All articles tagged with #creditors
PrimaLend Capital Partners, a subprime auto lender, filed for bankruptcy after missing interest payments, as financial stress in the subprime auto loan sector increases, with the company planning to sell its business and continue servicing existing loans.
First Brands faces a significant financial crisis as creditors claim that as much as $2.3 billion has disappeared, raising concerns about the company's financial integrity and stability.
FTX will distribute approximately $1.6 billion to creditors in its third distribution on September 30, 2025, following its Chapter 11 reorganization plan. Eligible creditors must complete KYC, tax forms, and onboarding with designated service providers (Bitgo, Kraken, Payoneer) to receive funds, which will be paid directly to these providers. The distribution includes various classes of claims, with some receiving up to 120%.
A U.S. federal judge upheld the validity of bonds issued by Venezuela's PDVSA, securing creditors' claims on Citgo, its U.S. refining subsidiary, which poses a significant risk to Citgo's future and Venezuela's assets abroad amid ongoing legal disputes.
China Evergrande, once China's largest property developer, is set to be delisted from the Hong Kong Stock Exchange after collapsing under over $300 billion in debt, leaving unfinished projects, thousands of homebuyers, and creditors worldwide in financial limbo, with ongoing legal efforts to recover assets and hold former executives accountable.
A unit of Gold Reserve has been named the preliminary winner of a $7.38 billion auction of Citgo shares, organized to pay creditors from Venezuela's expropriations. The bid covers most creditors and is pending U.S. Treasury approval, with final decisions expected after court evaluations and potential legal challenges.
Spirit Airlines is nearing bankruptcy as it negotiates with creditors for a restructuring plan that may lead to the cancellation of its equity shares. This follows failed merger attempts with Frontier and JetBlue. While equity holders may suffer, the plan aims to protect general unsecured creditors and other stakeholders. Spirit's shares have significantly underperformed, dropping 80.31% year-to-date, with analysts recommending a 'sell' and an average price target of $2.13.
Spirit Airlines is in constructive talks with creditors to improve liquidity, exploring strategic alternatives amid financial struggles. The airline's adjusted operating margin is down 12% from last year, and it faces potential bankruptcy after failed merger talks with Frontier Airlines. Spirit's stock has plummeted nearly 80% this year, and the company plans to furlough 330 pilots and sell 23 older aircraft to raise funds.
Dish Network's creditors have rejected a bond-exchange offer crucial to its proposed merger with DirecTV, as the deadline for the deal approaches. The steering committee of Dish lenders criticized the offer, claiming it was engineered at the expense of creditors. Despite a sweetened proposal, the creditors remain opposed. Meanwhile, Dish's parent company, EchoStar, has successfully negotiated a separate debt exchange. The merger aims to create the largest US pay-TV provider, but faces challenges including ongoing litigation over asset transfers.
Rudy Giuliani has reportedly moved his belongings out of his New York apartment as creditors pursue him for unpaid debts. This development comes amid Giuliani's ongoing legal and financial challenges, including lawsuits and mounting legal fees.
Electric vehicle startup Fisker is heading towards liquidation as it struggles to secure financing, with creditors battling over asset repayment. The company, which filed for bankruptcy in Delaware, owes over $850 million to bondholders and has reached a tentative deal to sell its 4,300 vehicles. Fisker, founded by Henrik Fisker, was never profitable and faced significant financial challenges, including a failed partnership with Nissan. The hyper-competitive EV market has seen several companies face similar fates recently.
Oberweis Dairy, based in North Aurora, Illinois, has filed for Chapter 11 bankruptcy protection, owing at least $4 million to its top 20 creditors, including over $173,000 to the Cook County Treasurer. The company, owned by relatives of Illinois Republican politician Jim Oberweis, aims to repay its debts through this process.
Despite the success of some tech companies, many are struggling with debt, leading to a situation where creditors are turning against each other in a bid to get repaid. Troubled tech firms like Alvaria Inc., GoTo Group Inc., and Rackspace Technology Inc. have agreed to restructuring deals that provide select lenders with better terms on debt swaps than others, leading to what is being called 'creditor-on-creditor violence.'
O.J. Simpson's death may improve the chances of the families of Nicole Brown Simpson and Ron Goldman collecting the $33.5 million judgment awarded to them, as his assets will likely go through the probate process, allowing creditors to seek a piece of the assets. Experts believe that the deceased debtor's estate is more likely to settle debts, but it remains uncertain whether the families will be able to collect, given the unknown extent of Simpson's earnings and assets.
O.J. Simpson's death has raised questions about the collection of the $33.5 million judgment awarded to the families of Nicole Brown Simpson and Ron Goldman. Simpson's assets will likely go through the probate process, with the families having a stronger claim as secured creditors. However, it remains uncertain what assets Simpson had and whether the families will be able to collect, as transfers made to avoid creditors can be challenged.