All articles tagged with #receivership
The Inglewood Unified School District faces ongoing challenges with school closures, financial struggles, and community opposition, highlighting broader issues of funding, inequality, and community impact in California's public education system.
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.
A Manhattan federal judge has recommended appointing a third-party receiver to oversee Rikers Island jails due to persistent safety and use-of-force issues, citing nine years of failed reforms by the Department of Correction. Despite opposition from Mayor Eric Adams, who points to recent improvements, Judge Laura Taylor Swain argues that a receivership is necessary to address ongoing threats and non-compliance with court orders. The decision requires parties to agree on the receiver's powers and role by January 14, 2024, amid concerns about the jails' culture of brutality and management inefficiencies.
Critics are calling for a major overhaul of the Massachusetts State Police, with some urging the government to put the agency into receivership following a string of scandals including bribery charges, overtime abuse, and drunken driving. The agency's high pay and corruption have eroded public trust, leading to demands for a complete management overhaul and sustained oversight on ethics. While the Healey administration claims to have taken steps to clean up the State Police, critics argue that the agency's union wields too much power and there is still a lack of oversight.
The Trump Organization is grappling with the implications of a recent fraud ruling that found Donald Trump liable for fraud and canceled the business certification of the Trump Organization. Trump's attorneys are uncertain about the extent of the ruling and are working to determine which parts of the company may need to be dissolved. A court-appointed receiver will oversee the dissolution of Trump's corporate entities, and both sides will propose names for the role. Questions remain about how the receiver will operate, the impact on properties outside of New York, and the potential transfer of assets to a new out-of-state company. The trial will proceed as scheduled, allowing the attorney general's office to seek a larger penalty from the Trump Organization. The Trump team plans to appeal the ruling.
Mercy Hospital-Iowa City, a 234-bed acute care hospital in Iowa City, is facing financial collapse and may be placed in receivership. Preston Hollow Community Capital, the hospital's largest senior secured creditor, has filed a court petition seeking the appointment of a receiver to address unsustainable financial losses and prevent closure. The finance company blames the hospital's board of directors for making decisions that have jeopardized the hospital's mission and ability to meet financial obligations. The hospital disputes the default notice and argues that it has made required bond payments and reduced reliance on traveling nurses. Preston Hollow alleges that the hospital's liquidity has declined by $40 million over the past nine months, with negative cash flow of $2.6 million per month. The hospital's net assets dropped from $96.8 million in 2021 to $55.8 million in 2022.
Nevada's Financial Institutions Division has filed to take over crypto custodian Prime Trust and freeze all of its businesses, following a cease-and-desist order alleging the company was near insolvency. Prime Trust owes its clients over $85 million in fiat and $69.5 million in crypto, and is operating with a $12 million equity deficit. The filing asks for a court to ban Prime Trust and its officers from disposing of any assets or conducting any transactions. The company's board and interim CEO have signed off on the petition. Fireblocks, which manages Prime Trust's crypto assets, said no funds held by it are in limbo.
The Telegraph Media Group, which owns the Daily and Sunday Telegraph newspapers and The Spectator magazine, is set to be put up for sale due to debts owed by its parent group. Lender Lloyds Bank is unlikely to recover the original value of the loan, worth hundreds of millions of pounds. The bank has placed B.UK, a Bermuda-based holding company controlled by the Barclay family, into receivership. The investment bank Lazard has been appointed to start exploring options for the sale.
The distressed asset specialists are preparing for a wave of negotiations as cities nationwide will likely see a wave of distressed office assets hit the market later this year. The drama of a distressed property tends to have three main players: the bank, the borrower, and a receiver. The receiver role can be akin to that of Mr. Wolf, the fixer from the film Pulp Fiction. The rush to create funds focused on distressed office assets may complicate the sales process of this real estate.
The US Federal Deposit Insurance Corporation (FDIC) is reportedly preparing to place First Republic Bank under receivership, as the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector. If the San Francisco-based lender falls into receivership, it would be the third US bank to collapse since March. First Republic said earlier this week its deposits had slumped by more than $100 billion in the first quarter. Shares of the bank closed down 43%, worsening a stock rout that has wiped out 75% of its value this week.
First Citizens BancShares has submitted an offer to buy all of failed Silicon Valley Bank, according to a person familiar with the matter. The FDIC has been trying to find a buyer for SVB since it took it into receivership on March 10. First Citizens is a 125-year-old bank that operates in over 20 different states. The FDIC said it had substantial interest from multiple parties seeking to buy SVB, adding that it is still accepting bids from qualified financial institutions for the whole company.