First Brands Group's financial situation has worsened significantly after funds were seized during a bank transfer, pushing the US auto parts supplier closer to bankruptcy. The company, which has amassed up to $10 billion in debt and off-balance-sheet funding, is negotiating a large rescue loan amid chaotic debt trading and scrutiny over its collateral and financing practices. The situation is further complicated by investigations and the involvement of major banks like Wells Fargo and Truist, with the company's owner, Patrick James, having a controversial history.
Japan has lost its status as the world's top creditor for the first time in 34 years to Germany, despite its external assets reaching a record high, largely due to a weaker yen boosting the value of its foreign holdings. Japan's external assets increased significantly, but Germany's larger current account surplus kept it ahead. Japan's net external assets remain substantial, with the U.S. holding the largest foreign debt globally.
Japan has lost its position as the world's top creditor for the first time in 34 years, overtaken by Germany, despite record-high net external assets, due to a weaker yen and increased external assets overall.
China's Country Garden Holdings received a liquidation petition from creditor Ever Credit Limited for non-payment of a 1.6 billion Hong Kong dollar loan, leading to a more than 12% drop in its Hong Kong-listed shares. The troubled property developer intends to vigorously oppose the petition and seek legal measures, with a court hearing set for May 17. This development adds to concerns about China's struggling real estate sector, which has been grappling with debt issues and defaults among major developers like China Evergrande.
Country Garden, once China's largest real estate developer, is facing a winding up petition from a Hong Kong lender seeking to liquidate its operations and pay off debts, signaling ongoing distress in China's housing market. The petition, filed by Ever Credit Ltd., aims to force Country Garden to sell its assets to repay a $204 million loan plus interest. This comes after a similar order for the liquidation of China Evergrande, and reflects the challenges creditors face in recovering loans from Chinese developers through the Hong Kong court system. Country Garden has vowed to vigorously fight the petition, with the first hearing scheduled for May 17.
Opioid victims are concerned about being treated as junior creditors in Mallinckrodt's bankruptcy proceedings, potentially receiving less compensation for the harm caused by the company's role in the opioid crisis. Mallinckrodt is facing numerous lawsuits related to its production and distribution of opioids, and filed for bankruptcy in March 2020. The company has proposed a settlement that would establish a trust to compensate victims, but some are worried that they will not receive adequate compensation if they are considered junior creditors.
Infowars conspiracy broadcaster Alex Jones, who owes more than $1.4 billion in legal damages to the families of Sandy Hook shooting victims, has transferred millions of dollars in property, cash, and business deals to family and friends, potentially out of reach of creditors. Jones declared both business and personal bankruptcy last year as the families won historic verdicts in two lawsuits over his lies about the 2012 shooting. The families now face a stark reality as it is not clear whether they will ever collect a significant portion of the assets Jones has transferred.
