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Frac Sand Supplier Covia Files for Bankruptcy | Bankrupt Cirque du Soleil to Field Offers | Grupo Aeroméxico Files for Chapter 11
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Good day. Frac-sand suppliers have been hammered by the drop in energy prices and fallout from the Covid-19 pandemic. Now one of the biggest, Covia Holdings Corp., has filed for bankruptcy to slash $1 billion in debt from its books. Cirque du Soleil Entertainment Group is hoping its bankruptcy will settle an ownership feud between secured creditors and top shareholder TPG. And Mexican airline Grupo Aeroméxico SAB filed for chapter 11 protection in New York.
Now for today's news...
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Frac-Sand Supplier Covia Files for Bankruptcy Protection
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Frac-sand supplier Covia Holdings Corp. filed for bankruptcy as part of a plan to cut more than $1 billion in debt and shed its railcar leases after taking a beating from the economic disruption sparked by the coronavirus pandemic and lower energy prices. Read More.
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Cirque du Soleil Eyes Mid-August to Settle Ownership Dispute
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Cirque du Soleil Entertainment Group is targeting a mid-August deadline to select a winning bidder for the business and settle an ownership feud between secured creditors and top shareholder TPG. Read More.
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Aeroméxico Files for Chapter 11 Protection in New York
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Mexican airline company Grupo Aeroméxico SAB said Tuesday it has filed for voluntary restructuring under chapter 11 of the U.S. bankruptcy code to confront the crisis brought on by the coronavirus pandemic. Read More.
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A video pushing for insurance payouts ran in New York’s Times Square. PHOTO: LEV RADIN/PACIFIC PRESS/ZUMA PRESS
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Companies Hit by Covid-19 Want Insurance Payouts. Insurers Say No.
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A cavalcade of restaurateurs, retailers and others hurt by pandemic shutdowns have sued to force their insurers to cover billions in business losses. A video berating the industry ran for most of June on a giant screen in New York’s Times Square, four times each hour around the clock. Read More.
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Harvey Weinstein’s Victims Entitled to $19 Million Fund
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Women who have accused Harvey Weinstein of sexual assault or say they were harrased while working at his former film studio will be entitled to a nearly $19 million fund being created to compensate them months after the former Hollywood producer was convicted of sex crimes. Read More.
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Denbury Resources Skips $8 Million Interest Payment on Notes
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Denbury Resources Inc. on Tuesday said it won’t make an $8 million interest payment due on its 6.375% convertible senior notes due 2024 as the oil driller continues to explore ways to address its debt load. Read More.
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Fed Backstop Fueled Corporate Bond Surge
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The Federal Reserve’s full-bore intervention to cushion the economy this spring created an unusual paradox in the corporate bond market. Investors bought record amounts of new bonds from U.S. companies—including those with junk credit ratings—even as defaults and ratings downgrades surged. Read More.
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Other Drillers Could Follow Chesapeake Into Bankruptcy - Barron's
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Not including Chesapeake Energy, about one-third of the face value of energy bonds in the ICE BofA High Yield Bond index are trading at distressed levels. That makes up about 2.8% of the index itself. Here is a list of 10 distressed and not-quite-distressed oil-and-gas companies. Read More.
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Wirecard Collapse Prompts German Accounting Overhaul
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Germany is overhauling its framework for accounting oversight following a financial scandal at Wirecard AG and is canceling the existing regulator’s contract after 2021. The Federal Ministry of Justice and Consumer Protection is working on a new regulatory setup together with the Federal Ministry of Finance, a spokesman for the justice ministry said. Read More.
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““Harvey Weinstein left a trail of trauma that was crushing for many women. There is no amount of money that can make up for this injustice, but I’m extremely proud of what we’ve accomplished today.”
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—Louisette Geiss, former producer and actor
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PHOTO: PHOTO ILLUSTRATION BY EMIL LENDOF/THE WALL STREET JOURNAL; PHOTOS: ISTOCK
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Specialty Lenders Face Funding Challenge as Covid-19 Boosts Defaults
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Some specialty finance companies that lend to midsize businesses are confronting the threat of a funding squeeze just as the coronavirus pandemic is causing defaults to rise, a potential one-two punch that could curtail their activities. Read More.
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Bankruptcy filings in the U.S. are running at the fastest pace since 2013 as companies buckle under strain unleashed by the coronavirus pandemic. (FT)
Cannabis stocks have lost about a quarter of their value in the first half of 2020, compounding a 50% drop in 2019, which means there’s never been a better time to do distressed deals. (Bloomberg)
Guitar Center exchanged about $56.4 million in bonds due in 2022, representing 90.7% of the aggregate principal on the bonds. (Retail Dive)
Energy industry bankruptcies will accelerate in coming months says Munsch Hardt's John D. Cornwell. (Law.com)
Developer Sam Zell says he is ready for a big distressed real estate deal. (Crain’s)
Retail icons are being toppled, spelling major trouble for U.S. shopping malls as a cascade of defaults looms. (Private Debt Investor)
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