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WSJ Pro Bankruptcy: Puerto Rico Utility Bondholders Break Off Deal After Oversight Board Purge
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Investors including Nuveen and BlackRock that hold Puerto Rico’s $8.3 billion in defaulted power revenue bonds terminated a previous restructuring agreement and pledged to cooperate with other creditors on any new deal, WSJ Pro Bankruptcy reported. Bondholders are uniting to seek more favorable terms after the Trump administration recently fired most members of the oversight board steering Puerto Rico’s finances. Nuveen Asset Management, BlackRock Financial Management and other bondholders won’t back an agreement they previously reached with the board and will instead cooperate with other creditor groups that took a harder line in negotiations, according to court papers filed Monday. READ MORE
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Bankruptcy Lawyer Decries Removal ‘Scheme’ Over Ex-Judge Romance
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Bankruptcy attorney Elizabeth Freeman said a bid by interest holders to oust her as GWG Holdings Inc.'s wind-down trustee due to her relationship with a former bankruptcy judge is part of a “scheme” to benefit themselves, Bloomberg News reported. Freeman, a former Jackson Walker LLP partner who now runs her own private practice, argued in a Monday filing that the holders seek to “rewrite” a confirmed chapter 11 plan and replace her and the litigation trustee with “collaborators.” READ MORE
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Student Loan Forgiveness Under IBR Remains Blocked As Lawmakers Sound Alarm
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The Department of Education continued its suspension of student loan forgiveness under a popular repayment plan this week, as Democratic lawmakers began raising alarms over the implications, Forbes reported. Earlier this year, the department announced on its website that student loan forgiveness under Income-Based Repayment (IBR) has been paused. IBR allows borrowers to discharge their federal student loans after 20 or 25 years in repayment. As mounting legal challenges have blocked all or parts of several other income-driven plans — including SAVE, ICR, and PAYE — IBR is currently the only repayment plan offering borrowers a path to 20- or 25-year loan forgiveness. And the department has repeatedly acknowledged that it can legally process student loan forgiveness under IBR for borrowers who reach their eligibility threshold. READ MORE
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Kohl’s Seeks More Time to Pay Vendors Amid Turnaround Effort
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Kohl’s Corp. is asking some vendors for more time to settle invoices as the ailing retailer adjusts its payment strategy amid efforts to execute a turnaround plan, Bloomberg News reported. Despite efforts to revamp certain departments and pair with other retailers to drive traffic, Kohl’s has struggled to generate sales momentum. Quarterly revenue has fallen on an annual basis for more than three years. (Subscription required.) READ MORE
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Florida Bagel Shop Files for Bankruptcy
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L & D Cafe, Inc., which operates as Marian's Bagels, filed for chapter 11 bankruptcy protection on Aug. 22 in the Southern District of Florida, the Miami New Times reported. The filing allows the restaurant to continue serving while it attempts to restructure debts that could total as much as $10 million. According to the petition, the company has fewer than 50 creditors and assets valued at less than $50,000. READ MORE
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U.S. Business Spending on Equipment Resilient; Labor Market Confidence Weakening
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New orders for key U.S.-manufactured capital goods increased more than expected in July, suggesting business spending on equipment got off to a strong start in the third quarter, but consumers' deteriorating assessment of the labor market cast a pall over the economy, Reuters reported. The report from the Commerce Department on Tuesday also showed shipments of non-defense capital goods excluding aircraft surged by the most in more than two years last month. The strength in both orders and shipments of these so-called core capital goods was despite independent surveys indicating that businesses were hunkering down amid rising costs from tariffs on imports. READ MORE
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Trump’s Crusade Against Wind Power Is Throwing an Industry into Turmoil
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President Donald Trump is on a crusade to cripple the wind power industry, using his executive powers to throw projects well underway into chaos, even as the fallout risks landing on ratepayers and investors, the Washington Post reported. “We’re not allowing any windmills to go up,” Trump said at a Cabinet meeting Tuesday afternoon. The president has paused new permits for projects on federal land and launched an investigation into foreign-made wind turbines that could lead to hefty tariffs. The move triggered an angry response from the governors of Rhode Island and Connecticut, who are counting on the 705-megawatt wind project to bring much-needed power to the regional electricity grid. Financial analysts warned that wind developers may stop investing in U.S. projects altogether. READ MORE
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