What We’re Reading This Week [April 7, 2020]
Bloomberg reports that Quorum Health Corp., which operates hospitals in 14 states, filed for chapter 11 bankruptcy on April 7, 2020, as it grapples with the financial strain of COVID-19 coronavirus. The debtors have reportedly received commitments for $100 million in DIP financing and $200 million in equity from existing noteholders. [Bloomberg; Apr. 7, 2020]
According to New York’s comptroller, Scott Stringer, the city could lose approximately $4.8 to $6 billion in tax revenue as a result of the COVID-19 coronavirus, reports The Atlantic. [The Atlantic; Apr. 1, 2020]
Fortune reports that many U.S. financial institutions are seeking to discourage borrowers from drawing on existing credit lines, but expect that such draws are likely to come. Over the past two weeks, U.S. financial institutions have sold approximately $50 billion of bonds to meet the needs of borrowers. [Fortune; Mar. 30, 2020]
The FDIC issued a “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus,” which addresses how to account for loan modifications made in connection with COVID-19 coronavirus. [FDIC; Mar. 22, 2020]
