Pro Bankruptcy Briefing: Hertz Seeks CEO After Bankruptcy; Delta Variant Renews Calls for Aid
September 13 2021 - 9:04AM
Dow Jones News
Good day. The investors that bought Hertz Global Holdings out of
its pandemic bankruptcy are seeking a new chief executive, and the
spread of the Delta variant is dimming the outlook for
restraurants, gyms and other businesses, renewing calls for more
federal aid.
Elsewhere, the city of Harrisburg, Pa. won a court ruling
against its former lawyers and bankers, while drugmaker Endo
International struck another opioid settlement.
Top News
Hertz is searching for a new CEO after bankruptcy. Hertz Global
Holdings Inc. is in talks to name a new chief executive officer, as
the car-rental company resets after emerging from bankruptcy under
new ownership, people familiar with the matter said. Several
qualified candidates have expressed interest in the CEO job, and
Hertz would like to have the decision made before the company
relists its stock on a major exchange.
Hard-hit industries renew calls for Covid-19 aid. Restaurants,
live-events businesses and gyms are among industries renewing calls
for Congress to provide additional financial assistance amid signs
the rise in Covid-19 cases is slowing U.S. economic activity.
Eating establishments in particular are facing whiplash as the
Delta variant prompts some to close indoor dining again.
Distress
Advisers can't dodge lawsuit over ill-fated Harrisburg
incinerator. The city of Harrisburg, Pa., can continue pressing
legal claims that lawyers and bankers misled city officials into
backing a $360 million incinerator project that wrecked the state
capital's finances, a Pennsylvania court said. The 95-page ruling
said that while Pennsylvania Gov. Tom Wolf's administration had no
legal standing as a plaintiff, many claims brought by Harrisburg
city coordinator Marita Kelley were strong enough to proceed.
Endo settles with New York, seeks broader deal. Endo
International PLC agreed to pay $50 million to settle with New York
state and county authorities over the opioid crisis as the
drugmaker pursues a broader resolution to its opioid-related
liabilities. Endo still faces nearly 3,000 other legal cases
pending against it from states, counties, cities and Native
American tribes over opioids, which the company said Thursday it is
focused on resolving.
International
Chinese property bonds sell off over Evergrande. Bonds from
lower-rated Chinese property developers have fallen steeply in
price after warnings of a potential default at industry giant China
Evergrande Group sent investors scrambling to protect themselves
against trouble elsewhere in their portfolios.
Markets
The shift away from Libor stokes risky debt sales. Managers of
collateralized loan obligations -- securities made up of bundled
loans with junk credit ratings -- are rushing to close deals ahead
of the year-end move away from the London interbank offered rate.
For CLO portfolio managers on Wall Street, bringing deals forward
allows them to lock in new revenue, rather than wait and see how
the Libor transition affects the market.
$19.2 Billion
U.S. CLO issuance in August, a monthly record in data going back
a decade, according to S&P Global Market Intelligence data
In Other News
Luxury furniture retailer ABC Carpet & Home on Friday
secured court approval to tap part of a $5.7 million loan to fund
operations while it is in bankruptcy. (Reuters)
A group of Talen Energy Corp. creditors is looking to boost its
size and wield greater influence ahead of debt talks with
management, according to people with knowledge of the matter.
(Bloomberg)
(END) Dow Jones Newswires
September 13, 2021 08:49 ET (12:49 GMT)
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