apparel and automakers who rely on parts from Canada and Mexico. Then on Thursday, the Trump administration specified that tariffs on many Mexican and Canadian goods would be delayed until April. That followed Wednesday’s exemption by a month for auto products from both countries. For companies already struggling to stay afloat, the tariff whiplash is prompting them to take action. Attorneys who represent financially distressed companies say that their phones are ringing off the hook as auto parts suppliers and retailers seek to reshape their supply chains and prepare to appease creditors. READ MORE | | |  | | Editor's Picks | | | | | City Brewing Mulls Lender Takeover in Restructuring
City Brewing Co., which makes alcoholic drinks such as White Claw and Pabst Blue Ribbon, is talking to creditors about inking an out-of-court restructuring with lenders taking control of the company, Bloomberg News reported. Discussions with creditors ramped up late last year, as City Brewing, whose investors include Charlesbank Capital Partners and Oaktree Capital Management, looked to shore up its cash reserves amid weakening demand. READ MORE | | Trump Suspends Tariffs on Canada and Mexico for a Month
President Trump said yesterday that he would allow both Mexico and Canada to avoid tariffs on most exports to the United States for one month, saying he would exempt products that are traded under the rules of the U.S.-Mexico-Canada Agreement, the trade pact he signed in his first term, the New York Times reported. The move came a day after he granted a 30-day reprieve to automakers, who had complained to the president that his sweeping 25 percent tariffs would cause severe damage to U.S. carmakers. READ MORE | | Technicolor Bankruptcy: Gaming Unit Sold to TransPerfect; VFX and Animation Future Still Uncertain
Following Technicolor's recent collapse amid financial difficulties, it has inked a deal to sell Technicolor Games to global language translation and AI tech business TransPerfect. Meanwhile the future of Technicolor's other brands — VFX giant MPC, commercial VFX company The Mill, and Mikros Animation — is still uncertain, Variety reported. TransPerfect chief business officer Barnaby Wass told Variety that the companies had been in negotiations for several weeks but Technicolor was seeking a buyer to acquire its entire business. After Technicolor failed to find a buyer and filed for bankruptcy on Feb. 24, TransPerfect negotiated a deal to save the gaming unit. Financial terms of the transaction were not disclosed. READ MORE
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May 14-15 | Las Vegas, Nevada | | | | |  | | Daily Roundup | | | | | Trump Floats Handing Off Student Loan Management to Treasury
President Donald Trump said that the Treasury Department or other agencies could potentially take over administering student loans if his administration were to abolish the Education Department, which currently oversees the issue, Bloomberg News reported. “That’ll be brought into either Treasury or Small Business Administration or Commerce. And we actually had that discussion today,” Trump told reporters Thursday in the Oval Office. “I think it’ll be brought into Small Business maybe. Kelly really liked it,” Trump added referring to Kelly Loeffler, who heads the SBA. READ MORE | | Economy Adds 151,000 Jobs in February, a Solid Gain Despite Federal Worker Layoffs
The labor market picked up 151,000 jobs in February, a solid pace, despite a massive layoff among federal workers that began to show up in the data, the Washington Post reported. The unemployment rate ticked up to 4.1 percent, extending low levels that have marked the past few years. Federal government payrolls lost 10,000 jobs in February. READ MORE | | New York Workers’ Return to Office Ignites Deal Hopes in Battered Real Estate Market
Investors including Blackstone and wealthy individuals are scouting for office properties in New York as companies call employees back to the office, fueling a nascent recovery in the battered commercial real estate market, Reuters reported. The increasing appetite for offices in New York and beyond could signal a broader economic recovery for major cities worldwide as many workers return in person five days a week, lifting demand for local services. The turnaround comes after investors shunned emptied-out commercial spaces for years after the pandemic. READ MORE | | Crypto Leaders to Meet at Trump's Summit, Strategic Reserve in Focus
Cryptocurrency industry elite are set to meet with U.S. President Donald Trump at the White House on Friday to discuss how the government will enact Trump's vision of making the country the "crypto capital of the world," Reuters reported. Trump will host players including Michael Saylor, CEO of MicroStrategy and Zach Witkoff, one of the founders of the president's own crypto business, World Liberty Financial, according to the executives' social media posts. READ MORE | | | | |
