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GoHealth to Hand Keys to Lenders; America's Car-Mart Extends Forbearance Amid Debt Woes
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Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, June 9. In today's briefing, GoHealth, once valued at $6.6 billion, filed for bankruptcy with a plan to transfer ownership to lenders. And America's Car-Mart has extended a forbearance agreement with its lenders as it works to address roughly $900 million in debt and potential covenant breaches.
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GoHealth allows consumers to shop for health insurance, earning a commission through enrollments. Photo: Sachelle Babbar/Zuma Press
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GoHealth Files for Bankruptcy, Handing Control to Lenders
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GoHealth, an insurance brokerage once valued at $6.6 billion, has filed for bankruptcy with a reorganization plan that will give ownership to lenders.
The publicly traded company entered bankruptcy on Sunday, listing $987 million in debt and $918 million in assets, according to a filing in the U.S. Bankruptcy Court in Wilmington, Del.
GoHealth said it has been struggling with increased competition in a challenging insurance market where carriers face their own financial pressures.
Under the proposal, GoHealth’s preferred equity holders would retain their stakes, while common shareholders would receive a $10 million cash payment. The company expects to continue operating throughout the bankruptcy process and to pay vendors in full.
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America’s Car-Mart operates in the buy-here, pay-here segment of the used-car market, selling preowned vehicles and providing financing for nearly all of its customers. Photo: Eric Lee/Bloomberg News
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America’s Car-Mart Extends Forbearance, Approves Executive Retention Awards
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America’s Car-Mart has extended a forbearance agreement with its lenders through the end of this week while approving retention awards for top executives as the car dealer works to address its roughly $900 million in debt.
The subprime auto dealership chain said in securities filings that it is unlikely to satisfy certain financial covenants under its credit agreement. Lenders agreed to refrain from exercising remedies for four days, through this Friday. The company’s debt stack includes a $300 million term loan and more than $600 million in asset-backed bonds.
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The Edgar Thomson plant is where steel is made at Mon Valley Works. Rebecca Kiger for WSJ.
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Once on the Brink, U.S. Steel’s Oldest Plant Is Getting a Big Renovation
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Two years ago, U.S. Steel said it couldn’t afford to keep operating its oldest mill near Pittsburgh. Now, new owner Nippon Steel is preparing to start a project that will likely keep that mill going for decades longer.
Tokyo-based Nippon Steel, which bought U.S. Steel last year in a controversial deal, said it expects to spend $2 billion to $2.5 billion at Mon Valley Works over the next three years to replace the equipment that rolls steel. The investment is more than double Nippon Steel’s original cost estimate for the project.
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Hunter Point Capital Raises $4.3 Billion for General Partner Financing
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Hunter Point Capital has raised $4.3 billion across multiple investment vehicles to provide financing to alternative investment firms.
The firm, founded in 2020, raised the additional capital to bolster its net-asset-value lending and preferred equity strategies, which the firm collectively refers to as General Partner Financing Solutions, or GPFS. The fresh capital brings the firm’s total assets under management to roughly $10 billion.
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