 | | Featured Premium Content | | | | | Debtwire: Potential At Home Bankruptcy Filing Raises Specter of Challenge to Double Dip Transaction
In 2023, At Home Group made news by engaging in a liability management exercise in the form of a double dip transaction to raise new money to address its liquidity issues. Notwithstanding the cash infusion, the company has still struggled with reduced consumer spending and a deflated housing market, a situation that has been further complicated by the Trump administration’s imposition of high tariffs on goods imported from China. Given these problems, the company has recently been reported to be considering a restructuring in Chapter 11. 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 | | | | | Texas Law Firm Can Sell Off 6,000 Tort Cases in Bankruptcy Deal to Repay Funders
A bankrupt Texas law firm facing allegations it filed lawsuits on behalf of people it did not represent can sell off thousands of mass tort cases as part of a settlement it struck with a pair of litigation funders, according to court records, Reuters reported. Chief U.S. Bankruptcy Judge Eduardo Rodriguez in Houston on Wednesday approved the settlement between MMA Law Firm and litigation backers Equal Access Justice Fund and EAJF ESQ Fund in a deal that could allow MMA to sell more than 6,000 of its cases, filings show. READ MORE | | Tariff Turmoil Spurs New Opening for Distressed Investing
The market turmoil brought on by tariffs is creating one of the most significant opportunities in recent years for distressed debt investors—but only the largest funds are best positioned to capitalize on it, WSJ Pro Bankruptcy reported. Distressed debt investing surged after the global financial crisis as hedge funds profited from overleveraged companies restructuring their balance sheets. But that playbook was disrupted by prolonged low interest rates and the rise of out-of-court restructurings, or liability management exercises, which allowed companies to delay or avoid chapter 11 filings. Some funds shut down, while others shifted away from distress-focused strategies. READ MORE | | Azul, Creditors Are Exploring Options Including Chapter 11
Azul SA and its creditors are exploring options for the struggling Brazilian airline, including a chapter 11 bankruptcy filing, Bloomberg News reported. The discussions are active and nothing is final, said the people who asked to remain anonymous discussing private negotiations. The company has been working to secure additional funding from bondholders after launching a follow-on share offering aimed at improving its capital structure. (Subscription required.) READ MORE
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July 14-16 | Bretton Woods, NH.. | | | | |  | | Daily Roundup | | | | | Central Bank Project Shows Monetary Policy Still Viable in 'Tokenized' System
Central banks should still be able to conduct monetary policy effectively and perhaps be even nimbler in a more decentralized financial system, according to the findings of a joint report released on Wednesday by the New York Federal Reserve and the Bank for International Settlements, Reuters reported. The report said a prototype system designed to conduct monetary policy in a financial system reliant on new, more automated systems "successfully responded and instantaneously carried out the intended operation under the varying market conditions, consistent with the central bank's desired liquidity environment." READ MORE | | More Big Companies Propose Voting ‘Dexit’ to Depart Delaware
In the coming weeks, investors in nine public companies worth at least $1 billion each will vote on proposals to ditch Delaware as their place of incorporation, potentially denting the state’s longtime reputation as Corporate America’s capital, Reuters has found. Five companies with a stock market value of at least $1 billion have moved their legal home out of Delaware since last year, in what some have nicknamed “Dexit.” Most of the companies are dominated by a significant shareholder or founder. Delaware judges have expanded the court’s most stringent legal standard to a growing range of situations involving controllers, increasing the risk of shareholder lawsuits. READ MORE | | Car Prices Rise as Auto Giants Start Feeling Tariff Effects
Car prices crept upward in April as tariffs took effect and global automakers braced for billions of dollars in potential extra costs, the Washington Post reported. Cox Automotive’s first batch of Kelley Blue Book vehicle price data since the Trump administration’s auto tariffs took effect showed that the average transaction price for a new vehicle increased 2.5 percent last month. That’s compared to a typical increase of 1.1 percent for April over the past decade, according to Cox executive analyst Erin Keating. READ MORE | | | | |
