 | | Featured Premium Content |
|
|
FTX’s Chinese Customers in Limbo over Local Crypto Crackdown
|
|
|
Hundreds of millions of dollars of FTX customer claims are at risk of being held up or potentially not being paid because the account holders live in China, Afghanistan or 47 other areas that restrict cryptocurrency activity, WSJ Pro Bankruptcy reported. A creditor trust set up by the defunct crypto exchange said last week that it shouldn’t make distributions to customers in those “potentially restricted” markets until it determines that it can do so without breaking foreign laws. The foreign payments represent 5% of the value of the allowed claims in FTX’s bankruptcy case, which dates to 2022. FTX had more than $14 billion in allowed claims as of March, court papers show. READ MORE
|
|
|
 | | Editor's Picks |
|
|
Half of Central Banks Polled in UBS Survey Say Restructuring of U.S. Debt Is Possible
|
|
|
A survey of central bank reserve managers commissioned by UBS finds that nearly half thinks the unthinkable — that the U.S. restructuring its debt is a “plausible” scenario, MarketWatch reported. Other findings that might alarm investors were that two-thirds of those canvassed were concerned about the independence of the Federal Reserve and almost half were troubled by the quality of U.S. economic data and a perception that the rule of law was weakening. President Donald Trump and other White House officials, including Commerce Secretary Howard Lutnick, have criticized Fed Chair Jerome Powell. White House advisor Stephen Miran has distanced himself from his own suggestions, made before he joined the administration, that the U.S. could require other nations to hold long-term U.S. Treasurys as part of a trade deal. The 31st annual survey of reserve managers was conducted between May and June by UBS of what the bank said were “close to 40” central banks. READ MORE
|
|
|
Bankruptcy Court Approves Sale of 23andMe
|
|
|
A federal bankruptcy court has approved the sale of direct-to-consumer genetic testing company23andMe to TTAM Research Institute, the HIPAA Journal reported. TTAM was founded by former 23andMe CEO Anne Wojcicki to purchase 23andMe, and will acquire the company after tabling a successful $305 million bid. Under the deal, TTAM will acquire substantially all of 23andMe’s assets, including the 23andMe PersonalGenome Service and Research Services business lines, as well as the Lemonaid telehealth business. Regeneron Pharmaceuticals had previously bid $256 million for the company, winning an auction after outbidding TTAM, which had initially bid $146 million. Regeneron indicated it would be submitting a further bid if it received a $10 million breakup fee should TTAM’s bid be accepted, but declined to submit a higher bid. Wojcicki is now set to regain control of the company she co-founded, with the deal expected to be closed in the coming weeks. Privacy concerns had been raised about the sale of 23andMe over the transfer of the personal and genetic data of 23andMe customers to a different company. READ MORE
|
|
|
 | | Upcoming Events |
|
|
2025 Northeast Bankruptcy Conference and Consumer Forum
|
|
Mount Washington Resort & Spa
July 14-16 | Bretton Woods, N.H.
|
|
|
2025 Southeast Bankruptcy Workshop
|
|
Ritz-Carlton Amelia Island
July 24-27 | Amelia Island, Fla.
|
|
|
 | | Daily Roundup |
|
|
Longer Lives and Fewer Pensions Spark a Boom in Retiree Bankruptcies
|
|
|
The popular image of retirement is a time for relaxation and the pursuit of passions and opportunities, perhaps travel, time with grandkids, volunteering, finding a new career or, most likely, a mix of activities like these and more, Next Avenue reported. Sadly, the experience of the retirement years for too many people is defined by a struggle to pay bills. Some in difficult financial straits eventually seek relief by filing for consumer bankruptcy. The number of people aged 65 and older filing for bankruptcy has increased from 4.5% of all filers in 2001 to 18.7% by 2022, according to research by the scholars Pamela Foohey, Robert Lawless and Deborah Thorne. Bankruptcies among older adults are increasing faster than middle-aged and younger adults. Most people don't have an employer-managed pension income to rely on during retirement years. Retirees who largely rely on Social Security to pay the bills are vulnerable, too. (Social Security payments provide at least 50% of the income for four in 10 retirees, according to the Center on Budget and Policy Priorities. For one in seven, the figure is 90% of their income.) READ MORE
|
|
|
Abuse Survivors Group Critical of Fresno Diocese Bankruptcy Filing: ‘Wonders at the Timing’
|
|
|
On July 1, the same day that Bishop Joseph Brennan of the Roman Catholic Diocese of Fresno announced that it filed a voluntary petition for chapter 11, the Survivors Network of those Abused by Priests (SNAP) responded with its own statement, Visalia Times-Delta reported. The diocese currently faces 153 claims of abuse by its clergy. SNAP “wonders at the timing,” noting that the diocese's filing was the day after attorneys for the plaintiffs in the coordinated Northern California clergy cases made a motion asking the court to sanction the diocesan attorney “for the unacceptable delay in starting the bankruptcy process.” “Delay is always a tactic for the defense in lawsuits, and the Catholic Church has been using it quite well all these years,” said Melanie Sakoda, SNAP’s survivor support director. READ MORE
|
|
|
Investors Snap Up Growing Share of U.S. Homes as Traditional Buyers Struggle to Afford One
|
|
|
Real estate investors are snapping up a bigger share of U.S. homes on the market as rising prices and stubbornly high borrowing costs freeze out many other would-be homebuyers, the Associated Press reported. Nearly 27% of all homes sold in the first three months of the year were bought by investors — the highest share in at least five years, according to a report by real estate data provider BatchData. Between 2020 and 2023, the share of homes bought by investors averaged 18.5%. All told, investors bought 265,000 homes in the January-March quarter, an increase of 1.2% from the same period a year earlier. Despite the modest annual increase, the rise in the share of investor home purchases is more a reflection of how much the housing market has slowed as traditional buyers face growing affordability constraints, according to BatchData. READ MORE
|
|
|
Long Island Widow, 89, Paid $1M to Join Senior Facility Before It Went Bankrupt — Wiping Out Most of Her Savings
|
|
|
An 89-year-old Long Island widow who sold her family’s house to pay the nearly $1 million fee to live at a local retirement home had to move out of the facility after it fell into bankruptcy — one of hundreds of residents nationwide who have lost their nest eggs, the New York Post reported. Arlene Kohen moved into Harborside, a luxury senior community in Port Washington, in January 2020 after selling her family’s home in Great Neck for $838,000 to afford the required $945,000 entrance fee. Harborside, which filed for bankruptcy three times, had assured her that 75% of the entrance fee would be refundable to her heirs or returned if she left the facility. By the end of her stay, she was also paying $5,700 in monthly fees, but after the last bankruptcy and sale to a new investor, Kohen had to move out because the new owner scaled back on care services. Her daughter, Beverly Kohen Fried, said that the family now expects to recover less than one-third of the $710,000 refund they were promised. The financial devastation is not limited to Harborside. The collapse of a growing number of continuing-care retirement communities across the U.S. has left thousands of elderly residents facing the loss of their homes, promised care and substantial portions of their life savings. READ MORE
|
|
|
Fast-Casual Restaurants Lean on Loyalty Programs to Offset Consumer Pullback
|
|
|
As some consumers pull back on spending amid economic uncertainty, fast-casual restaurant chains are leaning on rewards programs to pull them back in, CNBC reported. Loyalty programs, which offer discounts or added perks for returning customers, have transitioned from being a nice bonus for restaurants to a must-have. As cost-cautious diners prioritize value, brands like Chipotle, Starbucks, Cava and others are utilizing rewards to keep customers coming back and building habits that go beyond the occasional coupon. “In tough times, loyalty programs become more essential,” said Peter Fader, a marketing professor at the Wharton School at the University of Pennsylvania. “They become a required ingredient to building and maintaining relationships.” In the 12 months ended in May, the restaurant industry only saw monthly traffic increase once, in November, according to Black Box Intelligence data. As diners visit restaurants less frequently, sales struggle. Only 43% of restaurant brands tracked by Black Box reported same-store sales growth in May. Consumers who join loyalty programs visit restaurants more frequently, making 22% more visits per year to eateries, according to Circana data. They also frequent the brands that they belong to at twice the rate of nonmembers, the market research firm found. READ MORE
|
|
|
How Food Giant Del Monte’s 135-Year Dominance Ended Up in Bankruptcy
|
|
After 135 years of dominating pantry shelves, global food giant Del Monte has filed for bankruptcy for its U.S. business, brought down by crushing debt, shifting consumer tastes, and the relentless rise of fresh, healthy alternatives, The Standard reported. Del Monte has been a household name, with its canned fruits and vegetables sitting proudly on pantry shelves across America and beyond. The company, which once thrived as a symbol of convenience and modernity, now finds itself struggling to survive in an era where fresh, organic and minimally processed foods reign supreme. Founded in 1886, Del Monte rose to fame in the post-World War II era, when canned goods were seen as modern, convenient and hygienic. The booming post-war generation embraced its products as staples of the kitchen. By the 1980s, Del Monte had expanded into frozen foods, beverages and condiments. As the healthy food revolution took hold in the 1990s, consumers began turning away from high-sodium, high-sugar canned foods, labeling them as over processed and therefore unhealthy. Competition also intensified. Retail giants launched cheaper private-label alternatives, while trendy new brands captured the hearts of health-conscious shoppers. Despite attempts to rebrand with organic and sugar-free options, Del Monte couldn’t shake off its outdated canned food image. READ MORE
|
|
|
Tax Hike Allows Jersey Shore School District to Avert Bankruptcy
|
|
A New Jersey school district will likely avoid filing for bankruptcy after the state passed a budget that raised property taxes, Bloomberg reported. The New Jersey Department of Education adopted a spending plan on behalf of the Toms River Regional School District late last week. The budget has a general-fund tax levy of about $222.9 million, including a 15.4% increase. The threat of bankruptcy, made by school board president Ashley Lamb, triggered a rout in the district’s municipal bonds. Since November 2022, just two governments have filed for chapter 9 protection, a small city in Washington and Chester, Pennsylvania. The Toms River school district boasts an investment-grade credit rating, with debt graded AA- by S&P Global Ratings. The district has about $135 million of municipal-bond debt outstanding. Toms River has been fighting lawmakers in Trenton on funding for its schools for years. District officials said its state aid has been cut by $175 million in recent years, which has led to higher taxes as well as staffing cuts. A land sale in the school year ending in 2024 helped the district achieve a balanced budget. (Subscription required to view article.) READ MORE
|
|
|
New Council of Economic Advisors Report Finds Tariffs Not Causing Inflation
|
|
A new report from the Council of Economic Advisors (CEA) found that the prices of imported goods have fallen this year and have dipped faster than overall goods prices since February, Fox Business reported. The CEA said that its findings contradict claims that the Trump administration's tariffs on many countries around the world or fears sparked by the levies would lead to a rise in inflation. The report breaks down the Personal Consumption Expenditure (PCE) Price Index, which is an inflation gauge watched closely by the Federal Reserve and financial markets, and the Consumer Price Index (CPI), which is an inflation gauge most commonly used by the public, into imported and domestic components. Overall goods prices in the PCE index jumped by 0.4% from December through May, which corresponds to a 1% annualized rate, according to the CEA report. Meanwhile, the imported component of PCE goods prices dropped by 0.1% during that same time period. The report said that similar analysis for the CPI showed that imported goods dipped 0.8% while overall goods prices remained flat. READ MORE
|
|
|
Seaquarium’s New Owners Ask Court for Sale of Dolphins, Other Animals
|
|
Saying it faces ongoing cash problems in bankruptcy, the new managers of the Miami Seaquarium want the legal authority to quickly sell hundreds of marine mammals without requiring court approval for each sale, which could involve closing many parks, WLRN reported. A former trainer at the Seaquarium says that she’s worried sales would involve animal transfers, stressing that safely moving animals is a tricky business — and that the current court process lacks an advocate for dolphins, sea lions and seals. “The judge needs to do his or her due diligence, ” said Shanna Simpson, a former Seaquarium trainer. “You have to have very experienced people doing these because, you know, they can be very stressful for the animals if they’re not done right.” She explained that when she has been involved in transports, animals need a specialized team. “There’s just so many things that could go wrong,” she said. Judge Laurie Selber Silverstein authorized two firms to start the sales process. The current owners said that sales of animals could start in a few weeks or months, either as property sales — or in cases where a park is profitable — as a going concern. In court pleadings, the new owners insist animal safety is paramount, but they have revealed no details about the plans for animal moves. The filing said there are 295 dolphins, 51 sea lions, 18 manatees and 18 seals, which it termed “miscellaneous assets” spread across the 30 properties operating under the Dolphin Company brand. READ MORE
|
|
|
Man Sentenced After Lying in Bankruptcy Proceedings
|
|
|
A man has been sentenced in federal court for false statements made during bankruptcy filings, WVVA reported. Travis Lee Harry, 40, of Kernersville, N.C., was sentenced to three years of federal probation, including 90 days on home detention, with a fine of $4,000 with interest. Harry sold a home he owned in Princeton in 2019. The next year, he filed for chapter 7 and falsely stated that he and his spouse co-owned the house and sold it together. Harry later falsely testified under oath that he had co-owned the house with his spouse. He eventually admitted as part of his guilty plea that he solely owned the house adding that he falsely indicated during the creditors’ meeting that all of the proceeds from selling the house went to pay taxes. READ MORE
|
|
|
|
|
