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ESW Capital Poised to Buy Software Company | Bankruptcy Exemptions for Student Loans Weakened | Intelsat to Buy Gogo WiFi Business
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Good morning. Billionaire Joseph Liemandt’s ESW Capital is bidding to scoop up a bankrupt software company that counts Robert Mercer and his daughter Rebekah among its shareholders. A recent appellate court ruling could make it easier for some borrowers to discharge their student loans in bankruptcy. And bankrupt satellite operator Intelsat SA plans to use some of its bankruptcy loan to buy the in-flight broadband business of Gogo Inc. for $400 million.
Now on to more of the day’s news...
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Security First was founded in 2002 with the idea of using intellectual property to preserve the secrecy of electronic messaging and data, but it was unable to commercialize any of its technology.
PHOTO: PHILIPPE HUGUEN/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Software Developer Security First Files for Bankruptcy
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Security First Corp., a cybersecurity app developer that counts Robert Mercer, a major Donald Trump supporter, among its shareholders, filed for bankruptcy with plans to sell its business to Joseph Liemandt’s ESW Capital LLC. Read More.
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Women’s Apparel Retailer J.Jill Avoids Bankruptcy—for Now
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J.Jill Inc. has again bought more time for talks with lenders as the women’s clothing retailer faces the possibility of filing for bankruptcy after its liquidity and turnaround efforts were disrupted by the coronavirus pandemic. Read More.
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Bankrupt Intelsat Buys Gogo In-Flight Wi-Fi Unit for $400 Million
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Satellite operator Intelsat SA continues to expand despite filing for bankruptcy earlier this year to address billions of dollars in debt, agreeing to purchase the in-flight broadband business of Gogo Inc. for $400 million. Read More.
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Navient headquarters in Wilmington, Del. An appellate court in Denver ruled that Navient’s loans to a Colorado couple did not meet the Tax Code standard for protection from cancellation in bankruptcy. PHOTO: WILLIAM BRETZGER/ASSOCIATED PRESS
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Appeals Court Weakens Bankruptcy Protections for Student Loans
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An appeals court has sided with borrowers who sought to discharge private student loans after filing for bankruptcy, a win for consumers trying to cancel their shares of roughly $50 billion in private educational debt. Read More.
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Frontier Taps Former Verizon Executive to Lead Telecom
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Frontier Communications Corp. named John Stratton as its executive chairman, tapping a longtime telecom operator to lead the internet provider as it looks to win back customers’ trust after bankruptcy. Read More.
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Whiting Petroleum Exits Bankruptcy
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Whiting Petroleum Corp. said it emerged from bankruptcy and cut its debt by $3 billion as part of its restructuring plan. The Denver-based shale driller, one of the biggest in the Bakken Shale of North Dakota, was the first large oil company to succumb to the coronavirus pandemic, and had filed for Chapter 11 bankruptcy protection in April.
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Insurers Gain Early Lead in Coronavirus Legal Fight
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U.S. property insurers have won a flurry of judicial rulings backing up their rejections of claims for businesses’ lost income during government-ordered shutdowns, dimming policyholders’ hopes of payments to help them rebound. Read More.
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German Parliament to Investigate Wirecard Scandal
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German lawmakers said Tuesday they would launch a parliamentary probe into the government’s failure to uncover the Wirecard AG scandal, a setback for Chancellor Angela Merkel’s administration ahead of next year’s general election. Read More.
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Dealing With China’s Most Debt-Burdened Property Giants
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Two of China’s most heavily leveraged developers are struggling in the stock market, and new attention from Beijing on their towering debt levels will put them under more pressure. But the central government’s efforts don’t address a key problem in the country’s economic model: Cash-starved local governments need indebted property developers to buy their land. Read More.
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“We hold further that the bankruptcy court did not err in ruling that § 523(a)(8)(A)(ii) does not except student loans from discharge and, consequently, that the exception does not cover the McDaniels’ Tuition Answer Loans.”
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— Judge Jerome A. Holmes, U.S. Court of Appeals for the Tenth Circuit
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Hertz Global Holdings Inc. has received interest from several potential buyers for its Donlen fleet business and is considering a sale if it can get at least $1 billion. (Bloomberg)
London-based 23 Capital, a prominent lender to the football and entertainment industries backed by billionaire George Soros, is winding down its $1 billion loan book with its co-founders parting ways amid rising uncertainty for lenders to those sectors. (FT)
Marble Ridge and its founder Dan Kamensky have brought in new lawyers to represent them in the Neiman Marcus bankruptcy as they deal with the aftermath of Mr. Kamensky’s interference with a potential bid for certain of the luxury retailer’s assets. (Reuters)
Former Goldman CEO Gary Cohn and ex-Blue Harbour CEO Clifton Robbins are teaming up to raise $600 million for a SPAC focused on companies in financial distress or just emerging from a restructuring. (Institutional Investor)
How U.S. Bankruptcy Judge David Jones built the Houston court into one of the busiest in the nation. (Houston Chronicle)
The Covid-19 pandemic helped fuel the worst August for large corporate bankruptcies on record. U.S. filings have slowed month-on-month, but 2020 is on track to be the biggest bankruptcy year ever. (Bloomberg Law)
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