Restaurant funding – Fuze Restaurant And Lounge http://fuzerestaurantandlounge.com/ Wed, 29 Jun 2022 03:59:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://fuzerestaurantandlounge.com/wp-content/uploads/2021/06/icon-90.png Restaurant funding – Fuze Restaurant And Lounge http://fuzerestaurantandlounge.com/ 32 32 Aeromexico shareholders support exit from Mexican stock exchange as part of bankruptcy restructuring https://fuzerestaurantandlounge.com/aeromexico-shareholders-support-exit-from-mexican-stock-exchange-as-part-of-bankruptcy-restructuring/ Wed, 29 Jun 2022 03:59:00 +0000 https://fuzerestaurantandlounge.com/aeromexico-shareholders-support-exit-from-mexican-stock-exchange-as-part-of-bankruptcy-restructuring/ MEXICO CITY, June 28 (Reuters) – Aeromexico said on Tuesday a majority of its shareholders had approved a proposed exit from Mexico’s main stock exchange as part of the airline’s bankruptcy restructuring. Shareholders on Monday approved a plan to deregister the shares and delist them on the stock exchange in order to launch a buyback […]]]>

MEXICO CITY, June 28 (Reuters) – Aeromexico said on Tuesday a majority of its shareholders had approved a proposed exit from Mexico’s main stock exchange as part of the airline’s bankruptcy restructuring.

Shareholders on Monday approved a plan to deregister the shares and delist them on the stock exchange in order to launch a buyback program, the company said in a statement.

Aeromexico, which filed for bankruptcy in June 2020 after the coronavirus pandemic reduced travel demand, emerged from bankruptcy protection in March with a $5 billion investment plan and changes to its fleet. . Read more

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Delta Airlines (DAL.N), which held a 49% stake in Aeromexico before Chapter 11 bankruptcy proceedings, ended with a 20% stake. Private equity firm Apollo Global Management (APO.N) became the company’s largest shareholder after Chapter 11. read more

“Aeromexico used its status as a Chapter 11 debtor to negotiate,” said Katie Coleman, co-chair of corporate reorganization and bankruptcy law firm Hughes Hubbard & Reed, who served as lead counsel for Delta. Airlines in this case.

By negotiating with aircraft leasing companies, Aeromexico was able to “really optimize its fleet,” Coleman said.

Aeromexico’s delisting was described in the company’s so-called registration rights agreement in the Chapter 11 proceedings, according to Coleman.

“Old shares are canceled and new shares of a company are issued. Mexican law requires delisting as part of this process,” Coleman said.

The move makes Aeromexico the last Mexican company to go private.

Of the approximately 150 companies listed on Mexico’s main stock exchange, seven, such as dairy producer Grupo Lala, telecommunications company Maxcom and paper producer Bio Pappel, have recently delisted or announced their intention to do so. .

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Reporting by Kylie Madry; Editing by Clarence Fernandez and Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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Analysis: Meme stock investors are betting bankrupt Revlon will be the next Hertz https://fuzerestaurantandlounge.com/analysis-meme-stock-investors-are-betting-bankrupt-revlon-will-be-the-next-hertz/ Mon, 27 Jun 2022 10:06:00 +0000 https://fuzerestaurantandlounge.com/analysis-meme-stock-investors-are-betting-bankrupt-revlon-will-be-the-next-hertz/ Revlon signage is displayed at a Boots store in London, Britain June 16, 2022. REUTERS/Hannah McKay/File Photo Join now for FREE unlimited access to Reuters.com Register June 27 (Reuters) – Even for a veteran securities trader like Mike Minutelli, Revlon Inc (REV.N) is a wild bet. The 30-year-old plumber from Oxford, North Carolina, made a […]]]>

Revlon signage is displayed at a Boots store in London, Britain June 16, 2022. REUTERS/Hannah McKay/File Photo

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June 27 (Reuters) – Even for a veteran securities trader like Mike Minutelli, Revlon Inc (REV.N) is a wild bet.

The 30-year-old plumber from Oxford, North Carolina, made a 350% profit last week selling half of the shares of the US cosmetics maker he bought after it filed for bankruptcy on 16 June. He thinks he can do even more by keeping the rest of his shares during the bankruptcy.

Minutelli dips into stocks such as GameStop Corp (GME.N) and AMC Entertainment Holdings Inc (AMC.N) – dubbed meme stocks because of their popularity with retail investors. He was emboldened by the success individual investors have had with another bankrupt company, Hertz Global Holdings Inc, which defied conventional Wall Street wisdom.

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Retail investors who bought Hertz shares after it filed for bankruptcy in May 2020 found themselves with handsome profits when a group of investment firms offered $6 billion a year later to take over the rental company of cars.

Minelli said he hopes the same will happen with Revlon. “If there is a buyback at a higher price, then everyone shorting the stock has to cover their position,” he said, noting that he had spent “a few hundred dollars” to bet on Revlon.

A Revlon spokesperson declined to comment.

Retail investor fascination with Revlon has driven its shares more than 300% since filing for bankruptcy 11 days ago. It is unusual for the shares of a bankrupt company to trade in this way, as investors generally fear that its assets will not be sufficient to settle the claims of creditors and suppliers to leave shareholders with any value.

But retail investors, who often brainstorm and organize on social media platform Reddit, were emboldened when those who invested in Hertz lucked out.

Hertz took a hit early in the COVID-19 pandemic when travel was halted and demand for its cars plummeted. But by the time the company emerged from bankruptcy a year later, vaccines had become available and travel was reopening.

Private equity firms and hedge funds engaged in a bidding war for Hertz, resulting in a deal that brought about $8 a share to meme stock investors, most of whom had paid $2 to $5 per share.

Revlon said it was forced to file for bankruptcy not because its products are unpopular, but because of supply chain issues, labor shortages and runaway inflation.

Investors are hoping those issues will go away by the time its bankruptcy protection ends in April 2023, and someone will swoop in to buy Revlon and offer them a bargain.

“My reasoning was that Hertz was bought out of bankruptcy, and I think investors will do the same with Revlon,” said Justin Benchtold, a 41-year-old retail worker in Asheville, North Carolina. Nord, which bought Revlon shares after its bankruptcy. deposit.

Revlon’s bankruptcy filing, however, said it was focused on restructuring debt rather than pursuing a sale.

USC Gould School of Law professor Robert Rasmussen, a bankruptcy expert, said he was skeptical that Revlon’s fortunes could change significantly to put even stock investors in the dark.

“You need a story that all of a sudden demand for Revlon is going to increase to such an extent that the company is now worth more than its outstanding debt. I’m not saying it can’t happen, but I’m definitely not betting on the title,” Rasmussen said.

TIGHTENING SHORTS

Retail investors are also tapping into the strong short-term interest in Revlon. By acquiring shares, investors increase their value, forcing those who sold them short to buy shares to close out their positions, leading to further gains in the price.

Revlon is one of the most shorted stocks. About 46% of its float is sold short, down from 38% at the start of the month, according to S3 data.

Aaron Jackson, a 40-year-old former chef from Prince Edward Island, Canada, who is now a full-time trader, said he’s seen retail investors succeed in squeezing short sellers and was looking to achieve such a win with Revlon.

“When I saw this was a winning formula, I started looking for those stocks that could rally a community behind them, like Revlon,” Jackson said.

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Reporting by Angelique Chen and Krystal Hu in New York Additional reporting by Dietrich Knatuh and Saqib Ahmed in New York Editing by Greg Roumeliotis and Richard Chang

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St. Croix Energy Statement Calls Integrity of Limetree Bankruptcy Auction into Question https://fuzerestaurantandlounge.com/st-croix-energy-statement-calls-integrity-of-limetree-bankruptcy-auction-into-question/ Sat, 25 Jun 2022 04:43:27 +0000 https://fuzerestaurantandlounge.com/st-croix-energy-statement-calls-integrity-of-limetree-bankruptcy-auction-into-question/ The Limetree Bay refinery stretches along the southern shore of St. Croix in this aerial view. (Source photo by Linda Morland) With the release of a statement earlier this week by West Indies Petroleum Limited (WIPL) that it “is not a stakeholder in the Limetree Bay Refinery”, the lawyer for St. Croix Energy is questioning […]]]>
The Limetree Bay refinery stretches along the southern shore of St. Croix in this aerial view. (Source photo by Linda Morland)

With the release of a statement earlier this week by West Indies Petroleum Limited (WIPL) that it “is not a stakeholder in the Limetree Bay Refinery”, the lawyer for St. Croix Energy is questioning the integrity of the bankruptcy auction process, saying the bidding was reopened “not because of the emergency circumstances” but “ultimately because the winning bidder was not WIPL” .

“As a result, the auction was reopened inappropriately for a bidder who should not have been permitted to bid in the reopened auction,” St. Croix Energy legal counsel Gregg Galardi said in a statement Friday. evening.

In a second statement, as yet unnamed company officials added that they were “disheartened to learn of the financial and physical situation in which the refinery currently finds itself”.

“We remain confident that an environmentally responsible restart is possible and in the best interests of the people of the Virgin Islands,” the statement said.

WIPL’s announcement on Wednesday was in direct contrast to a statement it issued in January, promising to be a good steward of the refinery after it acquired the facility for $62 million in the court-governed sale. bankruptcies.

In January, the company said it was “reiterating its commitment to successfully closing the sale and pursuing major strategic investments in the refinery. … WIPL is also committed to being sensitive to environmental considerations in its operation of the facility which is widely regarded by stakeholders as a landmark and the largest of its kind in the Western Hemisphere.

For its part, the U.S. Environmental Protection Agency, which maintains a webpage dedicated to its oversight of the Limetree Bay refinery that lists WIPL and PHRT as owners, said Wednesday that “the EPA is consulting with the U.S. Department of Justice in this regard”.

Port Hamilton Refining and Transportation (PHRT) released an unsigned statement Thursday afternoon saying that although they and WIPL were named the winning bidder for the refinery following the bankruptcy auction, PHRT has still held the title.

“The Limetree Bay Refinery was successfully purchased earlier this year by Port Hamilton Refining and Transportation, as evidenced by bankruptcy court filings. WIPL did not take title to the refinery. The refinery remains the property of Port Hamilton. Port Hamilton was the legal entity used to acquire the Limetree Bay refinery in St. Croix and it is also a separate legal entity from WIPL,” the statement read.

“All relevant authorities that approved and regulated the sale of the refinery are fully aware of the above-mentioned circumstances in which the transaction was entered into,” he said. “Port Hamilton has entered into discussions with the relevant authorities as it takes steps to operationalize the facility as soon as possible while being sensitive to best environmental practices.”

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San Antonio Symphony will file for bankruptcy and disappear https://fuzerestaurantandlounge.com/san-antonio-symphony-will-file-for-bankruptcy-and-disappear/ Mon, 20 Jun 2022 23:06:25 +0000 https://fuzerestaurantandlounge.com/san-antonio-symphony-will-file-for-bankruptcy-and-disappear/ The San Antonio Symphony announced last Thursday that it was filing for Chapter 7 bankruptcy, following a strike by its musicians that has lasted nearly nine months since Sept. 27 of last year. Orchestra members and staff fought back brutal concession demands. The board’s action means the dissolution of the institution, which was founded 83 […]]]>

The San Antonio Symphony announced last Thursday that it was filing for Chapter 7 bankruptcy, following a strike by its musicians that has lasted nearly nine months since Sept. 27 of last year. Orchestra members and staff fought back brutal concession demands. The board’s action means the dissolution of the institution, which was founded 83 years ago.

The city, whose population has nearly doubled in the past 40 years to its current total of nearly 1.5 million, is currently the 7th largest in the United States (and the second largest in the South). It has now become the largest American city without a symphony orchestra.

In its press release, the Symphony Orchestra’s board of directors blamed the musicians for their action, saying that they had “clearly indicated that there was no prospect of a resumption of negotiations, in the absence of the board of directors accepting a budget that exceeds by several million dollars that Symphony can afford. Therefore, the press release explains, the orchestra’s assets “are now in the hands of a trustee who will liquidate them, pay the remaining creditors and close the doors.”

The musicians remained determined to resist massive demands for concessions, not only in the name of their own standard of living, but also because the orchestra would no longer be able to attract the talent that would allow it to remain a highly valued ensemble in the decades to come.

The crisis worsened sharply during the pandemic, as the Symphony Orchestra, along with the rest of the performing arts, was forced to close. This was not, however, the main contributing factor. While the orchestra reported a negative net worth of nearly $1 million as it prepared to file for bankruptcy, it was also running large deficits even before the pandemic. As elsewhere, management has seized on the pandemic to step up its demands for budget cuts and concessions.

Members of the San Antonio Symphony Orchestra warming up before a performance with Sarah Chang, March 2009 (Photo credit–Zereshk) [Photo by Zereshk / CC BY 4.0]
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Here are 5 common myths about bankruptcy https://fuzerestaurantandlounge.com/here-are-5-common-myths-about-bankruptcy/ Fri, 17 Jun 2022 21:38:46 +0000 https://fuzerestaurantandlounge.com/here-are-5-common-myths-about-bankruptcy/ Although counterintuitive to many people, bankruptcy filings have fallen sharply since the start of the pandemic in 2020. Filings have been expected to rebound for some time. With mounting pressure from expired pandemic relief measures, rising inflation and rising interest rates, more people may find it necessary to explore their bankruptcy options. Although the decision […]]]>

Although counterintuitive to many people, bankruptcy filings have fallen sharply since the start of the pandemic in 2020. Filings have been expected to rebound for some time. With mounting pressure from expired pandemic relief measures, rising inflation and rising interest rates, more people may find it necessary to explore their bankruptcy options. Although the decision to declare bankruptcy is daunting, it is important to know how it can bring relief. Here are five common bankruptcy myths.


READ ALSO: Who’s who in 2022: Andy Kvesic, Radix Law


1. Bankruptcy is for deadbeats.

It is simply wrong. Common triggers for filing bankruptcy include job loss, serious illness, medical expenses, failure of a business venture, divorce, or other unforeseen circumstances. Most people who file for bankruptcy are honest, hard-working people who typically wait too long to file, spend retirement funds unnecessarily, and feel ashamed of their decision. The policy behind bankruptcy is to provide a “fresh start” and it is the right choice for many people.

Carrie Tatkin is a partner at Radix Law.

2. You will lose all your money and possessions.

Not so. Each state has exemptions to protect certain property, such as vehicles, retirement accounts, certain life insurance, household items, and even the equity in your home (Arizona protects up to $250,000 of net worth of your house). If you own assets that aren’t protected by the available exemptions, a Chapter 13 or Chapter 11 reorganization often allows you to keep all of your assets in exchange for paying off some of what you owe.

3. You cannot get rid of past tax debts in bankruptcy.

Yes, you often can. If you have filed your tax returns, most state and federal taxes can be discharged in bankruptcy if they are more than 3 years old and meet certain other criteria. There is no limit to the amount of income tax that can potentially be paid. Certain business-related tax obligations, such as source deductions or sales taxes, cannot be discharged, regardless of age. Yet, bankruptcy options can be weighed with a view to clearing all possible debts, leaving only a manageable amount of undischargeable obligations.

4. If you are married, both spouses must declare bankruptcy.

Again, not true. Arizona is a community owned state. It is often desirable for spouses to file jointly, but in limited circumstances it may make sense for only one spouse to file an application. When a spouse files for bankruptcy in a community property state, the marital community enjoys the protection of the filing spouse’s community discharge. A creditor with a claim against the non-filing spouse can only recover his debt from the non-filing spouse’s own assets. Sometimes such a separate property does not exist.

5. Bankruptcy leads to divorce and the destruction of family relationships.

Often quite the opposite. The relief that clients feel after receiving their bankruptcy discharge can be immense. The stress of creditor harassment is gone. The ability to start fresh, usually with a renewed commitment to financial security, is always appreciated by customers. While bankruptcy can often accompany a divorce, well-timed bankruptcy can be a decision that puts families in a healthier and more collaborative place.

Many more myths and misinformation are circulating, so it is important to ensure that individuals have accurate information as they view bankruptcy as a potential path to a better financial future.

Carrie Tatkin is a partner of basic law, with a practice focused on consumer and business bankruptcy, representing both creditors and debtors. With over 35 years of legal experience, Carrie is adept at handling all aspects of her clients’ bankruptcy cases.

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Revlon Files for Chapter 11 Bankruptcy Protection https://fuzerestaurantandlounge.com/revlon-files-for-chapter-11-bankruptcy-protection/ Thu, 16 Jun 2022 21:00:00 +0000 https://fuzerestaurantandlounge.com/revlon-files-for-chapter-11-bankruptcy-protection/ Placeholder while loading article actions Revlon has filed for bankruptcy protection as the cosmetics giant tries to get out of its heavy debt load amid soaring prices and supply chain disruptions. The company said in a press release that it expects $575 million in funding if the plan wins court approval. The additional funds will […]]]>
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Revlon has filed for bankruptcy protection as the cosmetics giant tries to get out of its heavy debt load amid soaring prices and supply chain disruptions.

The company said in a press release that it expects $575 million in funding if the plan wins court approval. The additional funds will support the day-to-day operations of the business. As part of the Chapter 11 filing, the company is able to continue operating while reorganizing its outstanding debt.

The 90-year-old multinational is known for a range of cosmetics and skincare brands, including drugstore-favorite Almay and premium brand Elizabeth Arden, which Revlon acquired in 2016 after selling more than $2 billion in loans and bonds. It is controlled by billionaire Ronald Perelman’s MacAndrews & Forbes.

Prior to the coronavirus crisis, Revlon faced growing competition from celebrity-backed start-ups such as Kylie Jenner’s Kylie Cosmetics and Rihanna’s Fenty Beauty, which were siphoning off many of its younger consumers through its social media marketing.

But the pandemic has only exacerbated these problems as sales of lipstick – Revlon’s signature product – have dwindled when people have been masking up. Global net sales fell 20% from $2.4 billion in 2019 to $1.9 billion a year later. In March 2020, Revlon cut 1,000 positions to improve profitability. In November of the same year, Revlon avoided a bankruptcy filing after receiving sufficient support from bondholders.

Debra Perelman, chief executive of Revlon and daughter of Ronald Perelman, said the company’s “challenging capital structure” has limited its ability to meet consumer demand while navigating “macroeconomic issues”.

“By addressing these complex legacy debt constraints, we hope to be able to simplify our capital structure and significantly reduce our debt, allowing us to unlock the full potential of our globally recognized brands,” said Perelman.

Revlon estimated the liabilities at between $1 billion and $10 billion in a court filing. In its latest earnings report, the company reported long-term debt of $3.3 billion.

Revlon said it was unable to maintain a steady supply of raw materials, putting production at risk, according to the court filing. Nearly a third of customer demand cannot be met in a timely manner due to lack of raw materials, he added.

While Perelman said on the March earnings call that supply chain headwinds were “temporary” and that Revlon had found additional suppliers for key materials, the war in Ukraine and the covid lockdown in China presented new challenges to the global supply chain. Shipments from China to the United States doubled in time and quadrupled in cost compared to 2019, the company said.

Experts said Revlon could take advantage of Chapter 11 provisions to revamp its portfolio of brands, where older ones have shown unsatisfactory performance and lost customers. “If executed effectively, Revlon could emerge from bankruptcy with a cleaner balance sheet and better operating profile, improving longer-term business prospects,” said David Silverman, senior director of retail at Fitch Ratings, to RetailDive in comments via email.

Corporate bankruptcy filings hit record lows in early 2022, according to data from S&P Market Intelligence, which excludes smaller corporate filings. At the end of May, 143 bankruptcies had been filed this year, compared to 203 in 2021 and 263 in 2020 over the same period. Of the 143 bankruptcies, only three are retail filings.

However, Revlon’s filing – the first from a major company to reach out to consumers in years – could signal a slowdown in the consumer discretionary sector, which largely encompasses companies selling non-essential and cycle-sensitive products. economic.

In May, inflation reached 8.6% compared to last year, which led to financial pressure felt by many households. According to data from the Census Bureau, retail sales fell 0.3% from the previous month in May as consumers turned to cheaper alternatives amid rising prices.

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Judge approves $10m funding for Edgemere, backtracks on owner https://fuzerestaurantandlounge.com/judge-approves-10m-funding-for-edgemere-backtracks-on-owner/ Wed, 15 Jun 2022 00:26:05 +0000 https://fuzerestaurantandlounge.com/judge-approves-10m-funding-for-edgemere-backtracks-on-owner/ Edgemere, the luxury Dallas retirement home that filed for bankruptcy in mid-April, will be allowed to raise $10.1 million in funding to see it through to the end of the year as it is reorganizing under the supervision of a court. U.S. Bankruptcy Judge Michelle Larson last week approved the 504-unit community operators’ emergency funding […]]]>

Edgemere, the luxury Dallas retirement home that filed for bankruptcy in mid-April, will be allowed to raise $10.1 million in funding to see it through to the end of the year as it is reorganizing under the supervision of a court.

U.S. Bankruptcy Judge Michelle Larson last week approved the 504-unit community operators’ emergency funding request that allows seniors to age in different levels of care without moving, according to court documents.

The judge said there were numerous objections to the funding, including from the official Unsecured Creditors’ Committee, which represents families seeking reimbursement of entry fees. The committee said he was concerned that $10.1 million would not be enough to cover operating and other administrative expenses.

The judge also ruled that Edgemere did not need to immediately pay rent to its landlord, InterCity Investments, but had to set aside those funds in an escrow account to prove it had the money.

Larson said Edgemere appears to have a genuine interest “in ensuring liquidity and success during the reorganization.”

“They have a vested interest in keeping Edgemere in the best possible condition,” she said.

Edgemere lost $30 million in 2021 partly due to lower occupancy rates. His bankruptcy filing says his assets and liabilities are between $100 million and $500 million, and his creditors total up to 5,000, including families whose relatives made large down payments to move into Edgemere .

The judge was well aware that the relationship between the nursing home and its owner had deteriorated. The owner is upset that Edgemere has been struggling financially, due to increased competition in the area, large capital expenditures and the impact of COVID-19 on move-ins.

Edgemere defaulted on rent payments from last autumn before bondholders spared him by paying the rent he had missed. Edgemere is also angry with the owner, whom he accused of trying to reclaim the land with private equity firm Kong Capital.

“I am aware of the long and acrimonious relationship between the parties over the past two years, and I do not want this litigation to impact this Chapter 11 reorganization any more than necessary,” the judge said.

InterCity holds a 55-year ground lease on the prime property where the 1.55 million square foot facility was built. The judge said InterCity had been unable to prove that its financial interest in the property had diminished or to identify “actual issues with the maintenance of the property”.

The judge said InterCity is entitled to an inspection of the property to ensure it is maintained, but that inspection must be scheduled in advance and “must not be overly intrusive”.

“Property inspection should only go so far as to protect the landlord’s interest under the lease and not be a tool of further protected disturbance, litigation or animosity,” she said. .

In his court case against InterCity filed in April, Edgemere told the judge that InterCity requested three inspections between November 2021 and March 2022. The retirement home said those were the only inspections requested during the entire term of its lease, which started in 1999.

“Intercity and its agent and representative Kong used these inspections to assess how to prepare the community for an alternative use after destroying Edgemere’s business and thereby creating a boon for themselves,” the lawsuit said.

Larson also noted that she did not want to hear about the inspection results in the media.

“I will not tolerate play that is intended to scare residents or create disruption,” she said.

Setting up an escrow account for rent payments was the right move because it’s “too big an expense to ignore”, the judge said. Earlier court documents showed Edgemere paid $350,000 in monthly rent to InterCity.

“This is the property that hundreds of residents live on,” she said. “The court finds that the reserve will provide the protection the landlord wants as well as some comfort to residents and other creditors concerned that debtors may run out of funds to pay these lease obligations. It just can’t happen.

Dallas luxury retirement home Edgemere files for bankruptcy and sues owner
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Electric vehicle manufacturer Electric Last Mile Solutions files for bankruptcy https://fuzerestaurantandlounge.com/electric-vehicle-manufacturer-electric-last-mile-solutions-files-for-bankruptcy/ Mon, 13 Jun 2022 02:30:00 +0000 https://fuzerestaurantandlounge.com/electric-vehicle-manufacturer-electric-last-mile-solutions-files-for-bankruptcy/ U.S. commercial electric vehicle maker Electric Last Mile Solutions (ELMS) showcases its all-electric city utility van and commercial truck in Troy, Michigan, U.S., November 19, 2021. REUTERS/Rebecca Cook Join now for FREE unlimited access to Reuters.com Register June 12 (Reuters) – U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) (ELMS.O) said on […]]]>

U.S. commercial electric vehicle maker Electric Last Mile Solutions (ELMS) showcases its all-electric city utility van and commercial truck in Troy, Michigan, U.S., November 19, 2021. REUTERS/Rebecca Cook

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June 12 (Reuters) – U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) (ELMS.O) said on Sunday it planned to file for Chapter 7 bankruptcy, following a review of its products and marketing plans.

The move comes after the Troy, Michigan-based company disclosed a U.S. Securities and Exchange Commission investigation and withdrew all of its previously published March business outlook. Read more

ELMS had said the SEC was investigating issues discussed in previous filings, including disagreements with an accounting firm and compliance with Nasdaq listing rules.

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In February, then-Chairman and CEO Jim Taylor and Chairman and Founder Jason Luo resigned, following an investigation into their stock purchases. Read more

“The compound effect of these events, along with an ongoing SEC investigation launched this year, has made it extremely difficult to find a new auditor and secure additional funding,” ELMS said in a statement Sunday. .

The electric vehicle maker previously laid off around 24% of its staff as it focused on its core business. Read more

The company went public in June 2021 through a merger with blank check company Forum Merger III Corp.

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Reporting by Baranjot Kaur in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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Chemical maker TPC Group files pre-arranged balance sheet https://fuzerestaurantandlounge.com/chemical-maker-tpc-group-files-pre-arranged-balance-sheet/ Sat, 11 Jun 2022 07:12:25 +0000 https://fuzerestaurantandlounge.com/chemical-maker-tpc-group-files-pre-arranged-balance-sheet/ (Reuters) – Texas petrochemical producer TPC Group has filed for bankruptcy with a plan to cede control to its lenders, after battling costs and lawsuits following a fire in 2019. The Houston-based company has filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware with the intention of eliminating $950 million […]]]>

(Reuters) – Texas petrochemical producer TPC Group has filed for bankruptcy with a plan to cede control to its lenders, after battling costs and lawsuits following a fire in 2019.

The Houston-based company has filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware with the intention of eliminating $950 million of $1.3 billion in secured debt and ridding itself of resulting liabilities an explosion and fire at its plant in Port Neches, Texas. The company had negotiated and agreed to the settlement with the creditors.

North America’s largest processor of butane and butadiene petrochemicals plans to continue operations during its restructuring, chief executive Edward J. Dineen said in a statement. Chemicals are used in the manufacture of plastics, tires and gasoline.

The company is facing federal and state investigations into the Port Neches fire and is in negotiations with a panel representing some 7,000 claims for property damage, business interruption and personal injury, according to court documents.

The fire was “a critical event leading” to bankruptcy, according to a court filing. The pandemic then curtailed business, nearly halving 2020 revenue from 2019, and a winter storm in 2021 also affected sales, he said.

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FERC urges the 5th Circ. To let the bankruptcy contract order stand https://fuzerestaurantandlounge.com/ferc-urges-the-5th-circ-to-let-the-bankruptcy-contract-order-stand/ Thu, 09 Jun 2022 23:14:00 +0000 https://fuzerestaurantandlounge.com/ferc-urges-the-5th-circ-to-let-the-bankruptcy-contract-order-stand/ By Katie Buehler (June 9, 2022, 7:14 p.m. EDT) — The Federal Energy Regulatory Commission told the Fifth Circuit Thursday that while the court recently ruled the agency has a limited role in Chapter 11 reorganizations, the panel should let stand a FERC order that terminating a pipeline contract is not in the public interest. […]]]>
By Katie Buehler (June 9, 2022, 7:14 p.m. EDT) — The Federal Energy Regulatory Commission told the Fifth Circuit Thursday that while the court recently ruled the agency has a limited role in Chapter 11 reorganizations, the panel should let stand a FERC order that terminating a pipeline contract is not in the public interest.

FERC and Gulfport Energy Inc. agree that their dispute was raised by a March 14 panel decision in FERC v. Ultra Resources Inc. that FERC approval is not required for companies to reject contracts during Chapter 11 proceedings. But during oral argument, they split on whether the court should rescind the FERC orders on Gulfport…

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