All items from WSJ.com: Bankruptcy Beat

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Atlantic City, N.J.’s Revel Casino Hotel heads to court Monday to protect a newly emerged bidder in the event someone else walks away with Revel’s assets.
A week after shutting down operations, Revel said Wednesday that it found a buyer, Polo North Country Club Inc., which has offered $90 million in cash for substantially all of Revel’s assets. It’s still unclear whether Polo and its principal, Florida real-estate developer Glenn Straub, plan to operate Revel as a casino.
As part of the bid, Revel is asking the U.S. Bankruptcy Court in Camden, N.J., to approve a $3 million breakup fee for Polo if the transaction doesn’t go through. The company is also asking to schedule an auction for Sept. 24, with competing offers due the day prior.



Posted 6 weeks 1 hour ago

Lehman Brothers Holdings Inc. on Thursday urged a judge to give it a quick victory over Citigroup Inc. in a fight over whether Citi can keep collecting millions in interest on $2 billion Lehman gave it shortly before its collapse. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
The operator of the Indiana Toll Roll is considering bankruptcy as is tries to cut its $6 billion debt load, WSJ reports.
MoneyBeat has more on RadioShack Corp.’s continuing cash troubles.



Posted 6 weeks 2 hours ago

High-yield market guru Martin Fridson’s latest statistical deep dive this week reveals a strange paradox: secured bonds are much more likely than unsecured bonds to end up trading at distressed levels. Fridson, chief investment officer at Lehmann Livian Fridson Advisors, finds that secured bonds account for 40.2% of distressed bonds (bonds trading with risk premiums of at least 10 percentage points over comparable Treasury bonds) outstanding even though they make up just 18.6% of the overall high-yield bond universe. He says 8.82% of outstanding secured issues are currently distressed, versus just 3.04% of senior unsecured bonds, making secured bonds 2.9 times as likely to end up distressed.
Fridson notes that secured bonds still enjoy better recoveries (58.8 cents on the dollar, on average) than senior unsecured bonds (38.9 cents) in the event of a default, but that bonds can suffer big price losses even without a default, as happened in 2007. Here’s Fridson, writing for S&P Capital IQ:
Somewhere there may be investors who do not care one bit if a bond takes a 30-point hickey, as long as they know they will be comparatively well off if the issuer eventually goes bankrupt. Over here in the real world, price declines do matter. Therefore, the goal of high-yield management is not merely to avoid defaults but also to avoid bonds that fall to prices indicative of a high probability of default….



Posted 6 weeks 20 hours ago

A Philadelphia-area swimming pool that opened in the late 1950s for black members who were denied access to a nearby whites-only pool has filed for bankruptcy.
Officials who put the Nile Swim Club of Yeadon into Chapter 11 protection on Wednesday didn’t explain the club’s survival plan in the seven-page bankruptcy petition.
Officials launched a fundraising effort earlier this year, telling a local newspaper that the club needs to pay off about $134,000 in taxes and plans to start a competitive swim team and basketball league.
The swim club, located in Yeadon, a suburb bordering Philadelphia, has a storied place in civil rights history. The facility opened in 1959 after two black families were not allowed into another “racially exclusive” club, according to the club’s website.
“Club management stonewalled the applicants, indicated that their paper work had become lost and refused to admit them as guests or members of the facility,” the Nile Swim Club’s website said, adding that the effort to establish the Nile Swim Club got national media attention and support from singer Harry Belafonte and the Supremes.



Posted 6 weeks 21 hours ago

[Editor’s note: We received this post from five Weil, Gotshal & Manges partners in response to this Examiners blog post on the gender gap in the restructuring field.]

Weil Gotshal partners, clockwise from top left: Ronit J. Berkovich, Marcia L. Goldstein, Debra A. Dandeneau, Jacqueline Marcus and Lori R. Fife
Weil, Gotshal & Manges

It was disappointing to read Philip Dublin’s piece concluding that restructuring is likely to remain a male-dominated field. Mr. Dublin may be correct that bankruptcy is currently a male-dominated field. However, as five successful female bankruptcy partners at Weil, Gotshal & Manges, one of the leading restructuring practices in the world, we feel compelled to point out that it does not need to be this way.



Posted 6 weeks 1 day ago

[Editor’s note: We received this post in response to our series of Examiners’ posts on work-life balance.]



Posted 6 weeks 1 day ago

Reuters/Shannon Stapleton

RadioShack Corp. is in talks to shore up its finances but is warning it could be forced to file for bankruptcy protection if the talks don’t work out, The Wall Street Journal reports.
As Atlantic City, N.J., continues to reel from a string of casino closures and bankruptcies, several investors are circling the closed Revel Casino Hotel, including a Florida developer who has made a $90 million bid. WSJ has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)



Posted 6 weeks 1 day ago

RadioShack , on the wrong side of history and struggling to turn itself around, said Thursday that it is in talks to raise more funds and hopes to announce an agreement soon. But it also said it’s about to run out of cash and could be forced to seek bankruptcy protection if the talks fail.
The company is considering just about anything–a sale, a short-term recapitalization, a debt restructuring–that might keep it afloat. RadioShack laid it all out in its quarterly filing with the Securities and Exchange Commission on Thursday. Here’s the relevant part:



Posted 6 weeks 1 day ago

Unsecured creditors of Lehman Brothers Holdings Inc.’s brokerage business will begin receiving their money back Wednesday, nearly six years after Lehman collapsed into bankruptcy and the brokerage was sold. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
The city of Detroit reached a tentative deal with Syncora that it hopes will ease its bankruptcy exit, WSJ reports.
WSJ takes a closer look into the bankruptcy of Trump Entertainment Resorts Inc. and how it will affect Atlantic City rivals.
Detroit is transferring its water department to regional authority, though the city will still maintain its own water and sewer system, WSJ reports.



Posted 6 weeks 2 days ago

Wedbush analyst Michael Pachter and team lowered their price target on RadioShack (RSH) to $0. They explain why:

In May, RadioShack announced that it was unable to successfully negotiate consent from its lenders under the 2018 Credit Agreement and Term Loan to close up to 1,100 stores. The terms offered by lenders were not acceptable to the company. RadioShack’s operational decisions are now being vetted by creditors and equity investors are no longer relevant to management decisions—the creditors clearly are in control of the ship and, in our view, the ship is sinking. The credit agreement allows the closure of 200 stores per year or 600 over the life of the agreement. We believe a bankruptcy reorganization is imminent…



Posted 6 weeks 2 days ago