What We’re Reading This Week [July 19, 2021]
Reuters reports that Limetree Bay refinery in the U.S. Virgin Islands, which filed for chapter 11 bankruptcy protection on July 12, 2021, requires at least $1 billion in funding in order to continue operating as a going concern. The Limetree refinery, which was only recently resurrected, was in operation for only three months before U.S. regulators shut it down in May 2021 due to public safety concerns. The reporting indicates that Limetree was unable to obtain emergency financing in an amount over $25 million. [Reuters; July 15, 2021]
The Hill reports that Senate Majority Chuck Schumer is calling for the National Rifle Association to be investigated for bankruptcy fraud. In May, a Texas bankruptcy court dismissed the association’s bankruptcy case, finding that it had been filed in bad faith for the improper purpose of avoiding litigation brought against it by New York state regulators. Prior posts on the bankruptcy, and subsequent dismissal, are available here and here. [The Hill; July 12, 2021]
The Washington Post reports that the U.S. Department of Education continues to routinely contest requests for student loan discharges in bankruptcy despite other government programs aimed at providing relief to student loan borrowers who have needed it in the wake of the COVID-19 pandemic. [WaPo; July 17, 2021]
Reporting from Yahoo Finance indicates that Puerto Rico’s financial oversight board recently reached a deal with the main group of the island’s unsecured creditors that brings it one step closer to restructuring around a proposal that involves reducing overall debt by approximately $35 billion. [Yahoo Finance; July 13, 2021]
