Insolvency Guardian Media Centre
Thursday, April 22, 2021
A new study finds that Rhode Islanders love their gambling.
Rhode Island ranks 15th overall in the new study and second only to Massachusetts in New England.
And, Rhode Island is ranked first — tied with the Commonwealth — with sales of lottery tickets per capita.
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Gambling exists in every state, even Hawaii and Utah, where gambling is prohibited by law. But not all gamblers are the same, reports WalletHub.
Recreational or ‘social’ gamblers, for instance, buy the occasional lottery ticket, take the rare casino trip or bet small stakes in fantasy sports. But they also are mentally able to quit at…
Read the full article at: https://www.golocalprov.com/business/ri-ranks-as-one-of-americas-biggest-gambling-states-says-report
Creditors have voted to liquidate Greensill Capitals Australian business, which collapsed last month with debts of A$4.9bn to companies including Credit Suisse and SoftBank.
Administrator Grant Thornton said on Thursday that creditors had voted by 23 to zero, with a handful of abstentions, to wind up the parent company of the London-based supply-chain finance group founded by Australian entrepreneur Lex Greensill. No buyers had emerged for the business, which crashed into administration on March 8, it said.
As of today, the company is now in liquidation, Grant Thornton said in a statement.
The liquidators will continue to identify and realise available assets, monitor developments in relation to the administrations of Greensill UK and …
Read the full article at: https://www.ft.com/content/0a256a37-d8e4-4655-91cc-678e38685628
Japanese insurer Tokio Marine and the Australian Tax Office were listed as yet to be quantified.
The shift to liquidation from administration will give Grant Thornton greater powers to investigate Greensills collapse and gather documents, including examining whether former directors or officers of the company had committed any offences that need to be reported to the Australian Securities and Investments Commission.
Directors resigned
Grant Thornton is expected to examine the groups access to external funding and the solvency position of Greensills main UK operating business to examine whether it traded while insolvent.
The administrators said in their creditors report, released last week, that while it did not appear that the Australia…
Read the full article at: https://www.afr.com/companies/financial-services/greensill-creditors-vote-for-liquidation-20210422-p57lgf
A closely-watched report has noted the largest quarterly leap in the number of businesses suffering significant financial distress since 2014 following a year of coronavirus disruption.
The latest Red Flag Alert produced by insolvency specialists Begbies Traynor measured a jump of 93,000 firms in the first quarter of 2021, a period that took in the anniversary of the UK’s first COVID-19 lockdown last March.
It meant there were 723,000 businesses suffering in total, the report said, a 42% increase over the past year.
The quarterly rise was put down to the latest enforced shutdowns of parts of the economy deemed non-essential as UK national governments sought to curb the spread of the virus and protect citizens through the vaccination …
Read the full article at: https://news.sky.com/story/covid-19-largest-jump-in-businesses-facing-significant-financial-distress-since-2014-12283383
Loxley Plc is planning to push forward and achieve consecutive growth after completing a two-year business restructuring task which saw it cut 40 underperforming firms and form seven core companies.
Suroj Lamsam, Loxley president and chief executive officer, said the firm experienced a positive turnaround last year with a better bottom line after experiencing several years of low profit or losses.
Its consistent bad performance was attributed to the business restructuring process which saw the company close subsidiaries which had a registered capital of 1-2 million baht and this helped generate revenue of around 5-10 million baht per year.
As a result, almost 40 companies have been cut into seven active companies which mostly focus on I…
Read the full article at: https://www.bangkokpost.com/business/2103447/loxley-streamlines-via-shakeup
Hertz Global Holdings Inc. agreed to provide some value to equity holders when it leaves chapter 11, vindicating the individual traders who have insisted the company is worth something despite its bankruptcy filing.
Hertz proposed in a chapter 11 exit plan on Wednesday that current stockholders receive warrants to purchase up to 4% of the restructured business, the first time the company has said it is worth enough to distribute some value to its owners.
The shareholder distribution would amount to a recovery of 60 to 70 cents per share, a material return to equity, Hertz lawyer Thomas Lauria said during a court hearing Wednesday.
If approved by the U.S. Bankruptcy Court in Wilmington, Del., that outcome would make Hertz a relative rari…
Read the full article at: https://www.wsj.com/articles/hertz-accepts-sweetened-bankruptcy-exit-deal-with-equity-payout-11619021884
EXECUTIVE SUMMARY
A Pre-Pack Sale is the sale of all or substantially all of an English companys assets to a third-party purchaser immediately or shortly after the distressed company goes into a UK rescue procedure called administration. The attraction of a Pre-Pack Sale is the speed of the transaction, which helps preserve the value of the business and save jobs, as the company is able to carry on trading through the process. The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (Regulations) will apply to any administrations starting from and including 30 April 2021, and they require further due diligence and scrutiny where the Pre-Pack Sale is proposed to be made to a connected person.
For a summar…
Read the full article at: https://www.jdsupra.com/legalnews/uk-insolvency-reform-evaluating-pre-2779986/
President Joe Biden promised to forgive up to US$10,000 in student loan debt during his 2020 campaign. Now, a few months into his presidency, over 415 organizations have urged him to use his executive authority to cancel all federal student loan debt. We assembled a panel of academics to talk about the effects student loans have on recent graduates.
How much student loan debt is too much?
Kate Padgett-Walsh, associate professor of philosophy at Iowa State University
Student debt is too much when it threatens the physical and mental health of young borrowers. Todays college graduates now finish school with almost $30,000 in student loan debt, on average, an increase of over 300% from 1970 after adjusting for inflation.
Research shows tha…
Read the full article at: https://theconversation.com/student-loan-debt-is-costing-recent-grads-much-more-than-just-money-158189
However, even where businesses have failed, their brands have survived. For example Topshop and Topman were bought by ASOS for 330 million, with the deal meaning the survival of their brand names while the physical stores closed down.
Those in the fashion industry need to evaluate and assess their intellectual property (IP) assets and licensing agreements to ensure they are adequately protected from the risks posed by insolvencies.
This means assessing who owns the IP and what is required to continue to operate a business: what happens to branded stock if a company fails? Who bears the risk of an insolvency? Can a business place its IP outside the trading business to derisk it, in the event that the trading arm runs into difficulties?
W…
Read the full article at: https://www.pinsentmasons.com/out-law/analysis/fashion-businesses-should-assess-ip-rights-in-light-of-covid-19-challenges
The Antwerp prosecutor has started an investigation into the mysterious bankruptcy of the company that formerly stood in first place among the citys diamond dealers.
Eurostar Diamond Traders, owned by the family of 71-year-old Kaushik Mehta, was at one point the diamond citys major trader in both rough and cut diamonds. Then suddenly in 2019 the business was declared bankrupt, despite having posted recent results of 1.6 and 2.5 billion.
It turned out the company had a mountain of debt in the hundreds of millions, in particular to the banks ABN AMRO and Standard Chartered. The only assets left were some rough and cut diamonds, and the companys prestigious headquarte…
Read the full article at: https://www.brusselstimes.com/news/business/165918/diamonds-investigation-into-bankruptcy-of-former-industry-number-one/
San Diego, CA, April 19, 2021 (GLOBE NEWSWIRE) — MagnoliaMediaNetwork announces the release of the review “Best Debt Relief Programs 2021”
Climbing out of debt can feel like a nearly-impossible task with all the late fees and interest rates. The best debt relief programs can lighten your load.
Our in-depth research led us to the top six debt relief programs to help you get out of debt.
We factored in topics like financial guarantee, transparency and track record to determine the best companies for this list.
Top 6 Credit Relief Services
First look:
- Best debt relief program overall – National Debt Relief
- Best debt relief program for tax debt – CuraDebt
- Best choice for credit card debt relief – DMB Financial
- Best program for customer sa…
Read the full article at: https://www.globenewswire.com/news-release/2021/04/20/2212834/0/en/6-Best-Debt-Relief-Programs-in-2021-The-Most-Trusted-Companies-For-Debt-Settlement-and-Credit-Card-Debt-Relief.html
Lenders to two more Future group firms — Future Enterprises and Future Supply Chain Solutions — have approved a resolution plan to restructure the existing secured financial debt of the companies, as per regulatory filings.
Last week, a consortium of 28 banks had approved a resolution plan for debt restructuring of the Kishore Biyani-led group’s flagship firm Future Retail Ltd, under the resolution framework for COVID-19-related stress announced by the Reserve Bank of India (RBI).
The boards of both the companies — Future Enterprises and Future Supply Chain Solutions — have approved the lenders’ plan to restructure the existing secured financial debt, the firms said in separate regulatory filings.
“The said resolution plan has bee…
Read the full article at: https://www.freepressjournal.in/business/lenders-to-future-enterprises-future-supply-chain-solutions-approve-debt-restructuring