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Joann Inc., a crafts and fabric retailer, has been approved by a bankruptcy court to close over 500 stores and begin final sales. The company plans to liquidate more stores to maximize value for creditors, with the store closing process estimated to take between eight to 13 weeks. However, there is contention over the proposed plan to sell the business to Gordon Brothers Retail Partners, with creditors expressing concerns over potential recoveries in a liquidation. [Extracted from the article]

Houlihan Lokey Inc. has appointed Angela Hu as managing director in the financial sponsors team, with her previous experience at Barclays and JPMorgan highlighted. The company praised Hu's expertise in working with private equity and credit investors, as well as her success in complex M&A and capital markets transactions. The move follows Bloomberg's earlier report of Houlihan's plan to hire a managing director in Hong Kong to oversee debt restructuring, amidst a wave of defaults in the Chinese debt market prompting increased demand for restructuring and financial advisory services. [Extracted from the article]

Hertz Corp. is in negotiations with bondholders to settle a lawsuit over a make-whole payout of over $270 million. The car rental company, which emerged from bankruptcy as solvent, repaid all creditors and gave stockholders over $1 billion, leading to legal battles with bondholders demanding interest payments and fees. The company's willingness to enter talks marks a shift from its previous stance of seeking a Supreme Court review, with disagreements over the exact amounts owed for make-whole premiums and post-petition interest. [Extracted from the article]

Houlihan Lokey Inc., a global financial adviser, is looking to hire a managing director in Hong Kong to oversee debt restructuring efforts in Asia. This decision follows the layoff of five junior employees in the Asia restructuring team last quarter. The Chinese debt market's unprecedented defaults have led to a surge in hiring among financial advisers, but the success rate of debt plans remains low. Despite challenges, some companies like Sino-Ocean Group Holding Ltd. are making progress in debt restructuring efforts. [Extracted from the article]

New York-based hedge fund Fir Tree Partners, founded in 1994 by Jeffrey Tannenbaum, is returning outside capital to investors after three decades of operation. The firm plans to return around 95% of capital within its Credit Opportunity Fund by early March and the remaining funds after a final audit, excluding its PAMLI Global Credit Convexity business. Fir Tree's flagship credit fund delivered a net gain of around 17% last year and has a history of activist campaigns against distressed companies, including involvement in high-profile cases such as those of Swedish companies Samhallsbyggnadsbolaget i Norden AB and Intrum AB. [Extracted from the article]

Prospect Medical Holdings Inc., a bankrupt health system, has signed a temporary deal to transfer operations of its Pennsylvania hospitals to advisory firm FTI Consulting Inc. to avert potential closures. The agreement, approved by a judge, aims to keep the hospitals open while Prospect searches for new owners due to "dire liquidity" problems. The deal comes after a proposed sale to a nonprofit organization was paused, and state authorities will oversee $20 million in funding to support the hospitals. Prospect's financial decisions, including dividends to investors, have been criticized, with the private equity firm Leonard Green and Partners facing scrutiny for its ownership of Prospect Medical. [Extracted from the article]

Discount retailer Essex Technology Group, operating as Bargain Hunt, has filed for Chapter 11 bankruptcy in Tennessee, citing assets of $10-50 million and liabilities of $50-100 million. With 91 stores across 10 states, Bargain Hunt offers discounts of 30-70% off retail prices on various products. The company's bankruptcy filing reflects a trend among discount stores facing financial challenges amid ongoing inflation pressures on consumer spending. [Extracted from the article]

B. Riley Financial Inc. is considering spinning off its securities business into a separate company as part of a plan to recover from losses and soured investments. The investment bank would operate independently, led by Andrew Moore and Jimmy Baker, while a separate holding company would house the wealth management business. The outcome is uncertain, with no formal announcement or guarantee of a deal, and the company is working on securing fresh financing and resolving other hurdles, including filing overdue financial reports. [Extracted from the article]

China State Construction's US unit, China Construction America Inc., is facing a fraud probe after filing for Chapter 11 bankruptcy in New Jersey. The largest creditor, BML Properties Ltd., is seeking an examiner to investigate potential fraud and misconduct, following a court order for CCA to pay $1.6 billion for fraud in a previous case. The company's chairman denies any wrongdoing and claims the losses on the Baha Mar project are unrelated to CCA's operations. The case is ongoing in the U.S. Bankruptcy Court District of New Jersey. [Extracted from the article]

A creditor is urging a US bankruptcy court to investigate potential fraud at China Construction America Inc., a subsidiary of China State Construction Engineering Corp. The creditor, BML Properties Ltd., is seeking an examiner to look into misconduct after CCA was ordered to pay $1.6 billion for fraud in a previous case. CCA filed for Chapter 11 in New Jersey, citing policy shifts that impacted Chinese investment in the US. [Extracted from the article]

Prospect Medical Holdings Inc., a bankrupt hospital chain, faced a legal battle with landlord Medical Properties Trust Inc. over accessing $100 million in Chapter 11 financing. The court granted Prospect permission to use the funds despite objections from MPT, citing the need to keep hospitals open. Prospect's financial struggles, including a liquidity crisis and regulatory scrutiny, were highlighted in court proceedings, with concerns raised about the impact on vendors and patients. The company operates 16 hospitals in California, Connecticut, Pennsylvania, and Rhode Island, serving as vital safety-net facilities in local communities. [Extracted from the article]

Prospect Medical Holdings Inc., a private hospital owner, has filed for bankruptcy due to debt and rising costs, listing assets and liabilities between $1 billion to $10 billion and over 100,000 creditors. The company operates in Southern California, Connecticut, and New Jersey, managing networks of over 11,000 doctors and running more than 16 hospitals. This bankruptcy filing follows similar struggles faced by other hospital operators, raising concerns about the regulation of private equity-owned hospitals and their impact on local communities. [Extracted from the article]

The article discusses how Intrum AB's lock-up agreement with creditors may limit the payout investors can expect from the insurance they purchased against a default by the Swedish debt collector. The agreement prevents bond trading, affecting the number of notes available for an auction to settle credit default swaps. The uncertainty over the payout highlights the complexities of the CDS market, with potential implications for various parties involved, including Arini Capital Management and King Street Capital Management. The article also mentions strategies to address lock-up issues and the ongoing negotiations among Intrum's creditors. [Extracted from the article]

The article discusses how Intrum AB's lock-up agreement with creditors may limit the payout investors can receive from the insurance they purchased against a default by the Swedish debt collector. The agreement prevents bondholders from trading their bonds, affecting the upcoming auction to settle the firm's credit default swaps. The uncertainty surrounding the payout highlights the complexities of the credit default swaps market, with potential implications for various parties involved, including Arini Capital Management and King Street Capital Management. [Extracted from the article]

A US bankruptcy judge has confirmed Sweden's Intrum AB's debt restructuring plan, overcoming opposition from a minority group of creditors. The ruling by Judge Christopher Lopez in Texas allows Intrum to proceed with its plan despite objections that the company had no need to reorganize under Chapter 11. Intrum sought court protection in Texas to address a debt pile that grew due to rising interest rates, ultimately reaching a restructuring deal with the support of 82% of its creditors. [Extracted from the article]

A US bankruptcy judge has confirmed Sweden's Intrum AB's debt restructuring plan, despite opposition from a minority group of creditors. The judge emphasized that the filing was made in good faith and not intended to harm any specific creditor group. Intrum sought court protection in Texas to address a debt pile that grew after interest rates rose, ultimately reaching a deal to restructure its debt with the support of 82% of its creditors. [Extracted from the article]

Party City Holdco Inc. has filed for bankruptcy for the second time in two years, announcing plans to close its approximately 700 stores due to struggling sales amidst inflation. Despite efforts to reduce debt and store numbers after its first bankruptcy in 2023, the company faced challenges from inflation, wage increases, and online competition. Party City's Chapter 11 filing in Texas revealed assets and liabilities of at least $1 billion, with plans to potentially sell its brand name or other assets. Other discount retailers like Big Lots Inc. and Dirt Cheap also experienced bankruptcy in 2024, reflecting broader industry challenges. [Extracted from the article]

Party City Holdco Inc. has filed for bankruptcy for the second time in two years due to struggling sales amidst inflation. Despite reducing debt and store count after its first bankruptcy, the company faced challenges from inflation, wage increases, and online competition. Other retailers, such as Big Lots Inc. and Dirt Cheap, also experienced financial difficulties in 2024. Anagram Holdings, Party City's balloon-manufacturing affiliate, had previously filed for bankruptcy in 2023. [Extracted from the article]

Intrum AB, a debt collector based in Sweden, has failed to reach an agreement with a minority group of noteholders regarding a debt restructuring plan. As a result, the company will proceed with a pre-packaged Chapter 11 filing in the US bankruptcy court in Texas. The holdout group of noteholders objected to the original terms of the restructuring plan, seeking a treatment more similar to that of the 2024 bonds, which were fully repaid. Despite ongoing negotiations, the company is moving forward with the Chapter 11 filing to seek approval for its restructuring plan. [Extracted from the article]

Intrum AB, a Swedish debt collector, has reached an agreement with a noteholder group in the US bankruptcy court, potentially resolving a key obstacle in its restructuring efforts. The deal requires consent from other parties, including a majority ad-hoc group that supports the restructuring. Intrum filed for Chapter 11 bankruptcy in Texas due to financial challenges earlier this year, and the case is ongoing in court. [Extracted from the article]

Intrum AB, a Swedish debt collector, has reached an agreement with a group of noteholders in the US bankruptcy court, potentially resolving a key issue in its restructuring efforts. The deal requires approval from other parties, including a majority ad-hoc group that supports the restructuring. Intrum filed for Chapter 11 bankruptcy in Texas due to financial challenges earlier in the year. Some noteholders have opposed the restructuring plan, arguing that their bonds should be prioritized for repayment. The court hearing is ongoing, with Judge Christopher M. Lopez presiding. [Extracted from the article]

Hertz Corp. bondholders, owed $320 million in unpaid interest from a previous bankruptcy, fear further financial turmoil may delay payment. Despite concerns, Hertz's debt prices indicate the company is not on the brink of bankruptcy. A recent court decision ruled in favor of bondholders, but Hertz plans to appeal, potentially prolonging the payment process. The ongoing dispute highlights the complexities of bankruptcy proceedings and creditor rights in the financial sector. [Extracted from the article]

The company behind the Miss America beauty pageant has filed for bankruptcy due to a legal dispute over ownership, owing around $4 million. The competition, which has been running for over a century, has faced challenges in staying relevant in a changing cultural landscape. The bankruptcy filing is linked to a disagreement between the current owner and a former CEO, with the 2025 pageant still scheduled to proceed as the legal proceedings continue. [Extracted from the article]

American Tire Distributors Inc. is facing challenges in its bankruptcy proceedings due to infighting among lenders over the financing plan. A group of minority lenders, including Oaktree Capital Management LP and AllianceBernstein Holding LP, have objected to the current debtor-in-possession financing plan, citing exclusion from participation and potential breaches of loan agreements. The dissenting lenders argue that the existing plan, which includes a roll-up of debt, would prioritize certain lenders over others and negatively impact their potential recoveries. The case is ongoing in the United States Bankruptcy Court for the District of Delaware, with a decision pending following a hearing. [Extracted from the article]

Hearthside Food Solutions, a snack producer, has filed for bankruptcy after facing challenges in refinancing its debt. The company, which makes a variety of food products, plans to shed over $1.9 billion in debt and receive $200 million in new equity as part of a restructuring agreement with lenders and equity owners. Hearthside had previously been involved in a child labor scandal, which led to increased scrutiny and a Department of Labor investigation. Despite these challenges, the company maintains that it has never knowingly employed underage labor and is working to adhere to government regulations. [Extracted from the article]

Vroom, Inc., an automotive financing provider, has filed for Chapter 11 bankruptcy in Texas, listing assets of $43.8 million against total debt of $304.6 million. The firm's plan involves restructuring $290 million of unsecured convertible senior notes due in 2026 into equity, with support from hedge fund Mudrick Capital Management. Vroom owns United Auto Credit and CarStory, and aims to move forward without long-term debt, according to CEO Tom Shortt. [Extracted from the article]

Vroom, Inc., an automotive financing provider, plans to file for Chapter 11 bankruptcy to restructure its debt, including $290 million in unsecured convertible senior notes. The company has reached a restructuring agreement with creditors and its largest stockholder. Vroom's CEO stated that eliminating the unsecured notes will strengthen the company's balance sheet. Hedge fund Mudrick Capital Management supported the plan, which aims to help Vroom emerge without long-term debt. [Extracted from the article]

Wellpath Holdings Inc., a major provider of healthcare services to prisons and jails in the US, has filed for bankruptcy due to rising labor and legal costs. The company, backed by H.I.G. Capital, has about $644 million in funded debt and plans to sell some businesses to reduce its debt. Wellpath's financial struggles are part of a larger trend among private equity-owned companies in the prison-services industry facing challenges such as high labor costs and public scrutiny. [Extracted from the article]

Wellpath Holdings Inc., a major provider of health-care services to prisons and jails in the US, has declared bankruptcy due to difficulties meeting debt obligations and high labor costs. The H.I.G. Capital-backed firm filed for Chapter 11, listing assets and liabilities between $1 billion to $10 billion each. This bankruptcy filing reflects broader challenges faced by private equity-owned companies in the prison-services industry, including heavy debt loads, high labor costs, and public scrutiny from advocacy groups. [Extracted from the article]

Tupperware Brands Corp. has reached a deal with its creditors to avoid liquidation, with lenders acquiring the business in cash and credit. The federal judge overseeing the bankruptcy played a crucial role in pushing both parties to settle the dispute. The lenders will pay $23.5 million in cash and swap $63.8 million in debt for ownership, with final court approval pending. The company faced financial challenges due to weakening demand and competition in the retail market. [Extracted from the article]

Lycra Co., a textile company known for producing form-fitting elastic material used in yoga and cycling clothing, is seeking a private deal to refinance its debt. The company is looking to raise about $350 million to address upcoming term loans and notes maturing in the next few months. Lycra is working with financial advisors to navigate its debt obligations, which include riskier bonds due in the near future. The company is currently owned by a group of lenders-turned-shareholders following a debt restructuring in 2022. [Extracted from the article]

Nexus Capital Management is collaborating with Big Lots Inc.'s lenders to secure $750 million in financing for a takeover offer to acquire the retailer out of bankruptcy. The offer, made in the form of a stalking horse bid, allows Big Lots to consider better offers if they emerge before the bid deadline. The financing details were discussed in a court hearing in Delaware, with further discussions on compensation for Nexus to be held later in the week. The goal of Nexus is to help restore Big Lots to its position as a leading extreme value retailer. [Extracted from the article]

Gritstone Bio Inc., a vaccine developer, has filed for Chapter 11 bankruptcy after falling behind Pfizer and Moderna in the race to develop a Covid-19 vaccine. The San Francisco-based company has liabilities between $100 million and $500 million, with assets in the same range. Gritstone plans to present an agreement to the court next week and intends to continue operating and advancing its clinical development programs during the financial restructuring process. The company's market value dropped significantly after Moderna and Pfizer/BioNTech dominated the market for Covid-19 vaccines. [Extracted from the article]

Lycra Co., a textile company that produces elastic material for yoga and cycling clothing, is currently in discussions with its creditors to extend its debt maturities of over $1 billion. The company has approximately $700 million in dollar bonds, €300 million in euro notes, and a term loan of over $150 million due next year. Lycra is seeking financial advice from bankers at Houlihan Lokey Inc. to address these upcoming debt deadlines. Lycra has faced financial pressure in recent years, including a default by its former parent company and a subsequent restructuring and takeover by a group of lenders. Last year, Lycra issued new bonds to repay existing ones and carried out a drop-down strategy to enhance the attractiveness of the new debt. The company's dollar notes are currently quoted at around 57 cents on the dollar, while the euro notes are at around 82 cents on the euro. [Extracted from the article]

The litigation-financing industry may experience increased demand due to a rise in health care lawsuits, according to Christopher Bogart, CEO of Burford Capital Ltd. Bogart explains that economic pressures in the health care industry often lead to disputes, as insurance companies are increasingly difficult in paying health care claims. Hospitals are now seeking litigation financing to address this issue, with some bundling cases together for larger arbitration or litigation actions. Burford Capital, a publicly traded company with a portfolio of over $7 billion, gained attention for backing entities that won a $16 billion judgment against Argentina. The US is currently considering whether to file a statement of interest regarding Burford's request for Argentina to turn over its 51% interest in state oil company YPF SA. [Extracted from the article]

Indian education technology company Byju's has been caught off guard by a US court ruling that placed some of its units into bankruptcy. The ruling came after the units failed to provide requested information to creditors. Byju's, once valued at $22 billion, is facing multiple bankruptcy cases in India and abroad. The company's business was boosted by the pandemic but faced a liquidity crunch when classrooms reopened. The Indian official appointed as Byju's Interim Resolution Professional has requested to stay the effect of the bankruptcy, citing conflict with insolvency proceedings in India. [Extracted from the article]

A US court has ruled in favor of creditors' request to put several units of Indian education technology company Byju's into bankruptcy. The units, including Neuron Fuel Inc., Epic! Creations Inc., and Tangible Play Inc., will be subject to involuntary Chapter 11 bankruptcy. The creditors, led by HPS Investment Partners, accused Byju Raveendran, the company's founder, of violating debt contracts by withholding financial details. Byju's units have opposed the forced bankruptcy, arguing that the lenders lack legal standing and that the filings are a tactical maneuver. The decision is in conflict with Think & Learn Private Limited's insolvency proceedings in India, according to Pankaj Srivastava, Byju's Interim Resolution Professional. The Indian official has requested to stay the effect of the bankruptcy, citing Indian insolvency law. The US creditors and the Indian official have been in dispute with each other throughout the cross-border bankruptcy procedures. The ruling's impact is uncertain at this time. [Extracted from the article]

BurgerFi International, a US burger chain that aimed to compete with Shake Shack, has filed for Chapter 11 bankruptcy protection. The company listed $50 million to $100 million in assets and $100 million to $500 million in debt. BurgerFi hired Jeremy Rosenthal as chief restructuring officer and had previously signed a forbearance agreement with lender TREW Capital Management. The company owns 162 stores under the BurgerFi and Anthony's Coal Fired Pizza brands. [Extracted from the article]

Edgio Inc., a software company backed by Apollo Management, has filed for Chapter 11 bankruptcy protection. The company listed $379 million in assets and $369 million in liabilities. Edgio has entered into an agreement with its primary lender, Lynrock Lake Master Fund LP, to purchase assets worth $110 million of the existing debt. The company's largest unsecured creditors include Amazon, Sony, and Disney. [Extracted from the article]

Diamond Sports Group, a bankrupt firm, has received approval from a US bankruptcy court to broadcast NBA and NHL games in the 2024-25 season. The deals with the two sports leagues could help the company emerge from Chapter 11 bankruptcy. The agreements allow Diamond to operate through the end of the season, regardless of whether a reorganization plan is confirmed. Diamond plans to update its reorganization plan in September, with a final approval hearing expected in November. The company's bankruptcy was caused by a shift in viewership from cable television to streaming services. [Extracted from the article]