March News Digest – Business Insolvency and Turnaround
03 April 2018
The following are summaries of media stories related to business turnaround and insolvency in Australia during March 2018.
Australia
Property and Construction
Property deals jeopardised by Deposit Power deposit guarantee uncertainty
28 April 2018
The Australian Financial Review reports that “thousands of property buyers caught in the collapse of Deposit Power are being warned by liquidators that they cannot be told when or how much of the original value of their deposit guarantee bonds will be paid.”
Project Group residential, commercial builder goes into administration
26 March 2018
The Australian Financial Review reports that “Project Group Constructions, a Melbourne-based builder working on residential and commercial projects with a contract value of about $190 million, has gone into voluntary administration.”
Busby's fight for money owed after it goes into liquidation
26 March 2018
The Morning Bulletin reports that “a construction company which went into voluntary liquidation last month with debts of more than $2m, is suing two companies for money owed.”
Accused Ponzi princess Veronica Macpherson declared bankrupt
21 March 2018
The West Australian reports that “accused Ponzi princess Veronica Macpherson — who stands accused of owing more than $250 million to thousands of investors in her failed Pilbara property scheme — was declared personally bankrupt yesterday.”
Business director charged over fraudulent withdrawals
20 March 2018
My Business reports that “the sole director of a Queensland business has been charged with three counts of fraud, with allegations he made illegal withdrawals from the collapsed firm’s account.”
Construction regulator needs 'to do its job correctly' to help companies stay in business
19 March 2018
ABC News reports that “a Brisbane business owner who is owed $1 million is furious at the Queensland Building and Construction Commission (QBCC) for what he calls a lack of action and regulation. Stefan Styles operates one of Queensland's largest shower screen and wardrobe companies, employing about 120 people.”
Collette Dinnigan hit by real estate collapse
17 March 2018
The Weekend Australian reports that “high-profile fashion and interior designer Collette Dinnigan has been caught up in the spectacular collapse of luxury international real estate firm Unique Estates after selling her Milton weekender on the NSW south coast for $2.1 million.”
MacFox Building goes under owing more than $400,000
14 March 2018
The Newcastle Herald reports that “one of the up-and-coming stars of the Hunter’s building industry has gone into liquidation owing more than $400,000.”
Residents' dreams in tatters as unfinished Darwin development hits financial strife
9 March 2018
ABC News reports that “the pace of construction is evident in Mitchell Creek Green, where developed houses stand next to vacant land earmarked for sale and streets are lined with construction sites.”
Two more civil contractors collapse
8 March 2018
The West Australian reports that “administrators have been put into two more civil contractors, including one owed money by failed builder Cooper & Oxley. On Tuesday, HLB Mann Judd was put into Wolfe Civil, a 46-year-old Kewdale business specialising in home subdivisions.”
$60 million U2 Apartments on Waymouth St goes into administration
5 March 2018
Perth Now reports that “the end of the road is nigh for a much troubled, $60 million apartment complex in the Adelaide CBD with the news this morning that administrators have been called in.”
Administrators urge Rimfire to take up China Railway offer
2 March 2018
The Australian reports that “an offer by China Railway Construction Group to buy out its joint venture partner, Rimfire Constructions, has been recommended by Grant Thornton to help pay back some of the failed Queensland construction group’s creditors. CRCG is a mainland Chinese state-owned enterprise and is considered one of the largest building and construction firms in the world.”
Company collapse hits subbies hard
1 March 2018
The West Australian reports that “several Bunbury businesses are hundreds of thousands of dollars out of pocket after the company in charge of work at the former Department of Parks and Wildlife headquarters site went into liquidation. A Department of Finance spokeswoman confirmed to the Bunbury Herald that civil engineering and earthworks company BCL Group has suspended trading.”
Port Douglas homes impacted by insolvency
1 March 2018
Newsport reports that “two million-dollar dream homes in Port Douglas have been impacted by the reported insolvency of one of Australia’s leading property agencies. Unique Estates, which has six offices across Australia, including Byron Bay and the Gold Coast, has had a reputation of selling high-end properties and renting out luxury estates.”
Mining
Golding begins work to bring CQ coal mine back from brink
9 March 2018
The Observer reports that “Golding Contractors will soon begin drilling, blasting and hauling to bring the troubled Baralaba North coal project back from the brink. The company, a wholly owned subsidiary of NRW Holdings, has made a deal to start preliminary work on the project while negotiating with Wonbindi Coal Pty Ltd and Baralaba Coal Company Pty Ltd for a three-year mining contract estimated to be worth $350million.”
More than 99% of 'disturbed' mining land still needs repair
3 March 2018
The Byron Shire News reports that “mining has disturbed a whopping 220,000 hectares of Queensland land, yet just 550ha or 0.25 per cent has been properly rehabilitated. Now a proposed law change could ensure the resource firms are the ones footing the bill for fixing up mining lands, even if they fall into liquidation.”
Retail
Vicars’ rescue bid looking good as Oroton creditors decide
28 March 2018
The Australian reports that “Oroton creditors will vote tomorrow on fund manager Will Vicars bid to rescue the failed retailer and the numbers so far are looking positive. Oroton was put into voluntary administration last year after struggling to perform following the expensive and ultimately unsuccessful move to take over the licensing for Gap in Australia.”
Myer rules out using voluntary administration to exit leases
26 March 2018
The Australian Financial Review reports that ”Myer has ruled out placing the beleaguered retailer into voluntary administration to hasten the exit or renegotiation of $2.7 billion in leases.”
SurfStitch fate could be decided next month
19 March 2018
Business News Australia reports that “the future of surfwear chain SurfStitch Group (ASX: SRF) could be decided early next month at a meeting of creditors which will consider an offer for the embattled retailer.”
Woolworths and Wesfarmers to benefit from Toys 'R' Us demise
15 March 2018
The Australian Financial Review reports that “department store chains Kmart, BIG W and Target and specialty toy retailers are likely to be the biggest beneficiaries of the collapse of Toys 'R' Us. The future of Toys 'R' Us in Australia is in doubt after the retailer's US chief executive, David Brandon, was quoted overnight saying the Australian operations and those in France, Spain and Poland were likely to go into liquidation.”
Brisbane reseller liquidated owing thousands to local tech wholesaler
15 March 2018
ARN reports that “Brisbane-based reseller, Briscom IT, which traded as PC Land, has been placed into liquidation owing tens of thousands of dollars to local IT wholesaler, Auscomp Computers.”
15 March 2018
The West Australian reports that “Toys ‘R’ Us Australia says it is business as usual at its 39 stores despite the US retail giant’s apparent collapse at home and elsewhere, and threats it will move to liquidate more stores in other countries. The bankrupt chain is reportedly selling or closing all 885 stores in the US, and the administrator of its UK business has confirmed it will have closed a quarter of its stores by the end of this week.”
Steinhoff Asia Pacific eyes IPO as parent struggles
14 March 2018
The Australian reports that “the management of Steinhoff Asia Pacific, which owns Freedom Furniture and Fantastic Furniture, has aspirations to embark on an initial public offering as its parent company continues to wrestle with challenges surrounding an inquiry by German regulators. A float on the Australian Securities Exchange could happen as early as this year.”
Lawyers can't contact Doughnut Time's Damian Griffiths for $400,000 lawsuit
12 March 2018
The Sydney Morning Herald reports that “lawyers chasing hundreds of thousands of dollars from Doughnut Time say they have been unable to get in touch with the embattled business’s creator, delaying court action. Sydney company Frasers Central Park Land is seeking $404,000 from the business, fallen hospitality entrepreneur Damian Griffiths and a host of his former companies, some of which are in liquidation, over breach of contract and unpaid rent.”
Three Standish Cycles stores have closed their doors
8 March 2018
The Advertiser reports that “Three Standish Cycles outlets at Klemzig, Mile End and Morphett Vale have closed their doors after liquidators were appointed to their owner - Fairsales Pty Ltd - a company run by the Standish family. A fourth store at Hyde Park remains open under separate ownership.”
Specialty Fashion strikes rent deal with Scentre
8 March 2018
Weekend Australian reports that “Specialty Fashion Group is believed to have struck a deal with one of its landlords, Scentre Group, after the owner of Australian Westfield-branded shopping malls is said to have agreed to lower the retailer’s rents by as much as 20 per cent.”
Warehouse1 customers could lose hundreds of thousands in refunds
7 March 2018
CRN reports that “customers who ordered products from failed reseller Warehouse1 may not receive refunds after the company entered liquidation two weeks ago with $3.8 million in claimed debts. The company, which operated an online store as well as a brick-and-mortar retail store in Melbourne, entered liquidation on 20 February, appointing SV Partners as liquidators.”
Specialty Fashion Group to bring Maggie T out of administration
7 March 2018
SmartCompany reports that “womenswear label Maggie T has emerged from voluntary administration after being been acquired by retail company Specialty Fashion Group. Specialty Fashion Group announced on Monday the womenswear brand will be stocked in 175 of its 300 Millers stores across Australia and New Zealand. Ragtrader reports the brand will also be available online from April 23.”
Doughnut Time forced to close stores across the country, leaves employees without weeks of pay
6 March 2018
News.com.au reports that “the sugar high that fuelled the rise of dessert empire Doughnut Time has come crashing back down to earth. The chain that flogged calorie-ridden creations in the shape of oversized doughnuts has started closing half of their Australian stores, after entrepreneur and owner Damian Griffiths was forced to sell up shop.”
Crash: Retail Food Group Limited’s share price drops 44% upon return to trade
5 March 2018
Motley Fool reports that “The Retail Food Group Limited (ASX:RFG) share price fell 44% to $1.14 after the company returned to trade this morning. Retail Food Group shares are now down 81% in the past 12 months.
A selloff was probably a given after the revelations of last week, including a suspension from trade after a delayed audit report followed by negotiations with lenders and a cut to the dividend.”
Aussie Farmers Direct in voluntary administration
5 March 2018
The Australian reports that “Aussie Farmers Direct was burning through $500,000 a week before its collapse and was ultimately sunk by its decision to stray from its core business of selling fresh milk and bread into offering full-line groceries that brought it into direct competition with supermarkets, administrators say.”
1 March 2018
Hit 107 reports that “a favourite with the health conscious, Wray Organic, which has a store in Toowoomba, has gone into liquidation with $2.8 million owed to more than 200 creditors.”
Eco Toys enters voluntary liquidation
1 March 2018
Toy & Hobby Retailer reports that “Victoria-based, sustainably-focused, independent toy store, Eco Toys, has been placed under ASIC External and/or Controller-Appointed Administration. According to documents filed with ASIC, there are currently no court actions, payment defaults or insolvency notices registered against the entity. This situation is to be reviewed in June 2018.”
Cult Aussie fashion label joins growing list of retail victims
1 March 2018
The Sydney Morning Herald reports that “Australian fashion brand Zachary the Label has joined the growing list of retailers that have gone into administration. The Melbourne-based brand was placed in voluntary administration on Monday, with Jirsch Sutherland appointed as administrator.”
Tourism and Hospitality
Maitland Leagues Club announces it has gone into voluntary administration
15 March 2018
The Maitland Herald reports that “Maitland Leagues Club has gone into voluntary administration owing some of its creditors hundreds of thousands of dollars.”
FactCheck: would pokies reform in SA wipe out 'many' of 26,000 jobs?
14 March 2018
InDaily reports that “The Australian Hotels Association of South Australia claims poker machine reforms proposed by Nick Xenophon's SA Best party would wipe out 'many of the 26,000' jobs in the hotel industry. Is that right? Fabrizio Carmignani examines the claim.”
Receivers to Sell Alfred & Constance and Limes Hotel
8 March 2018
Broadsheet reports that “two former jewels in Damian Griffiths’s local hospitality crown – Alfred & Constance and Limes Hotel – have been put on the market by receivers. The freewheeling nightspot and boutique hotel went into receivership and closed suddenly late last year. This happened after Griffiths lost a court action brought by his aunt, Wendy Griffiths, and cousin, Murray Griffiths. It sent both venues into default. Advisory firm McGrathNicol was appointed to oversee them.”
Renovation completes ‘remarkable turnaround’ for Fraternity Club
1 March 2018
The Illawarra Mercury reports that “it was only 10 short years ago that the Fraternity Club was on the verge of receivership. Today the popular Fairy Meadow club is a vibrant hub of music, entertainment and fine foods thanks largely to a $3 million renovation project.”
Communications
6 March 2018
ProPrint reports that “western Sydney based company Saunders Print Group is closing its doors after 65 years of business, the second major printer to go into liquidation in the last five days. A source told ProPrint that staff were emotional about the Glendenning business closing, with some having been with the company for around 30 years.”
Graphic Impressions goes under
5 March 2018
ProPrint reports that “Melbourne book and magazines printer Graphic Impressions has gone into liquidation, taking staff and creditors taken by surprise, with the local trade claiming unsustainable low pricing was behind the collapse. ProPrint understands the 40-odd staff were called into the office on Thursday to be told the business was closing, and that they no longer had jobs.”
Is iHeartRadio filing for bankruptcy today?
5 March 2018
Radio Today reports that “that iHeartMedia Inc., the broadcast and internet radio company that owns internet station iHeartRadio, is ready to file for bankruptcy on March 5 – and could even have already done it by now. The company has been battling a US$20 billion debt. While in the midst of trying to restructure it for the past year, it missed an interest payment of $103 million on February 1, and the customary 30-day grace period is over on March 5.”
Technology
Field Solutions Group forks out $1.1M for South Western Wireless assets
21 March 2018
ARN reports that “regional telco and cloud solutions provider, Field Solutions Group (ASX:FSG), is looking to raise just over $1.1 million to acquire the assets of South Western Wireless, which went into administration in early March.”
Pen helps bail Ocean out of voluntary administration
12 March 2018
Pulse+IT reports that “data solutions firm Pen CS has become a major shareholder in Ocean Health Systems, allowing it to emerge from the voluntary administration it entered into in January.”
IT training firm TP3 Group goes bust for second time in two years
12 March 2018
CRN reports that “end user IT training provider TP3 Group has been liquidated after 30 years in business, with all staff losing their jobs – though many have since been hired by a competitor. TP3 Group, which offered Microsoft and Adobe courses, was wound up by the Australian Taxation Office in December.”
Investment
Paradise papers: The Cook Islands millionaire who never has to pay his debts
25 March 2018
The Australian Financial Review reports that “Allan Endresz is the face of business nightmare. In two decades of evading pursuit by government regulators, the disgraced share trader has found a way to ensure he never has to pay his debts – to anybody.”
BBY hearing: Supreme Court ruling likely to favour clients
21 March 2018
The Australian reports that “a Supreme Court of NSW ruling on the liquidation of collapsed broker BBY has made it more likely that thousands of clients of the company’s businesses will have their claims treated separately rather than pooled.”
13 March 2018
Intelligent Investor reports that “insurance is a unique business. Premiums are priced upfront for risks (claims) that are made (or not) at some stage down the track, for uncertain amounts. There is no business where understanding and managing risk is more critical. In fact, it is the business. The failure of New Zealand-based insurer CBL Corporation (ASX:CBL), a true riches-to-rags story, illustrates this point.”
Deposit guarantee company collapses
7 March 2018
Australian Broker reports that “deposit guarantee company Deposit Power is now under external administration following the placement of Auckland-based CBL Insurance into interim liquidation.”
Last-minute deal could save Weinstein Co from bankruptcy
2 March 2018
The Australian reports that “an investing group says it has reached a last-minute deal to acquire the assets of Weinstein Co, potentially allowing the embattled movie studio to avoid a planned bankruptcy and laying the groundwork to settle government lawsuits stemming from allegations that former co-chairman Harvey Weinstein engaged in sexual misconduct.”
Small business
Clegs closes as city's fabric changes
25 March 2018
The Age reports that “the last home of Australia's oldest fabric business is set to become another apartment building. Clegs, which started trading in the 1920s and sold everything from bridal silk to haberdashery, shut the doors of its Brunswick East store and entered liquidation this month owing $440,000.”
NSW Small Business Insolvency Growing
21 March 2018
PR Wire reports that “in spite of marginal improvements nationally in the 2017/18 quarter, small and medium sized businesses in NSW recorded an almost a seven per cent insolvency increase for the 2017 December quarter when compared with the corresponding 12-month period.”
14 March 2018
Business News WA reports that “Roebourne-based indigenous group Ngarluma Yindjibarndi Foundation, which employs more than 50 people at its business operations throughout the Pilbara, has been placed into voluntary administration.”
Print repair firm liquidated after director's illness
14 March 2018
CRN reports that “a married couple could lose $287,000 after their Melbourne-based printing repair business collapsed following the husband’s illness. The near-30-year-old company, Electron Flow, appointed Nicholas Giasoumi from Dye & Co as liquidator on 1 March, with the two directors and four employees losing their jobs.”
Legal
Disgraced former property developer Salim Mehajer charged with dealing prescription medication
26 March 2018
Ninenews.com.au reports that “former Auburn deputy mayor Salim Mehajer has been slapped with drug dealing charges a week after being declared bankrupt.”
McGrathNicol has plenty riding on Hastie case
14 March 2018
The Australian Financial Review reports that “when a key client sues you in court, there's a lot to lose regardless of the outcome. Which is the situation McGrathNicol finds itself in. The insolvency company is being sued by the Department of Employment over its receivership of Hastie Services, one of several companies within the collapsed Hastie engineering group. The case, filed in October, resumes in court this month.”
‘Serious problems’ with 40pc of audits: accounting watchdogs
13 March 2018
The Australian Financial Review reports that “global accounting watchdogs identified serious problems at 40 per cent of the audits they inspected last year, raising fresh concerns about the quality of work being done by the world's largest accounting firms.”
Viceroy's Australian connections snared in libel suit brought by MiMedx
11 March 2018
The Australian Financial Review reports that “the three members of Viceroy, the formerly anonymous short selling research firm with Australian links, will "vigorously contest" a US libel action brought this month by one of its targets, MiMedx Group.”
Troy Palmer has bankruptcy offer rejected in Newcastle meeting
10 March 2018
The Newcastle Herald reports that “creditors to former Hunter Sports Group chief executive Troy Palmer have declined to accept his offer of a “personal insolvency agreement”, insolvency trustee Chad Rapsey said on Friday. The Newcastle Herald reported in February that Mr Palmer was offering $120,000 – to be paid by his wife, Emma – to settle debts of more than $27 million, an offer of less than half a cent in the dollar.”
Charles Waterstreet ordered to pay more than $420k in income tax dispute
7 March 2018
The Sydney Morning Herald reports that “high-profile barrister Charles Waterstreet will consider declaring himself bankrupt after he was ordered to pay more than $420,000 to the Tax Office in a long-running dispute over unpaid income tax.”
Victorian drug dealer bankrupt, court told
7 March 2018
9 News reports that “A man who trafficked drugs to kids in regional Victoria will likely declare bankruptcy once he is released from prison. Former youth care worker Scott Wilson, 38, was jailed for a year on Wednesday after pleading guilty to selling drugs to his charges in a Gippsland town in 2016 and 2017.”
REVEALED: Coast's surprise new bankruptcy capital
5 March 2018
The Sunshine Daily News reports that “the financial tables have turned in a dramatic way with more people going into insolvency in Noosa than Nambour, latest figures show. The Federal Government's Australian Financial Security Authority has released the latest regional statistics for personal insolvency for the final months of 2017.”
Federal Circuit Court in controversy over Sandy Street
5 March 2018
The Australian reports that “it is 10.45am in Federal Circuit Court judge Sandy Street’s courtroom and already a man has been declared bankrupt and two Chinese men seeking protection visas have had their claims for judicial review rejected. The bankrupt has not appeared in court; his wife says the man is too depressed to attend.”
Not for profit
Aussie Farmers Direct’s charity foundation costly
21 March 2018
The Weekly Times reports that “Aussie Farmers Direct’s charity foundation spent nearly $1 in management fees for every $1 of grants delivered to rural communities in 2016-17.”
Bendigo Foodshare appeals for options to supplement freight services
12 March 2018
The Bendigo Advertiser reports that “a lack of transport is restricting Bendigo Foodshare’s supply of frozen and refrigerated goods, and registered agencies central Victoria are feeling the strain. Schools, not-for-profit organisations and charitable organisations are among those cutting back on programs helping people who are struggling to afford and access food.”
Primary industry
Coomboona dairy falls into receivership
28 March 2018
The Australian Dairy Farmer reports that “Gerry Harvey's investment in a Victorian dairy farm could end up costing Harvey Norman shareholders more than $60 million. The future of the dairy farm and cattle breeding business, Coomboona Holdings, is uncertain after National Australia Bank took control of the company late Friday, appointing receivers and managers to protect its position after Coomboona directors including Mr Harvey appointed administrators.”
Organic boosts revival in dairy farm values
27 March 2018
The Sydney Morning Herald reports that “one of the country’s biggest dairy property owners sees a revival in farm valuations, as it goes organic in an aggressive push to tap local and Asian demand for clean-and-green infant formula.”
Quintis finds suitors amid fight to split plantations
24 March 2018
The West Australian reports that “Quintis’ receivers have reported “good interest” from potential buyers and investors after closing the first phase of their expressions of interest campaign for the failed sandalwood company yesterday.”
Take the money or risk a bullet, says Murray Goulburn chair John Spark
14 March 2018
The Sydney Morning Herald reports that “the last rites are being read over the carcass of the woeful beast that was the Murray Goulburn investment vehicle. The explanatory memorandum was released on Wednesday which recommended investors accept the 80¢ per share takeover bid from the Canucks from Saputo.”
Musolino family buys SA's historic Thornborough Estate from receivers
3 March 2018
The Australian Financial Review reports that “the Musolino family of vegetable growers has purchased one of South Australia's grand old homesteads, Thornborough Estate in Virginia in the Adelaide Plains, for $3.15 million.”
Local government
KI Council hopeful of recovering runway expansion override costs
26 March 2018
The Islander reports that “Kangaroo Island Council is hopeful of recovering some of the Kangaroo Island Airport runway expansion cost overrides by working collaboratively with the funding partners.”
Education
Inquiry into RACP online exam fail begins
12 March 2018
ARN reports that “Ferrier Hodgson will undertake an inquiry into the technical glitch that caused the cancellation of an online exam being taken last month by students at the Royal Australasian College of Physicians (RACP).”
Entertainment
Vlahos punters face bankruptcy threat as trustee issues court claims
23 March 2018
The Herald Sun reports that “it comes as Vlahos pleaded not guilty to more than 300 fraud charges in the Melbourne Magistrates' Court this week. New photographs have also emerged of Vlahos celebrating Christmas with his extended family, while some of the 1500 punting club members have been forced to keep working.”
13 March 2018
The Bayside News reports that “canteen and kitchen works at the Frankston Dolphins Football Club’s function centre will be partly funded by ratepayers after Frankston Council decided to contribute $30,000 towards improvements at the centre.”
Manufacturing
Eaglehawk family business Keogh Manufacturing enters voluntary administration
8 March 2018
The Bendigo Advertiser reports that “after more than 60 years in business, Keogh Manufacturing has gone into voluntary administration. Directors met yesterday and made the call for the Eaglehawk family business to appoint administrators. The decision affects about 30 employees.”
North America
Mining and energy
U.S. biofuels sector blasts EPA settlement with bankrupt Philadelphia refinery
14 March 2018
Yahoo 7 News reports that “the U.S. Environmental Protection Agency's decision to grant a bankrupt Philadelphia refiner relief from biofuel laws drew criticism on Tuesday from the country's biofuels sector and its allies, who said it sets a bad precedent.”
Government
Michigan's oversight of troubled cities waning
3 March 2018
Yahoo 7 News reports that “Federal prosecutors who have already indicted President Donald Trump’s former campaign chairman Paul Manafort on charges of money laundering, bank fraud and covertly lobbying for pro-Russian interests may have additional leverage arising from a loan he received while engaged in the bankruptcies of properties in California, several former law enforcement officials say.”
Retail
US gunmaker Remington files for bankruptcy
26 March 2018
The Australian reports that “one of America's largest gun manufacturers, Remington Outdoor Co Inc, has filed for bankruptcy protection to carry out a debt-cutting deal with creditors amid mounting public pressure for greater gun control.”
Winn-Dixie is closing almost 100 stores as part of bankruptcy filing
17 March 2018
Business Insider reports that “almost 100 Winn-Dixie, Harveys, and Bi-Lo locations are closing in the Southeast as the regional grocery chains’ parent company prepares to file for bankruptcy. On Thursday, the parent company, Southeastern Grocers, announced it would “voluntarily implement a court-supervised, prepackaged restructuring agreement.” The company plans to file for bankruptcy by the end of March.”
Claire's is reportedly planning to file for bankruptcy as dying American malls claim another victim
10 March 2018
Business Insider reports that “teen retailer Claire’s is planning to file for bankruptcy in the next few weeks, Bloomberg reported. The fashion accessories chain known for its iconic ear-piercing service is planning to transfer ownership from Apollo Global Management LLC to a group of lenders. The company is currently being crippled by $US2 billion of debt.”
Legal
US proposes overhaul of ‘too big to fail’ regime
22 February 2018
The Australian Financial Review reports that “the Trump administration is proposing to recast a central pillar of post-crisis financial regulation with a new "Chapter 14" bankruptcy process designed to eliminate the risk that taxpayers will have to pick up the cost of a bank failure.”
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 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.”
Health
Nursing home chain HCR ManorCare to sell itself in bankruptcy
3 March 2018
Yahoo 7 News reports that “the second-largest U.S. nursing home operator, HCR ManorCare, will file for Chapter 11 protection in the coming days and transfer ownership to its landlord, Quality Care Properties Inc , the latest sign of distress in the senior housing industry.”
Investment
New York financier Lynn Tilton puts Zohar funds into bankruptcy
13 March 2018
Yahoo 7 News reports that “colorful New York financier Lynn Tilton has put her Zohar investment funds, a key element of her distressed-debt empire and the subject of several legal battles, into Chapter 11 bankruptcy, with a goal of selling assets or refinancing debt.”
Entertainment
Weinstein Company files for bankruptcy in 'new beginning'
20 March 2018
Yahoo 7 News reports that “the studio also said it was immediately releasing accusers from non-disclosure agreements which Weinstein had used to silence them, allowing women to speak up without fear of retaliation.
"Even as the company heads into bankruptcy, the company remains committed to doing whatever it can to maximize value for its creditors and... continue its pursuit of justice for any victims," it said.”
iHeartMedia files for bankruptcy protection
16 March 2018
Yahoo 7 News reports that “iHeartMedia, the largest internet radio broadcasting company in the US, filed for Chapter 11 bankruptcy protection on Thursday. Operator of the iHeartRadio music streaming service, iHeartMedia has been saddled by massive debt since its leveraged buyout of billboard company Clear Channel Outdoor in 2008.”
American Chopper star Paul Teutul files for bankruptcy
2 March 2018
News.com.au reports that “American Chopper star Paul Teutul has filed for bankruptcy in New York just days before the show was set to air. Teutul filed paperwork claiming that he owes close to 50 creditors $1,379,145 and that he was only worth $2,320,350 on February 28, according to court documents obtained by Page Six.”
Europe
Transport
Competitors circle in the great Alitalia carve-up
15 March 2018
Australian Business Traveller reports that “after a 71-year run, Italy’s bankrupt Alitalia may soon slide into the history books. Several international players are now looking to carve up the air travel market in Europe’s fourth-largest economy, with two Persian Gulf carriers leading the way.”
Air Berlin creditors plan to sue Etihad for damages: source
7 March 2018
Yahoo 7 News reports that “creditors of insolvent Air Berlin have decided to sue former parent Etihad Airways for damages over its decision to withdraw funding in August, which sent Germany's second-largest airline into administration, a person close to the matter said.”
Government
Greece's Varoufakis promises to end debt bondage with new party
26 March 2018
Yahoo 7 News reports that “Yanis Varoufakis, Greece's former finance minister who transfixed Europe with his unconventional style at the climax of the debt crisis, launched a new party on Monday promising to free his country from debt bondage.”
Croatia opposition calls no-confidence vote against deputy PM over Agrokor
21 March 2018
Yahoo 7 News reports that “Croatia's opposition on Tuesday filed a no-confidence motion against Deputy Prime Minister Martina Dalic over what it says should have been tighter control over those hired to stave off bankruptcy at indebted food concern Agrokor.”
Middle East
Investment
Saudi businessman al-Sanea seeks last-ditch debt deal – sources
13 March 2018
Yahoo 7 News reports that “Saudi Arabia's collapsed Saad Group, led by businessman Maan al-Sanea, has called a meeting with creditors in a last-ditch attempt to end a dispute over 16 billion riyals ($4.3 billion) of claims, sources close to the matter said.”
Asia
Manufacturing
Takata whistleblowers to share $1.7 million award, lawyers say
28 March 2018
Yahoo 7 News reports that “three former Takata Corp employees will share an award of $1.7 million after they alerted authorities to the risks of deadly air bag inflators that led to the largest recall in automotive history.”
GM says S Korean unit will file for bankruptcy without union concessions
27 March 2018
The Australian Financial Review reports that “General Motors said its loss-making South Korean operations would file for bankruptcy if its union did not agree to cut labour costs by April 20, the union said on Tuesday.”
Legal
Indian police target PNB Mumbai branch auditors in $2 billion fraud probe
2 March 2018
Yahoo 7 News reports that “federal police in India on Thursday told a court an internal auditor at a Mumbai branch of Punjab National Bank conspired with other officials to carry out a $2 billion fraud at the country's second-biggest state lender.”
Indian mobile carrier Aircel files for bankruptcy
1 March 2018
Yahoo 7 News reports that “Indian mobile carrier Aircel Ltd filed for bankruptcy on Wednesday, pressured by a high debt pile and mounting losses following a price war triggered by a telecom upstart. Talks between Aircel, 74 percent owned by Malaysia's Maxis Communications Bhd, and Reliance Communications Ltd (RCom) to combine their wireless business was called off in late 2017 due to regulatory and legal uncertainties and interventions by various parties.”