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Chile's Latam Airlines Files for Bankruptcy | Puerto Rico Board Backtracks | Hertz Paid Executives $16 Million Before Bankruptcy
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Good day. Chile’s Latam Airlines Group SA, the largest airline in Latin America, filed for chapter 11 protection after the coronavirus shut down travel and all but emptied the skies. Puerto Rico’s oversight board says it doesn’t have the money to pay bondholders under a $35 billion restructuring plan. And Hertz Global Holdings Inc., paid a group of executives more than $16 million last week, the latest troubled company to make payments to top executives before filing for bankruptcy.
Now for today's news...
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Chile’s Latam Airlines Files for U.S. Bankruptcy Protection
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Chile’s Latam Airlines Group SA has filed for bankruptcy protection in the U.S. after travel restrictions all but emptied the skies in the region, sending air carriers scrambling. Read More.
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Puerto Rico Board Backtracks on Planned Bondholder Payments
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Puerto Rico’s financial oversight officials are backing away from commitments made to bondholders as the economic damage from the coronavirus becomes clearer, according to people familiar with the matter. Read More.
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Hertz Paid Top Execs $16 Million in Bonuses Before Bankruptcy
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Hertz Global Holdings Inc. paid more than $16 million in retention bonuses to its senior managers, including the company’s new CEO, just days before the rental-car company’s Friday night bankruptcy filing. Read More.
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Most J.Crew stores remain closed, the bankruptcy judge noted when granting the retailer permission to delay paying rent. PHOTO: CHRIS O'MEARA/ASSOCIATED PRESS
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J.Crew Allowed to Postpone Rent for Two Months in Bankruptcy
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A bankruptcy judge said J.Crew Group Inc. can pause paying rent for two months despite pleas from many large landlords to resume payments as its stores start to reopen. Read More.
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Shale Driller Unit Corp. Files for Bankruptcy
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Oklahoma-based shale driller Unit Corp. has filed for bankruptcy protection with a creditor-backed plan to trim more than $650 million in long-term debt from its balance sheet. Read More.
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Like many companies affected by the new coronavirus, Tupperware increased borrowing on its revolving credit lines in March. PHOTO: LISA DUCRET/DPA/ZUMA PRESS
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Tupperware Tries to Contain Financial Woes With Debt Deal
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Tupperware Brands Corp. is looking to ease its debt burden, as the consumer-products company enters a new phase in its effort to turn around a business struggling with coronavirus lockdowns and shifts in shopping habits. Read More.
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Landlords Weren't Meant to Get Bailouts But Got Them Anyway
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Real-estate companies are cashing in on the government’s emergency-spending program, despite rules meant to bar landlords and other property owners from the funds. Read More.
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“It’s regulatory evasion; you know there’s a regulation, so you do it another way”
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— Jared Elias, law professor at UC Hastings, on prebankruptcy payments to executives.
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Here’s why even Carl Icahn couldn’t save Hertz Global Holdings Inc. from chapter 11. (Bloomberg)
Hertz and its stakeholders have to figure out what a NewCo rental car company should look like and then accordingly reset its enterprise value and capital structure (assuming the ABS holders don't just liquidate the portfolio). (FT)
Macy’s Inc. said Tuesday it planned to raise $1.1 billion in a bond offering, backed by a first mortgage on some of its properties, to repay funds borrowed under a revolving credit facility. (Reuters)
Despite plans to close more than one-quarter of its stores, bankrupt J.C. Penney has launched a new home brand. (USA Today)
Related Cos. Chairman Stephen Ross said to expect a flood of retail bankruptcies as travel has been dramatically curtailed and businesses have been forced to close up shop. (CNBC)
Bankruptcy attorneys are the new rock stars in the legal world, an ignominious consequence of the coronavirus pandemic decimating the economy. (Forbes)
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