SunEdison Plummets 40% On "Substantial Bankruptcy Risk" Warning

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...

Chesapeake Plummets Over 20% On Report It Has Hired Bankruptcy Attorneys

The saga of the gas giant Aubrey McClendon's built, Chesapeake Energy, enters its endgame, when moments ago following a Debtwire report that the company has hired Kirkland and Ellis as its restructuring/bankruptcy attorney - typically a step taken just weeks ahead of a formal Chapter 11 filing - the stock has plunged 22% to $2.40, the lowest price in the 21st century, and for all intents and purposes, ever.

SandRidge On The Verge Bankruptcy: Would Be 2nd Largest Shale Chapter 11 In Past Year

As we said two days ago when looking at the paltry recoveries on their total debt that bankrupt energy debtors are generating in liquidation and bankruptcy asset sales, "the energy bankruptcy party is only just starting." And sure enough, overnight we learned that another company is preparing to throw in the towel following a Reuters report that SandRidge Energy - a shale oil and gas producer in the Mid-Continent region of the U.S. - is exploring debt restructuring options, "as the heavily indebted U.S. oil and gas exploration and production company struggles with the fallout from plunging energy prices."

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."

They Came, They Saw, They Got The Hell Out Of UBS In 7 Days

Housing is recovering. The Fed has your back. The consumer is healthy. All things that would suggest the commercial-mortgage bond business should be on the cusp of a renaissance. So the question is - what did Brett Ersoff and John Herman see, seven short days after being promoted to run the UBS real-estate finance division, that made them depart the venerable Swiss firm with the paintball sized Stamford trading floor?

Harrisburg Chapter 9 Imminent As Controller Tells Debtwire Bankruptcy Best Option

In what will likely be the first major municipal bankruptcy of the New Normal, Harrisburg is likely about to shut the gates. In an interview conducted with restructuring site Debtwire, the City's controller Dan Miller said Harrisburg would be better off filing for Chapter 9 than trying to restructuring finances under Act 47, the Financially Distressed Municipalities Act. He added that the latter has never solver the problems of any municipality that entered the program and the institution of a commuter tax in Harrisburg to avoid a Chapter 9 would be unworkable. On the other hands, "when reached for comment, long-time opponent of a Chapter 9 filing for the city, PA governor Ed Rendell said Harrisburg officials have not given him any indication that they will seek Chapter 9 protection. Rendell said he hopes that the city "will either sell assets or seek Act 47" before making a Chapter 9 filing." Alas, it appears the nearly bankrupt city has run out of options.

80% Of Consumers Say They Would Not Pay For Online Content

In a blow to ongoing plans by Murdoch (and others) to capitalize on premium content, a new study from Forrester shows that 80% of consumers would not be willing to pay for online news content. As readers are able to move from one content aggregator to another with greater facility than the Fed prints another billion dollars, Rupert's approach will likely entail a massive "game theoretical" strategy whereby either all move to a premium model or none do: if even one "defector" remains, it will render the "premium-paid" plan DOA.

DebtWire Reports CIT Bondholders Push For More Equity During Call

CIT bondholders are starting to disagree on who gets the spoils. This is not very surprising, seeing how they have little (read no) downside to their existing bargaining position. Either way, in today's call hosted by Little Bear Investments, the bondholders are standing firm on their bargaining position.

Goldman Conviction Buy List Candidate Textron Just Rated Top 20 Bankruptcy Candidate

An amusing reminder of just how different opinions can be among (conflicted) finance professionals, was today's disclosure by risk evaluator Audit Integrity, which has put together a list of the twenty companies with a market cap over $1 billion most likely to file for bankruptcy. Among them: none other than Goldman Conviction Buy candidate, Textron Inc.

Is Liz Claiborne On Road To Chapter 11?

A fitting headline to cap a day in which retail analysts from various investment banks were yapping ceaselessly, trying to convince CNBC's viewers that consumer discretionary is the next REIT space, and that HFT computers are mere minutes away from trading trillions of shares with one another, thereby pumping retail stocks into the ionosphere, is the news out of the WSJ that Liz Claiborne has hired restructuring and turnaround advisor Alvarez & Marsal, best known for advising the wind-down of Lehman's bankrupt estate.

Textron's "Conviction Buy" Kiss From Goldman Sachs

Probably the best performing stock in the S&P today is that of private-jet maker Textron, which received a double whammy of upgrades from taxpayer darlings Morgan Stanley and Goldman Sachs. Yesterday, MS upgraded the stock from an Underweight to an Overweight, passing Neutral, and putting a $25 price target on the stock. Today, Goldman, never too far behind, especially in names in which it is significantly axed in CDS and other OTC products, upgraded the Cessna maker from Neutral to Conviction Buy, with a price target increase from $16 to $23.

Saturday Readings

  • Here we go: Geithner formally asks Congress to lift $12.1 trillion statutory debt limit, saying it could be breached as early as October, Amex Centurion happy to comply (Reuters)
  • Totally unrelated - psychopaths have faulty brain connections, scientists say (Reuters)
  • Must read: Deleveraging the U.S. Economy (Comstock Partners, h/t Vince)
  • Health debate turns hostile at town hall meeting (NYT)
  • Healthcare critics make childish claims, Obama says (Reuters)
  • The history of the stock market (Mint)

Weekend Reading

  • More on GDP:
    • GDP Report is just plain wrong (Chris Martenson)
    • Wacky waving inflatable arm-flailing GDP report (Melting Pot Project)
    • Been down long long it looks like up (Econbrowser, h/t Paul)
    • Falling Imports versus falling Exports (Ritholtz)
  • The next brewing scandal: Chase serves itself first in mortgage mods; MBS bond holders up in ARMs (DebtWire, h/t Paul) - "You have Barney Frank and the government raising all this noise about hedge funds and investors, and you have Chase … taking half the borrowers’ interest payment each month"
  • Who is Capco? (NYT)