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Hertz Rental Fleet Is Rapidly Losing Value | Rental Car Firm Advantage Files for Bankruptcy | Tuesday Morning Files for Chapter 11 With Plans to Close More Than 200 Stores
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Good day. Hertz Global Holdings made its debut in bankruptcy court, and the rental car company said its ability to make payments on its leased vehicle fleet during the pandemic is effectively nil. A Hertz spinoff, rental car company Advantage, also filed for bankruptcy protection. And discount home-goods retailer Tuesday Morning sought court protection with plans to permanently close about one-third of its 687 stores.
Now for today's news...
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Hertz Fleet Losing Value by the Day, Hindering Restructuring Efforts
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The roughly 700,000 rental cars that are the lifeblood of Hertz Global Holdings Inc.’s business are losing value rapidly, posing a challenge to the company’s chances of weathering the Covid-19 pandemic. Read More.
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Rental-Car Company Advantage Files for Bankruptcy
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Rental car company Advantage filed for bankruptcy protection, the second big car-rental company to seek protection from creditors in less than a week, as the coronavirus continues to take its toll on business. Read More.
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Tuesday Morning Files for Bankruptcy, Plans Store Closures
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The spate of bankruptcies in the retail sector continues as discount home-goods retailer Tuesday Morning Corp. filed for chapter 11 protection with plans to close about one-third of its 687 stores. Read More.
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A Pain Quotidien in New York’s West Village in March. The U.S. division’s chief restructuring officer says it couldn’t make money keeping locations open for takeout or delivery only. PHOTO: VICTOR J. BLUE/GETTY IMAGES
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Le Pain Quotidien’s U.S. Restaurants File for Bankruptcy
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The U.S. division of bakery chain Le Pain Quotidien filed for bankruptcy protection as pandemic restrictions continue to wreak havoc on fast-casual dining chains. Read More.
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Japan Bank’s Foray Into Risky U.S. Debt Leaves $3.7 Billion Hole
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The Japanese bank that was the biggest buyer of debt used to fund private-equity buyouts suffered a ¥400 billion ($3.7 billion) hit and said it would stop investing in that market. Read More.
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Investment in U.S. Shale Projects to Halve in 2020, IEA Says
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Investment in the U.S. shale sector will drop by half this year, the International Energy Agency said Wednesday, predicting a period of pain for producers even as oil prices rally. Read More.
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This Isn’t Your Father’s Corporate-Bond Market
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Bonds are behaving more like bank debt, which tends to remain stable or even increase at the onset of recessions, as lenders keep distressed clients afloat—and only later turn off the taps. Read More.
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U.S. Businesses See Few Signs of Recovery Through Mid-May
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U.S. businesses saw limited evidence of a recovery in recent weeks, with economic activity continuing to decline amid the coronavirus pandemic, the Federal Reserve said Wednesday. Read More.
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Ill-Timed Health-Care Buyouts Bruise KKR and Blackstone
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Health-care buyouts Envision Healthcare Corp. and TeamHealth Holdings Inc. are shaping up to be among the worst-performing private-equity investments in recent years. The coronavirus pandemic is only the latest reason why. Read More.
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MGM Resorts: Cash Rich for Now
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MGM Resorts International closed all its domestic casinos because of Covid-19. Its operations in Macau, although reopened not long ago, also have been seriously hurt by travel restrictions and reduced visitation because of the coronavirus. The health crisis emerged just after MGM completed another major sale leaseback transaction that while delivering significant proceeds to reduce debt, also increased the company’s master lease rent. Read More.
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“We think using cars without paying for them is not (fair).”
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— Richard Mason, lawyer for a group of Hertz ABS bondholders
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Investcorp has closed its second Italian distressed debt fund with €340 million ($374 million) in commitments. (PEN)
Citgo’s board, appointed by Venezuelan opposition leader Juan Guaidó, filed a lawsuit in federal court in Houston against a former contractor of the U.S. subsidiary of Venezuela's state oil company seeking to recover millions of dollars in damages. (AP)
American Airlines CEO Doug Parker sought to shut down persistent rumors that the debt-laden carrier could be forced into bankruptcy during the coronavirus travel downturn, saying it’s not among options he’ll consider. (Bloomberg)
Shopping malls and clothing stores are hoping to woo back Americans emerging from lockdown with some of the heaviest discounts in years on a wide range of fashion lines. (FT)
XFL founder Vince McMahon said he won't purchase the financially troubled spring football league out of chapter 11 bankruptcy and will support a plan that would allow new owners to relaunch the XFL by next spring. (Houston Chronicle)
The Roman Catholic Diocese of Saint Cloud in Minnesota will pay sexual abuse victims $22.5 million and file for bankruptcy, according to a settlement agreement. (AP)
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