What We’re Reading This Week [November 23, 2021]
The Wall Street Journal reports that the US Senate passed a bill to require lawyers, accountants, consultants and other professionals hired by Puerto Rico in its bankruptcy proceedings to make additional disclosures of their various connections, in order to shed light on potential conflicts of interest. In February 2021, a companion version of this bill unanimously passed the House of Representatives. [WSJ; Nov. 18, 2021]
Reporting from Bloomberg discusses how distressed debt funds have sought to rebrand in response to government stimulus and low interest rates, which have substantially decreased the overall level of distress in the market. The reporting highlights how some traditional distressed debt investors are now highlighting investments in “global opportunities,” “opportunistic real estate,” and “special situations,” among others, while overall distress remains low. [Bloomberg; Nov. 17, 2021]
Reuters reports that two shareholders of Eagle Hospitality Real Estate Investment Trust, a bankrupt Singaporean hotel real estate trust, could face jail time over a purportedly fraudulent scheme in which the debtor obtained loans through the US government’s Paycheck Protection Program that was established to help small businesses during the COVID-19 pandemic. [Reuters; Nov. 15, 2021]
Bloomberg reports that Judge Christopher Sontchi from the US Bankruptcy Court for the District of Delaware, who has served as chief judge of the court since 2018, will retire from the bench in 2022. [Bloomberg; Nov. 15, 2021]
