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WSJ Pro Bankruptcy: WeightWatchers Files Bankruptcy to Adapt to Chemically Induced Weight-Loss Future

WeightWatchers, whose dieting and wellness programs were once a central part of U.S. fitness culture, has filed for bankruptcy to adjust to the increasing use of drugs like Ozempic for weight loss, WSJ Pro Bankruptcy reported. WeightWatchers has been offering drugs as a complement to its legacy business model of providing food consumption and exercise plans, though the company’s clinical business hasn’t grown fast enough to offset the decline in subscriptions to its core programs as many women decide the drugs are all they need. WeightWatchers has also struggled with the advent of free fitness apps and advice from social-media influencers, which have provided other channels for women who seek guidance to hit their weight-loss targets. READ MORE
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Predatory Uptiering: Three Steps to Protect Against Being Primed

While uptiering disputes are not new, the loan market has seen an uptick in recent years. If not careful, lenders can lose their lien claim positions to a newer, senior lender. SRS Acquiom explains the primary mechanisms of predatory uptiering and identifies steps lenders can take to protect against it—all in one easy-to-reference page.  Download the Guide
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U.S. Student Loan Rate Set to Be 6.39%, Extending Borrower Squeeze

Borrowing costs on student loans for the next academic year will likely be near a 15-year high, Bloomberg News reported. In the 2025-26 school term, the interest rate on undergraduate student debt is expected to be 6.39%, based off Tuesday’s 10-year US Treasury auction. The upcoming rate is down slightly from last year’s rate of 6.53%, but still among the highest levels since the Great Recession. The borrowing rate is capped at 8.25% by federal law. READ MORE
Private Student Loans Could Make a Comeback Under the GOP's New Bill

More Americans will likely need to borrow private student loans to pay for college and graduate school under reforms Republicans are moving forward on Capitol Hill, YahooFinance.com reported. GOP lawmakers are aiming to include a major shake-up of the federal student lending program in their party’s marquee tax and budget bill, which they are piecing together in the House. Those changes include new lifetime loan limits that would have their biggest impact on students seeking professional degrees, according to an analysis by the Urban Institute, a Washington-based think tank. READ MORE
Babcock & Wilcox Working With Advisers to Address Debt

Energy installation and technology company Babcock & Wilcox is working with investment bank Evercore and law firm O’Melveny & Myers to explore options for its debt stack as it faces a slumping stock price and litigation risks, WSJ Pro Bankruptcy reported. The 158-year-old company has been negotiating with bondholders to trim down its nearly $500 million in debt, and is close to a possible deal that would include swapping some of the bonds for other debt instruments, the people said. The company also completed a small asset sale last month and is working on another larger asset sale transaction. READ MORE

 
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  Daily Roundup
 
Saia, Others Buying 10 Yellow Corp. Terminals

Another block of bankrupt less-than-truckload carrier Yellow Corp.’s terminals are set to be sold, according to filing with a federal bankruptcy court in Delaware, Freight Waves reported. A Monday motion to the court asked for approval to sell 10 locations valued at $20.7 million. Saia is acquiring three leased properties for $6.5 million. The locations include a 72-door terminal in Orlando, Florida, a 54-door terminal in Deer Park, New York, and 21 doors in Calexico, California. Once the closes, the LTL carrier will have acquired 31 terminals from Yellow’s estate for roughly $250 million. READ MORE
Devils River Distillery Files for Bankruptcy

Dave Bautista-backed Devils River Distillery in Texas filed for subchapter V of chapter 11 protection, TheSpiritBusiness.com reported. Based in San Antonio, Devils River Distillery reported assets between US$1 million and US$10m against liabilities in the US$50,001 to US$100,000 range.  READ MORE
New York Fed Finds Easing Supply Chain Pressures in April

Supply chain pressures eased last month even as economies around the world rushed to position for the impact of massive and shifting trade tariffs by the Trump administration, the New York Federal Reserve reported, Reuters reported. The regional Fed bank said that its global supply chain pressure index stood at -0.29 in April, versus a revised -0.17 in the prior month. The reading indicated lower-than-normal supply chain pressures despite broader unsettled conditions. READ MORE
Saginaw Township Doctor Files Last-Minute Bankruptcy, Again, to Avoid $551K Judgment

A controversial Saginaw Township (Mich.) doctor was due back in court for a judge to render a judgment ordering him to pay a six-figure sum to Saginaw County’s Chief Medical Examiner, whom he publicly defamed. Yet as he did on prior occasions, the beleaguered doctor once again filed bankruptcy at the last minute, throwing another wrench in proceedings, MLive.com reported.  READ MORE
Trump's Crypto Ventures Cause Tensions to Bubble over as Democratic Lawmaker Scuttles Key Hearing

Tensions on Capitol Hill over President Donald Trump's various cryptocurrency ventures escalated on Tuesday and threatened to derail the digital asset sector's hope of legislation by the end of this year as a top Democratic lawmaker stalled efforts to debate a bill. Representative Maxine Waters' objection to a joint hearing scheduled for Tuesday effectively cancelled proceedings between the House Financial Services Committee and the House Agriculture Committee, which were due to discuss creating a new legal regime for cryptocurrencies. READ MORE
CFPB Announcement Regarding Enforcement Actions Related to Buy Now, Pay Later Loans

The Consumer Financial Protection Bureau is announcing today that it will not prioritize enforcement actions taken on the basis of the Truth in Lending (Regulation Z); Use of Digital User Accounts to Access Buy Now, Pay Later Loans, 89 Fed. Reg. 47,068 (May 31, 2024) (“Buy Now, Pay Later”). The Bureau will instead keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans.  READ MORE
 
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