What We’re Reading This Week [May 4, 2020]
The Wall Street Journal reports that clothing retailer J. Crew Group Inc. has filed for chapter 11 bankruptcy in the United State Bankruptcy Court for the Eastern District of Virginia. The company has reportedly reached a deal with lenders owed approximately $1.65 billion to conduct a debt-for-equity swap. [WSJ; May 4, 2020]
German airline Lufthansa will reportedly receive state-backed loans from Switzerland and Austria, as reported by Reuters. Lufthansa is also in negotiations with the German government for an aid package of approximately $9.8 billion. [Reuters; Apr. 29, 2020]
Yahoo Finance reports that bankrupt restaurant chain Cosi Inc. is suing the United States Small Business Administration, alleging that the SBA cannot deny it access to loans available through the Paycheck Protection Program established by the federal Coronavirus Aid, Relief, and Economic Security Act on the grounds that the company is engaged in an ongoing bankruptcy proceeding. [Yahoo Finance; Apr. 28. 2020]
Reporting for Bloomberg indicates that private equity firms are seeking to invest in public companies that are experiencing financial distress as a result of the COVID-19 pandemic. Per the report, approximately $8 billion worth of such investment has occurred since the beginning of March. [Bloomberg; Apr. 27, 2020]
