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STG DIP Loan Approved With LME Dispute Looming Over Case
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Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, February 12. In today's briefing, a bankruptcy judge approved STG Logistics’ bankruptcy loan, while preserving minority lenders’ right to challenge the company’s 2024 liability-management transaction.
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Logistics-service provider STG Logistics aims to emerge from bankruptcy after exchanging some of its debt held by its top lenders for equity. Photo: Justin Sullivan/Getty Images
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STG Logistics Wins Bankruptcy Loan Approval Despite Lender Dispute
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A bankruptcy judge has granted STG Logistics final approval of a bankruptcy loan, while protecting the right of the logistics-service provider’s minority lenders to continue to litigate the 2024 liability-management transaction.
Judge Mark Edward Hall of the U.S. Bankruptcy Court in Trenton, N.J., on Tuesday approved the debtor-in-possession loan, including $150 million in new capital and a roll up of $143.75 million from existing debt. The roll-up component allows participating lenders, including Fortress Investment Group and Invesco, to convert their debts into a part of the new higher-priority DIP loan, leapfrogging the rest of the creditors.
The judge said in the written ruling that the court reserves its power to later “fashion any appropriate remedy” depending on the outcome of the pending lawsuit, including the “permissibility of the roll-up loans.”
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CarMax plans to lower prices and increase marketing spending as it tries to regain its footing in the used-car market. Justin Sullivan/Getty Images
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CarMax Taps Hotel Veteran to Lead Turnaround
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CarMax, the nation’s largest used-car retailer, has tapped hotel-industry veteran Keith Barr to lead the company’s turnaround effort, according to people familiar with the matter.
CarMax is expected to announce Thursday the selection of Barr, a former chief executive of UK-based InterContinental Hotels Group. He is set to take the helm in March, the people said.
Barr was an adviser to private-equity firm Sixth Street. He also serves on the boards of MGM Resorts International and fast food company Yum! Brands, according to this LinkedIn profile.
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Wall Street’s Top Brass Try to Soothe Investor Jitters About Software
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Wall Street executives have a message for investors: The demise of software businesses from artificial intelligence is greatly exaggerated.
Top leaders at major banks and investment firms are seeking to calm anxieties about AI’s potential to render software businesses obsolete—and playing down their own exposures to the sector.
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“None of us at Apollo think that software is going away."
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— John Zito, co-president of Apollo Global Management’s asset-management Unit
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Still, he added that there will be winners and losers from a “very violent technology cycle” and cautioned against judging software companies by their current revenues, which are faring relatively well. “That’s like saying when the iPhone 1 came out, that BlackBerry was still going to be fine,” he said.
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