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What's Next For NRA; Hertz Auction Powers Equity Payout; Revlon Lenders Unfreeze Cash
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Good day. The dismissal of the National Rifle Association's bankruptcy case begs the question: now what? WSJ Pro Bankruptcy looks at the dangers awaiting the gun rights group after it lost its bankruptcy protections.
Hertz shareholders are basking in a bankruptcy auction that generated an estimated $8 a share in value for equity. And the Revlon lenders that were mistakenly paid off by their loan agent Citi won a court ruling unfreezing the money.
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NRA CEO Wayne LaPierre at the Conservative Political Action Conference in 2020.
JOSE LUIS MAGANA/ASSOCIATED PRESS
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NRA Bankruptcy Case Is Dismissed. What Happens Next?
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U.S. Bankruptcy Judge Harlin Hale on Tuesday threw the National Rifle Association out of chapter 11 following a monthlong trial that examined how the organization is managed under CEO Wayne LaPierre and his motivations to put the 150-year old gun-rights group into bankruptcy. Here is what you need to know. Read More.
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Hertz Shareholder Payout Set to Swell on Winning Bankruptcy Bid
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Hertz Global Holdings Inc. selected investment firms Knighthead Capital Management LLC and Certares Management LLC as the winning bidders for control of the bankrupt company after a fierce competition drove up the expected payout for shareholders, a rarity in corporate chapter 11 cases. Read More.
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Judge Says Revlon Lenders Can Access Citi’s Mistaken Loan Payment
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Lenders to Revlon Inc. that received roughly $500 million from Citigroup Inc. last year due to a back-office blunder are allowed to use the money as they see fit, a federal judge ruled, unfreezing the funds. Read More.
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RICHARD B. LEVINE/ZUMA PRESS
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By Chloe Co-Founder Sues Investors Over Trademark Infringement
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Celebrity chef Chloe Coscarelli is suing investors in the vegan restaurant chain that bears her name for alleged trademark infringement. Read More.
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Brazos Lines Up $350 Million Bankruptcy Loan Ahead Of Summer
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Brazos Electric Power Cooperative Inc., the biggest power cooperative in Texas, has lined up a $350 million bankruptcy loan from JPMorgan Chase Bank NA. The loan ensures the continuity of service through the summer months of peak demand for power, the utility's financial advisor said in a court filing.
The loan will also allow Brazos to post additional collateral to the state's grid operator, which has been required in past summers, according to the filing. The loan is subject to bankruptcy court approval. —Soma Biswas
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Distressed Corporates May Default After Restructuring
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Out-of-court restructuring has limited efficacy, evidenced by 37% of restructured entities either restructuring again or filing for bankruptcy, S&P says. The increase in issuers restructuring out of court has led it to rating more entities as selective defaulters.
"The percentage of selective defaults has been increasing since the global financial crisis—partly, we believe, because a selective default does not significantly impact equity ownership" says Nicole Serino, S&P associate director for credit market research. S&P says that 208 US and Canadian companies experienced a selective default since 2013.
Of these, 76 entities, or 37%, experienced another default via another out-of-court restructuring or a general default or bankruptcy. The odds of these companies experiencing a third default was 22%, S&P says. —Michael Dabaie
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David Cameron’s Payday Preceded Greensill Capital’s Collapse
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Former U.K. Prime Minister David Cameron was looking for his next act after leaving office in the shadow of the Brexit vote in 2016. He found it in Greensill Capital, WSJ reports.
He jetted around the world on the specialty finance firm’s private aircraft, lobbying corporate executives and government officials. He earned an annual salary, bonus and cashed out stock options in 2019, bringing him several millions of dollars in total, said people familiar with his compensation.
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“They have done such goofy things I have no idea what they’re going to do next."
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— NRA board member Phillip Journey
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Puerto Rico’s financial oversight board submitted its debt adjustment plan to court seeking to restructure $22 billion of debt, marking a major step toward resolving the island’s record bankruptcy. (Bloomberg)
Former Michigan Gov. Rick Snyder wants a federal bankruptcy court to hold Attorney General Dana Nessel's office in contempt, arguing confidential documents had been released as part of the Flint water proceedings. (The Detroit News)
A lawyer accused the Diocese of Camden of underreporting its assets in a bankruptcy filing in an effort to disadvantage survivors of clergy abuse. (Cherry Hill Courier-Post)
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