The Wall Street Journal analyzes the challenges and prospects of Gamestop Corp., AMC Entertainment Holdings Inc., Bed Bath & Beyond Inc., Nokia Corp., and Blackberry Ltd. In recent weeks, investors have bid up the share prices of these companies, as hedge funds and short sellers have bet against them. [WSJ; Jan. 31, 2021]
The New York Times reports that bankruptcy filings fell 40% last year in France and Britain and were down 25% on average in the European Union, noting that without government intervention, European business failures would have nearly doubled last year. Chapter 11 filings in the United States, by contrast, rose in Q3 2020 to the highest levels since the 2010 financial crisis. The New York Times asks whether Europe's strategy of protecting businesses and workers will cement a recovery, or leave economies less competitive and more depending on government aid once the pandemic recedes. [NYT; Jan. 25, 2021]
Reuters reports that China's HNA Group, whose flagship business is Hainan Airlines, is seeking private investors to help it emerge from bankruptcy. HNA Group's creditors moved to file for bankruptcy in China after it was put under a restructuring led by the Hainan government to resolve its liquidity risks related to years of overseas acquisitions. HNA Group has $27.5 billion worth of outstanding bonds in various currencies and another $20.0 billion in loans. [Reuters; Jan. 31, 2021]
The Real Deal notes that the New York-based real-estate startup, Knotel Inc., filed for chapter 11 protection, citing work-from-home pressures driven by the coronavirus pandemic. Knotel filed bankruptcy to reorganize its real-estate footprint and effectuate a sale of itself to real-estate services firm Newmark Group Inc. [The Real Deal; Feb. 1, 2021]
As reported in Yahoo Finance, a bankruptcy court ruled in favor of Visium Technologies, Inc., dismissing the involuntary bankruptcy petition filed against it and allowing Visium to file a motion and seek compensatory and punitive damages. [Yahoo Finance; Feb. 1, 2021]
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
