All articles tagged with #insolvency
An audit reveals that New York City's Employee Health Insurance Stabilization Fund is billions of dollars in debt and recommends dissolving it, citing misuse of funds and insolvency, with ongoing disputes between city officials and unions over its management and purpose.
The White House is considering raising the Social Security retirement age and other reforms to prevent the program's insolvency by 2034, which could lead to benefit cuts unless Congress acts to increase payroll taxes or implement other measures.
The U.S. Social Security system faces insolvency by 2032, prompting discussions on potential reforms such as raising the retirement age, adjusting benefit caps, and other measures, as policymakers prepare for a changing demographic landscape and long-term economic sustainability challenges.
President Donald Trump celebrated the 90th anniversary of Social Security, claiming credit for its resilience and improvements, while also falsely stating he fulfilled a campaign promise to eliminate taxes on seniors' benefits.
A new analysis indicates that the Social Security Old-Age and Survivors trust fund could run out of money by the fourth quarter of 2032, a year earlier than previously estimated, due to recent legislation that reduces tax revenue to the fund, potentially lowering benefits for future recipients.
Pierer Mobility, the parent company of KTM, Husqvarna, and GasGas, has declared insolvency due to financial difficulties stemming from slowing sales and overstock issues. The company plans to undergo judicial restructuring with self-administration to reorganize and secure its future. This process aims to agree on a reorganization plan with creditors within 90 days, involving significant production cuts and stock adjustments. Despite the financial crisis, KTM continues to innovate and release new models, with a focus on emerging stronger post-restructuring.
Spirit AeroSystems, a key supplier to Boeing, has warned of potential insolvency due to severe cash flow issues, production challenges, and significant losses. The company reported a debt of $4.4 billion and a sharp decline in accessible cash to $217.6 million. Spirit AeroSystems is exploring options to secure liquidity, including customer advance repayments, asset sales, and a possible merger with Boeing, while also considering layoffs and efficiency measures to stabilize its finances.
An Indian tribunal court has initiated insolvency proceedings against Byju’s, once valued at $22 billion, following a petition from the Board of Control for Cricket in India (BCCI) to recover nearly $19 million. The ruling appoints an interim resolution professional to manage the company, sidelining its founder. Byju’s, which has faced multiple crises over the past two years, plans to appeal the decision and seek an amicable settlement with BCCI.
Kate Middleton's parents, Carole and Michael Middleton, are reportedly in financial trouble due to the decline of their party-supplies company, Party Pieces, which has accumulated significant debt. Despite selling a portion of the business to alleviate some of the financial strain, the Middletons still owe a substantial amount to an insolvency firm. This news comes at a difficult time as Kate Middleton is undergoing chemotherapy for cancer, and her mother is reportedly trying to shield her from the family's financial stress.
Kate Middleton's parents, Carole and Michael, were unable to pay the 326,838-dollar fees owed to an insolvency firm after their business, Party Pieces, collapsed with debts of 3 million dollars. The company, which they founded in 1987, went into administration and was eventually sold to a buyer, leaving the insolvency firm with limited funds to meet obligations to creditors.
BlackRock CEO Larry Fink expressed concern about the strain on Social Security due to the aging U.S. population and the program's impending insolvency, suggesting that the retirement age of 65 is outdated and proposing a conversation about raising the average retirement age and incentivizing people to work longer. Social Security's trust funds are projected to be depleted in a decade, leading to potential benefit cuts, and Fink emphasized the need for reform to address the financial challenges impacting retirement in America.
Retailers in the UK and US are struggling due to weaker consumer spending, inflation, and supply chain challenges, leading to insolvency proceedings for some brands. Even heavy discounting isn't enough to save them, with distress seen across specialty retail and budget chains. Retailers are turning to extreme bargains to attract shoppers, while well-run, well-capitalized businesses that can give customers what they want may still find success in the market.
Bullitt Group, the UK-based manufacturer of rugged smartphones for brands like Cat, Land Rover, and Motorola, has reportedly shut down following a failed restructuring and impending insolvency. Former employees have reported companywide layoffs, leaving the fate of Bullitt-produced phones uncertain. This closure will likely reduce options for rugged phone consumers, impacting brands like Motorola and shrinking the market dominated by larger providers like Apple and Samsung.
Wirecard's insolvency manager has filed a lawsuit against the accounting firm EY, seeking 1.5 billion euros in damages for its alleged negligence in auditing the company's finances before its collapse in 2020. This legal action adds to a series of lawsuits EY is facing, including a recent investor suit demanding over 700 million euros. EY has not commented on the new lawsuit but has previously denied claims for damages related to Wirecard, which went bankrupt after revealing a 1.9 billion-euro discrepancy in its accounts attributed to fraud.
US banks could face up to $160 billion in losses as the commercial real estate sector faces its largest crash since the 2008 financial crisis, according to a working paper from researchers at USC, Columbia, Stanford, and Northwestern. The paper suggests that declines in property values from rate hikes and remote work could lead to 10%-20% of commercial real estate loans defaulting, potentially causing insolvency for 31 to 67 smaller regional banks and 340 banks facing insolvency due to losses from higher interest rates. The stability of the US banking system has been a concern, with Moody's recently lowering the credit rating of 10 large- and mid-sized US banks.