What We’re Reading This Week [November 16, 2020]
Bloomberg reports that Revlon Inc. was able to exchange approximately $236.5 million of its $343 million in outstanding bonds that were scheduled to mature in 2021 in a deal that the company said should eliminate the need for a chapter 11 bankruptcy filing in the near future. [Bloomberg; Nov. 11, 2020]
The Washington Post reports that banks in the United States, which hold approximately $2 trillion in commercial real estate debt, are preparing for a substantial number of bankruptcy filings and defaults by borrowers caused by extended coronavirus-related economic restrictions. The reporting indicates that Signature Bank set aside $53 million last month to cover loan losses related to pandemic’s negative impact on the U.S. commercial real estate market. [WaPo; Nov. 11, 2020]
The Financial Times reports that Peabody Energy, the world’s largest private sector coal producer, could file bankruptcy for the second time in five years if it is unable to implement certain strategic alternatives that it is currently pursuing. Despite reducing its debt by approximately $5.2 billion as a result of its confirmed plan of reorganization in 2017, Peabody Energy is again facing financial difficulties, reporting a net loss of $67.2M for Q3 2020. [Financial Times; Nov. 9, 2020]
Reporting from the Wall Street Journal shows that the news about Pfizer’s possible COVID-19 vaccine breakthrough lifted stock prices for several companies that have experienced acute financial difficulties as a result of the COVID-19 pandemic. AMC Entertainment Holdings, Inc., Carnival Corp., Dave & Buster’s Entertainment Inc., Hertz Global Holdings, Inc., and Royal Caribbean International are among those who saw a lift following the positive vaccine news. [WSJ; Nov. 9, 2020]
