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Remington Layoffs Roil Company Town; Puerto Rico Trading Probe Flops; Purdue's Sacklers Wait On Settlement Ruling
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Good day. The bankruptcy of Remington has led to labor demonstrations in Ilion, N.Y. after the gun maker laid off hundreds of workers while its historic plant there transitions to new ownership.
In court, one of Puerto Rico's largest creditors failed to get an investigation into "suspicous" bond trades by big hedge funds. And the Sackler family members, who own opioid manufacturer Purdue Pharma, tried to convince a bankruptcy judge to approve their settlement with the Justice Department.
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Workers from the Remington gun factory in Ilion, N.Y., and their supporters protesting Wednesday over layoffs. Photo: MARK BEDWORTH
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Remington Layoffs Roil One of America’s Oldest Factory Towns
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Remington Outdoor Co.’s breakup is fueling unrest in the village of Ilion, N.Y., where hundreds of former employees are agitating to get back jobs and benefits lost as the bankrupt gun maker’s historic manufacturing plant shifts to new ownership.
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Judge Declines Puerto Rico Insider-Trading Probe
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The judge presiding over Puerto Rico’s bankruptcy case declined to authorize a probe into hedge funds that accumulated government bonds during restructuring negotiations, calling suggestions of insider trading by rival creditors “sensational and largely speculative.” Read More.
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Purdue’s Owners Must Wait for Judge’s Ruling on $225 Million Deal
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The billionaire Sacklers who own Purdue Pharma LP will have to wait to find out if they can move ahead with a $225 million settlement with the Justice Department over their alleged role in the nation’s epidemic of opioid addiction. Read More.
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Retailer Tuesday Morning Decides to Pursue Reorganization Plan
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Discount home-goods retailer Tuesday Morning Corp. has decided to pursue a plan to reorganize to exit bankruptcy instead of selling itself, court papers said. Since last month, the company had been considering whether to seek confirmation of the reorganization plan or work to close a sale to the highest bidder. Tuesday Morning filed for chapter 11 bankruptcy protection in May and closed permanently about 200 of its 687 stores. — Aisha Al-Muslim
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Revlon Bondholders Tap Restructuring Counsel
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Revlon Inc. bondholders engaged law firm Stroock & Stroock & Lavan LLP to represent them as restructuring counsel, according to people familiar with the matter. Revlon, the cosmetics company majority-owned by billionaire Ron Perelman's MacAndrews & Forbes, has been pressuring bondholders to partake in a distressed exchange that has lackluster participation so far. The company warned on Friday that it may need to file for bankruptcy if it doesn't garner a sufficient threshold of support. — Alexander Gladstone
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U.K. Businesses Face Rising Risk of Insolvency
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Nearly two-thirds of U.K. businesses face insolvency risk amid the coronavirus pandemic, official data show. Across all industries, of the businesses that hadn't permanently closed operations, 64% had a "low to severe risk of insolvency", according to the Business Impact of Coronavirus Survey from the Office for National Statistics. Food services, lodging, administrative and support-services companies had the highest risk of insolvency. The survey also showed that in late September, 43% of businesses that hadn't permanently stopped trading had less than six months' cash reserves, relatively stable from early June. — Philip Waller
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U.S. States Face Biggest Cash Crisis Since the Great Depression
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Deficits have already prompted tax hikes and cuts to education, corrections and parks. State workers are being laid off and are taking pay cuts, and the retirement benefits for police, firefighters, teachers and other government workers are under more pressure. Read More.
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Pelosi: Details of Coronavirus Package Could Change After Election
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House Speaker Nancy Pelosi said the coronavirus relief plan she has been discussing with the White House could morph in the lame-duck session of Congress, absent any formal agreement on its details and shifting incentives after the election. Read More.
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CFOs Using Bond Proceeds to Pay Down Credit Lines, Debt
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Many companies in recent months raised billions of dollars in new debt in the bond market, taking advantage of low funding costs and high investor demand.
Finance chiefs used the additional capital to bolster their companies’ balance sheet, pay down credit lines or replace older debt following interventions by the Federal Reserve to stabilize financial markets. Most didn’t, however, use the funds to invest in their businesses. Read More.
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“There is no real model for a crisis like this."
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— New Jersey Treasurer Elizabeth Maher Muoio on the fiscal crisis facing many states
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Hospitals and other health-care providers are bracing for a bankruptcy wave as the government stimulus aid that gave a lifeline to the industry dries up. (Bloomberg)
The joint venture between LeClairRyan and alternative-services provider UnitedLex was intended to help keep the law firm afloat, but the combination “only served to plunge LeClairRyan further into insolvency,” according to the Chapter 7 trustee for the bankrupt law firm. (ABA Journal)
The court-appointed trustee representing the former Southern Vermont College in bankruptcy proceedings says an agreement to purchase the campus by a summer camp operator was never completed. (Associated Press)
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