January news digest – business insolvency and turnaround

01 February 2018

The following are summaries of media stories related to business turnaround and insolvency in Australia during January 2018.


Australia

Property and Construction

The company behind the $36 million Aria on Gouger apartments has gone into liquidation

30 January 2018

The Adelaide Advertiser reports that “the 12-storey project was completed in mid-2015, but liquidator Alan Scott from BRI Ferrier confirmed more than 30 of the building's 93 apartments were owned by Datong and would now be sold as part of the liquidation process.”

JM Kelly boss fights for building licence

30 January 2018

The Central Telegraph reports that “the director of several Central Queensland construction companies is appealing a notice from a state building authority to list him as an "excluded individual". John Murphy told The Morning Bulletin he was "surprised" to receive the notice after meetings with the Queensland Building and Construction Commission (QBCC).”

Council agrees to own its own building

22 January 2018

The Queensland Times reports that “it took three hours for Ipswich councillors to debate and consider a proposal to amend a lease agreement to own its new administration building. Councillors were called for a special meeting on Friday to consider arrangements concerning the agreement for lease of the building.”

Hummingbird Homes SA administrator Stephen James says liquidation is best outcome for creditors

16 January 2018

The Advertiser reports that “the administrator of failed home builder Hummingbird Homes SA has recommended creditors liquidate the company when they meet to decide the company’s fate on Thursday.

They have suggested that the company may have been trading while insolvent for at least a year before entering administration - an offence that carries up to five years’ jail.”

Mackay CBD's Grande Suites sale poised to go ahead

3 January 2018

The Daily Mercury reports that “after months in voluntary administration, Mackay Grande Suites appears to have been sold. CBRE Hotels agent Wayne Bunz confirmed yesterday the prime CBD property was under contract but said, legally, he could not provide details because it was a receivership sale. It is understood a settlement is expected by the end of this month.”

George Cheihk back in spotlight: developer involved in debt deal for broke construction firm and CCC examines Pisasale deal

3 January 2018

The Courier Mail reports that “developer George Cheihk, a former bankrupt whose companies once fire-hosed money into Queensland sports and politics, is back in the spotlight. He has proposed a troubled plan to pay off part of the debt of a collapsed Ipswich construction company.”


Mining

Mining decline spurs bankruptcies

31 January 2018

The Australian reports that “Western Australia’s continuing economic weakness following the end of the mining boom has driven a surge in the number of people declaring themselves bankrupt. Total personal bankruptcies rose 6.1 per cent in 2017 to about 32,000, on top of a 4.7 per cent rise the previous year, according to new data from illion (formerly Dun & Bradstreet).”

Valmec to buy failed pressure tester APTS

4 January 2018

The West Australian reports that “energy contractor Valmec has made a deal with the receivers of APTS to buy the collapsed pressure testing business. The Paul Newbound-owned APTS was put in the hands of insolvency specialists in November with debts of about $4 million. The resources-focused, Henderson-based business with 55 employees has continued to operate while a buyer was sought.”


Retail

Gary Perlstein linked to takeover bid for his old stable, SFG

31 January 2018

The Australian reports that “Specialty Fashion Group former chief executive Gary Perlstein is believed to be involved in launching a takeover bid of the group behind the Millers, Katies and Rivers fashion brands.”

Is Surfstitch close to salvation?

31 January 2018

Ragtrader reports that “FTI Consulting, administrators of ailing Australian retailer Surfstitch, has released an update of the second creditors meeting, where the fate of the company will ultimately be decided.”

Steinhoff Asia Pacific funding issues continue

30 January 2018

Ragtrader reports that “Steinhoff has announced it has addressed the majority of its short-term liquidity requirements, as issues with its Asia Pacific arm linger. In a presentation for the company, it revealed the Asia Pacific businesses continue discussions with banks to secure additional funding by mid-February.”

Franchise Retail Brands in administration UPDATED

29 January 2018

Inside Franchise Business reports that “a franchise group which includes the food chains New York Pizza and Hombre Mexican Cantina has gone into administration owing more than $500,000. The Franchise Retail Brands group was formed in 2016 with the stated aim of bringing non-competing food brands under one umbrella and providing support in areas such as marketing, finance and legals.”

Harvey Norman ready to swoop on Steinhoff’s brands

26 January 2018

The Australian reports that “billionaire businessman Gerry Harvey is understood to be eager for his listed retailer Harvey Norman to home in on Steinhoff’s Freedom Furniture, Fantastic Furniture and other Australian brands for a potential acquisition, with many predicting they will soon be on offer.”

Zensu and RMK shoe business collapses, owing $4.8 million, as experts predict further retail pain

25 January 2018

SmartCompany reports that “administrators appointed to the company that produces the RMK and Zensu shoe brands say they are working with distributors to provide them stock, after the business became the latest to feel the intense pressure of Australia’s current retail climate.”

Supermarket chain NQR fails, again

25 January 2018

The Australian reports that “Australia’s struggling retail sector has notched up its second major collapse of the year, with discount supermarket chain NQR Grocery Clearance Stores placed into voluntary administration. Australian-owned NQR first failed in 2009 when it had 26 stores across Victoria and was saddled with debts of more than $3 million.”

Toys R Us cites holiday ‘missteps’, says 182 stores to close

25 January 2018

News.com.au reports that “Toys R Us, a nostalgic favourite even as many shoppers moved to Amazon and huge chains like Walmart, plans to close up to 182 stores, or about 20 per cent of its US locations. The company that once dominated toy sales in the US has been operating under bankruptcy protection since last fall, when it filed for Chapter 11 under the weight of $US5 billion in debt. Toys R Us operates about 900 stores in the US, including Babies R Us stores.”

Shares in the owner of fashion store Katies are on a tear

15 January 2018

The Business Insider reports that “shares in Specialty Fashion Group — the owner of Millers, Katies, Crossroads, Autograph, City Chic and Rivers — soared. At the close, they were up 12.8% to $0.22. There was no official announcement to explain the rise. However, a year ago the company’s shares rose when it came under offer from a Middle Eastern investment company.”

Darrell Lea a sweet treat for new owners

15 January 2018

SBS News reports that “a private equity company has bought a majority stake in 90-year-old Australian confectionary maker Darrell Lea. The maker of favourites such as Rocklea Road and liquorice has bounced back following its voluntary administration more than five years ago following a major restructure.”

Adrenalin Boardstore in liquidation – $500,000 in stock must be sold this week!

12 January 2018

RiotACT! reports that “it’s the end of an era for a much-loved Canberra retail store – Adrenalin Boardstore.

Adrenalin started in Lonsdale St Braddon and has been a very popular retail fixture in Canberra over the past 10 years, but the continued pressure of online retailing has meant that current Adrenalin store’s stock and fixtures in Fyshwick will be liquidated by online auction.”

Interlopers H&M, Zara and Uniqlo snare $800m in sales from Aussie assault

10 January 2018

The Herald-Sun reports that “the three key fast-fashion invaders in Australia — H&M, Zara and Uniqlo — look to have comfortably snared more than $800 million in local sales the past year. The success of the retail interlopers, who have all entered Australia this decade, comes amid tough conditions in the retail sector and adds to the pressure facing the nation’s traditional department stores and apparel brands.”

Butcher, gym unexpectedly close doors

9 January 2018

The Daily Mercury reports that “two stores at Marian Town Centre have closed, to the surprise of customers and centre management. Crush Gym and Country to Coast Meats both announced via their Facebook pages Sunday night they will not be reopening their doors. Documentation filed with ASIC yesterday confirmed that Crush Pty Ltd, trading as Solutions Health and Fitness gym, went into liquidation on January 8, 2018.”

First retail collapse of 2018 prompts expert warnings of more fashion pain to come

9 January 2018

SmartCompany reports that “insolvency and retail experts have warned fashion brands should expect to be crunched for yet another year, with womenswear brand Maggie T the first high-profile Australian retailer to enter administration in 2018.”

Oroton battles retail landlords for its future

6 January 2017

The Sydney Morning Herald reports that “one needs only to think back to the days when mum or granny carried those Oroton silver or gold mesh bags on a big night out to get a sense of brand nostalgia.  Whether it survives to mark the occasion now rests with the success of negotiations between a corporate doctor and a group of retail landlords.”

Gloria Jeans and Mitre 10 outlets shut doors after fall in trade

3 January 2018

The Townsville Bulletin reports that “rising costs and falling trade have been blamed for the closure of two businesses in Townsville in recent days. A Gloria Jean’s outlet at The Precinct shopping centre closed on Friday, while hardware store Willows Mitre 10 shut on December 20. Both businesses have been put straight into liquidation.”

Liquidators forecast problems in construction, retail in 2018

3 January 2018

The Courier Mail reports that “liquidators are forecasting trouble in the retail and building sectors for this year.

The potential causes included Amazon beefing up competition for shoppers and the waning of a construction boom, which last year saw a massive influx of new apartments in areas such as inner Brisbane.”


Tourism and Hospitality

Sudden closure of Coast favourite, liquidators appointed

23 January 2018

The Sunshine Coast Daily reports that “a fixture of Mooloolaba's fine dining strip is no longer after a shock closure. The hit to the beachfront hospitality hub came after the Australian Securities and Investments Commission's Insolvency Notice website confirmed the appointment of liquidators to Amcast Pty Ltd, which was trading as Karma Waters Restaurant. The popular Portuguese restaurant on Mooloolaba Esplanade had operated for about a decade under the previous owners before the restaurant changed hands in early 2017.”

Publican Group placed into voluntary administration

17 January 2018

The Shout reports that “the Publican Group business was quietly placed into voluntary administration at the end of last year, after selling off all of its assets to Australian Venue Co. The Australian Securities and Investments Commission published that Chadwick Hall were appointed as administrators of the Publican Group in mid-December.”

Bankrupt Michel’s Patisserie franchisee forced to raid kids’ bank accounts to pay off $350,000 debt

16 January 2018

News.com.au reports that “a former Michel’s Patisserie franchisee was forced to raid his children’s bank accounts to pay off debts after the collapse of his business. Speaking to Channel Nine’s A Current Affair on Monday, Melbourne man Robert Verni told of how his entire family was “financially ruined” by Retail Food Group, the country’s largest franchise operator which owns brands including Michel’s Patisserie, Gloria Jean’s and Donut King.”

Wheels come off Brendale caravan maker Gidget Retro Teardrop Camper

15 January 2018

The Courier Mail reports that “a Queensland manufacturer of small caravans costing up to $39,000 has entered voluntary administration leaving 80 customers in the lurch. Worrells has been appointed administrators of Gidget Retro Teardrop Camper Pty Ltd, which made the tiny caravans from its factory, employing 25, at Brendale, north of Brisbane.”

Perth restaurateur Scott Taylor’s company owes creditors $3.5 million

14 January 2018

Perth Now reports that “Perth restaurateur Scott Taylor’s company owes at least $3.5 million to creditors. Mr Taylor and his sister Angie Lee Taylor are co-directors of Element WA, the company which ran The Trustee, Beaufort Local and Enrique’s School for Bullfighting.”

Three businesses used to run The Grounds of Alexandria in $1.7m debt

14 January 2018

The Daily Telegraph reports that “for an operation that had clocked up almost $2 million in unpaid taxes and other debts, The Grounds of Alexandria has been expanding at a rapid rate. According to company records, three businesses used to run The Grounds operation have notched up more than $1.7 million in debts since 2014.”

Liquidated Gladstone cafe prepares to finalise debts

12 January 2018

The Gladstone Observer reports that “liquidators of a former Gladstone Airport cafe are finalising the business's debts and repayments. Cafe Espresso closed in May last year after operator Lortons, better known as Gladstone Catering Service, was placed in liquidation. An insolvency notice that announced the first dividend last month said creditors whose debts or claims had not already been lodged needed to do so before January 22.”

Sandgate RSL and bowls club close

9 January 2018

The Courier Mail reports that “it’s the end of an era in Sandgate with the immediate closure of the RSL Memorial Club (known as Club Sandgate) and Sandgate Bowls Club due to a $1.4 million debt. At a meeting of creditors at 10am today (January 9), the club was voted into liquidation with the Australian Taxation Office as a major creditor.”

The Royal Croquet Club will go ahead this year after meeting a third and final deadline to meet its council approval requirements

5 January 2018

The Advertiser reports that “the Royal Croquet Club has met a third and final deadline to come up with the financing to stage its venue at this year’s Fringe, ensuring that it will go ahead this year and providing certainty for the 16 acts booked to appear.”

Stockton RSL club merger with Sydney raises questions

5 January 2018

The Newcastle Herald reports that “a Sydney club has defended its decision to have the corporate shell of Stockton RSL & Citizens Club “voluntarily liquidated”, saying it was simply part of a merger between the Sydney and Newcastle clubs begun in 2016. But some members of the Stockton club, including Terry Fitzgerald – who questioned the merger in the first place – are unhappy with proceedings.”

Toowoomba company went into liquidation owing $3.7m

2 January 2018

The Chronicle reports that “Peters Coaches went into liquidation owing more than $3.7 million to creditors, according to the latest report lodged with the Australian Securities and Investments Commission. Peters Coaches, a family-owned and run company that was in business for nearly seven decades, closed its doors on Monday, December 11, and was placed into liquidation at the direction of shareholders.”

'Shocking': Popular Brisbane bar closed despite selling tickets to New Year's Eve event

1 January 2018

The Brisbane Times reports that “more than a dozen angry customers who bought tickets to a New Year's Eve party at a popular Brisbane pub are demanding refunds and an explanation, after turning up and finding the venue closed on Sunday night. About 15 people were left high and dry during the final hours of 2017 after buying tickets to the '90s New Year's Eve Party at Alfred & Constance in Fortitude Valley.”


Communications

Rolling Stone Australia's future in doubt as publisher goes into administration

25 January 2018

ABC News reports that “the future of Rolling Stone Australia, the local edition of what has long been considered the rock and roll bible, looks to be in doubt, with the magazine understood to be ceasing publication. Publisher Paper Riot Pty Ltd has gone into external administration, according to an ASIC filing, signalling the end for the magazine, which has a small staff based in Sydney.”

Healthcare ad agency Hammond & Thackeray collapse leaves publishers out of pocket

12 January 2018

Mumbrella reports that “one of the major media agencies of the healthcare industry, Hammond & Thackeray, has gone into liquidation with creditors including major publishers and agencies expected to be $4.4 million out of pocket. The 35-year-old agency which also serviced agricultural clients from its Sydney, Melbourne and Auckland offices, was wound up by its directors on December 22. Parent company the Healthy Thinking Group is not affected by the decision.” Andrew Cummins of BRI Ferrier was appointed Liquidator.


Technology

Kodak: from bankruptcy to blockchain

11 January 2018

ACS Information Age asks “could a new cryptocurrency protect intellectual property and “democratise” photography in the world of piracy? 130-year-old American camera company, Kodak, seems to believe it can, after it announced its new KODAKOne blockchain image rights management platform and KODAKCoin cryptocurrency at the International Consumer Electronics Show (CES) in Las Vegas.”


Health

Automated dispensary distributor Dose Innovations enters administration

24 January 2018

Pulse+IT reports that “Dose Innovations, which distributes the Rowa automated dispensary and inventory management system from Becton Dickinson (BD) to Australian pharmacies, has called in the administrators.”

Information sought on abuse claims at health organisation

16 January 2018

The Queensland Times reports that “a liquidator has been assigned to wrap up an Ipswich healthcare organisation and is seeking information on claims of abuse which may have taken place inside the facility. A public notice published today states a liquidator has been appointed to Quest Care Incorporated on Whitehill Rd at Eastern Heights, formerly known as New Life Centre.”

Business as usual for Ocean despite voluntary administration

15 January 2018

Pulse+IT reports that “Sydney-headquartered health informatics firm and EHR vendor Ocean Health Systems will continue to operate on a business as usual basis despite entering voluntary administration last week, with hopes the company can be restructured and work through its financial problems.” Peter Krejci from BRI Ferrier was appointed Administrator on 8 January 2018.

Medical bills and illness are making us bankrupt

4 January 2018

The Australian reports that “more Australians are being forced into bankruptcy because of sickness and lack of health insurance than from the most common ­business-related cause of personal insolvency. An analysis of federal government data shows “ill health or the lack of insurance” was the primary cause of non-business-related personal insolvency for 1830 people in 2016-17.”


Investment

Steinhoff Asia Pacific on bankers' hit list; refi gathers pace

11 January 2018

The Australian Financial Review reports that “investment bankers have had Steinhoff Asia Pacific boss Michael Ford on speed dial in the past few weeks. Street Talk understands the global accounting scandal engulfing the company has spurred local bankers to make inbound calls and seek meetings to discuss the retail giant's regional strategic options.”

Court hits former Banksia boss with $25,000 penalty

3 January 2018

The Riverine Herald reports that “the Federal Court of Australia has ordered Patrick John Godfrey, the former managing director of Banksia Securities Limited (In Liquidation) (Receivers and Managers Appointed) (Banksia), pay a pecuniary penalty of $25,000 and be disqualified from managing corporations for a period of five years.”


Legal

Bankruptcy surge chills mortgage market

31 January 2018

The Australian reports that “a surge in personal bankruptcies across Australia suggests an extended trouble-free period in the mortgage market could end abruptly in the months ahead. New figures released yesterday show a 6.1 per cent jump in bankruptcies over the last year: The figures contrast sharply with very recent mortgage market indicators showing mortgage delinquency levels had actually been improving.”

Firm accused of helping businesses dodge creditors, tax office, goes into liquidation

31 January 2018

ABC News reports that “a firm of business advisers accused of helping company directors hide cash and assets from creditors and the tax office has gone into liquidation, raising questions over whether the firm's activities will ever be properly investigated by government agencies.”

Bankruptcies rise 6.1pc in 2017

30 January 2018

The Australian reports that “the number of Australians who filed for bankruptcy surged last year amid record mortgages and lacklustre wage growth. More than 32,000 Australians went bankrupt in 2017, a 6.1 per cent rise from the prior year, according to new data released by credit information bureau illion.”

Court declares conman Foster bankrupt

29 January 2018

News.com.au reports that “serial conman Peter Foster has been declared bankrupt by the Federal Court after refusing to pay court costs relating to his scam weight loss company. Foster was ordered to pay the Australian Competition and Consumer Commission's legal costs of more than $56,000 after he was found to have been the controlling influence behind the SensaSlim scam, however he has failed to do so.”

Pauline Hanson’s bitter struggle to retain One Nation Senate seat

22 January 2018

The Australian reports that “One Nation leader Pauline Hanson will ask the Senate to refer Fraser Anning to the High Court in a bid to retain his seat for the party, escalating a bitter stoush between the once long-time friends. There are also concerns within One Nation that Senator Anning is being courted by the Nationals after he began a process last week to officially quit One Nation and become an independent.”

McGrathNicol partners reject Hastie claims

5 January 2018

The Australian reports that “McGrathNicol partners including the insolvency firm’s executive chairman Peter Anderson have hit back at the Department of Employment over allegations they breached their duties as receivers of part of failed engineering company Hastie Group.”


Primary Industry

Receivers confident of Quintis revival

31 January 2018

The West Australian reports that “Quintis’ receivers are confident they can revive the sandalwood company with a recapitalisation that may include shareholders and would avoid the devastating losses incurred by grower-investors in the collapsed Timbercorp and Great Southern plantation schemes.”

Bankruptcy won’t harm Border mill, new parent owners being sought

17 January 2018

The Border Mail reports that “almost a month after their Norwegian parent company filed for bankruptcy, Albury’s Norkse Skog mill remains unaffected by the change. Albury mill general manager and vice president of paper operations Milo Foster said the Ettamogah plant had not been impacted by the bankruptcy and no jobs had been lost as a result of the December bankruptcy filing in Norway.”


Entertainment

Bankrupt rugby league star in court for trying to leave the country

19 January 2018

WA Today reports that “former rugby league star Jarrod McCracken has faced a Brisbane court accused of leaving the country while bankrupt. McCracken, 47, appeared in the Brisbane Magistrates Court on Friday charged with four counts of leaving Australia while an undischarged bankrupt.”

Company Behind Wanderlust Festival In Liquidation

18 January 2018

Scenestr reports that “the company behind the Wanderlust festivals in Australia and New Zealand has been placed into liquidation. And there is no calming the burgeoning group of creditors who claim they are owed tens of thousands of dollars. scenestr has been contacted by local suppliers and small businesses claiming they are owed from $300 to upwards of $27,000. With today’s appointment of liquidators the full amount outstanding is yet to be confirmed with more and more creditors expected to come forward.”

Taipans mentor turned unholy mess into unprecedented success

17 January 2018

The Cairns Post reports that “almost a decade into his run with the Cairns Taipans, I hope Aaron Fearne gazes out his office window this week, flashes his trademark smirk and feels proud of what his stubborn, single-minded approach has achieved for his basketball club.”

New-look Western Force on verge of signings

13 January 2018

The West Australian reports that “the new Western Force will recruit high-profile players for both their national rugby and Indo Pacific championship teams. A hit list of signings has been drawn up as mining billionaire Andrew Forrest’s IPRC management team moves into Perth’s Rugby HQ on Monday. The NRC side will change its name from Perth Spirit to Western Force after the name was sold back to RugbyWA by Rugby Australia when it cleared voluntary administration.”


Manufacturing

Custom Buses, which repairs and services SA metro buses, hit by financial distress

18 January 2018

The Advertiser reports that “Australia’s second-largest bus body building company Custom Buses, which repairs and services SA’s bus network, has again been placed in administration due to “financial distress”.”

Small Business

Creditors left empty handed after manufacturers go bust

26 January 2018

The Courier reports that “creditors of failed manufacturing companies Ballarat Windows and Doors and Lontana have been advised they are likely to be left high and dry, with the companies owing more than $1.7 million.” 

Contractor’s creditors to be paid in full

24 January 2018

National Indigenous Times reports that “creditors of the Eastern Guruma contracting company — placed in voluntary administration in October — will be paid in full by November, administrator Kim Strickland said this week. Mr Strickland said the company was “proceeding well” after creditors accepted a deed of company arrangement late last year.”

Former NSW business owner sentenced to 15 months home detention for failing to build motorhomes

24 January 2018

SmartCompany reports that “the former sole director of a New South Wales-based motorhome converter business has been sentenced to 15 months’ home detention after a court found he took more than $165,000 in payments to build motorhomes that were never delivered. In a case brought by the NSW Office of Fair Trading, the former director admitted in Parramatta Local Court to obtaining a benefit by deception, failing to supply services and accepting money while he was bankrupt.”

DEADLINE: Kimberley Kampers told to pay employees, creditors

20 January 2018

The Northern Star reports that “a two-month deadline has been set for Ballina-based caravan company, Kimberley Kampers, to pay back its employees and creditors after a rescue package was passed at this week's creditors meeting.”


Asia

Tourism and Hospitality

Japan Airlines chief, credited with helping steer recovery, to step down

24 January 2018

Yahoo 7 News reports that “Japan Airlines Co <9201.T> (JAL) said President Yoshiharu Ueki, who helped lead the company's recovery from bankruptcy, will be replaced by a senior executive in April. Ueki, a former pilot who was named president in 2012, will become chairman while Yuji Akasaka, currently managing executive officer in charge of engineering and maintenance, will become the new president, the company said.”


Legal

China's CDB withdraws insolvency petition against India's RCom

5 January 2018

Yahoo 7 News reports that “China Development Bank (CDB), the biggest foreign lender to India's Reliance Communications Ltd (RCom) <RLCM.NS>, on Friday withdrew a petition seeking to drag the indebted telecoms carrier into insolvency. A lawyer for CDB told the National Company Law Tribunal that the Chinese bank had filed to withdraw the petition. The tribunal allowed CDB's plea to go forward.”


Europe

Property and Construction

Counting the cost of Carillion's collapse: banks and businesses

 16 January 2018

The Australian Financial Review reports that “stricken outsourcing company Carillion owes up to 30,000 businesses around $US1 billion ($1.26 billion), with many expected to go under themselves as a result. Banks that had lent to the contractor could also be exposed to up to $2 billion of losses, in what is one of the most high-profile corporate collapses since the financial crisis.”


Tourism and Hospitality

Everything must go as Air Berlin leaves behind mountain of debt

20 January 2018

News.com.au reports that “creditors for bankrupt airline Air Berlin are selling off the airline’s entire inventory — from coffee mugs to a six-metre model A320 and everything in between — in a desperate bid to recoup cash for unpaid bills.”

German court to decide on Niki insolvency challenge on Thursday

3 January 2018

Yahoo 7 News reports that “a German court is likely to decide on Thursday whether to reverse the insolvency filing of airline Niki, according to a statement from Berlin's civil courts, which could derail the sale of the Air Berlin <AB1.DE> unit to Britain's IAG <ICAG.L>. Niki filed for insolvency last month after Germany's Lufthansa <LHAG.DE> scrapped plans to buy the Austrian unit, grounding the airline's fleet and stranding thousands of passengers.”


Legal

Bankrupt Boris Becker's trophies are fair game

25 January 2018

Yahoo 7 News reports that “Boris Becker won six Grand Slams during a glittering career but even those treasured trophies are fair game as insolvency practitioners responsible for handling his bankruptcy try to track them down to pay his creditors.”


North America

Mining and Energy

Philadelphia refiner's woes pose test for U.S. biofuel policy

20 January 2018

Yahoo 7 News reports that “the worsening financial condition of East Coast oil refiner Philadelphia Energy Solutions will present a new test for America's controversial biofuels policy, legal experts say, revealing whether the government can collect a massive biofuels-related debt from a company in distress.”


Technology

U.S. enterprise telecoms firm Avaya trades again after bankruptcy

18 January 2018

Yahoo 7 News reports that “Avaya Holdings Corp shares started trading on Wednesday on the New York Stock Exchange, the first time the enterprise telecommunications provider has been public in more than a decade. Shares ended down 0.9 percent at $20.80. Avaya spent the past year sorting its financials in a Chapter 11 bankruptcy process before listing its shares publicly this week. It was acquired in a leveraged buyout in 2007 for $8.2 billion by Silver Lake Partners LP and TPG Capital LP.”


Legal

Judge tosses GM settlement on ignition switch

18 January 2018                      

Yahoo 7 News reports that “a federal bankruptcy judge on Thursday said a settlement agreement that would require General Motors Co <GM.N> to pay $1 billion in stock to car owners suing the company over faulty ignition switches was not enforceable. Judge Martin Glenn of the U.S. Bankruptcy Court in New York said the agreement that car owners had reached with a trust that holds many GM liabilities from before its 2009 bankruptcy was not valid without signatures.”


Manufacturing

2018 Detroit Motor Show: Fiat Chrysler chief compares company’s troubles with a smelly horse

17 January 2018

Wheels Magazine reports that “Fiat Chrysler Automobiles chief executive Sergio Marchionne has compared his company’s troubles with those of a smelly horse, musing that the car maker’s problems were much smaller than shareholders predicted. Marchionne, speaking at this week’s Detroit Motor Show, also indicated his successor would place less emphasis on sales figures – a strategy that almost destroyed the company – and instead focus on profitability and a continued strengthening of the brand.”

Brookfield Business Partners to buy Westinghouse for $4.6 billion

5 January 2018

Yahoo 7 News reports that “a subsidiary of Canada's Brookfield Asset Management Inc <BAMa.TO> <BAM.N> plans to acquire Westinghouse Electric Co LLC, the bankrupt nuclear services company owned by Toshiba Corp <6502.T>, for $4.6 billion. Brookfield Business Partners LP <BBU.N> <BBU_u.TO> said in a statement on Thursday that it and institutional partners would use $1 billion of equity and $3 billion of long-term debt financing to buy the Pittsburgh-based business, its first investment in nuclear power.”

U.S. judge clears Takata to seek creditor vote on bankruptcy plan

4 January 2018

Yahoo 7 News reports that “the judge overseeing the bankruptcy of Takata Corp's <TKTDQ.PK> U.S. unit on Wednesday cleared the way for the company's creditors to vote on its Chapter 11 plan, which critics say limits the legal rights of those injured by its deadly airbags. Takata and its U.S. entity TK Holdings Inc filed for bankruptcy in June after more than 100 million of its airbags were recalled because they could inflate with too much force and spray metal fragments.”

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