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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