Insolvency Guardian Media Centre
When Dell announced it was spinning out VMware yesterday, the move itself wasnt surprising; there had been public speculation for some time. But Dell could have gone a number of ways in this deal, despite its choice to spin VMware out as a separate company with a constituent dividend instead of an outright sale.
The dividend route, which involves a payment to shareholders between $11.5 billion and $12 billion, has the advantage of being tax-free (or at least thats what Dell hopes as it petitions the IRS). For Dell, which owns 81% of VMware, the dividend translates to somewhere between $9.3 billion and $9.7 billion in cash, which the company plans to use to pay down a portion of the huge debt it still holds from its $58 billion EMC purch…
Read the full article at: https://techcrunch.com/2021/04/15/should-dell-have-pursued-a-more-aggressive-debt-reduction-move-with-vmware/
Grant Thornton also said that if the company goes into liquidation, the liquidators would investigate several transactions between Greensill Capital Pty Ltd – the Australian parent company – and the Greensill family and farming companies, as well as several director-related transactions.
Our findings in relation to unreasonable director related transactions, while only preliminary, have identified a number of material transactions which require additional review and investigation by a liquidator should one be appointed at the second meeting of creditors, Grant Thorntons report said.
The administrators have found that payments worth around US$174 million were transferred out of Greensill Capital Pty Ltd and described as payments of proce…
Read the full article at: https://www.afr.com/companies/financial-services/debt-strapped-greensill-should-be-liquidated-grant-thornton-says-20210416-p57joa
Paying off multiple debts at once can be very stressful and if these debts are not managed properly, they can end up costing you more and dragging you further into debt. If you find yourself having difficulty juggling your debts, consolidating them into a single loan may be helpful in managing your repayments.
One of the ways to do this is through refinancing. Consolidating other debts usually a car or business loan, or a large credit card bill into a mortgage is among the most common reasons why many Australians refinance their home loans. However, this strategy does not work for everyone. Before opting to take this route, you need to carefully weigh the pros and cons to see if it suits your financi…
Read the full article at: https://www.yourmortgage.com.au/mortgage-news/is-consolidating-debt-into-your-mortgage-a-good-idea/276379/
Credit Suisses group chief executive officer, Thomas Gottstein, said on Tuesday that the bank would learn serious lessons from losses incurred at Archegos as well as the liquidation of its supply-chain finance funds as he warned investors of a CHF4.4 billion ($6.15 billion) charge and confirmed the departure of the banks chief risk officer, dual US-Australian citizen Lara Warner.
OneSteel Manufacturing operates the Whyalla steelworks that employs about 1500 people and is the lifeblood of the regional town in South Australia of 22,000 people, which is about 380km north of Adelaide.
Hailed as a saviour
The steelworks was acquired by Mr Gupta in mid-2017 when the British billionaire was hailed as a saviour for rescuing the collapsed Arrium…
Read the full article at: https://www.afr.com/companies/financial-services/credit-suisse-tries-to-wind-up-whyalla-steelworks-20210406-p57gsm
Keith Birmingham, Pasadena Star-News/SCNG
Former NBA star Lamar Odom recounted how Los Angeles Lakers teammate Kobe Bryant helped him pay back a gambling debt he had incurred.
Appearing on All The Smoke with Matt Barnes and Stephen Jackson, Odom was responding to a question about some of the last conversations he had with Bryant, who was killed in a helicopter crash in January 2020.
The discussion begins around the 56-minute mark (warning: NSFW language):
Odom explained how he had been gambling and owed more money than he could afford to absorb. He said he was reluctant to reach out to Bryant but “gathered up the strength and put my pride to the side.”
Odom said Bryant “went in” to scold him before indicating he’d have his represent…
Read the full article at: https://bleacherreport.com/articles/10001584-lamar-odom-says-kobe-bryant-helped-him-pay-gambling-debt-after-scolding-him
President Joe Biden is assessing how the U.S. might tackle student debt. Here’s where he stands on the issue. USA TODAY
There was no college fund, no family savings to help Jamilah Williams pay for school. After she graduated from college and landed her first salaried job, herparents remindedher that she would have to help them pay off her student loan debt.
It was like, ‘Oh, wow, this is going to take a huge cut out of my small paychecks,’ Williams said.
Long after her student days, the $200 monthly payment has left her unable to cover other costs. If she needs to buy pet food, she puts it on her credit card. Her car broke down and she cant afford to get it fixed.
It means that some months there’sonly a cou…
Read the full article at: https://www.usatoday.com/story/news/nation/2021/04/15/student-loan-forgiveness-black-americans-could-close-pay-gap/7199634002/
The total of 10,941 personal insolvencies for March included 1,591 DROs and 1,028 bankruptcies. The bankruptcies were made up of 937 debtor applications and 91 creditor petitions. The numbers of DROs and bankruptcies in March 2021 were both 31% lower than in March 2020.
There were, on average, 6,388 IVAs registered per month in the three-month period ending March 2021, 24% higher than for the three-month period ending March 2020.
Company insolvencies
Corporate insolvencies increased by 44.8% to 992 in March 2021 compared to Februarys figure of 685, and were 19.7% lower than March 2020s figure of 1,236. Overall, company insolvencies have remained low since the start of the first UK lockdown in March 2020, when compared with pre-pandemi…
Read the full article at: https://www.creditstrategy.co.uk/news/news-top-stories/personal-insolvencies-spike-60-18952
There are a high proportion of zombie companies in the UK. The COVID-19 pandemic has created the perfect environment to create more.
The UK has had a zombie problem for some time now. Companies that simply exist, shambling onwards without ever turning a profit or contributing meaningfully to the economy. These zombie companies have played a significant role in keeping UK productivity low and its only getting worse.
According to a report by the conservative think tank Onward, between 1% and 4% of companies have been zombified since the start of the pandemic, bringing the total number in the UK to more than 20%.
The effect this could have is potentially huge. Onward predicts that if nothing is done to reduce the number of zombie companies …
Read the full article at: https://www.icaew.com/insights/viewpoints-on-the-news/2021/april-2021/business-rescue-are-zombie-companies-on-the-rise
LONDON, April 15 (Reuters) – More businesses and individuals across Britain were declared insolvent last month than earlier in 2021 though levels remained mostly below those of a year ago as government support muted the impact of the coronavirus pandemic.
Britains economy shrank by almost 10% last year and millions of people have been unable to work due to lockdown restrictions, but state loan guarantees and wage subsidies have kept most companies and households financially afloat for now.
Government figures on Thursday showed 992 companies in England and Wales were declared insolvent in March.
This represents a rise since the start of the year but is still 20% fewer than in March last year at the start of the pan…
Read the full article at: https://www.reuters.com/article/britain-economy-bankruptcy/uk-insolvencies-rise-but-still-below-pre-pandemic-level-idUSL8N2M845T
Gambling addiction can cost people massive amounts of debt and disrupt relationships and careers. But it’s not as identifiable as substance addictions, according to Mercedes Kent. “It’s not a matter of willpower,” she said. “This is a brain disease.” Kent is a treatment provider and supervisor at Gateway Foundation, which runs addiction treatment centers, including one in Springfield. Gambling expansion is a moneymaker for the state, but as it expands, so do the rates of gambling disorders, Kent said.
Kent spoke as part of a recent weeklong series, hosted by Gateway, addressing gambling addiction throughout Illinois. Speakers included public health and addiction treatment professionals and various lawmakers, both Dem…
Read the full article at: https://www.illinoistimes.com/springfield/gambling-losses/Content?oid=13447275
Article content
LONDON More businesses and individuals across Britain were declared insolvent last month than earlier in 2021 though levels remained mostly below those of a year ago as government support muted the impact of the coronavirus pandemic.
Britains economy shrank by almost 10% last year and millions of people have been unable to work due to lockdown restrictions, but state loan guarantees and wage subsidies have kept most companies and households financially afloat for now.
Government figures on Thursday showed 992 companies in England and Wales were declared insolvent in March.
This represents a rise since the start of the year but is still 20% fewer than in March last year at the start of the pandemic, and 37% down on two …
Read the full article at: https://financialpost.com/pmn/business-pmn/uk-insolvencies-rise-but-still-below-pre-pandemic-level
Metals magnate Sanjeev Gupta restructured his business empire last year in an attempt to maximise the amount of UK taxpayer-backed loans he could draw on through the governments coronavirus lending scheme.
Companies affiliated with Gupta applied for hundreds of millions of pounds of loans via Greensill Capital, which tapped the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The government set up the programme at the height of the pandemic to help companies weather the crisis.
The collapse last month of Greensill, Guptas main lender, has left his GFG Alliance, which employs 35,000 people at metalworks stretching from Wales to Australia, battling for survival.
While Greensill was only authorised to provide 50m to a single …
Read the full article at: https://www.ft.com/content/b2c846db-2537-47e3-a75d-5118c69ba54a