 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Steward Health Seeks to Impose Discounts on Top Bankruptcy Creditors
Steward Health Care System is proposing to settle its most essential bills to vendors and taxing authorities, offering them a maximum of half of what they are owed for goods and services provided during the hospital operator’s bankruptcy, WSJ Pro Bankruptcy reported. The company’s chapter 11 plan lays out how Steward would settle its highest-priority bills because it doesn’t have nearly enough funds to make the required full payment for goods and services provided during its bankruptcy proceedings. READ MORE | | | | | SPONSORED CONTENTDefault Rate May Not Tell the Whole StoryThe expected increase in loan defaults in 2024 never materialized. But while corporate credit health appears strong on the surface, there are signs of potential weakness underneath. This article examines current trends to help you stay informed about silent loan defaults, private credit default trends, impacts on maturities, and more. DOWNLOAD THE ARTICLE | | |  | | Editor's Picks | | | | | Retailer At Home Prepares to File for Bankruptcy in Coming Weeks
At Home Group Inc. is preparing to file for bankruptcy under a Chapter 11 reorganization in the coming weeks, among other options to shore up liquidity, Bloomberg News reported. The Hellman & Friedman-owned home-decor retailer has been facing a cash crunch in recent months, which has been complicated further by the U.S.’ tariffs and trade war. The company did not make its interest payment on May 15 and entered a forbearance pact with lenders on May 23. The reprieve runs through June 30. READ MORE | | Brazil Airline Azul Files for Chapter 11 to Restructure High Debt
Brazilian airline Azul said in a securities filing today that it filed for chapter 11 protection in the U.S. despite months of efforts to restructure mostly pandemic-era debt, Reuters reported. The deal includes a commitment of $1.6 billion in financing throughout the process, elimination of over $2 billion of debt, and further commitment of up to $950 million in equity financing upon emergence, according to the Brazilian carrier. READ MORE | | Retailer Claire’s Taps Advisers as Tariff Worries Mount
Claire’s Stores Inc. is consulting Houlihan Lokey Inc. on how to shore up its finances as escalating tariff concerns pressure the retailer’s earnings, Bloomberg Law reported. The purveyor of accessories for pre-teens has also tapped Alvarez & Marsal for operational assistance. READ MORE
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May 29 |Virtual | | ABI Central States Bankruptcy Workshop The Ritz-Carlton, Chicago
June 18-20 | Chicago, Ill. | | | | |  | | Daily Roundup | | | | | Justices Deny Review of Bankruptcy Trustee’s Petters Ponzi Case
The U.S. Supreme Court declined to hear a case brought by the trustee of the BMO Litigation Trust, established in the Petters Co. bankruptcy, seeking to overturn a ruling that nullified a billion-dollar judgment for Ponzi scheme victims, Bloomberg Law reported. Douglas A. Kelley, who previously served as the equity receiver for Petters Co. and later as its Chapter 11 trustee, asked the high court to weigh the applicability of the in pari delicto defense that barred his suits against BMO Harris Bank, the successor-in-interest to M&I Bank. The trustee previously sued the bank, alleging that M&I aided the Ponzi scheme. READ MORE | | 70-Unit Illinois Carrier Files for Bankruptcy Protection
An Illinois carrier with 70 power units recently filed for chapter 11 protection, Freight Waves reported. AZA Transportation listed assets of between $100,001 and $500,000 on its bankruptcy filing in the U.S. Bankruptcy Court for the Northern District of Illinois. It is based in Mount Prospect, which is in Cook County, the same county as Chicago. The company listed liabilities of $500,000 to $1 million. READ MORE | | As Land and Almond Prices Fall, More San Joaquin Valley Farmers Face Bankruptcy
Low commodity prices, declining land values, and a tightening credit market have all contributed to increased anxiety for San Joaquin Valley farmers, especially almond growers, the Fresno Bee reported. In 2024, there were 216 farm bankruptcies nationwide, an increase of 55% from the previous year. Of that number, California had the most with 17 farms falling into bankruptcy. Local bankruptcy attorneys and farming experts said they are fielding multiple calls from growers trying to fend off bankruptcy. READ MORE | | Fed's Kashkari Calls for Steady Rates, Awaits Clarity on Tariff Impact
Federal Reserve Bank of Minneapolis President Neel Kashkari on Tuesday called for keeping interest rates steady until there is more clarity on how higher tariffs affect inflation, warning against "looking through" the impact of such supply price shocks, Reuters reported. The shock to the economy from President Donald Trump's sweeping tariffs, and uncertainty over U.S. trade policy, are forcing central banks to decide whether to focus on fighting inflation or supporting economic activity, he said. READ MORE | | U.S. Banks Tiptoe Toward Crypto, Awaiting More Green Lights from Regulators
Big U.S. banks are holding internal discussions about expanding into cryptocurrencies as they get stronger endorsements from regulators, but initial steps will be tentative, centering on pilot programs, partnerships or limited crypto trading, according to four industry executives. Wall Street giants that had been largely blocked from many crypto activities by strict regulations are poised to grow quickly, Reuters reported. Yet the biggest lenders are still hesitant to be the first among rivals to expand too heavily into crypto in case they fall afoul of changing rules, said the four executives, who declined to be identified since they were discussing internal business plans. READ MORE | | West Virginia Man Sentenced for Withholding Information in Bankruptcy Case
James Eugene Wells was sentenced yesterday to one year of federal probation for withholding records relating to the property or financial affairs of a debtor in bankruptcy from an officer of the court or a U.S. Trustee entitled to its possession, according to a DOJ press release. According to court documents and statements made in court, in October 2022, a Charleston, W.Va.-based business solely owned by Wells’ wife filed for chapter 11 bankruptcy. As part of his guilty plea, Wells admitted that he applied for and obtained five loans in the business’ name from February 2023 through February 2024, knowing that the business had filed for bankruptcy protection. READ MORE | | | | |
