What We’re Reading This Week [June 15, 2020]
PG&E Corp. received approval from the United States Bankruptcy Court for the Northern District of California to sell $20 billion worth of new debt and equity, reports the Wall Street Journal. Approximately $10.7 billion worth of both investment grade and high-yield bonds will be issued and the company is seeking to find investors to purchase approximately $9.3 billion worth of new equity. [WSJ; June 11, 2020]
In Blixseth v. Credit Suisse, the Ninth Circuit Court of Appeals ruled that section 524(e) of the Bankruptcy Code does not bar a “narrow exculpation clause” in favor of creditors in a plan of reorganization so long as the exculpation clause is “focused on actions of various participants in the Plan approval process and relating only to that process.” [Blixseth v. Credit Suisse; June 11, 2020]
Reporting from Forbes describes and criticizes the receipt of substantial bonuses, some of which were given on the eve of bankruptcy filings, by corporate executives of five high-profile, financially distressed companies. [Forbes; June 9, 2020]
The New York Times reports that luxury clothing retailer Brooks Brothers may soon seek bankruptcy protection after being forced to close three domestic clothing factories and layoff approximately 700 employees at such factories in light of the COVID-19 pandemic. [N.Y Times; June 5, 2020]
