What We’re Reading This Week [June 29, 2020]
The New York Times reports that natural gas extraction company Chesapeake Energy Corporation has sought chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Southern District of Texas. Chesapeake’s bankruptcy is reportedly the largest bankruptcy of a United States oil and gas company since 2015 (N.Y. Times; June 29, 2020)
German fintech company Wirecard AG sought insolvency protections in Munich after disclosing bookkeeping discrepancies revealed in an annual audit that called into question the existence of approximately $2.1 billion in cash recorded in its 2019 accounts, reports Reuters. Wirecard is the first member of Germany’s DAX Stock Index to seek insolvency protection. [Reuters; June 26, 2020]
Queso Holdings, the parent company of children’s entertainment company Chuck E. Cheese, filed for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Southern District of Texas, citing an unsustainable capital structure, reports the Washington Post. The company is seeking to confirm a restructuring plan that supports reopening its locations in the near term. [WaPo; June 25, 2020]
The Wall Street Journal reports that the economic disruption caused by the COVID-19 pandemic coincided with an economic environment wherein substantial corporate debt was purchased by funds that subsequently sold purportedly safe collateralized loan obligations to global investors. [WSJ; June 24, 2020]
