What We’re Reading This Week [August 17, 2020]
The Wall Street Journal reports that Aeromexico, Mexico’s flagship airline which filed for bankruptcy in the US earlier this year, has obtained commitments for up to a $1 billion in debtor-in-possession financing facility from Apollo Global Management Inc. The financing consists of two tranches, with one tranche holding a debt-to-equity conversion option. [WSJ; Aug. 14, 2020]
Reporting from Yahoo Finance indicates that Australian telecommunications company Speedcast International Limited has received a $395 million equity commitment from Centerbridge Partners, L.P. and its affiliates as well as up to $220 million in new debtor-in-possession financing. Centerbridge, which is one of Speedcast’s largest lenders, committed to provide Speedcast’s existing secured lenders with the opportunity to participate in the equity commitment on a pro-rata basis. [Yahoo Finance; Aug. 12, 2020]
The Chicago Tribune reports on the substantial number of small, local businesses that are ceasing operations due to the economic impact of the COVID-19 pandemic. The reporting suggests that the closure of these businesses, many of which will not ultimately file for bankruptcy, should be considered in conjunction with bankruptcy filing statistics in order to understand the full economic impact of the COVID-19 pandemic. [Chicago Tribune; Aug. 12, 2020]
Stein Mart Inc., a Jacksonville, FL based off-price retailer, filed for chapter 11 bankruptcy protection on August 12, 2020 in the United States Bankruptcy Court for the Middle District of Florida, reports Reuters. The Company plans to close many, if not all, of its retail locations in connection with its bankruptcy filing. [Reuters; Aug. 12, 2020]
