All Things Newz
Law \ Legal

What We’re Reading This Week [August 30, 2022] – Insolvency/Bankruptcy



To print this article, all you need is to be registered or login on Mondaq.com.

Judge David Jones in the Southern District of New York has
rejected a request for an official committee of equity holders in
Revlon’s chapter 11 proceedings, as reported by Reuters. Debtor’s counsel argued that the
equity holders “cannot possibly” prove that they are
entitled to a meaningful recovery at this stage of the bankruptcy
proceedings, and the company’s lenders argued that recent stock
price fluctuations were “untethered to market realities.”
Judge Jones found that the cost of appointing a committee, with its
expenses being paid from the estate, outweighed its likely value.
[Reuters; Aug. 24, 2022]

The first non-bank mortgage lenders are going out of business, a
trend that Bloomberg expects will continue as a result of
increased interest rates, a sharp decrease in mortgage
originations, and non-bank lenders’ reliance on credit lines
that can be short term. Independent lenders gained market share
following 2008 when banks pulled back from the mortgage industry.
The situation is most dire for those lenders that make riskier
loans that are not eligible for funding from Fannie Mae and Freddie
Mac. [Bloomberg; Aug. 19, 2022]

The Wall Street Journal reports on the uneasy
situation retailers find themselves in as they work to offload
inventory ahead of the holiday season and yet, at the same time,
consumer spending has shifted to essential items such as food and
gas due to increasing inflation. Retailers from Walmart to
Nordstrom are offering deep discounts to clear out inventory. The
picture going forward is uncertain, as the industry anticipates its
slowest sales growth in the period between November and January in
years. [WSJ; Aug. 28, 2022]

Lumileds filed bankruptcy under Chapter 11 with a prepackaged
plan in the Southern District of New York, as reported by Bloomberg. The company’s lenders will take
over control of the Netherlands-based lighting manufacturer with a
plan that will cut $1.3 billion in debt from the company’s
balance sheet and provide the company with $275 million in DIP
financing. [Bloomberg; Aug. 29, 2022]

Visit us at
mayerbrown.com

Mayer Brown is a global legal services provider
comprising legal practices that are separate entities (the
“Mayer Brown Practices”). The Mayer Brown Practices are:
Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited
liability partnerships established in Illinois USA; Mayer Brown
International LLP, a limited liability partnership incorporated in
England and Wales (authorized and regulated by the Solicitors
Regulation Authority and registered in England and Wales number OC
303359); Mayer Brown, a SELAS established in France; Mayer Brown
JSM, a Hong Kong partnership and its associated entities in Asia;
and Tauil & Chequer Advogados, a Brazilian law partnership with
which Mayer Brown is associated. “Mayer Brown” and the
Mayer Brown logo are the trademarks of the Mayer Brown Practices in
their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights
reserved.

This
Mayer Brown
article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein.

POPULAR ARTICLES ON: Insolvency/Bankruptcy/Re-structuring from United States

Restructuring & Insolvency Comparative Guide

Blank Rome LLP

Restructuring & Insolvency Comparative Guide for the jurisdiction of United States, check out our comparative guides section to compare across multiple countries



Source link

Related posts

Employees with a criminal history: What are your obligations? – Employee Rights/ Labour Relations

An Update On New Québec Confidentiality Incidents And Record-keeping Requirements – Personal Injury

The Pensions Brief: May 2022 – Employee Benefits & Compensation