Following yesterday's historic bankruptcy of the world's largest coal miner Peabody Energy, the defaults continue hot and heavy overnight when first Energy XXI, which had already warned it would unlikely make its bond payments, filed for a prepack Chapter 11, and then Gulf Keystone announced it would delay a bond payment.
Just as we warned was likely, the once infamous hedge fund hotel US solar company SunEdison unit TerraForm Global said on Tuesday there was "substantial risk" that SunEdison would soon seek bankruptcy protection given liquidity difficulties, noting that "such an action would have a material adverse effect” on TerraForm Global. In 2016 alone, SUNE has collapsed from a hope-strewn $6 price to just 73c this morning...
The Dodd Frank bill permits deposits to be used in the event of another crisis.
SunEdison Plummets On Imminent Bankruptcy; Axiom Sees "The Beginning Of The End" And 85% More DownsideSubmitted by Tyler Durden on 03/23/2016 09:03 -0400
The sun is about to set on SunEdison.
Thus ends KaloBios' "turnaround in progress" - two months after it was dragged out of bankruptcy by Martin Shkreli in an attempt to crush the company's shorts and unleash a massive squeeze, Kalobios is again, well, bankrupt.
Much of the national debate about widening inequality focuses on whether and how much to tax the rich and redistribute their income downward. But this debate ignores the upward redistributions going on every day, from the rest of us to the rich. These redistributions are hidden inside the market. The only way to stop them is to prevent big corporations and Wall Street banks from rigging the market.
"Puerto Rico is not Greece"... but it increasingly looks like it will be in a few weeks, thanks to US taxpayers who are about to foot the bill for yet another creditor bailout.
The rescue of AIG should not serve as a source of comfort to investors.
Second Largest Coal Miner East Of The Mississippi Files For Bankruptcy: 4000 Patriot Coal Jobs In PerilSubmitted by Tyler Durden on 05/12/2015 09:23 -0400
At last check Patriot Coal had around 4000 employees. Those soon to be former employees will soon require yet another massive seasonal adjustment by the BLS to be "adjusted" out, because moments ago the second largest coal miner east of the Mississippi and the second largest producer of thermal coal in the eastern US filed Chapter 11 bankruptcy.
Gillian Tett, markets and finance commentator and an Assistant Editor and former U.S. Managing Editor of the Financial Times, wrote an important and little noticed article last week questioning complacency on the part of European policy makers regarding a Greek default and potential exit or ‘Grexit’. Tett argues that a Greek failure would lead, as Lehman’s did to “wider policy uncertainty: when Lehman failed, the entire paradigm for finance suddenly seemed unpredictable”.
While PRexit is yet to hit the headlines, Puerto Rico bonds joined an illustrious club of ne'er-do-wells today with its 10Y yield spiking above 10%...
The End Of Guitar Center (And An Irrational Addiction To Growth & The Scourge Of Unregulated Structured Finance)Submitted by Tyler Durden on 02/05/2015 21:15 -0400
The fact is, the die is cast. In a couple of weeks, Guitar Center will need to report its Christmas performance to its bondholders. If things do not look good, its bonds will be ripped apart like RadioShack’s. Here’s what this really means: it’s the end of big box retail, an irrational addiction to growth, and the scourge of unregulated structured finance. For a few years, unwise urban planning and unregulated banks created a new bubble in the American suburbs. The objective truth is that the growth of the last decade was financed by banking fraud, and that financial trickery of this sort only fools people in the short-term. Eventually, you must have a product people demand, sold by competent people who care about the business, financed in a way that makes sense.
As credit markets have been indicating for 15 months, 94-year-old consumer-electronics chain RadioShack has finally pulled the ripcord...
*RADIOSHACK FILES FOR BANKRUPTCY PROTECTION AS LOSSES MOUNT
*RADIOSHACK WILTS UNDER BIG-BOX, ONLINE COMPETITION
RadioShack lists $1.2bn in assets and $1.38bn in debt. Additionally, Bloomberg reports that a post-bankruptcy deal is being worked on with Sprint.
In what will likely end the hopes and dreams of many air travellers hoping to pick up the latest crystal-encrusted iphone cufflinks, upright sleeper, hiccup stick, or dog dung vacuum; Commercial Bankruptcy Investor reports that the companies behind the SkyMall catalogs has filed for Chapter 11 bankruptcy protection. This news comes as Xhibit - SkyMall's parent company - sees its stock price collapse and December's news that Southwest Airlines (which accounted for at least 7% of SkyMall's sales) would no longer distribute the catalogs. On the bright side, any liquidation is great for those looking to pick up a Diamond Jubilee Queen and Corgi statuette or a Doll-House styled cat litter...
Earlier today, in addition to insult and injury, what everyone - and especially GTAT's shareholders - got was nothing short of a slap in the face, when the company argued it could not reveal why it filed for bankruptcy and asked a court to keep crucial documents sealed, something even Reuters dubbed a highly unusual move that may keep investors in the dark about its unexpected, and very spectacular implosion.