United States: What we read this week [November 10, 2021]
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Whether – and under what circumstances – should a debtor pay creditors a relief premium continues to be challenged in Connecticut bankruptcy courts. Last week, as reported Bloomberg, Justice Dorsey (Delaware) ruled that the debtor – Mallinckrodt Plc – did not need to pay a full premium to the senior lenders in order to reinstate those obligations under the debtor’s Chapter 11 plan. And in the Hertz Connecticut bankruptcy case, Judge Walrath heard argument on whether Hertz was obligated to pay bondholders post-petition interest and a reparation premium when the plan failed. reimbursed the bondholders’ claim and designated it as intact, as reported by the the Wall Street newspaper.
GE this week announced its split into three companies, separating its healthcare, aviation and energy divisions, as reported on the Wall Street newspaper. The move follows several years of corporate and debt restructuring that GE has undertaken since the financial crisis and reflects how big conglomerates, such as GE, have fallen out of favor with investors.
Economic news continues to focus on supply chain issues, and the New York Times covers an important link in the chain: truck drivers. The current shortage of truckers is expected to increase as more truckers retire. Potential solutions under discussion include easing restrictions on drivers under the age of 21 crossing state borders.
In a litigation emblematic of the financial distress the film industry continues to experience, Cineplex sued its former suiter Cineworld in Canadian court when it distanced itself from a potential acquisition after the pandemic. Cineplex alleged that Cineworld had “buyer’s remorse” and the steps it took after the pandemic to reduce costs should be considered “normal course” for the industry. Ontario Superior Court of Justice ruling expected shortly, says The Canadian Press.
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