Theater club – Acotonline http://acotonline.org/ Tue, 21 Jun 2022 00:12:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://acotonline.org/wp-content/uploads/2021/10/icon-4-120x120.png Theater club – Acotonline http://acotonline.org/ 32 32 Who’s to blame for the hostess’ bankruptcy: Wall Street, the unions, or the carbs? https://acotonline.org/whos-to-blame-for-the-hostess-bankruptcy-wall-street-the-unions-or-the-carbs/ Fri, 12 Mar 2021 01:43:29 +0000 https://acotonline.org/whos-to-blame-for-the-hostess-bankruptcy-wall-street-the-unions-or-the-carbs/ Try all of the above. (Reuters) Hostess Brands, the makers of Twinkie and Wonder Bread, are about to bake their latest corn syrup cupcake. After failing to secure major contract concessions from one of its main unions, the beleaguered 82-year-old company has filed in federal bankruptcy court to get permission to start liquidating its assets […]]]>

Try all of the above.

(Reuters)

Hostess Brands, the makers of Twinkie and Wonder Bread, are about to bake their latest corn syrup cupcake. After failing to secure major contract concessions from one of its main unions, the beleaguered 82-year-old company has filed in federal bankruptcy court to get permission to start liquidating its assets – or, in person, to begin the process of selling parts of the company to the highest bidder while laying off most of its 18,500 workers.

There are two important things to realize about this rather sad situation. First: Twinkie, Wonder, and all the other high-calorie wonders of culinary science that Hostess sells aren’t going to disappear from the shelves for good. One of its competitors will probably dive into, buy them back and restart production. So you can stop bidding on $100 boxes of Sno Balls on eBay.

Second: This is not a simple story that anyone should try to fit neatly into their political arguments. It’s not just Wall Street going after Main Street, or big bad unions sucking white for a healthy American business. It’s a whole galaxy of bad decisions that will cost many people their jobs and their money.

Like David Kaplan chronic long for Fortune earlier this year, the roots of this debacle go back to when Hostess filed its first bankruptcy in 2004. Much like the situation automakers would find themselves in a few years later, the company was collapsing under the weight of declining sales, overly generous union contracts. filled with ridiculous work rules and big debts. But unlike the automakers, Hostess’ five years of trying to fix herself in Chapter 11 haven’t solved her core problems.

Instead, they set the stage for his eventual demise. A private equity firm, Ripplewood Holdings, paid about $130 million to privatize Hostess, and the company’s two main unions, the Teamsters and the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, sacrificed about $110 million in annual salaries and benefits. . But his employment contracts were still deeply flawed. Worse still, the company emerged from bankruptcy with more debt than it had – “an unusual circumstance which the company justified by expectations of ‘growth’ in its capital structure”, as the company put it. Kaplan.

Needless to say, Hostess hasn’t grown much. He continued to lose hundreds of millions of dollars making and selling starchy snacks that much of the public had lost the taste for, while failing to launch quality new products. The interest on his loans swelled the company’s debt. By January 2012, he was back in Chapter 11, trying to negotiate a new contract with more concessions from his unions.

Hostess insisted that unless workers agree to further cuts, the company would have to shut down permanently. It’s the kind of threat that troubled companies often make in collective bargaining, and unions tend to view it as a bluff. But after looking through Hostess’s books, the Teamsters concluded the threat was serious. Its members narrowly approved the contract in September.

The bakers’ union, which represents about a third of the hostess workforce, did not. Instead, they launched a strike last week which Hostess CEO Greg Rayburn said forced the company to take the final dramatic step of liquidating everything and firing workers. By the AP:

Although many workers decided to cross the picket lines this week, Hostess said that was not enough to keep operations at normal levels; three factories were closed earlier this week. Rayburn said Hostess was already operating with thin margins and the strike was a final blow.

“The strike impacted us in terms of cash flow. Factories were operating well below 50% capacity and customers were not getting product,” Rayburn said.

It is unclear what, other than perhaps misplaced faith in the belief that they really had the upper hand, could have convinced the bakers to strike. Certainly the Teamsters anything but begged they accept the new contract. Some, interviewed by CNNMoney, said their jobs simply weren’t worth keeping at the pay levels offered by Hostess. If that really was the mainstream view, it’s a shame, because a lot of people at this company seemed to believe their jobs were valuable enough to keep, even if they were at a lower pay grade.

Already, some parties have tried to politicize this matter. The AFL-CIO today called him “a microcosm of what’s wrong with America, as the vultures from Wall Street to Bain get rich by making Americans poor.” GOProud sent an email with a wink titled “Unions are killing the Twinkies” (literally, they wrote in a wink).

Both takes are exceptionally reductive. Let’s first look at Wall Street. Private equity players will likely lose most of their investment because their stake in the company will be worthless. Nor is it clear that the hedge funds and other lenders who provided Hostess with its mountain of loans will fare much better. When it entered Chapter 11 this year, the company owed about $935 million, if you include the extra loan it took out to keep the lights on and the cream flowing. Meanwhile, Reuters reports that the company has listed $981.6 million in assets in its bankruptcy filing. There’s virtually no chance they’ll ever sell in a liquidation. One of the failed bids to buy the whole business after its last bankruptcy valued it at just $580 million. And that was when it was an ongoing operation. If you factor in the interest payments that Hostess has made on its loans, some of the creditors might end up getting away with it. But it seems unlikely that someone will do a murder.

In short: the smart money guys dumped Hostess with too much debt and never came up with a real plan to fix her business. They come out with a loss as a result.

Regarding the unions: You can blame them for not making enough concessions. You can blame the bakers for administering the final knockout blow. But you can’t blame them for strategic management incompetence or the decision to try to run a struggling company on debt, hope and empty calories.

There’s more than enough blame in this story for everyone involved to get a taste.

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Intelsat Files Chapter 11 Bankruptcy Under Burden of Debt https://acotonline.org/intelsat-files-chapter-11-bankruptcy-under-burden-of-debt/ Fri, 12 Mar 2021 01:43:29 +0000 https://acotonline.org/intelsat-files-chapter-11-bankruptcy-under-burden-of-debt/ Intelsat Stock (I) – Get the Intelsat SA report flew out of orbit on Thursday as the indebted satellite operator sought bankruptcy court protection. At last check, Intelsat’s share price fell 36% to 51 cents after the Luxembourg satellite company announced it had filed for Chapter 11 bankruptcy in federal court in Virginia. Intelsat said […]]]>

Intelsat Stock (I) – Get the Intelsat SA report flew out of orbit on Thursday as the indebted satellite operator sought bankruptcy court protection.

At last check, Intelsat’s share price fell 36% to 51 cents after the Luxembourg satellite company announced it had filed for Chapter 11 bankruptcy in federal court in Virginia.

Intelsat said the move was necessary to raise funds to prepare for a government auction of part of its television and radio program signal spectrum.

Intelsat said it had lined up $1 billion in debtor-in-possession funding to prepare for the auction, part of a broader effort by the Federal Communications Commission to free up C-band spectrum for construction of 5G wireless infrastructure in the United States.

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WA State wage garnishments on consumer debt suspended during coronavirus https://acotonline.org/wa-state-wage-garnishments-on-consumer-debt-suspended-during-coronavirus/ Fri, 12 Mar 2021 01:43:29 +0000 https://acotonline.org/wa-state-wage-garnishments-on-consumer-debt-suspended-during-coronavirus/ Related practices and jurisdictions On April 14, 2020, Washington Governor Jay Inslee released Proclamation 20-49, ordering a temporary stay of all new consumer debt judgment garnishments, as well as a stay of enforcement of any garnishment order already issued for a consumer debt judgment. The order applies only to judgments for “consumer debts,” which Proclamation […]]]>

On April 14, 2020, Washington Governor Jay Inslee released Proclamation 20-49, ordering a temporary stay of all new consumer debt judgment garnishments, as well as a stay of enforcement of any garnishment order already issued for a consumer debt judgment. The order applies only to judgments for “consumer debts,” which Proclamation 20-49 and Revised Code of Washington 6.01.060(2) define as “any obligation or deemed obligation of a consumer to pay money flowing [from] a transaction… [that was] primarily for personal, family or household purposes. Consumer debt includes medical debt.

The proclamation prohibits garnishments of wages, consumer bank accounts or other income, including stimulus payments received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to satisfy these consumer debt judgments. The order also suspends accrual of postjudgment interest on all consumer debt judgments.

According to the proclamation, garnishment orders for consumer debt judgments, combined with “increasing interest” on those debts, will further reduce the ability of Washington residents who have already been negatively impacted by the economic downturn to pay. basic household expenses. Based on this, Governor Inslee found that consumer debt garnishment orders unreasonably increased risk to life, health and safety in light of the COVID-19 pandemic.

Washington employers who were in the process of seizing employee earnings under consumer debt judgments were required to suspend those seizures effective April 14, 2020 and ensure that the earnings of any employee making the subject to consumer debt writs do not have garnished wages for the effective period of the proclamation. Employers can still receive new writs to garnish employee wages for non-consumer debt judgments, such as child support judgments, and employers must still comply with all such legal garnishment orders. A willful violator of the garnishment order may be guilty of a serious offense and subject to criminal penalties.

Proclamation 20-49 was issued pursuant to Washington law emergency powers legal provisions. Under these provisions, the proclamation is only effective for 30 days, or until May 14, 2020, unless the proclamation is withdrawn or properly extended in accordance with Washington law. As governor Inslee has already indicated, the state”Stay Home – Stay Healthy” order will likely be extended beyond its current expiry date of May 14, 2020, and we anticipate that it will also extend the stay of customer debt garnishment orders.


Ogletree Deakins will continue to monitor and report on developments regarding the COVID-19 pandemic and will post updates in the Coronavirus (COVID-19) Resource Center as additional information becomes available.

© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, PC, All rights reserved.National Law Review, Volume X, Number 119

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Hertz in talks with creditors to avoid default, faces May 4 deadline https://acotonline.org/hertz-in-talks-with-creditors-to-avoid-default-faces-may-4-deadline/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/hertz-in-talks-with-creditors-to-avoid-default-faces-may-4-deadline/ (Reuters) – Hertz Global Holdings Inc. HTZ.N said Wednesday it was in talks with its lenders to avoid defaulting on debt related to its fleet of rental vehicles, after skipping a payment due on April 27. FILE PHOTO: The logo of U.S. car rental company Hertz is seen at Nantes-Atlantique airport in Bouguenais near Nantes, […]]]>

(Reuters) – Hertz Global Holdings Inc. HTZ.N said Wednesday it was in talks with its lenders to avoid defaulting on debt related to its fleet of rental vehicles, after skipping a payment due on April 27.

FILE PHOTO: The logo of U.S. car rental company Hertz is seen at Nantes-Atlantique airport in Bouguenais near Nantes, western France, April 7, 2016. REUTERS/Stephane Mahe

Hertz, whose subsidiary Hertz Corp operates rental brands Hertz, Dollar and Thrifty, said in a regulatory filing that it had experienced a “sudden and dramatic negative impact” on its business due to the coronavirus pandemic, which has crushed demand for rental cars as people cancel trips and stay home.

Hertz shares were trading at around $3.71 on Wednesday, down about 20% on the day and down about 80% since late February. Billionaire Carl Icahn owns 38.9% of Hertz.

The Estero, Fla.-based company has been working with debt restructuring advisers to rework its finances, Reuters reported last week. The company’s debt stands at $17 billion.

Hertz said too few lenders have so far accepted its waiver or forbearance request for missed payments. Hertz said it has until May 4 to reach an agreement.

Hertz’s preparations for possible bankruptcy have accelerated, a source familiar with the matter said this week. The source requested anonymity as the deliberations are confidential.

Hertz did not immediately respond to a request for comment.

Hertz also said on Wednesday it had taken “aggressive steps to eliminate costs.” Earlier this month, the company announced it would lay off 10,000 employees as its revenue dries up.

A trade group representing Hertz, the American Car Rental Association, has called on Congress to do more for the industry by expanding a $2.3 trillion stimulus package and advancing new legislation targeting tourism-related businesses. .

Even before the pandemic, Hertz and its peers were under financial pressure as travelers turned to ride-sharing services such as Uber Technologies Inc. UBER.N.

To fight against Uber, Hertz had adopted a recovery plan, aimed at modernizing its smartphone applications and improving its management of its fleet of rental cars.

Reporting by Jessica DiNapoli in New York; Editing by Leslie Adler

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Las Vegas tourism authority buys bankrupt monorail line https://acotonline.org/las-vegas-tourism-authority-buys-bankrupt-monorail-line/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/las-vegas-tourism-authority-buys-bankrupt-monorail-line/ The long financial saga of the struggling Las Vegas monorail could be coming to an end after its second bankruptcy. The project emerged from this second bankruptcy with the sale of the line to the Las Vegas Convention and Visitors Authority. But this time the bondholders will be paid. During the first round in 2011, […]]]>

The long financial saga of the struggling Las Vegas monorail could be coming to an end after its second bankruptcy.

The project emerged from this second bankruptcy with the sale of the line to the Las Vegas Convention and Visitors Authority. But this time the bondholders will be paid. During the first round in 2011, bondholders took a soak Haircut.

A Las Vegas monorail train draped in a Google ad runs during the 2019 Consumer Electronics Show.

Bloomberg News

In the first bankruptcy, the monorail’s debt was reduced from $650 million to $13 million.

The LVCVA purchased the line for $24 million, according to documents filed with U.S. bankruptcy court in Las Vegas. The majority of the purchase price covers $22 million in debt wholly owned by municipal bond investor Preston Hollow Capital LLC.

The authority closed its acquisition of the assets of Las Vegas Monorail Co. last week. The US Bankruptcy Court in Las Vegas approved the sale November 24.

The monorail closed in March due to the pandemic and was unable to reopen, general manager Curtis L. Myles III said in a statement. filed in bankruptcy court in September. He said at the time that it was in the system’s best interest to file for Chapter 11 bankruptcy and trigger an asset sale.

Myles was unavailable for further comment, according to a spokeswoman.

In 2010, company officials attributed financial difficulties to overly optimistic ridership and revenue forecasts.

In 2020, pandemic restrictions forced the monorail to lay off 93% of its staff, cut pay for the remaining workers by up to 30% and cut maintenance and operating expenses to a bare minimum, according to bankruptcy documents. . The system had been tapping into debt service reserves to pay bondholders since April.

As owners, the board of directors of the Las Vegas Convention and Visitors Authority on Thursday approved the elimination of a no-competition zone for the monorail, which will allow Elon Musk’s Boring Company to develop a 15-mile network of tunnels that it says can connect Strip and downtown Las Vegas resorts with McCarran International Airport and Allegiant Stadium.

The elevated monorail moves nearly five million people a year, according to LVCVA, many of whom attend meetings at the convention center. The LVCVA said it plans to resume monorail operations when demand returns.

The expertise of key personnel from the existing monorail team will be retained and part of the Western Management Group will be contracted by the LVCVA to manage and operate the system, the LVCVA said.

The monorail began in 1995 with service between MGM Grand and Bally’s using two used monorail trains that previously operated at Walt Disney World. The system was expanded and reopened with seven stops on July 15, 2004, along the station corridor.

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Oasis Petroleum Bankruptcy: 9 Things OAS Stock Investors Should Know https://acotonline.org/oasis-petroleum-bankruptcy-9-things-oas-stock-investors-should-know/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/oasis-petroleum-bankruptcy-9-things-oas-stock-investors-should-know/ Oil Oasis (NASDAQ:AEO) voluntarily enters Chapter 11 bankruptcy protection as it seeks to reduce its debt. Source: Shutterstock Here’s what OAS stock investors gotta know on the bankruptcy of Oasis Petroleum. The company notes that it is filing for bankruptcy in hopes of reducing its total debt by $1.8 billion. This represents 100% of its […]]]>

Oil Oasis (NASDAQ:AEO) voluntarily enters Chapter 11 bankruptcy protection as it seeks to reduce its debt.

Source: Shutterstock

Here’s what OAS stock investors gotta know on the bankruptcy of Oasis Petroleum.

  • The company notes that it is filing for bankruptcy in hopes of reducing its total debt by $1.8 billion.
  • This represents 100% of its Senior Unsecured Notes and Convertible Senior Unsecured Notes.
  • OAS expects to emerge from bankruptcy with $340 million borrowed from its credit facility.
  • He notes that he acquired $450 million in debtor-in-possession financing to allow him to continue operations through the process.
  • This includes the continuation of its current upstream and production operations.
  • It will also allow the company to continue paying employees, vendors and suppliers.
  • Oasis Petroleum notes that the bankruptcy does not affect Oasis channel partners (NASDAQ:PKO) or one of its subsidiaries in which it holds an interest.
  • The company attributes the need for bankruptcy restructuring to falling oil and gas prices, as well as the effects of the novel coronavirus on the economy.
  • The company is looking to get through the bankruptcy process quickly and hopes to exit in November 2020.

Thomas Nusz, President and CEO of Oasis Petroleum, had the following to say about the news of the bankruptcy.

“We are confident that we are taking the right steps to position the business for long-term success. We thank our lenders and noteholders for their support, which reflects their confidence in our company and our team, and which will allow us to move quickly through the court-supervised process.

OAS stock was down 30.2% on Wednesday afternoon.

As of the date of publication, William White had (neither directly nor indirectly) any position in the securities mentioned in this article.


Article printed on InvestorPlace Media, https://investorplace.com/2020/09/oasis-petroleum-bankruptcy-details-for-investors/.

©2022 InvestorPlace Media, LLC

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Simon Property Group’s Connecticut Mall Appraisal Section https://acotonline.org/simon-property-groups-connecticut-mall-appraisal-section/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/simon-property-groups-connecticut-mall-appraisal-section/ Crystal Mall in Waterford, Connecticut (Crystal Mall via Facebook, Getty) The valuation of around two-thirds of Simon Property Group’s Crystal Mall in Waterford, Connecticut has been reduced by 87% to just $18.7 million, a sign of the seriousness of the situation for many malls in suburb. According to Trepp, approximately 518,000 square feet of the […]]]>

Crystal Mall in Waterford, Connecticut (Crystal Mall via Facebook, Getty)

The valuation of around two-thirds of Simon Property Group’s Crystal Mall in Waterford, Connecticut has been reduced by 87% to just $18.7 million, a sign of the seriousness of the situation for many malls in suburb.

According to Trepp, approximately 518,000 square feet of the property was backed by a $95 million commercial mortgage-backed securities loan. With the new valuation, the loan-to-value ratio reaches 508%, which means that the mall’s debt is worth about five times more than the majority of the mall.

This part of the property was valued at $153 million in 2012.

The reduction in valuation is hardly a surprise: a report from ratings agency Kroll Bond in November said Simon planned to hand over the keys to the Crystal Mall, along with three other malls, to its lenders.

Trepp notes that the loan is currently in foreclosure and that Simon is working with the lender to return the property.

Shopping center owners are increasingly giving away their keys to their lendersespecially in so-called Class B malls, which typically generate lower sales per square foot than Class A malls.

In most cases, these malls are backed by non-recourse CMBS loans. But because the loans are non-recourse, the lender can only go after the mall, as opposed to other assets owned by the borrower, making key return an attractive option.

Starwood Capital, Brookfield Property Partners and Namdar Real Estate have all sought to return struggling malls to their lenders. And Simon recently lost control from downtown Cobb Mall in suburban Atlanta after the property was seized by Deutsche Bank, according to the Marietta Daily Journal.

Even before the coronavirus, the crystal mall struggled to attract traders and visitors.

Occupancy fell to 78% in 2019 from 89% in 2012. Meanwhile, net operating income fell to $4.2 million from $11.5 million during the same period, Trepp noted.

In 2018, Sears filed for bankruptcy and vacated its 149,240 square foot flagship store at the mall. According to Bloomberg, there were 35 vacant storefronts in August 2020, nearly a third of the mall’s total stores almost seven years ago.

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Tom Girardi, ex-husband of Erika Jayne, withdrew his law degree after being diagnosed with Alzheimer’s https://acotonline.org/tom-girardi-ex-husband-of-erika-jayne-withdrew-his-law-degree-after-being-diagnosed-with-alzheimers/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/tom-girardi-ex-husband-of-erika-jayne-withdrew-his-law-degree-after-being-diagnosed-with-alzheimers/ In November 2020, fans were stunned as Erika Jayne and Tom Girardi announced their divorce. Fans have speculated a lot about the causes, citing everything from cheating to a clever financial scheme. This week, fans of The Real Housewives of Beverly Hills got answers many never imagined. As of yesterday, Tom lost his license to […]]]>


In November 2020, fans were stunned as Erika Jayne and Tom Girardi announced their divorce.

Fans have speculated a lot about the causes, citing everything from cheating to a clever financial scheme.

This week, fans of The Real Housewives of Beverly Hills got answers many never imagined.

As of yesterday, Tom lost his license to practice law… after being diagnosed with Alzheimer’s disease.

We Weekly reports that on Wednesday, March 10, an affidavit written by clinical psychiatrist Dr. Nathan Lavid was filed.

In it, Dr. Lavid testified that the 81-year-old suffered from delusions and “moderate” disorders.

Erika Jayne at the Season 10 Reunion Special

According to the affidavit, Tom is unable to attend court hearings on any matter and will remain so “for the foreseeable future”.

“Dementia impairs one’s ability to understand hearing,” Dr. Lavid wrote.

“His emotional distress is directly related to his dementia,” the affidavit continues.

“And,” Dr. Lavid warned, “exacerbated by his confusion.”

Erika Jayne and Tom Girardi together

This news follows another revelation earlier this week regarding Tom’s law license.

The California State Bar said Tom was “not eligible to practice law.”

If you know how difficult it is to have someone’s license revoked, you know how important it is.

Erika Jayne, veiled and disapproving

Now, it seems clear that Tom’s lack of eligibility is due to his reduced mental capacity.

It takes more than just obvious public signs of cognitive struggles to lose a license of law.

(This topic was widely explored late last year as many members of the public wondered how Rudy Giuliani was still licensed to practice)

Erika Jayne and Tom GirardiPhoto

Tom Girardi has previously claimed in court that he was broke, saying he had “no money left”.

He is currently being sued by partners Robert Keese, Robert Finnerty and Jill O’Callahan.

Their company, Girardi Keese, also reportedly owes Wells Fargo $882,000.

Erika Jayne explains the problem

In December 2020, a judge froze Tom’s assets. (If you know how hard it is to get a judge to do that, then you know how dire things must be.)

Tom’s brother, Robert Girardi, was appointed as its temporary curator.

“There was an urgent need for Bob Girardi to be given the authority to engage counsel in the bankruptcy proceedings on behalf of his brother,” Tom’s attorney explained in February.

Erika Jayne drinks while tense

Robert claimed in court that Tom’s current cognitive difficulties prevented him from managing his own case.

He claimed Tom was ‘unable to realize and understand the repercussions of the pending bankruptcy filings against him and the debtor’.

Robert prepares to pursue permanent guardianship over his brother’s estate, personal affairs, health, and even day-to-day activities.

Erika Jayne makes her point

With guardianships being a hot topic among disability rights advocates and the #FreeBritney movement, it’s a now familiar topic.

There have been a number of calls for the laws on the matter to change to guard against abuse.

However, many have noted that some people need help managing their lives… and Tom may be one of them.

Erika Jayne enjoys a tasty drink

Real Housewives star Erika, 49, has not publicly commented on Tom’s alleged health issues.

(She accused Tom of cheating on her…it’s unclear how these reports might change her views.)

All of this and more is expected to be hinted at in season 11 of RHOBHwhich is of course spinning.

Erika Jayne goes into detail

It’s a really tough thing for anyone to go through, and it’s a naturally sensitive topic for Erika, with or without the divorce.

She has to weigh how many things to discuss in public…but this publicized news may give her permission to talk about it on camera.

Of course, given her job, she might not have much choice.

Erika Girardi for Bravo

If she doesn’t bring it up herself, we all know her fellow Bravo cast members will be asking her questions until she does.

Or just talk about it behind his back.

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No layoffs as Provision reorganizes https://acotonline.org/no-layoffs-as-provision-reorganizes/ Fri, 12 Mar 2021 01:43:28 +0000 https://acotonline.org/no-layoffs-as-provision-reorganizes/ Knoxville, Tenn. (WVLT) – Provision CARES proton therapy centers have begun their reorganization. As part of the Chapter 11 bankruptcy process, they have a plan to restructure their long-term debt. Knoxville Centers; Nashville and Hamlin, Florida will continue to operate as usual. The company says it continues its commitment to care. Patients who receive this […]]]>

Knoxville, Tenn. (WVLT) – Provision CARES proton therapy centers have begun their reorganization. As part of the Chapter 11 bankruptcy process, they have a plan to restructure their long-term debt.

Knoxville Centers; Nashville and Hamlin, Florida will continue to operate as usual. The company says it continues its commitment to care. Patients who receive this cutting-edge diagnosis and treatment will not be affected. The security measures put in place at the start of the pandemic are still in place.

Terry Douglass, chairman of the board of Provision, said: “It always shows up when something like this happens as being negative. But from our point of view, it is very possible that our centers will now be structured in such a way as to significantly reduce debt service. This will allow us, first, to provide more charitable care due to uncertainty and reimbursement, and then to be able to accept every patient who needs proton therapy.

The pandemic has played a role in this organizational restructuring as there are fewer patients seeking care during the COVID-19 crisis, as well as changes in Medicare reimbursements and a cyberattack on their data and information systems .

Officials said there would be no layoffs at this time. Provision employs nearly 200 people in Tennessee.

Company executives said they intend to remain focused on patient care and expect to announce long-term financial restructuring plans in the near future.

Copyright 2020 WVLT. All rights reserved.

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JC Penney Files for Chapter 11 Bankruptcy, Obtains $900 Million for Debt Restructuring https://acotonline.org/jc-penney-files-for-chapter-11-bankruptcy-obtains-900-million-for-debt-restructuring/ Fri, 12 Mar 2021 01:43:27 +0000 https://acotonline.org/jc-penney-files-for-chapter-11-bankruptcy-obtains-900-million-for-debt-restructuring/ Plano, TX— JC Penney Co. (NYSE: JCP) has filed for Chapter 11 bankruptcy in an effort to strengthen its finances through a broad debt restructuring. The company filed on the evening of Friday, May 15 in U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi. The Plano-based retailer secured $900 million […]]]>

Plano, TX— JC Penney Co. (NYSE: JCP) has filed for Chapter 11 bankruptcy in an effort to strengthen its finances through a broad debt restructuring. The company filed on the evening of Friday, May 15 in U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi.

The Plano-based retailer secured $900 million in debtor-in-possession financing from its existing senior lenders, which is expected to reduce its total debt load by billions of dollars.

JC Penney, a company with a 118-year operating history, said it will disclose in the coming weeks the number and locations of stores that will be closing. Currently, due to the coronavirus pandemic, about 40 of JC Penney’s approximately 850 U.S. stores are open, with another dozen or so offering curbside pickup only.

In mid-March, the retailer began laying off workers from its supply chain and distribution centers in response to the COVID-19 outbreak. Furloughs for store associates and company staff followed two weeks later.

“As we concurrently worked on options to strengthen our balance sheet and expand our financial track, the closure of our stores due to the pandemic necessitated further consideration to include the elimination of outstanding debt,” says Jill Soltau, CEO of JC Penney.

According CNN Business, JC Penney posted losses of $3.9 billion between 2010 and 2018 as big discount retailers and e-commerce startups chipped away at its market share. The company also went through three different CEOs during this period before Soltau took over in late 2018. The company saw its biggest wave of closures in 2017, a year in which around 140 stores were closed.

Kirkland & Ellis LLP is JC Penney’s legal counsel during the bankruptcy proceedings. Lazard is acting as financial advisor and AlixPartners LLP as restructuring advisor.

The company’s stock price closed at just 24 cents per share on Friday, May 15, before the bankruptcy announcement. As of noon Eastern Standard Time on Monday, May 18, the stock was trading at 20 cents per share. The stock price was $1.15 per share a year ago and traded at over $84 per share at its all-time high in 2007. The New York Stock Exchange can delist a company after 30 consecutive days trading below $1 per share.

Taylor Williams

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