|
|
|
|
|
|
|
|
|
|
Tricolor Executives Charged; Genesis Names New Stalking Horse
|
|
|
|
|
|
|
|
Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, Dec. 18. In today's briefing, top executives of bankrupt subprime auto lender Tricolor were charged in a federal indictment alleging they orchestrated a scheme to deceive bank lenders by double-pledging car loans and manipulating data before the company’s bankruptcy, causing hundreds of millions of dollars in losses.
|
|
|
|
|
|
|
|
A Tricolor dealership in Phoenix in September. Photo: Ash Ponders/Bloomberg
|
|
|
|
|
Tricolor Executives Charged Over Subprime Auto Lender’s Collapse
|
|
|
Top executives of subprime auto lender Tricolor were charged in a federal indictment alleging that they deceived the company’s bank lenders and double-pledged collateral ahead of its collapse into bankruptcy.
The indictment unsealed in the Southern District of New York alleged double-pledging of vehicle loans, data manipulation and misrepresentations to major banks, which federal prosecutors said caused hundreds of millions of dollars of losses.
“Tricolor defrauded multiple lenders,” U.S. Attorney Jay Clayton said at a press conference Wednesday. “They told multiple lies. And most disturbingly the direction to do it came from the top.”
|
|
|
|
|
|
|
|
|
|
Nursing-home operator Genesis Healthcare filed for bankruptcy in July. Photo: Angelika Warmuth/ZUMA Press
|
|
|
|
|
Genesis Healthcare Names New Stalking Horse After Judge Orders Auction Restart
|
|
|
Genesis Healthcare has selected a new stalking-horse bidder as it restarts its bankruptcy auction, after a judge ordered the nursing-home operator to redo a sale process criticized for favoring an insider-backed bid.
The company said Wednesday it has chosen Genie 3, a bidder backed by healthcare executives Rowan Farber and Jacob Sod, to set the opening terms for the new round of bidding.
The restart follows a decision last week by U.S. Bankruptcy Judge Stacey Jernigan, who rejected elements of a proposed sale to an entity backed by Genesis owner Joel Landau. That bid had previously been selected as the winner. The judge said she couldn’t approve liability releases for insiders tied to that transaction and ordered the auction to be rerun.
|
|
|
|
New Fortress Energy Extends Forbearance
|
|
|
New Fortress Energy said holders of more than 70% of its 12% senior secured notes due 2029 have agreed to extend a forbearance period after the company missed an interest payment, as it continues talks on a broader restructuring.
The company missed its interest payment on Nov. 17 and the forbearance ran through Dec. 15. The new deadline has been extended to Jan. 9, 2026. New Fortress said it expects to keep negotiating with stakeholders during that period.
Separately, New Fortress said it amended its letter of credit facility to prevent a scheduled reduction in commitments later this month. Under the amendment, commitments under the facility will remain at about $195 million, rather than stepping down on Dec. 22.
|
|
|
|
|
|
|
|
|
|
