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Kalera PLC shares were down 56% to $1.82 after the company said that its wholly owned and main operating subsidiary, Kalera Inc., has filed a voluntary petition for chapter 11 bankruptcy in the Southern District of Texas, Dow Jones Newswires reported. The stock hit its 52-week low of $1.31 earlier in Tuesday's session, and is down almost 100% in the past 12 months. The stock closed Monday's session 20% higher. The vertical farming company said Kalera will continue to operate its business as debtor in possession under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the bankruptcy court. Kalera will be filing various first-Day motions with the bankruptcy court requesting customary relief that will enable Kalera to transition into chapter 11 without disruption to its ordinary course operations. Kalera PLC, Kalera S.A. and other subsidiaries aren't included in the chapter 11 filing. Kalera intends to use the court-supervised process to evaluate strategic alternatives for Kalera, including a potential sale of Kalera or its assets. To enable Kalera to continue operations during the reorganization process, Kalera's existing lender has agreed to provide Kalera with $5.1 million of debtor-in-possession financing subject to the satisfaction of certain customary conditions, including the approval of the bankruptcy court.

It seems like a lifetime ago when SPACs were the “it” way to take companies public, and during the pandemic, eCommerce delivery businesses were the “it” business model, but disruptors sometimes get disrupted, according to a PYMNTS analysis. The latest reminder came when Boxed, the online grocery retailer, filed for chapter 11 and said that it would wind down operations. The pressures are apparent in that it had $102 million in assets, outpaced by the $190.4 million in liabilities. Last trading at about 18 cents a share, the company’s descent starkly contrasts with a trading history that began at the end of 2021 amid the pandemic, where the shares peaked at more than $13. The SEC filing detailing the chapter 11 process and the wind-down shows that the “company continues to accept orders through its Union, N.J., fulfillment center for its remaining inventory.” The firm has said that in its “Bigger is Better” sale, consumers can save up to 60% on their purchases. The chapter 11 filing did not come out of the blue, as Boxed had said that it was negotiating with its lenders and exploring a sale of the business. In addition, the turmoil of the Silicon Valley Bank collapse hit close to home. Boxed had had most of its cash at the failed bank but managed to move those funds, but Boxed’s problems ran deeper. It offered bulk delivery of groceries and other items to customers (households and businesses) and also sold software to retail clients, but overall sales in the third quarter were off 15% to $41.7 million as retail active customers slipped to 124,000 from 157,000 in 2021 (though retail sales were up nearly 9%).

A U.S. judge has approved Revlon Inc.’s reorganization plan, allowing the cosmetics maker to cut $2.7 billion from its debt and exit bankruptcy later this month, Reuters reported. Hon. David Jones, who has been overseeing the company's chapter 11 bankruptcy, said Revlon had reached “a hard-fought multi-faceted settlement” that resolves a “series of enterprise-threatening” risks to the business, including “debilitating” litigation among its lenders. Under the plan, Revlon’s lenders will take ownership of the company in exchange for the debt-reduction agreement, wiping out the equity value of existing shareholders. The reorganized company plans to raise $670 million after exiting from bankruptcy by selling new equity shares. Revlon's reorganization was supported by 88% of the 4,500 creditors who voted on the plan, and those supporting creditors hold 98% of the company's debt. The reorganization will provide Revlon with a fresh start and provide a sustainable foundation for future growth, Revlon said in a court filing. Revlon’s existing equity shares will be wiped out when it emerges from bankruptcy.

Just days after a major Bay Area Catholic diocese filed for bankruptcy in the face of hundreds of potential sex abuse lawsuits, the Diocese of Oakland announced that it is seriously considering doing the same, Bay City News reported. In a letter to parishioners that was also sent to media outlets, Bishop Michael Barber said he “is giving strong consideration to filing for Chapter 11 bankruptcy.” His letter comes just three days after the Diocese of Santa Rosa filed for chapter 11 in the face of more than 200 possible sex abuse lawsuits. In both cases, church leaders cite a state law that opened a three-year window allowing childhood sex abuse lawsuits to move forward despite statute of limitations rules that had prevented older claims. “Since the closing of the filing window on December 31, 2022, we have been informed there may be approximately 330 lawsuits filed against our diocese,” Barber said. “After much prayer and thoughtful advice, I believe bankruptcy can provide a way to support all survivors in their journey toward healing in an equitable and comprehensive way,” Barber said. “It will also allow the diocese to reorganize our financial affairs so we may continue to fulfill the sacred mission entrusted to us by Christ and the Church.” In a FAQ section on the diocese website, church leaders said the possible decision to file for bankruptcy is not intended to minimize its responsibilities to survivors of sexual abuse.

U.S. manufacturing activity slumped in March to the lowest level in nearly three years as new orders plunged, and analysts said activity could decline further due to tighter credit conditions, Reuters reported. The Institute for Supply Management (ISM) survey showed all subcomponents of its manufacturing PMI below the 50 threshold for the first time since 2009. Some economists said that this suggested a recession was around the corner, while others said that much would depend on the services sector, whose PMI remains consistent with a growing economy. The survey made no direct comment on recent financial markets turmoil. Makers of miscellaneous products said they were “closely monitoring the global banking situation” but there were no impacts “at this time.” Federal Reserve rate hikes to fight inflation have raised borrowing costs and cooled demand for goods. “Manufacturing is pulling back, but the service sector was still chugging along in February,” said Chris Low, chief economist at FHN Financial. “as long as it remains well above 50 when reported on Wednesday, the broad economy should be just fine. Nevertheless, the health of manufacturing is related to the health of the overall economy.” The ISM's manufacturing PMI fell to 46.3 last month, the lowest level since May 2020, from 47.7 in February. Outside the COVID-19 pandemic, it was the weakest reading since mid-2009.

As Bang Energy goes on the auction block via bankruptcy proceedings, Monster Beverage is the most likely buyer, according to investment banking company Stifel, CSP Daily News reported. Stifel analysts said that according to court documents, Bang plans to sell the business. “We view Monster as best-positioned to acquire Bang given it is the largest creditor in bankruptcy and co-rights holder to a 5% perpetual royalty/license for use of the Bang beverage trademark,” Investing.com reported. On Oct. 10, the maker of Bang energy drinks, Vital Pharmaceuticals Inc., which does business as VPX Sports, filed for protection under chapter 11 in the Southern District of Florida. Vital Pharmaceuticals said all business operations would continue. The filing came after a California jury ruled Sept. 29 that Bang must pay Monster Energy $293 million in damages for falsely advertising the “super creatine” ingredient of Bang Energy. The case lasted a month and revolved around claims of false advertising and trade secrets against the company and Jack Owoc, who was CEO at the time. In September, the jury found that Bang Energy and Owoc "acted willfully and deliberately in violating the federal Lanham Act by falsely advertising the health benefits of Bang. That decision puts both Bang and Owoc on the hook for possible enhanced damages, which could triple the award,” the USA Herald reported. Last month, VPX named Chief Transformation Officer John DiDonato an interim CEO, replacing Owoc, effective immediately.

Sinclair Broadcast Group plans to reorganize its business and change its name to Sinclair Inc., the Hunt Valley-based television station owner said and The Baltimore Sun reported. A newly created holding company called Sinclair would become the publicly traded parent of Sinclair Broadcast and its subsidiaries, which include the struggling Diamond Sports Group, which owns regional sports networks and airs games for 14 MLB teams. Diamond Sports filed for bankruptcy protection in March, burdened by more than $8 billion in debt. Sinclair Broadcast has been best known as a television broadcaster, but the company and its affiliates also own, manage and or operate a range of businesses. They include the Tennis Channel, intellectual property used in broadcast technology, technical and software services companies, marketing technology firm Compulse and assets such as real estate, venture capital, private equity, and direct investments. The restructuring is designed to “unlock unrecognized value” of the non-broadcast businesses and offer greater flexibility for growth of current and potential future ventures, the company said. The reorganization, completed through a share exchange, requires approval of two-thirds of votes cast at a special stockholders meeting expected to be held in the second quarter.

WeWork Inc. said it is offering to swap two sets of bonds worth about $1.2 billion for new debt and stock as part of a sweeping restructuring effort, Bloomberg reported. The company is seeking to exchange its 7.875% notes due 2025 and 5% bonds due 2025, according to a statement. Terms for investors depend on if they agree to participate in a new debt financing for the company. Bondholders who agree to purchase the company’s new 15% first-lien pay-in-kind notes due 2027 can swap their holdings for a mix of new second-lien notes and stock, or a larger stock-only allocation. Those that don’t buy the PIK notes can get new third-lien notes and stock, or all stock. The new first-lien PIK notes pay 7% in cash and 8% in-kind. The second-lien and third-lien bonds also have PIK portions, and have 11% and 12% coupons, respectively. All mature in 2027. WeWork, the struggling co-working company, struck a deal last month to shave off about $1.5 billion of debt on a net basis and receive more than $1 billion of capital commitments.