All articles tagged with #loan default
A federal court has ordered a receivership for Uncle Nearest Distillery in Tennessee after it defaulted on over $100 million in loans, amid allegations of financial mismanagement and inventory inflation, with ongoing uncertainty about Fawn Weaver's role in the business post-receivership.
Astra Space, a launch vehicle and spacecraft propulsion company, defaulted on a $12.5 million loan due to dwindling cash reserves. The loan required the company to have at least $15 million in cash and cash equivalents, but it fell below that threshold on October 11. Astra paid $3.1 million to the investor to address the default, but fell below the lower cash threshold on October 30, triggering another default. The company is in discussions with other investors for financing but cannot guarantee any deals or terms. Astra had previously laid off employees and delayed work on its Rocket 4 launch vehicle.
Christmas Tree Shops, a well-known New England store chain, is set to conduct liquidation sales at all of its stores after defaulting on a loan and filing for bankruptcy. The Massachusetts-based chain had taken out a $45 million bankruptcy loan, but creditors terminated it due to worsening liquidity and revenues. Interested parties have the option to object to the going out of business sales by filing a response to the court.
Discount home-goods retailer Christmas Tree Shops is facing liquidation after defaulting on a loan that funded its bankruptcy, as the company's sales and liquidity worsened.
Park Hotels & Resorts, the owner of San Francisco's largest and fourth-largest hotels, has stopped making loan payments on a $725 million loan secured by the two properties. The company cites a lack of recovery in the San Francisco hotel industry and intends to remove the hotels from its portfolio. The hotels remain open and will likely be sold at a discount. The decision reflects the challenges facing the San Francisco hotel market, with lower demand due to remote work, reduced business travel, and fewer conventions.
Park Hotels & Resorts, a billion-dollar real estate investment trust, has defaulted on a $725 million loan for the Hilton San Francisco Union Square and Parc 55 hotels in downtown San Francisco. The hotels will be released from the company's portfolio, but will remain open and under the management of Hilton Hotels & Resorts. The default was due to the loan becoming a burden on the company's operating results and balance sheet, and issues with San Francisco's recovery following the pandemic. The hotels are expected to be sold to new ownership.
A venture between WeWork and Rhone Group defaulted on a $240 million loan for a San Francisco office tower that includes a WeWork coworking space as an anchor tenant. The loan was for a building at 600 California St. owned by funds managed by the venture formed in 2019 to oversee real estate.