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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]

Rhodium Encore LLC, a bankrupt crypto miner, has received court approval for a unique financing plan that allows them to borrow in either US dollars or Bitcoin. Galaxy Digital, a blockchain firm, has offered to provide $30 million or 500 Bitcoin to fund Rhodium's Chapter 11 bankruptcy. The Bitcoin loan has a lower interest rate than the dollar loan, but the volatility of Bitcoin makes it difficult to determine the total loan payments. Rhodium's financial troubles were primarily caused by a strained relationship with their landlord and power supplier. [Extracted from the article]

SunPower Corp., a California-based solar firm, has received approval to sell its assets to rival company Complete Solaria Inc. The bankruptcy of SunPower highlights the challenges faced by the residential-solar industry, including subsidy cuts, declining sales, and higher interest rates. Singapore-based Maxeon Solar Technologies Ltd., a company that spun off from SunPower, objected to the bidding rules, claiming ownership of SunPower's international brand rights. However, the judge overruled the objection, stating that Maxeon's rights would not be affected until final approval is given for the sale. Additionally, the judge approved the sale of solar loans and membership interests to fund the Chapter 11 case. [Extracted from the article]

Former customers of Celsius Network are considering liquidating Ionic Digital Inc., a Bitcoin mining firm that they co-own with other Celsius creditors. The plan was for Ionic to go public on the Nasdaq Stock Exchange this year, but it has been delayed due to the resignation of the auditor and the departure of the former CEO. Ionic is currently cash flow positive and has around $200 million in cash and cryptocurrency. Some creditors have criticized the board's lack of experience in crypto mining. Former Celsius customers are being partially repaid through crypto and cash, with $2.5 billion distributed to date. [Extracted from the article]

Chinese technology park operator Tus-Holdings Co. has canceled its offshore debt restructuring plan due to the absence of regulatory approval. The company was supposed to make payments under the debt overhaul agreement, including a consent fee and principal payments, by a Monday deadline. Tus-Holdings submitted a restructuring proposal to Chinese regulatory authorities but did not receive approval. This setback highlights the regulatory risks faced by overseas creditors of Chinese defaulters. Tus-Holdings first defaulted on its dollar debt in 2021 and the restructuring plan involved two dollar bonds worth approximately $900 million. [Extracted from the article]

Chinese technology park operator Tus-Holdings Co. may face a delay in making the first payment under its debt overhaul, according to anonymous sources. Tus-Holdings, previously owned by Tsinghua University, was originally scheduled to make the payment on Monday, which includes a consent fee and principal payments. The final decision on the payment has not been made yet. This potential delay raises concerns about the financial support of the company's new state-backed shareholders. Tus-Holdings' restructuring plan involves two dollar bonds worth approximately $900 million, with offers for upfront cash payment and higher prices for partial repayment. [Extracted from the article]

Holdco Nuvo Group DG Ltd., a pregnancy care firm based in Tel Aviv, has filed for bankruptcy in Delaware. The company, which sells monitoring devices for babies' heart rates, went public four months ago through a special purpose acquisition company. Nuvo has listed $3.5 million in assets and $39.4 million in debt. The bankruptcy filing states that the company intends to restructure. [Extracted from the article]

Vintage Wine Estates Inc., a bankrupt California-based vintner, has received court approval to sell five of its wine brands, including Bar Dog and Cherry Pie, to billionaire Bill Foley's wine company, Foley Family Wines Inc., for $15 million. Foley Family Wines owns more than 25 wineries and distilleries worldwide. The sale is subject to better offers, and if competing bids are received, an auction will be held in September. Vintage Wine Estates has also secured buyers for other assets and is in the process of finalizing those deals. [Extracted from the article]

Avon Products Inc., a beauty brand, is facing nearly 400 lawsuits alleging that their talc products caused cancer due to the presence of asbestos. A lawyer representing the alleged victims has requested that Avon slow down its bankruptcy case to allow time for a special committee to be formed to represent the victims' interests. Avon Products, which is owned by Brazil-based Natura & Co, has filed for bankruptcy due to the financial strain caused by the lawsuits. The company plans to sell its assets, with Natura offering to buy it for $125 million. [Extracted from the article]

Banks in Hong Kong are expected to take more enforcement actions on distressed buildings due to the property market downturn, according to PricewaterhouseCoopers LLP. Christopher So, a partner at the firm, stated that if negotiations with borrowers are not progressing, banks may consider taking enforcement actions. So is currently overseeing a portfolio of real estate under receivership valued at over HK$10 billion ($1.28 billion). The property market downturn has led to a debt crunch for local families and a high office vacancy rate, causing challenges for the real estate industry in Hong Kong. [Extracted from the article]

Liquidation hearings for Chinese developers Shimao Group Holdings Ltd. and Times China Holdings Ltd. have been adjourned until August 12 as they seek creditor support for their restructuring proposals. The Hong Kong judge granted them less than two weeks, adding urgency to their efforts. Filing a wind-up petition is a way for creditors to speed up the debt-restructuring process. Shimao first defaulted on offshore debt in July 2022 and lost its investment-grade rating from S&P Global Ratings. Times China defaulted on two dollar bonds in January 2023. [Extracted from the article]

Liquidators attempting to recover funds from defaulted Chinese builders are facing numerous challenges, including difficulties in getting paid and locating financial documents and executives. Creditors in cases involving Sinic Holdings Group and Yango Justice International have not received significant distributions. The complexities of winding up Chinese developers, whose assets are primarily in mainland China, pose challenges for liquidators. The scale of the tasks involved in these liquidations is unprecedented, and the jurisdictional question and the large amount of assets involved further complicate the process. Funding has also been a problem, as liquidators in Hong Kong are paid from asset sales and only turn to creditors and lenders when funds run out. Chinese builders listed in Hong Kong have been dragged into liquidation and have little incentive to aid the process. The challenges faced by liquidators can vary depending on the specific circumstances and complexities of each case. The ultimate roadblock is enforcing legal actions in China, as debtors' real estate assets are often held under their onshore units, making their cases less attractive to investors. The sensitive nature of home ownership in China further complicates the liquidation process. [Extracted from the article]

Chinese builder Country Garden Holdings Co.'s liquidation hearing in Hong Kong has been adjourned until late January to allow more time for the company to work on an offshore debt restructuring plan. Country Garden expects key creditor groups to agree on a debt term sheet by the end of September and plans to make the restructuring support agreement publicly available to all creditors by October. The company, once China's largest developer by sales, continues to struggle amid a prolonged property crisis in the country. It has become one of the biggest casualties of China's real estate crisis, with 1.36 trillion yuan of total liabilities. [Extracted from the article]

Sino-Ocean Group Holding Ltd., a defaulted builder, is seeking support for its debt restructuring plan but is facing resistance from a key bondholder group. The company has gained support from a lender group representing about half of its Class A debt, but it still needs wider support from other creditors. An ad-hoc group of creditors is strongly against the proposal and is calling for improvements, including increased upfront payments. Sino-Ocean suspended payments on offshore borrowings in September 2023 and is also facing legal proceedings that could result in liquidation. [Extracted from the article]

Lombard Odier Investment Managers, a Swiss investment firm, plans to increase its exposure to Indian high-yield dollar credit in its Asian bond strategy. The firm's Asia Value Bond Fund has outperformed 96% of its peers this year, with a return of 9.7%. Dollar notes issued by major Indian companies, such as Vedanta Ltd., make up a record 19% of the bond strategy's holdings. The chief investment officer of Asia fixed income and equities at Lombard Odier believes that India's growing capital market sophistication, proactive central bank, and strong legislation make junk debt raised by quality Indian firms an attractive asset. Despite concerns about long-term risks, the firm sees opportunities in companies recovering from liquidity strains, such as Vedanta Resources Ltd. Lombard Odier also favors Indian consumer, industrial, and financial stocks. [Extracted from the article]

A company connected to the Chinese businessman who bought AC Milan in 2017 is being sued by a group of investment firms for unpaid debts totaling $187 million. The company, Rossoneri Advance Co. Ltd., was the offshore company that led the purchase of the club. The plaintiffs, mutual funds based in the Cayman Islands, are suing for debt, damages, accrued interest, and other claims. The Chinese investors who bought AC Milan later lost control of the club after failing to repay debt owed to a US fund, and the team is now owned by RedBird Capital Partners. [Extracted from the article]

The first winding-up hearing for Times China Holdings Ltd. has been adjourned by a Hong Kong court to July 31. Hang Seng Bank Ltd. filed a liquidation petition in connection with the company's financial obligations of approximately $173.2 million and HK$731.4 million ($93.6 million). Times China has proposed key commercial terms to an ad-hoc group of offshore creditors, aiming to restructure a total principal amount of $2.9 billion of offshore debt. Negotiations between the company and major creditors have been ongoing, and Times China is one of several Chinese property defaulters facing liquidation demands in Hong Kong. [Extracted from the article]

The first winding-up hearing of Times China Holdings Ltd. has been adjourned to July 31 by a Hong Kong court. Hang Seng Bank Ltd. filed a liquidation petition against the Guangdong-based real estate firm due to financial obligations of approximately $173.2 million and HK$731.4 million. Times China has proposed key commercial terms to an ad-hoc group of offshore creditors, offering three options for repayment. Negotiations between the company and major creditors have been ongoing, and Times China is one of several Chinese property defaulters facing liquidation demands in Hong Kong. [Extracted from the article]

The insider dealing case against hedge fund firm Segantii Capital Management, its founder Simon Sadler, and former trader Daniel La Rocca has been adjourned to October 15th. The defendants have requested to review unused materials related to the case. The Securities and Futures Commission of Hong Kong has accused the trio of trading $1.14 million worth of shares of fashion retailer Esprit Holdings Ltd. based on inside information. The case is one of the city's highest-profile legal actions against a major hedge fund firm. [Extracted from the article]

Chinese developer Kaisa Group Holdings Ltd. has been given seven more weeks by a Hong Kong court to work on its debt restructuring plan in order to avoid liquidation. The company is currently restructuring nearly $13 billion of debt. The court warned that this may be Kaisa's last chance, and if there is no progress by the adjournment date of August 12, further adjournments may not be granted. Kaisa's default in 2021 was one of the first signs of trouble in China's property sector, and the company has yet to publicly present a restructuring plan. [Extracted from the article]

Chinese developer Kaisa Group Holdings Ltd. is facing a liquidation hearing in a Hong Kong court as it tries to avoid being ordered to sell off assets to repay creditors. Kaisa has over $11 billion of outstanding dollar securities, making it one of the largest debt loads in the industry. This comes as several other Chinese property companies, including DaFa Properties Group Ltd., Shimao Group Holdings Ltd., and Redsun Properties Group Ltd., also face hearings in Hong Kong courts. Despite recent measures by China to rescue the sector, the debt market remains distressed, with investors expecting little to be recouped. [Extracted from the article]

A Hong Kong court has adjourned a liquidation petition against Kaisa Group Holdings Ltd. until August 12, giving the company more time to work on its restructuring plan. Kaisa Group, a Shenzhen-based builder, has been battling against the wind-up petition for nearly a year. The petition was initially filed by a Singapore-based hedge fund and later taken over by a key creditor group. This case is part of a growing trend of lawsuits against defaulted Chinese developers in Hong Kong courts. [Extracted from the article]

Four Chinese developers, including Kaisa Group Holdings Ltd. and Shimao Group Holdings Ltd., are facing court hearings in Hong Kong next week regarding liquidation demands. These hearings highlight the financial turmoil in the Chinese property sector, with Hong Kong now at the center of the crisis. The developers must demonstrate progress in restructuring their debt to avoid having their assets sold off to repay creditors. Despite recent government measures to rescue the debt-laden property sector, many developers are still deeply distressed, with their dollar notes trading below five cents on the dollar. [Extracted from the article]

Chinese developer Dexin China Holdings Co. has been ordered to wind up by a Hong Kong court, following a petition filed by China Construction Bank (Asia). Dexin had defaulted a year and a half ago and was unable to keep up with a new restructuring plan approved last year. This order adds to the list of Chinese developers facing court-ordered liquidation in Hong Kong, highlighting the ongoing distress in China's property sector. Despite efforts by the Chinese government to help the industry recover, the index of Chinese developers' shares dropped, and Dexin's shares fell 6.6% before trading was suspended. Dexin had total liabilities of 64.4 billion yuan ($8.88 billion) as of the end of 2023. [Extracted from the article]

Chinese developer Dexin China Holdings Co. has been ordered to wind up by a Hong Kong court, following a petition filed by China Construction Bank (Asia) three months ago. Dexin had previously defaulted and was unable to keep up with a restructuring plan approved last year. This is part of a larger trend of Chinese developers facing court-ordered liquidation in Hong Kong, which has been an epicenter of the downturn in China's property sector. Other major developers, including Country Garden Holdings Co. and Shimao Group Holdings, are also set for hearings in the coming months. Dexin had total liabilities of 64.4 billion yuan ($8.88 billion) as of the end of 2023. [Extracted from the article]

Chinese builder Dexin China Holdings Co. has been ordered into liquidation by a Hong Kong court after failing to pay back $350 million in senior notes. This case is part of a trend of creditors winning legal victories against Chinese developers with overdue debt. Other companies, such as Jiayuan International Group Ltd, Yango Group Co.'s offshore unit, Sinic Holdings Group Co., and China Evergrande Group, have also faced similar orders in recent years. Hong Kong has been a popular gateway for investors to access high-yield offshore bonds from mainland issuers. [Extracted from the article]