FTX Found Funds, Celebs Get Hosed, and a Possible Retail Reckoning | Seward & Kissel LLP #FTX #Funds #Celebs #Hosed #Opportunity #Retail #Reckoning #Seward #Kissel #LLPNews Headlines
Under is our initial consider on new bankruptcy-similar developments:
Bankrupt FTX has located above $5 billion of dollars, liquid cryptocurrency, and liquid expenditure securities, which does not include another $425 million in crypto held by the SEC of the Bahamas. This amount nonetheless falls shorter of what FTX’s consumers are owed in complete.
S&K Acquire: Clearly large news for FTX lenders right here. FTX advisors also described that some of the Debtors’ investments may have a price of up to $4.6 billion. Creditors need to have to just take people numbers with a grain of salt, as there is however a whole lot of perform to be finished reconstructing the Debtors’ textbooks and data (to the extent that they at any time existed) and we do not genuinely have any strategy of what how the $5 billion could be valued. Yet, these are superior items. Statements traders that bought promises at $.08 are dancing in the streets.
Individual bankruptcy Filing Reveals Tom Brady, Kevin O’Leary, and Coinbase Among the Main FTX Lenders | Decrypt
Individual bankruptcy attorneys produced a extensive checklist of names and the number of shares held by previous FTX traders, which integrated quite a few famous people this sort of as Tom Brady, his ex-spouse Gisele Bundchen, Shark Tank’s Kevin O’Leary, and organizations less than the management of New England Patriots owner Robert Kraft. The listing also consists of businesses these as Blackrock and Coinbase.
S&K Choose: The intersection of personal bankruptcy and TMZ. There are a significant number of superior profile parties fascinated in the FTX cases, such as TB12 and his ex-wife. The quantities we are speaking about aren’t small both. Although this grabs headlines it obviously is not a massive problem in the situation, given that most of the celeb functions in interest are equity holders of some assortment. But, if John Ray finds another $5 billion in the couch cushions, it may make a difference.
Past week, Occasion Metropolis announced that it plans to file for personal bankruptcy in the coming weeks as it is faced with having difficulties profits and escalating expenditures due to inflation. The retailer is in discussions with its bondholders to transform credit card debt to fairness.
Mattress Bath & Over and above Posts Decline, Gross sales Slump, as Bankruptcy Threat Looms | Reuters
This 7 days, Bed Tub & Over and above reported a more substantial than anticipated quarterly decline and income dropped by a lot more than 30%, as the household items retailer has warned of a achievable bankruptcy in the coming months.
S&K Acquire: A couple of huge names looming on the bankruptcy horizon, both of those in the retail space. As filings (at minimum anecdotally) feel to mount, it looks like retail will be a significant section of the restructuring equation once again in 2023. These are some names that we observed in link with the pandemic that managed to stave off individual bankruptcy for a whilst. It looks like we may lastly see these entities operate out of runway and confront the audio.