 | | Featured Premium Content | | | | | Debtwire: STG Distribution, Lenders and Agent Targeted in Dropdown Litigation Rely on J. Crew and Mitel Rulings for a Quick Dismissal
Axos Financial and Siemens Financial Services have brought litigation in the New York State Supreme Court to challenge a dropdown and double dip transaction that, they argue, violates sacred rights provisions of the credit agreement designed to protect them against these types of transactions. The Debtwire legal analyst team breaks down the transactions and discusses the most significant legal arguments, including the threshold issue of whether the no action clause will stop the plaintiffs before they can even get started. READ MORE | | | | | SPONSORED CONTENTPredatory 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 | | |  | | Editor's Picks | | | | | Detroit Carrier Joins Distributor in Large-Scale Bankruptcy
A Detroit-based grocery-hauling company with over 300 trucks has filed for bankruptcy alongside several partner companies, Freight Waves reported. SFD Transportation filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas on Monday. According to the filing, SFD estimated it has between 5,001 and 10,000 creditors, with liabilities totaling between $500 million and $1 billion. The company estimated it has between $1 billion and $10 billion in assets. READ MORE | | WeightWatchers Bankruptcy Reflects Diet Industry’s Turmoil over New Drugs
Iconic weight management brand WeightWatchers’s bankruptcy filing this week underscores the titanic shifts that drugs such as Ozempic have inflicted on the diet industry, the Washington Post reported. WeightWatchers, which expects to get rid of $1.15 billion in debt, said it hopes to complete its chapter 11 organization within 45 days. The 62-year-old company has been trying to shift its business model in the face of changing consumer attitudes, a proliferation of free fitness and health advice on social media, and growing competition from weight-loss drugs that represent a sea change for the industry, experts said. READ MORE | | Benefits Could Be Withheld from 5.3 Million Defaulted Student Loan Borrowers, Feds Say
More than five million student loan borrowers who are behind on payments could face serious benefit consequences by the end of the summer, USA Today reported. The U.S. Department of Education announced on Monday, May 5 that by the end of summer, 5.3 million defaulted student loan borrowers will receive a 30-day notice from the U.S. Department of Treasury, notifying them that they could lose federal benefits. About 195,000 defaulted student loan borrowers received this notice on Monday, and the first federal monthly benefit checks to be impacted are those scheduled for early June, a statement reads. READ MORE
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May 14-15 | Las Vegas, Nevada | | | | |  | | Daily Roundup | | | | | Federal Reserve Leaves Its Benchmark Interest Rate Unchanged, Flags a Risk of Higher Prices and Higher Unemployment
The Federal Reserve held interest rates steady on Wednesday but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies. The economy overall has "continued to expand at a solid pace," the Fed said in a policy statement, attributing a drop in first-quarter output to record imports as businesses and households rushed to front-run new import taxes. READ MORE | | U.S. Senators Announce Bipartisan Push to Change How Fed Watchdog Selected
Two senators announced legislation on Tuesday that would change how the Federal Reserve’s in-house watchdog is selected, Reuters reported. Sens. Rick Scott (R-Fla.) and Senator Elizabeth (D-Mass.) said that their bill would require the Federal Reserve’s inspector general (IG) to be named by the president and confirmed by the Senate, breaking from the current practice where the watchdog is selected to serve by the chair of the Federal Reserve. READ MORE | | Report: A Year After Steward Declared Bankruptcy, Hospitals and Communities Still Feel Fallout
One year has passed since Steward Health Care filed for bankruptcy, launching the largest healthcare provider restructuring in decades, including a monthslong effort to sell its 31 hospitals, HealthCareDive.com reported. Five Steward hospitals have permanently closed since its bankruptcy, while two more temporarily paused services. Many of the remaining facilities have landed back in the hands of private equity and investor owners, according to a new report from the Private Equity Stakeholder Project. READ MORE | | | | |
