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Philip Green’s fashion empire Arcadia Group said today that it received applications from legal entities of U.S.-based property group Vornado challenging two of its seven planned Company Voluntary Agreements (CVAs), Reuters reported. Arcadia said the challenges to the CVAs, which were approved in June by the majority of creditors, were “without merit” and it would defend itself against them. Vornado, a landlord to some of the Topshop and Topman stores in New York. Arcadia’s other landlords include British Land, Intu Properties, Aviva and Land Securities. CVAs have been carried out by several British retailers, including fashion chain New Look, floor coverings firm Carpetright, mother-and-baby goods group Mothercare and department store chains House of Fraser and Debenhams. Landlords of UK retail property, however, are starting to fight back against tenants proposing CVAs in order to close stores and reduce their rent burden.

Nyrstar Group, one of the world’s largest zinc refiners, filed for bankruptcy in the U.S., asking a judge to enforce a restructuring plan that has already won the support of creditors in the U.K., WSJ Pro Bankruptcy reported. The company on Tuesday filed for chapter 15 protection at the U.S. Bankruptcy Court in White Plains, N.Y., a common refuge for foreign companies looking for help keeping U.S. creditors in line. Nyrstar’s parent company, Nyrstar N.V., is incorporated in Belgium and is traded on Euronext Brussels. Collectively, the group’s balance sheet is weighed down with about €2.6 billion ($2.9 billion) in debt, which is being restructured in the U.K. through a recently incorporated holding company. Nyrstar says it suffered from “a number of operational and financial issues” in late 2018. In particular, the company cited a deterioration in commodity prices, historically low refining charges, increased energy costs in Europe, as well as currency fluctuations. Some of Nyrstar Group’s most important mines were also affected by maintenance shutdowns last year.

Investors in a Brazilian iron-ore mine jointly owned by mining giant Vale SA and BHP Billiton have brought on new lawyers in anticipation of restarting talks with the company on restructuring billions of dollars in debt, WSJ Pro Bankruptcy reported. Funds invested in Samarco Mineração SA have recently switched law firms, replacing Dechert LLP with Davis Polk & Wardwell LLP in preparation for the talks with mining company and parent Vale. Operations at Samarco, one of the world’s largest iron-ore mining companies, have been idled since the Fundão dam holding mining waste burst in 2015, flooding a village with toxic liquid and causing 20 deaths. Anticipation of a restart of talks over the idled mine come as iron-ore prices have soared by 67 percent this year in a resurgence driven by falling supplies, which has led to challenging times once again for steel mills that use the material.

Bosnian aluminium smelter Aluminij will file for bankruptcy after closing on Wednesday, putting at risk some 10,000 jobs, including contractors and those at the processing firms it supplies, Reuters reported. The smelter was disconnected from the power grid just after midnight over debts incurred because of high electricity and aluminium prices, officials said. The asset is one of Bosnia’s biggest exporters, employing 900 workers in the southern town of Mostar. Nermin Dzindic, energy minister in the government of the autonomous Bosniak-Croat Federation, Aluminij’s biggest single shareholder with a 44 percent stake, said the company would file for bankruptcy. Small shareholders hold another 44 percent stake in the firm and the Croatian government the rest.

Venezuelan oil officials are attempting to regain control of the country’s U.S. refining subsidiary, Citgo Petroleum Corp., suing corporate directors appointed by U.S.-backed opposition leader Juan Guaidó, WSJ Pro Bankruptcy reported. Citgo directors loyal to President Nicolás Maduro asked a Delaware corporate law court on Tuesday to restore his government’s control over Citgo after Guaidó’s parallel administration effectively took over the asset in February with help from the White House. President Trump’s recognition of Guaidó as Venezuela’s rightful leader paved the way for him to wrest control of Citgo, depriving the ruling leftist government of a valuable state asset and a critical source of petrodollars. But no court has ruled on whether Guaidó’s February appointment of a replacement board at Citgo and two affiliated companies was valid. The Maduro-aligned directors are suing to “clarify” their authority over Citgo, according to the complaint. The company “cannot be effectively managed until this dispute over the composition of the boards of directors is resolved,” they said. The complaint could compel the Delaware court to select which board vying for Citgo has the better claim to the company. A Citgo spokeswoman said the Trump administration has already blessed the Venezuelan opposition’s board appointments.

Arcadia Group Ltd., the London-based operator of Topshop and Topman stores, will complete liquidation sales in the U.S. this Saturday and plans to vacate all its U.S. stores the following day, WSJ Pro Bankruptcy reported. A lawyer for the group yesterday gave Judge James Garrity Jr. of the U.S. Bankruptcy Court in New York an update on the going-out-of-business sales, which are proceeding amid a dispute between Arcadia and its U.S. landlords. The landlords have asked for the bankruptcy court’s help investigating whether Arcadia removed assets from the U.S. before filing for bankruptcy and whether it continues to possess valuable assets within the U.S. The landlords, which include those currently leasing Arcadia’s flagship U.S. stores in Manhattan, have alleged they are being stonewalled, both in the U.S. and abroad. “They will not tell us how much is there and how much is being generated,” Michael Keats, a lawyer for the landlords, told the judge Wednesday. Arcadia said that it has engaged in discussion with landlords about exchanging information and that all relevant documents already have been produced or made public. A lawyer for the group told Judge Garrity Wednesday that it will continue conversations with the landlords, and that another meeting between Arcadia and the landlords is set for July 8. Read more. 

Occupancy issues are at the heart of many significant retail cases, as detailed in the ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available at the ABI Store. 

Norwegian oil and gas rig operator Dolphin Drilling filed for bankruptcy on Wednesday, leading creditors to seize its key assets in a restructuring that will see the company maintain operations, Reuters reported. Formerly known as Fred. Olsen Energy, Dolphin Drilling ASA had debt of just over $1 billion at the end of 2018 and a net loss for the year of almost $300 million, its annual report shows. Once a dominant supplier of drilling rigs to oil and gas firms exploring the North Sea, Dolphin was hit hard by a collapse in oil prices from 2014 to 2016 as well as competition from newcomers that drove down rig rates. Its share price has fallen 88 percent over the past year and was down 6.6 percent early today until trading was suspended before the bankruptcy announcement. While the old holding company will be wound down, its rig-owning subsidiaries were restructured and will continue to offer services to oil firms. Investment funds advised by Strategic Value Partners will be the main shareholders of the new, reconstructed company. Read more.

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