Corporate Restructuring

Tyler Durden's picture

Biogen Fires 11% Of Workers Despite Reporting Stellar Earnings, Boosting Guidance

There may not be many biotechs with positive cash flows out out there, but the 4th most profitable, Biogen (after Gilead, Amgen and Shire), saw its shares halted moments ago ahead of reporting earnings, which were a blowout. However what is most confusing is why, in light of the company's glowing earnings and impressive guidance, it also announced it would be laying off 11% of its workforce, or about 800 workers, while cutting a number of pipeline programs.

Tyler Durden's picture

Deutsche Bank Junior Trader Mistakenly Paid Hedge Fund Client $6 Billion In "Fat Finger" Error

"Instead of processing a net value, the person processed a gross figure. This meant the trade had “too many zeroes”, said one of the people."

And as everyone knows, "too many zeroes", is the technical term for you royally fucked up.

Tyler Durden's picture

Greece Changes Strategy: No Longer Demands Debt Write Off, Ask For Debt Exchange Instead

Update, and in line with the FT report, here's Bloomberg: GREECE SAID TO DROP WRITEDOWN REQUEST AFTER OPPOSITION FROM EU

Over a week after the new Greek government came to power, it has presented its first actual proposal of how it hopes to negotiate with Europe that does not involve the infamous "debt write off", which as both Germany and the ECB have made clear, is a non-starter as it impairs the ECB's balance sheet and leads to a loss of "faith" in the money printer, the legacy monetary system and so on. So instead of yet another debt restructuring, the FT reports that Yanis Varoufakis "would no longer call for a headline write-off of Greece’s €315bn foreign debt. Rather it would request a “menu of debt swaps” to ease the burden, including two types of new bonds." Actually he still does, only he is not calling it as such.

Tyler Durden's picture

IBM Stock Disappointed That Company Isn't Firing A Mindboggling 110,000

Over the weekend, in a repeat of rumors that were widespread last year, Forbes 'reported' about Project Chrome, a massive corporate reorganization for IBM that would see Big Blue cull over a quarter of its staff – in real terms that means over 110,000 employees, as early as next week. IBM stocks surged higher on this 'great' news... and then, disappointment started as "the largest corporate restructuring in history" was denied by the company...

Capitalist Exploits's picture

No Thanks, Call Me When You're Dead

In investing sometimes dead makes more sense than alive...

Asia Confidential's picture

Japan's 20-Year Deflationary Spiral Is About To End

More stimulus is coming and when combined with rising wages, it should push inflation higher. But this risks a bond market rout.

Tyler Durden's picture

Frontrunning: April 14

  • Three dead in shootings at Kansas Jewish centers; man to face charges (WSJ)
  • Sanctions Blowback in Russia Targets Burgers to Movies (BBG)
  • Deadly Virus's Spread Raises Alarms in Mideast (WSJ)
  • China group buys $6bn Glencore Peru copper mine (BBG)
  • Iran lodges complaint against United States over U.N. envoy ban (Reuters)
  • Russian assets down sharply on Ukraine conflict fears (Reuters)
  • ECB comments knock euro, but not much (Reuters)
  • World-Leading $25 Hourly Wage Roils Swiss Businesses (BBG)
Tyler Durden's picture

Frontrunning: April 1

  • GM enters harsh spotlight as Congress hearings begin (Reuters)
  • Facebook's Zuckerberg earns $3.3bn through share options (BBC)
  • Sheryl Sandberg has sold more than half her stake in FaceBook (FT)
  • Chinese Dragnet Entangles Family of Former Security Chief, Zhou Yongkang (WSJ)
  • NHTSA chief: GM did not share critical information with U.S. agency (Reuters)
  • Citigroup uncovered rogue trading in Mexico, fired two bond traders (Reuters)
  • Corporate America’s overseas cash pile rises to $947bn (FT)
  • Thai anti-government protester killed, rekindling political crisis (Reuters)
  • China Milk Thirst Hands U.S. Dairies Record 2014 Profits (BBG)
  • Caterpillar accused of ‘shifting’ profits (FT)
  • New iPhone 6 screens to enter production as early as May (Reuters)
Tyler Durden's picture

Frontrunning: March 31

  • US, Russia talks fail to end Ukraine deadlock (AP)
  • Russian forces 'gradually withdrawing' from Ukraine border (AFP)
  • Turkish PM Erdogan tells enemies they will pay price after poll (Reuters)
  • And Goldman arrives: Credit markets open to Argentina for first time in years (Reuters)
  • Regulators Twice Failed to Open GM Probes (WSJ)
  • Bad loan writedowns soar at China banks (FT)
  • Investors Breathe Life Into European Banks' Bad Loans (WSJ)
  • Euro zone inflation drops to lowest since 2009 (Reuters)
  • Yellowstone National Park rattled by largest earthquake in 34 years (Reuters)
Tyler Durden's picture

Frontrunning: January 3

  • Heavy snowstorm hammers northeastern U.S. (Reuters)
  • Coins Remain a Bright Spot for Gold (WSJ)
  • Gross’s Mistake on Fed Taper Echoes Across Pimco Funds (BBG)
  • China December services PMI falls to four-month low (Reuters)
  • General Mills Starts Making Some Cheerios Without GMOs (WSJ)
  • U.S. considers flammability risk of Bakken crude after accidents (Reuters)
  • China Mobile’s Costly iPhone Deal with Apple (WSJ)
  • Hezbollah Upgrades Missile Threat to Israel (WSJ)
  • UK House Prices Cap Best Year Since 2006 as Mortgages Surge (BBG)
  • China tells police to be loyal to party amid graft crackdown (Reuters)
Tyler Durden's picture

Frontrunning: December 27

  • Millions of Tons of Metals Stashed in Shadow Warehouses (WSJ)
  • Moguls Rent South Dakota Addresses to Dodge Taxes Forever  (BBG)
  • Fastest Japan Inflation Since ’08 Stokes Wage Pressure (BBG)
  • Thai crisis deepens as army chief hints at intervention (Reuters)
  • Anti-Assad Lebanese ex-minister killed in Beirut bomb (Reuters)
  • Foreigners Unload Turkey Bonds as Probe Tarnishes Erdogan Growth  (BBG)
  • Small ISS Change Shakes Up Boards: Tweak to Influential Shareholder Adviser's Recommendations Has Directors Rethinking Proposals (WSJ)
  • Japan’s Nishimura Calls for Quick Corporate Tax Cut to Under 30% (BBG)
  • Japan's Abe bets U.S. alliance, ratings can weather shrine visit (Reuters)
Tyler Durden's picture

If We Are In An Economic Recovery, Why Are Major Corporations Firing Thousands?

Planned job cuts in the third quarter rose 25% from a year ago. With September jobs cuts up 19% from last year, it represented the fourth month in a row in which job cuts were higher than the same month last year. Despite the current trend, employers are on pace to cut roughly the same number of jobs that were cut last year. We already have declining real wages. Small businesses are geting wiped out by taxes, regulations, and Obamacare. These mega-corporations are firing thousands. Retail and restaurant sales are plunging. Consumers are scared straight and are reducing credit card debt. Government spending in states and localities is declining because they are required to balance their budgets. The Boomers are old, with no savings. They can no longer live in a delusionary credit bubble. Sounds like a reason to buy stocks.

Tyler Durden's picture

Frontrunning: July 18

  • MSM always "ahead" of the curve: Fed’s Messages Raise Volatility in Threat to Profits (BBG)
  • Bernanke Plays Down Link Between Jobless Rate, Fed Moves (WSJ)
  • Draghi to Carney Face Test Backing Guidance on Rates (BBG)
  • House Republicans Vote to Delay Obamcare Mandates (Reuters)
  • China media accuses Japan PM of dangerous politics (Reuters)
  • China will replace America as the leading superpower, global attitudes survey finds (SCMP)
  • Nonqualified mortgages make up as much as $1.5 trillion of the $10 trillion home-loan market (BBG)
  • Dell $24.4 Billion Buyout Plan Is a Nail-Biter as Vote Looms (BBG)
  • Republicans could see more bruising Senate primaries (Reuters)
  • GM delays Chevy Cruze debut by a year (Reuters)
  • Peltz needs support for PepsiCo restructuring dealsa (FT)
  • Sweaty Wall Streeters Skip Booze for Spin-Class Meetings (BBG)
Tyler Durden's picture

From Perennial (Rumored) LBO Candidate To Imminent Restructuring: How The Unmighty Radioshack Has Fallen

There was a time when one couldn't spend an hour without some moronic rumor of a Radioshack LBO popping up. Those time are gone. Instead, as DebtWire reports, the rumor of a takeover has been replaced with the all too unpleasant reality of a corporate restructuring which may or may not end up in Chapter and which likely means the equity is all but wiped out. As DW reports the firm is set to listen to restructuring pitches from the usual restructuring suspects, which means unless someone is crazy enough to do another JCP-type deal (they aren't), the firm's debt is about to be substantially discharged. This usually means a full or at least partial wipe out of the equity tranche below it. "The move to hire a banker to explore a balance sheet fix comes as the struggling electronics retailer faces a string of maturities, escalating cash burn and bloated inventory levels, the sources said. RadioShack first engaged AlixPartners for operational help over a year ago, as previously reported by Debtwire."

Tyler Durden's picture

Detroit To Default Today, "Shared-Sacrifice" To Follow

And so the next casualty of the inevitable municipal collapse appears, which is, as expected, that one-time symbol of all that was right with a (once upon a time) manufacturing America, having since been replaced with the anti-symbol of all that is broken: Detroit. DETROIT BEGINS MORATORIUM ON ALL DEBT SERVICE PAYMENTS FOR UNSECURED FUNDED DEBT; DETROIT TO DEFAULT ON CERTIFICATES OF PARTICIPATION DUE TODAY. And, true to from in the New Normal America, where the "fairness doctrine" rules supreme under Big Brother's watchful eye, the premise of the upcoming glorious recovery is a well-known one: "the shared-sacrifice." To wit: "The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent and cannot meet its financial obligations without a significant restructuring.  Mr. Orr's plan provides for shared sacrifice among all creditor groups – from Wall Street and Main Street consistent with their legal rights – in order to return Detroit to a sustainable financial foundation and to permit much-needed reinvestment in the City." The punchline: "Detroit's road to recovery begins today"... By defaulting.

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