|
Anti-Fraud Startup Succumbs to Fraud; Revlon Pressures Bondholders; Purdue Creditors Attack Sackler Settlement
|
|
|
|
|
|
Good day. Cybersecurity startup NS8 was supposed to detect fraud, but it turned out the fraud was within, bringing down the company when the founder and chief executive was arrested for cooking the books. NS8 is now turning to bankruptcy court, hoping a $10 million loan will bankroll litigation against those who got paid before the collapse.
Revlon pressured bondholders, warning of a potential bankruptcy filing if they don't cooperate with a debt-swap proposal. And a powerful creditors committee criticized a government settlement with the Sackler family members who own Purdue Pharma ahead of a critical court hearing.
|
|
|
|
Federal authorities said up to 95% of the assets purportedly on NS8's balance sheet last year were fictitious.
ANDREW KELLY/REUTERS
|
|
|
Fraud-Detection Startup NS8 Files for Bankruptcy, Paving Way for Litigation
|
|
Cyber-fraud-prevention startup NS8 Inc. filed for bankruptcy protection Tuesday after its former chief executive was arrested on fraud charges last month and an investor put up $10 million to finance a litigation campaign over the company’s sudden collapse. Read More.
|
|
Revlon Warns of Possible Bankruptcy Filing if Bond Swap Flops
|
|
Revlon Inc. warned bondholders about the substantial risk of a bankruptcy restructuring if they don’t participate in a proposed $340 million debt exchange. Read More.
|
|
Purdue Creditors Committee Criticizes U.S. Deal With Sackler Family
|
|
The federal government’s proposed settlement with the Sackler family members who own OxyContin maker Purdue Pharma LP ran into opposition from company creditors worried that less money will be left over for them. Read More.
|
|
|
|
|
Personal Bankruptcies Expected to Rise in 2021 as Stimulus Ends
|
|
As stimulus checks and other forms of temporary relief run out, experts are projecting an increase in personal bankruptcy filings, which have so far been muted during the coronavirus pandemic. Read More.
|
|
NPC Creditors Ask for More Time in Restructuring
|
|
The official committee of unsecured creditors in the bankruptcy of NPC International, the biggest franchisees of Pizza Hut and Wendy's restaurants, said in a court filing Monday that NPC's restructuring plan leaves too many open questions about the fate of the company.
The committee, which represents the company's lowest-ranking creditors, wants creditors to have more time before voting on the company's plan. NPC has commenced a sale of the Pizza Hut and Wendy's franchises, while also pursuing a reorganization plan to hand some or all of the restaurants to lenders. All creditors must vote to confirm the company's plan by Nov. 23, while the outcome of the sale processes won't be known until late November to early December, the committee said. — Soma Biswas
|
|
Chesapeake Energy Junior Creditors Challenge Lenders' Liens
|
|
Chesapeake Energy Corp.'s junior creditors are challenging liens senior lenders hold on the shale driller's property and other assets. A committee representing Chesapeake's unsecured creditors sought permission yesterday in US Bankruptcy Court in Houston to sue lenders and avoid liens securing the company's loans and junior notes.
The committee's request must be approved by a judge and can be opposed by Chesapeake and its lenders. Chesapeake filed for chapter 11 protection in June. — Jonathan Randles
|
|
|
|
Lord & Taylor filed for bankruptcy in August and will close all its stores, a blow to dozens of malls.
WANG YING/ZUMA PRESS
|
|
|
Lenders Cracking Down on Mall Owners Behind on the Mortgage
|
|
More lenders are starting to deliver a stern new message to delinquent mall owners: time to pay up. Read More.
|
|
Coronavirus Prompts Rent the Runway to Think Beyond Rentals
|
|
Rent the Runway is raising a new round of financing and is focusing on selling clothes, not just renting them, after the startup suffered a near-fatal blow from a coronavirus pandemic that has kept women home for most of the year. Read More.
|
|
|
“When people are about to get thrown out of their homes is when the bankruptcies hit."
|
— Christopher Kruse, senior vice president at Epiq Systems
|
|
|
|
|
Democratic presidential nominee Joe Biden’s embrace of a bankruptcy reform championed by Senator Elizabeth Warren could be significant as experts predict mounting bankruptcy filings from individuals and small businesses. (Washington Post)
Ahern Rentals Inc. bondholders are preparing to start talks with the family-owned equipment rental company after receiving a refinancing proposal from the firm, according to people with knowledge of the matter. (Bloomberg)
Many small businesses are using a niche part of the Bankruptcy Code to discharge their debts amid the COVID-19 crisis, and bankruptcy experts are encouraging other ailing small businesses to consider the option instead of shutting down entirely. (CFO)
|
|
|
|
|