United States: What we read this week [April 19, 2021]
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Bloomberg and CNN reported on the potential impact that the break in the use of Johnson & Johnson’s Covid-19 vaccine could have. In the wake of the announcement, shares of housewives rebounded, while shares of travel companies fell, with investors worried about the potential long-term impact. [Bloomberg;
April 13, 2021 & CNN; April 14, 2021]
The Wall Street Journal reported an escalating bidding war for Hertz as previously outbid investors returned to the table with a counterbid for the car rental company in Chapter 11 with a valuation of $ 6.2 billion. dollars. Knighthead Capital Management LLC and Certares Management LLC’s revised offer challenges a restructuring offer Hertz accepted earlier this month, backed by Centerbridge Partners LP, Warburg Pincus LLC and Dundon Capital Partners LLC valuing the company at around $ 5. $ 5 billion. [WSJ; April 16, 2021]
Following the death of Bernie Madoff last week, the WSJ reported the continued fallout from his Ponzi scheme. The Madoff liquidation case, overseen by three bankruptcy judges since it began, could easily go on for years, especially after the Supreme Court last year gave the green light to the court-appointed trustee for pursue the return of certain products of the Ponzi scheme which have passed between foreign institutions. As of February, the trustee had clawed back or made settlements to recover about $ 14.4 billion of the estimated $ 17.5 billion in client money. [WSJ; April 14, 2021]
Compared to Bloomberg, distressed debt investors continue to struggle to find opportunities in the United States, where access to liquidity has enabled more and more companies to borrow to get out of trouble. Chapter 11 deposits slowed to just four last week, and total distressed debt stock fell below $ 90 billion, from nearly $ 1 trillion at the peak of the pandemic. [Bloomberg; April 13, 2021]
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