Grupo Famsa sees your bankruptcy request admitted

The commercial bankruptcy is the legal figure that will allow the company to negotiate with its creditors in Mexico, while in the United States the process is under Chapter 15 of the Bankruptcy Code of that country.

“Grupo Famsa will seek to reach an agreement and a comprehensive solution by seeking a restructuring of its liabilities through dialogue with its creditors,” said the firm in a statement sent to the Mexican Stock Exchange on the 7th.

The company had already applied on June 26 to enter Chapter 11 of the United States Bankruptcy Law to restructure its bonds under, but he withdrew his plan on July 10 . In addition, the National Banking and Securities Commission and the Ministry of Finance announced the liquidation of the Banco Ahorro Famsa unit, which, according to the authorities, was the product of “recurring regulatory breaches of regulatory provisions since 2016.”

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Pizza Hut decides to close 300 branches in this country due to bankruptcy

Source: Dubai – Arabia.net

Pizza Hut will close up to 300 locations as part of a deal between the Yum Brands chain and its largest franchise company in the United States, “NBC International.”

NPC will also offer its remaining 927 pizzas for sale.

The franchise owner, who also operates nearly 400 Wendy restaurants, filed for Chapter 11 bankruptcy protection from creditors in early July after struggling with his debt burden of nearly $ 1 billion.

“In the event that NPC does a sale of the Pizza Hut business, Pizza Hut’s focus will be on ensuring that the new ownership of NPC’s Pizza restaurants brings a strong capital structure, a sound balance sheet, commitment to operational excellence and sustained growth,” said a Pizza Hut spokesperson to CNBC.

NPC’s 1,227 Pizza Hut locations account for a fifth of the chain’s total in America.

In recent years, the Pizza Hut chain has departed from its reputation as a diner and sought to attract more attention by delivering it and eating out, a change that has accelerated the spread of the Coronavirus.

Pizza Hut recorded its highest weekly average of sales in the past eight years during the month of May.

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Hundreds of customers frustrated by store bankruptcy

An entrepreneur accused of billing tens of thousands of dollars for fabrics that were never delivered is now bankrupt.

A trustee came to change the locks of Karma Textiles, in the Cap-de-la-Madeleine sector, on Tuesday.

The adventure ends abruptly for Karine Lampron, targeted by hundreds of people from across Quebec who say they have been cheated.

Sheena Dubé Vézina had notably bought fabrics for more than $ 6,000, by Interac transfer. She wanted to start her own children’s clothing business.

The mother of three doesn’t expect to see her money back, however.

“Yes that disappoints me, because in fact, I saw (the entrepreneur) not very long ago. I went to buy some fabric in the store about a week ago. And everything seemed to be going well, ”she explains.

She still wants to go into business, but this financial loss will delay her for a year or two.

People who have not been reimbursed can still subscribe to the list of creditors.

“We are going to resell certain assets, textiles, and what we have on file. It’s very quick for me to pronounce, but we’ll see what happens, but there should be a dividend to the creditors, ”indicates the licensed insolvency trustee, Marc-André Houle.

Fortunately, some customers have been able to use insurance for their credit cards.

Karine Lampron had already gone bankrupt in 2017.

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US: US experiences its biggest wave of major bankruptcies in a decade

More than 400 large companies have filed for bankruptcy in since the beginning of the year, the worst data in a decade due to the COVID-19 pandemic, and in terms of magnitude, with billions of dollars committed across different sectors, an economic earthquake that shows no signs of abating , according to analysts.

“The bankruptcies have impacted a wide range of sectors this 2020 amid the coronavirus pandemic, but consumer-focused industries have been disproportionately harmed, “the firm said. S&P Global Market Intelligence in a report that covers listed companies with assets or debt exceeding US $ 2 million and US $ 10 million in the case of private ones.

His analysts, Tayyeba Irum and Chris Hudgins, put 424 those big bankruptcies accumulated at the beginning of this week, “which exceeds the number of filings in that comparable period since 2010” due to the sharp contraction of the economy.

Analysts still expect that “more companies will suffer as the pandemic of coronavirus stifles activity ”.

There are several types of bankruptcy under US law and business companies generally file for Chapter 11, which allows them to continue operating with a debt restructuring plan that must be approved by creditors, although others choose to liquidate their assets and close establishments to settle the liability.

In all, according to the American Bankruptcy Institute, the largest association of bankruptcy professionals, which reports to lawmakers, as of the end of July more than 4,200 business companies of all sizes had filed for Chapter 11 bankruptcy, and their principal executive Amy Quackenboss estimated in a note that there will be an “increase in the coming months.”

The BankruptcyData platform, which claims the largest database, points out that 46 firms have so far declared debts in excess of $ 1 billion, somewhat more serious than in the last two recessions: at this point in 2009 there were 40 such companies. indebted at the time of bankruptcy and in 2002 only 25, which would mean the largest magnitude of bankruptcies “of all time.”

The CEO of New Generation Research, James Hammond, who manages this platform, said in an interview with Efe that “the ‘shock’ in demand generated by the confinements has accelerated things” and nowadays we hear about chain stores and bankrupt restaurants, but non-profit organizations, universities, museums or hospitals will also begin to be seen.

Some of those firms already had problems before the and his arrival only accelerated the process, especially for those that required physical presence, such as retail, but experts point out that the trend will continue due to its weakness and despite the loans from the United States Government to protect payroll.

Retailers and restaurants, the most impacted

With more than 100 large companies in bankruptcy, the sector most impacted is consumer discretionary, according to the report, which includes a score of retailers with historical names such as Brooks Brothers, the oldest clothing brand in the country; Lord & Taylor, which had the oldest department stores; and popular brands like J.Crew or Ann Taylor.

Probably the most visible retail debacle is the luxury department store Neiman Marcus, which just over a year ago opened a 20,000-square-meter store in the upscale Hudson Yards shopping center in New York, and after the hiatus caused due to the pandemic, he has decided to leave it empty.

“Customers are and will continue to buy differently from before the pandemic”, Anticipated a spokesman for these well-known fashion department stores, which had a debt of more than US $ 5 billion when they took advantage of the Law of Bankruptcies, beginnings of May.

Other “victims” of the wave belong to the restaurant sector, such as NPC International, which operates the Pizza Hut and Wendy’s franchises, affected by the closure of establishments and, as in New York, by the absence of tourism, a problem that has suffocated to a large part of commercial premises in Manhattan.

The following sectors are the industrial and energy sectors, which together include another 100 large bankrupt companies, among which Hertz, specializing in vehicle rental, with some US $ 24,000 million in debt, and Chesapeake Energy, the pioneer of the technique of “fracking. “, with almost US $ 12,000 million of liabilities.

For BankrupcyData, construction and real estate companies are also among the most impacted, as well as health and medical ones, since “hospitals are hard to manage in good times, but if you take away elective surgeries and add the fear of going, there is a demand ‘shock’ itself, “added Hammond.

A bleak future

According to an analysis by the Stifel firm, store closures added to the “migration” to online shopping have contributed to the difficulties of retailers, which can infect companies “exposed” to their debt, while the “Unprecedented drop in energy demand” also suggests more bankruptcies in that industry.

Meanwhile, the application for loans is increasing to avoid layoffs, a “money that helped companies for a few months but not enough, since consumer activity is simply not there. There is a lot of fear of the virus, which continues to leave footprint in the states, “said Ben Schlafman, chief operating officer for New Generation Research.

The National Retail Federation (NRF) of the United States, which highlights how its sector employs one in four Americans and contributes US $ 3.9 billion to GDP, has launched a campaign to support the firms and demand a new package of fiscal stimulus that allows “protecting workers and customers” while they open safely.

“Optimism about the economy and spending in the retail sector is being tested every day by the spread of the coronavirus,” NRF chief economist Jack Kleinhenz said in a note. “Time will tell, but the bottom line is that the economy is far from getting out of danger, “he added.

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Nearly 500 companies declared bankruptcy in July

Bankruptcies registered in July resulted in 1,061 job losses: 568 full-time, 311 part-time and 182 salaried employers.

The most affected sectors are transport (172), catering (110), commerce (109) and construction (73).

At the regional level, there are 257 bankruptcies in Flanders, 134 in Wallonia and 93 in Brussels.

However, the figures communicated cannot be considered as a reliable measure of the real economic situation, underlines Statbel, because of the delay between the cessation of economic activity and the declaration of bankruptcy by the commercial court, of the limitation of the activities of courts and corporate clerks due to the coronavirus crisis and judicial recess.


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US oil shale pioneer declares bankruptcy

Chesapeake Energy, one of the first in the United States to begin exploration and production of shale oil, filed for bankruptcy. She sent the documents to the District Bankruptcy Court in Texas, according to the company’s website.

Chesapeake Energy asks the court for protection under Chapter 11 of the United States Bankruptcy Act, which allows for the reorganization of the company. The company’s debt is estimated at about $ 7 billion, the report said. Losses of Chesapeake Energy in the I quarter of 2020 amounted to $ 8.3 billion, liquidity at the end of March – $ 82 million. Previously, the company entered into an agreement with creditors. According to him, companies will provide a loan of $ 925 million and another $ 600 million for the issuance of debt bills.

Since January, Chesapeake shares have fallen by more than 93%, from $ 172 to $ 11.85, according to data at the close of trading on Friday, June 26. In early June, Bloomberg, citing sources, said that control of the company could go to one of the main lenders. According to CNBS, including Franklin Templeton, which manages assets, and Fidelity Investments, which provides financial services.

US shale oil producers write off up to $ 300 billion of assets in the second quarter of 2020, in the first quarter they wrote off assets of $ 38 billion. According to Deloitte estimates, 30% of shale oil developers can go bankrupt with an average oil price of $ 35 per barrel (in this quarter it is still $ 27), and another 20% will experience serious financial problems. According to the New York Times, about two dozen U.S. oil producers have already filed applications since the beginning of the year by resorting to Chapter 11 of the U.S. Bankruptcy Act. By the end of May, US average daily oil production fell to 11.2 million barrels from more than 13 million barrels in March, according to the Energy Information Administration. A decrease in production of approximately 1.75 million barrels this spring is directly related to the cessation of work on existing wells, according to IHS Markit. According to her forecasts, most of the production will be able to return by the end of September.

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One of the pioneers of the US oil shale industry declared bankruptcy :: Business :: RBC

Chesapeake Energy shale oil producer owes $ 7 billion. Bloomberg said earlier that control of the company could go to one of the lenders.

Chesapeake Energy, considered one of the pioneers in the US oil shale industry, has filed for bankruptcy, according to the corporation’s website.

“The company has voluntarily filed for Chapter 11 defense with the United States Southern Texas Bankruptcy Court to facilitate a comprehensive restructuring of the balance sheet,” the statement said.

The company’s debt amounted to about $ 7 billion. Under an agreement with creditors, Chesapeake Energy will receive a loan of $ 925 million. In addition, lenders and holders of secured bills will allocate $ 600 million to it.

The flagship of the US oil shale industry pledged almost all assets on a loan

According to the corporation’s report, in the first quarter of 2020, Chesapeake Energy’s net loss was $ 8.3 billion, and its liquidity was $ 82 million.

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Air for owner Steps and Miss Etam

Finally a little bit of good news for the Belgian fashion group FNG. On Friday, three groups of bondholders of the company, owner of fashion chains Miss Etam, Claudia Sträter and Steps, also operating in the Netherlands, agreed to defer payment. For all bonds maturing in 2021, totaling 20 million euros, FNG will not have to pay off any debts or interest until the end of this year.

Negative reports about FNG have followed each other in recent months. Trading in the share has come to a halt since May this year because the Belgian stock exchange regulator is investigating the company. The FSMA questions a number of unclear transactions in the 2018 annual report. Meanwhile, the chief financial officer and the chief executive officer – one of the company’s three founders – have been replaced and a crisis manager has been appointed.

Also read: Suddenly the fairytale of fashion empire FNG seems to be over

Recently, the 2019 annual figures published with a delay revealed the exact nature of the problem at FNG. The fashion group suffered a loss of 293 million euros last year, even before the corona crisis. Moreover, the company had a total debt of almost 734 million euros.

The annual figures revealed even more. Sales for 2018 had to be revised, and were reduced from 512 to 472 million euros. In addition, the report found that the new company freeze may not provide all figures, because for some transactions “the underlying documents are missing, incomplete or unclear, or the economic rationale is unclear”. A third of the loss was found to be due to ‘bad debts’, money that ran through complex purchasing structures, but that FNG is unlikely to be able to recover. Flemish newspapers also wrote this week that FNG artificially boosted profits with at least one takeover.

The bond holders’ payment deferment now gives a bit of air, but is just one of the many hurdles to be overcome for FNG. Earlier this week, the fashion group announced a reorganization. FNG is closing 47 stores in Belgium, and 287 employees – a quarter of the Belgian staff – could lose their jobs in the near future.

The company is also still negotiating outstanding loans with banks, and is in talks with the Flemish government. He is not only a shareholder, but has also invested 22.5 million euros in the company.

In addition, at a fourth meeting that was held on Friday and where votes were to be voted on bonds worth 45 million euros maturing in 2023, there were not enough members present to vote. A new date is set for this.

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In the case of bankruptcy “the Opening of the Holding” there was a Ukrainian lender :: Finance :: RBC

VTB demanded that “the Opening of the Holding” RUB 13.6 billion.

In RCT are concerned that the decision by a Belarusian court will “Cascade” “claim in the bankruptcy proceedings holding the candidacy of the liquidator to control bankruptcy,” said RBC senior associate RKT Alex Maystrenko. By law, a Trustee approved by the court, but creditors may offer their candidacy.

“Trust” supports the actions of RKT, told RBC press service of the Bank: “Indeed, there is reason to believe that the actions of the “Cascade” aimed at giving legal force fictitious debt for the subsequent unfair acts in the bankruptcy case”.

“Power of attorney “Discovery Holding” in Belarus were issued before the claim is submitted, the holding company knew in advance that there will be a trial. Correspondence all the defendants in response to the claim about collecting of the debt was made promptly and received in his arms. It all looked too coordinated” — lists Maystrenko.

He believes that “Cascade”, “most likely, has an actual affiliation to “the Opening of the Holding”. RKT will challenge the transaction, pursuant to which Cascade purchased the promissory note of the holding, added Maystrenko.

The court has not examined none of the statements on bankruptcy, like the lawyer Forward Legal Daniel Bukharin. The first will be considered the statement of the holding company, the debtor can not to choose a particular liquidator, he said. If the court finds that the application of the holding unfounded, the following will be considered the statement of the Bank “trust”. According to Bukharin, “Cascade”, most likely, will not be able to influence the process of choosing the liquidator in the near future.

“The opening of the holding” has asked the court to declare itself bankrupt

Photo: Maxim Stulov / Vedomosti / TASS

Phone and email listed on the website “the Opening of the Holding”, on Wednesday, June 10, was not available. Represent the company’s interests, the lawyer is not able to provide comment. Contacts “Cascade” in the public domain.

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Karstadt Kaufhof complains about opening branches in NRW

Kaufhof in Cologne

The owner Signa merged Karstadt and Kaufhof and has been running them under the common name Galeria Karstadt Kaufhof since March.

(Photo: picture alliance / dpa)

Dusseldorf The ailing department store giant Galeria Karstadt Kaufhof is taking legal action against the closure of its branches in the corona crisis. The group has filed a lawsuit against the Münster Higher Administrative Court against the fact that department stores in North Rhine-Westphalia are not allowed to open.

According to the court, the country has now been given the opportunity to comment. A decision could be made in the coming week. A group spokesman initially did not want to comment.

Galeria Karstadt Kaufhof with its 28,000 employees is particularly affected by the store closures. Except for food and drugstore departments, which are separately accessible, all houses must remain closed due to the corona crisis.

According to the company, the company therefore misses a turnover of around 80 million euros every week. If the closure lasts until the end of April, the loss of sales should have totaled half a billion euros.

The governments had announced that the shops would gradually reopen on Monday. However, in a first step, only shops with an area of ​​less than 800 square meters are allowed to open. The Karstadt and Kaufhof stores have an average sales area of ​​12,500 square meters.

However, the state of North Rhine-Westphalia has embarked on a special route: it also allows furniture stores, including those of the large Ikea chain, and baby specialty stores to be opened. Galeria is not covered by this regulation. Several retail chains and associations had already criticized that this would result in an arbitrary distortion of competition.

Another way out remains Galeria in North Rhine-Westphalia: The state government has already announced that it should not be possible in NRW to reduce the sales area to 800 square meters by barriers, so that it can at least partially open. Other federal states, such as Lower Saxony, had promised this.

Group struggles for survival

Due to its difficult situation, Galeria Karstadt Kaufhof had applied for self-administered protective shield proceedings in early April. The protective shield procedure is considered the preliminary stage of insolvency, follows the same rules and often leads to a regular insolvency procedure.

It is reserved for companies that are not yet insolvent, but are at risk of bankruptcy. Under the protective shield, they are safe from access by creditors for three months and should therefore have enough time to organize their finances.

As has now become known, the Signa holding company of the Austrian investor René Benko sells 17 properties from the ailing department store chain Galeria Karstadt Kaufhof. The buyers are funds from the financial investor Apollo EPF. According to the Bloomberg news agency, the purchase price is around 700 million euros. That is exactly the same amount that Benko claims to have invested in Galeria as an additional capital injection.

A Signa spokesman declined to comment on Friday. The transaction was already registered for review at the Federal Cartel Office at the end of March, and the competition authorities released the sale on Wednesday this week. Signa has been the sole owner of the troubled department store group Galeria Karstadt Kaufhof and numerous department store properties of the company since June 2019.

More: Return to normality: what the relaxation of the corona rules means for the trade

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