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Town Sports Files for Bankruptcy | GNC Moves Forward With Sale to China's Harbin Pharmaceutical | Revlon Fails to Complete Debt Swap
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Good morning. Town Sports International Holdings Inc., the parent company of New York Sports Clubs and Lucille Roberts, has filed for bankruptcy after having to close its gyms because of the Covid-19 pandemic. GNC Holdings Inc. is moving ahead with a sale to China’s Harbin Pharmaceutical Group Co. amid national security scrutiny. Ron Perelman’s Revlon Inc. is facing a looming debt maturity after failing to complete a distressed-bond exchange. And Lonestar Resources reaches a deal to restructure under chapter 11.
Now for today's news...
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A New York Sports Clubs location in Manhattan was among the businesses temporarily closed in mid-March due to government restrictions meant to slow the spread of the coronavirus. PHOTO: CINDY ORD/GETTY IMAGES
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Owner of New York Sports Clubs Files for Bankruptcy
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Town Sports International Holdings Inc., the parent company of New York Sports Clubs and Lucille Roberts gyms, has filed for bankruptcy after facing debt coming due this fall as well as reduced cash flow and liquidity because of coronavirus-related closures. Read More.
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GNC Scraps Auction, Going Ahead With Sale to China’s Harbin
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GNC Holdings Inc. is moving ahead with a sale to China’s Harbin Pharmaceutical Group Co. after no other offers emerged, even as the deal drew scrutiny from Sen. Marco Rubio. Read More.
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Revlon Faces Debt Crunch After Bond Exchange Fails
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Revlon Inc. has failed to complete a distressed-bond exchange that would have extended a debt maturity and given the troubled cosmetics company more time to get a handle on hundreds of millions in debt due in the coming months. Read More.
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Lonestar Resources Reaches Deal to Restructure Under Chapter 11
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Lonestar Resources US Inc. on Tuesday said it plans to file for chapter 11 bankruptcy after reaching a restructuring support agreement that will eliminate roughly $390 million in debt obligations and preferred equity interests. Read More.
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Citigroup CEO Michael Corbat in February 2019. PHOTO: CLODAGH KILCOYNE/REUTERS
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Regulators Prepare to Reprimand Citigroup
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Federal regulators are preparing to reprimand Citigroup Inc. for failing to improve its risk-management systems—an expansive set of technology and procedures designed to detect problematic transactions, risky trades and anything else that could harm the bank. Read More.
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Kodak Deal Draws Review From Watchdog
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A planned $765 million U.S. loan for Eastman Kodak Co. to produce drug ingredients is under review by the inspector general of the agency that helped put together the deal. Read More.
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Delta Air Lines is bleeding about $27 million in cash a day, Chief Financial Officer Paul Jacobson said. PHOTO: CHARLIE RIEDEL/ASSOCIATED PRESS
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Delta to Use Frequent-Flier Program to Raise $6.5 Billion
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Delta Air Lines Inc. is the latest carrier to use its frequent-flier program to secure cash to weather the coronavirus pandemic, announcing plans to raise $6.5 billion backed by its SkyMiles program. Read More.
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When car-rental company Hertz filed for bankruptcy protection, bullish investors drove a rally in the stock. PHOTO: MARK HERTZBERG/ZUMA PRESS
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These Funds Let Investors Profit from Pandemic
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Bankrupt and distressed companies have been a hit this year with some investors on the hunt for pandemic bargains. Read More.
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“Glad to see that the Inspector General has agreed to my request to investigate this massive fiasco of a deal.”
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— Sen. Elizabeth Warren, on the announcement of a probe into a $765 million U.S. loan for Eastman Kodak Co. to produce drug ingredients.
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Municipal finance experts Richard Ravitch and Antonio Weiss caution that local government shortfalls could put the U.S. economy at risk. (Bloomberg)
One-time billionaire hedge funder Phil Falcone is cash poor and can’t pay a nearly $14 million legal tab owed to a law firm, according to a new lawsuit. (Page Six)
Thailand’s Central Bankruptcy Court on Monday gave the go-ahead to financially ailing Thai Airways International to submit a business reorganization plan and appointed seven planners to oversee it. (AP)
As relations between Washington and Beijing deteriorate further the U.S. government is supporting the resurrection of Mountain Pass, which until the 1980s was the world’s biggest producer of rare earths. (FT)
Monedo, a German financial technology company once backed by PayPal investor Peter Thiel, has filed for bankruptcy after failing to recover from the economic effects of the Coronavirus pandemic. (Finextra)
MTE Holdings LLC is seeking court approval to start a bankruptcy sale process while continuing to solicit offers to finance its way out of chapter 11. (Bloomberg Law)
Morgan Stanley told U.S. Bankruptcy Judge Robert Drain that Tops Markets LLC was solvent in bid to dismiss a fraudulent transfer lawsuit. (Law 360)
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