The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. (iStock)

AMC is trying to stave off the final curtain.

The movie theater chain is close to hammering out a restructuring deal that would save it from bankruptcy, according to the Wall Street Journal.

The deal involves bondholders providing a $200 million senior loan and exchanging their unsecured claims for second-lien debt at an undisclosed discount. Meanwhile, Silver Lake Group, a private equity firm that has a seat on AMCs board, will move into a first-lien position with its $600 million in convertible bonds.

AMCs senior lenders, a group that includes Apollo Global Management, submitted their own counterproposal. Their deal would see the lenders fork over an additional $200 million in senior debt, in addition to the $200 million from bondholders, and block Silver Lakes exchange into a first-lien position. But AMC is close to rejecting that proposal, according to the Journal.

The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. The chain expects to reopen most of its 600 U.S. theaters by July 30. [WSJ] Erin Hudson

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AMC nears deal to avoid bankruptcy - The Real Deal

Happy Friday! This was another big week for bankruptcies, as well as a rough week for retail workers forced to face off against anti-mask customers.

If this e-mail was forwarded to you, welcome to The Drive-Thru, BI Retail's weekly newsletter that fills you in on everything you need to know in retail from the c-suite to the checkout cashiers. Subscribe here to get me, Kate Taylor, and my colleague, Shoshy Ciment, in your inbox every Friday.

Here's what you need to know this week.

Alex Tai/SOPA Images/LightRocket via Getty Images

It was another week packed with bankruptcies including:

The pandemic played a significant role in all four bankruptcies. However, COVID can't completely explain the companies' financial troubles. People may have ditched "hard pants" and suits while in quarantine, but as Bethany and Madeline report both Lucky Brands and Brooks Brothers have struggled to stay relevant in recent years as trends shift.

To quote Neil Saunders, managing director of GlobalData Retail, on Brooks Brothers: "Its formal, old-school approach found favor among mature and more traditional demographics, but it has become increasingly out of step with a new generation of consumers who are looking for a more edgy approach to smart casual."

You can keep track of the more than 20 retailers and restaurant companies that have filed for bankruptcy so far this year here.

People dine out in Austin, Texas, June 28, 2020. Sergio Flores/Reuters

As BI's science team reports, masks are crucial in stopping the spread of the coronavirus. But, convincing customers to wear masks is creating its own set of problems.

This week, I covered viral tantrums in stores like Costco and Target as customers refused to wear masks. Late last week, I spoke with a McDonald's worker in California who was assaulted and had to go to the hospital. She told me she asked a customer to wear a mask, and he responded by grabbing and hitting her through the drive-thru window.

What are some solutions? Starbucks announced a national mask policy on Thursday, becoming the first restaurant chain to do so and following in Costco's footsteps. The chain is emphasizing de-escalation and promoting other ways anti-mask customers can place orders, in an effort to avoid conflict.

But, some restaurants have decided the harassment is simply too much. Restaurants in states including Texas, California, and Michigan have announced plans to once again shutter dining rooms, blaming rude customers who refused to wear face coverings.

Read the full story on restaurants and masks here.

Graham Johnson

Whole Foods is facing backlash after sending workers home from a Milford, Connecticut store for wearing shirts printed with the phrase "racism has no place here."

"We believe we are being targeted for speaking up about the injustices that are going on right now," Graham Johnson, one of the reprimanded workers, told Hayley. "We've never had an issue with dress code at our store before now."

The backlash in Connecticut is on top of the reports of almost daily protests at a store in Massachusetts over its dress code.

Read the full story here.

Melanie Stetson Freeman/The Christian Science Monitor via Getty Images

Irene wrote about a type of business that can have a direct impact on police brutality corner stores that have often been sites of conflict and police violence. She talked with the Inner-city Muslim Action Network, or IMAN, about how the group tries to start conversations that make communities safer.

"We're agitating storeowners to, in this moment, not be people who just self-identify as Muslim, but to really live that out in the way they practice their business, to be advocates for restorative justice in their neighborhoods at a time like this," said IMAN deputy director Shamar Hemphill.

Read the thoughtful piece here.

Courtesy of McDonald's

Irene also took us inside the solar-powered McDonald's that just opened in Disney. Disney World isn't quite open yet, but the solar-powered McDonald's is already open for drive-thru and delivery service.

The photos are fantastic take a look here.

Burger King

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The Drive-Thru: Mask drama at Starbucks, Costco, and more bankruptcies - Business Insider - Business Insider

Early in the pandemic, it was clear that retailers would struggle as the coronavirus halted foot traffic and forced temporary store closures. Industry experts expected a tidal wave of bankruptciesthen did a double take when it didn't happen.

Well, its happening...and its hitting the apparel sector especially hard. In the last week a laundry list of apparel companies whose clothes you shouldnt put in the laundry filed for bankruptcy.

Sales in retail overall have rebounded a bit, up 1% year over year, but clothing and accessories have been the hardest-hit category by far. Just-Style reports May sales in the sector were still down -63% year over year.

In total, U.S. retailers are expected to permanently close between 20,000 and 25,000 stores this year.

Zoom out: Even though apparel has been the weakest link, the broader retail industry is definitely still riding the struggle bus: Kitchen goods retailer Sur La Table filed for bankruptcy yesterday, while Bed Bath and Beyond experienced a 49% drop-off in Q2 sales. And the hits keep coming: Walgreens announced plans to cut 4,000+ jobs in its Boots UK business in the United Kingdom after an 85% drop in foot traffic in April.

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The Wave of Bankruptcies That Many Expected Is Finally Here - Morning Brew

Many companies, both large and small are filing for bankruptcy.

Hertz, Neiman Marcus, Golds Gym, Apex Linen and Piquero Leasing.What do all of these companies have in common?They have all filed for bankruptcy under Chapter 11.While the first three are grabbing all of the headlines, there is a greater likelihood that your company has done business with one of the 500 smaller companies that have filed for reorganization.Most likely, these companies have filed because revenues are down and expenses have stayed the same.If your company was doing business with a company that is now in bankruptcy, you are a creditor.Here are the top 8 things you should know.

1.The Automatic Stay. Small companies are facing more pressure than ever to pay their bills.As soon as a company files for bankruptcy, there is an automatic stay of any collection efforts against it (whether it is a demand letter, a lawsuit or anything else).The purpose of the automatic stay is to give the company breathing space to figure out what it is going to do.You dont have to do anything proactively, such as dismissing an existing lawsuit, you just cant continue trying to collect, unless you ask the court for relief to continue with your collection efforts.However, unless you are a secured creditor, you will most likely not be granted relief.

2.First Day Motions.As soon as a company starts the bankruptcy case, it files motions known as first day motions.These are motions that will let the company continue to operate, by paying wages owed to employees just before the filing, permitting the company to utilize cash to pay its post filing bills and so forth.Even though you will get formal notice of the filing, that will not happen for a few weeks.By then, the first day motions have already been ruled on.If you hear a rumor that a company you deal with has filed, contact your lawyer immediately.Your attorney will be able to go onto the federal court dockets to see whether the case was filed.Why is this important?There are a number of reasons.For example, if you are what is known as a critical vendor, you may be able to get paid what you were owed when the case was filed.The standard to be a critical vendor is high, but if the company files that kind of a motion, you should try and have your business included.

3.Cash Collateral.If a company borrows money before bankruptcy, the lender will insist on some type of security.This security normally will include, among other things, liens on real estate and accounts receivable.Once the company files for bankruptcy, it can only use cash either with permission of the lender or with the approval of the court.One of the first day motions will be a request to use cash collateral.The motion will include a budget.You should have your lawyer ask the debtors attorney for a copy of the budget, to see if the debtor intends to pay you going forward.

4.File a Request for Notices.It is difficult for a non-lawyer to monitor a bankruptcy case.If your lawyer files a request for notices, they will receive everything filed in the case via email.

5.Schedules.Early on in the case, a debtor must file what are called the Schedules. The Schedules are a listing of what a debtor owns and what it believes it owes.It is very important for your attorney to review the Schedules to make sure (1) your claim is included and (2) it is for the right amount.If the amount your company is owed is either not included or included for the wrong amount and you do nothing, what the debtor says in the Schedules will form the basis for the amount you will receive.If your debt is listed as disputed, unless you file a proof of claim, you may get nothing.

6.Proof of Claim.In order for you to tell the debtor how much you believe you are owed, you will need to file a proof of claim.This is not something that has to be done immediately and you will receive formal notice of the deadline of when to file, as well as how it is filed.

7.Reclamation. If this applies to you it is important because there is a narrow window for you to act. Reclamation refers to the right of a seller to reclaim goods sold to a debtor while the debtor was insolvent.The Bankruptcy Code sets out the specific process and timing that has to be followed in order to be able to reclaim your goods.If your company is in this position, it is important that you notify your attorney immediately of the bankruptcy.

8.Executory Contracts and Unexpired Leases of Nonresidential Real Property.One of the things the debtor gets to do is to decide is which of its contracts it wants to keep and which ones it wants to get rid of.Keeping a contract is called assumption and getting rid of one is called rejection.The debtor has until the end of the case to make this decision.If the debtor is going to assume a contract it has to pay all of the money that was owed when the case filed or show how it will pay those amounts.If your company is a party to a contract, it has to continue to perform and the debtor has to pay for the work during the bankruptcy.If the debtor doesnt pay, you can ask the Court to have the debtor decide what it is going to do before the end of the case.Landlords fare better.The debtor has to decide within 120 days if it going to assume or reject the lease (this deadline can be extended for 90 days).If the debtor does nothing by the deadline, the lease is deemed to be rejected.

As you can see, there are things you need to know if you are a creditor.While you probably dont want to spend more money chasing your debt, you should consider having your lawyer do those things to protect your company and the money it is owed.

Originally posted here:

Top 8 Things You Should Know As A Creditor In Bankruptcy - Forbes

On 11 May 2020, the President of Kazakhstan Kasym-Zhomart Tokayev ordered the suspension of the initiation of bankruptcy proceedings against legal entities and individual entrepreneurs until 1 October 2020 to prevent pressure from creditors acting in bad faith.

In accordance with this order, the Ministry of Finance of the Republic of Kazakhstan developed a draft Resolution of the Government of the Republic of Kazakhstan "On Suspending the Initiation of Bankruptcy Proceedings" (the "Resolution").

It should be noted that currently Kazakhstan laws do not establish any clear criteria to be used by the court to determine a creditor acting in bad faith at the time when the creditor applies to the court to declare the debtor bankrupt. Apparently, this is why the publicly available draft Resolution does not itself refer to "creditors acting in bad faith".

According to the draft Resolution, the state revenue authorities and quasi-public entities shall not file with the court applications to declare legal entities and individual entrepreneurs bankrupt during the period from 11 May 2020 until 1 October 2020.

Thus, should the Resolution be adopted, it will impose a temporary moratorium on initiation of bankruptcy proceedings by state revenue authorities and quasi-public entities.

The notion of "quasi-public entities" includes:

Adoption of the Resolution in its current version will not result in a ban on initiating bankruptcy proceedings at the request of the debtors themselves and (or) other creditors (including international financial organisations and second-tier banks).

We understand that as of the date of this publication the Resolution has not been adopted yet.

We are closely monitoring the situation and will keep you updated on any developments.

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Moratorium on initiation of bankruptcy proceedings to be introduced in Kazakhstan - JD Supra

An attorney for the Weinstein Co. told a judge on Thursday that he hopes to wrap up the bankruptcy case in December, pending approval of a $46.8 million settlement.

The settlement, announced on June 30, resolves most of the civil litigation surrounding Harvey Weinsteins sexual misconduct. Under the agreement, $18.9 million would go to claimants in a class action case and their attorneys, and another pool of $5.4 million would be set aside for plaintiffs who filed individual lawsuits. The funds will be paid out of insurance policies.

The deal still must receive approval from Judge Alvin Hellerstein, who is overseeing the class action case, and Judge Mary Walrath, who is handling the Weinstein Co. bankruptcy.

Attorneys Douglas Wigdor and Kevin Mintzer, who represent plaintiffs who have refused to settle, have said that the deal is a complete sellout of Weinsteins survivors, and have said they will vigorously object in court.

Paul Zumbro, an attorney for the Weinstein Co. bankruptcy estate, gave Walrath an update on the settlement in a telephonic hearing on Thursday morning. He conceded that the deal was by no means perfect, but said it represented the best compromise that could be achieved. He also laid out the next steps in the class action suit and in the bankruptcy case, and said he aimed to get confirmation of the Weinstein Co. liquidation plan in December.

The Weinstein Co. declared bankruptcy in March 2018, following revelations of decades of Weinsteins sexual assault and harassment. Lantern Capital, a Dallas private equity firm, bought the companys assets for $289 million, and subsequently rebranded the firm as Spyglass Media.

The sale proceeds went to the companys secured lenders, leaving only the insurance policies to pay out Weinsteins victims. Under the settlement agreement, $7.3 million will go to the companys unsecured trade creditors.

Another $12.2 million goes to attorneys who defended Harvey Weinstein and the directors and officers of the Weinstein Co.

Wigdor and Mintzer have objected that Weinstein is paying nothing into the settlement, and that the insurance companies will be absolved from covering the claims of the holdout plaintiffs. They also contend that the class action attorneys will be seeking millions in fees for an objectively unsuccessful result.

Weinstein is serving a 23-year sentence for rape and sexual assault at Wende Correctional Facility near Buffalo, N.Y.

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Weinstein Co. Aims to Wrap Up Bankruptcy Case in December, Amid Objections - Variety

What Is Bankruptcy?

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts.The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.

Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while giving creditors a chance to obtain some measure of repayment based on the individual's or business's assets available for liquidation. In theory, the ability to file for bankruptcy benefits the overall economy by allowing people and companies a second chance to gain access to credit and by providing creditors with a portion of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations that were incurred prior to filing for bankruptcy.

All bankruptcy cases in the United States are handled through federal courts. Any decisions in federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file and whether they should be discharged of their debts. Administration over bankruptcy cases is often handled by a trustee, an officer appointed by the United States Trustee Program of the Department of Justice, to represent the debtor's estate in the proceeding. There is usually very little direct contact between the debtor and the judge unless there is some objection made in the case by a creditor.

Bankruptcy filings in the United States fall under one of several chapters of the Bankruptcy Code, including Chapter 7, which involves the liquidation of assets; Chapter 11, which deals with company or individual reorganizations; and Chapter 13, which arranges for debt repayment with lowered debt covenants or specific payment plans. Bankruptcy filing costs vary, depending on the type of bankruptcy, the complexity of the case, and other factors.

Individualsand in some cases businesses, with few or no assetstypically file Chapter 7 bankruptcy. It allows them to dispose of their unsecured debts, such as credit card balances and medical bills. Those with nonexempt assets, such as family heirlooms (collections with high valuations, such as coin or stamp collections);second homes; and cash, stocks, or bonds must liquidate the property to repay some or all of their unsecured debts. A person filing Chapter 7 bankruptcy is basically selling off their assets to clear their debt. People who have no valuable assets and only exempt propertysuch as household goods, clothing, tools for their trades, and a personal vehicle worth up to a certain valuemay end up repaying no part of their unsecured debt.

Businesses often file Chapter 11 bankruptcy, the goal of which is to reorganize, remain in business, and once again become profitable. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and find new ways to increase revenue. Their preferred stockholders, if any, may still receive payments, though common stockholders will not.

For example, a housekeeping business filing Chapter 11 bankruptcy might increase its rates slightly and offer more services to become profitable. Chapter 11 bankruptcy allows the business to continue conducting its business activities without interruption while working on a debt repayment plan under the court's supervision. In rare cases, individuals can also file Chapter 11 bankruptcy.

Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earner's plan. It allows individualsas well as businesses, with consistent incometo create workable debt repayment plans. The repayment plans are commonly in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property, including otherwise nonexempt property.

While Chapter 7, Chapter 11, and Chapter 13 are the most common bankruptcy proceedings, especially as far as individuals are concerned, the law also provides for several other types:

When a debtor receives a discharge order, they are no longer legally required to pay the debts specified in the order. What's more, any creditor listed on the discharge order cannot legally undertake any type of collection activity (such as making phone calls or sending letters)against the debtor once the discharge order is in force.

However, not all debts qualify to be discharged. Some of these include tax claims, anything that was not listed by the debtor, child support or alimony payments, personal injury debts, and debts to the government. In addition, any secured creditor can still enforce a lien against property owned by the debtor, provided that the lien is still valid.

Debtors do not necessarily have the right to a discharge. When a petition for bankruptcy has been filed in court, creditors receive a notice and can object if they choose to do so. If they do, they will need to file a complaint in the court before the deadline. This leads to the filing of an adversary proceeding to recover money owed orenforce a lien.

The discharge fromChapter 7 is usually granted about four months after the debtor files to petition for bankruptcy. For any other type of bankruptcy, the discharge can occur when it becomes practical.

Declaring bankruptcy can help relieve you of your legal obligation to pay your debts and save your home, business, or ability to function financially, depending on which kind of bankruptcy petition you file. But it also can lower your credit rating, making it more difficult to get a loan, mortgage, or credit card, or to buy a home or business, or rent an apartment.

If you're trying to decide whether you should file for bankruptcy, your credit is probably already damaged. But it's worth noting that a Chapter 7 filing will stay on your credit report for 10 years, while a Chapter 13 will remain there for seven. Any creditors or lenders you apply to for new debt (such as a car loan, credit card, line of credit, or mortgage) will see the discharge on your report, which can prevent you from getting any credit.

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Bankruptcy Definition - Investopedia

Bankruptcy is a legal process overseen by federal bankruptcy courts. It's designed to help individuals and businesses eliminate all or part of their debt or to help them repay a portion of what they owe.

Bankruptcy may help you get relief from your debt, but it's important to understand that declaring bankruptcy has a serious, long-term effect on your credit. Bankruptcy will remain on your credit report for 7-10 years, affecting your ability to open credit card accounts and get approved for loans with favorable rates.

Bankruptcy can be a complex process, and the average person probably isn't equipped to go through it alone. Working with a bankruptcy attorney can help ensure your bankruptcy goes as smoothly as possible and complies with all the applicable rules and regulations governing bankruptcy proceedings.

You'll also have to meet some requirements before you can file for bankruptcy. You'll need to demonstrate you can't repay your debts and also complete credit counseling with a government-approved credit counselor. The counselor will help you assess your finances, discuss possible alternatives to bankruptcy, and help you create a personal budget plan.

If you decide to move forward with bankruptcy proceedings, you'll have to decide which type you'll file: Chapter 7 or Chapter 13. Both types of bankruptcy can help you eliminate unsecured debt (such as credit cards), halt a foreclosure or repossession, and stop wage garnishments, utility shut-offs and debt collection actions. With both types, you'll be expected to pay your own court costs and attorney fees. However, the two types of bankruptcy relieve debt in different ways.

Chapter 7 bankruptcy, also known as "straight bankruptcy," is what most people probably think of when they're considering filing for bankruptcy.

Under this type of bankruptcy, you'll be required to allow a federal court trustee to supervise the sale of any assets that aren't exempt (cars, work-related tools and basic household furnishings may be exempt). Money from the sale goes toward paying your creditors. The balance of what you owe is eliminated after the bankruptcy is discharged. Chapter 7 bankruptcy can't get you out of certain kinds of debts. You'll still have to pay court-ordered alimony and child support, taxes, and student loans.

The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date. Should you get into debt again, you won't be able to file again for bankruptcy under this chapter for eight years.

Chapter 13 bankruptcy works slightly differently, allowing you to keep your property in exchange for partially or completely repaying your debt. The bankruptcy court and your attorney will negotiate a three- to five-year repayment plan. Depending on what's negotiated, you may agree to repay all or part of your debt during that time period. When you've completed the agreed repayment plan, your debt is discharged, even if you only repaid part of the amount you originally owed.

While any type of bankruptcy negatively affects your credit, a Chapter 13 may be a more favorable option. Because you repay some (or all) of your debt, you may be able to retain some assets. What's more, a Chapter 13 bankruptcy will cycle off your credit report after seven years, and you could file again under this chapter in as little as two years.

Throughout bankruptcy proceedings, you'll likely come across some legal terms particular to bankruptcy proceedings that you'll need to know. Here are some of the most common and important ones:

While bankruptcy can eliminate a lot of debt, it can't wipe the slate completely clean if you have certain types of unforgivable debt. Types of debt that bankruptcy can't eliminate include:

Perhaps the most well-known consequence of bankruptcy is the loss of property. As previously noted, both types of bankruptcy proceedings can require you to give up possessions for sale in order to repay creditors. Under certain circumstances, bankruptcy can mean losing real estate, vehicles, jewelry, antique furnishings and other types of possessions.

Your bankruptcy can also affect others financially. For example, if your parents co-signed an auto loan for you, they could still be held responsible for at least some of that debt if you file for bankruptcy.

Finally, bankruptcy damages your credit. Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit.

Depending on the type of bankruptcy you file, the negative information can appear on your credit report for up to a decade. Discharged accounts will have their status updated to reflect that they've been discharged, and this information will also appear on your credit report. Negative information on a credit report is a factor that can harm your credit score.

Bankruptcy information on your credit report may make it very difficult to get additional credit after the bankruptcy is discharged at least until the information cycles off your credit report. Lenders will be cautious about giving you additional credit, and they may ask you to accept a higher interest rate or less favorable terms in order to extend you credit.

It will be important to begin rebuilding your credit right away, making sure you pay all your bills on time. You'll also want to be careful not to fall back into any negative habits that contributed to your debt problems in the first place.

Just as bankruptcy can hinder your ability to obtain unsecured credit, it can make it difficult to get a mortgage, as well. You may find lenders decline your mortgage application, and those that do accept it may offer you a much higher interest rate and fees. You may be asked to put up a much higher down payment or shoulder higher closing costs.

Rather than give up your home and try to get a new mortgage after bankruptcy, it may be better to reaffirm your current mortgage during bankruptcy proceedings. You would be able to keep your home, continue paying on your current mortgage free of other debts and stay in your current home.

When you're struggling with unmanageable debt, bankruptcy is just one solution; there are others to consider. Most will also affect your credit, but probably not as badly as a bankruptcy plus, these alternatives can allow you to keep your property, rather than having to liquidate it in bankruptcy proceedings.

Some bankruptcy alternatives you might consider are:

Be aware that whenever you fail to honor the debt-repayment terms you originally agreed to, it can affect your credit. That said, bankruptcy will still have a more significant negative impact on your credit than will credit negotiation, credit counseling and debt consolidation.

Whenever you fail to repay a debt as you originally agreed to, it can negatively affect your credit. Some types of debt relief come with consequences that are more damaging and long-term than others. Before you make any decision about debt relief, such as declaring bankruptcy, it's important to research your options, get reliable advice from a qualified credit counselor, and understand the impact your choices can have on your overall financial well-being.

Regardless of what type of debt relief you choose, you can begin taking better care of your credit immediately by putting simple, responsible, credit-positive actions into practice such as:

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Bankruptcy: How it Works, Types & Consequences - Experian

Park Transportation Inc. of Bensenville, Illinois, has filed for Chapter 11 bankruptcy.

This action comes after its principal lender, Royal Savings Bank, and its landlord DCT Cargo LLC, filed lawsuits against the carrier because it was unable to pay its financial obligations, according to court filings.

In its filing with the U.S. District Court for the Northern District of Illinois, Park Transportation lists assets of up to $50,000 and its liabilities ranging from $1 million to $10 million. It lists up to 199 creditors in its bankruptcy filing.

At the time of its bankruptcy filing, the carrier had 98 power units and 83 drivers, according to FMCSAs SAFER website. Eric Seongwoo Seo is listed as the president of Park Transportation.

Over the past 24 months, Park Transportations trucks have been inspected 70 times and 25 trucks were placed out of service, resulting in a 35.7% out-of-service rate, which is higher than the industrys national average of around 21%, according to FMCSA data.

Its drivers were inspected 121 times and four were placed out of service in the same two-year period, resulting in a 3.3% out-of-service rate, which is below the national average of around 5.5%. The company has been involved in two tow-aways over the past 24 months.

The company, which hauls general freight, intermodal containers and household goods, also has a warehousing and brokerage division, according to its website.

Read more articles by FreightWaves Clarissa Hawes

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Legal woes force Illinois carrier to file for bankruptcy protection - FreightWaves

Childrens party venue Chuck E. Cheese is on the brink of Chapter 11 bankruptcy and talking to lenders to raise money amid the coronavirus pandemic, according to a report in the Wall Street Journal.

The brands parent, CEC Entertainment Inc., is nearly $1 billion in debt and trying to secure $200 million in loans, the report says.

The report also says the company has a $1.9 million quarterly payment due at the end of the month.

There are currently over 615 locations in the world, including 10 each in New Jersey and Pennsylvania, according to Chuck E. Cheeses website. Its unknown how many stores are at risk of permanently closing.

A Chuck E. Cheese spokesperson didnt immediately respond to a request for comment.

Chuck E. Cheese reported in April that first-quarter sales were expected to be down by 21.9% compared to 2019.

JCPenney, Neiman Marcus, Pier 1 Imports, and J.Crew all have filed for bankruptcy during the coronavirus pandemic, while GNC and New York & Company warned that bankruptcy is a possibility.

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Signet Jewelers closing about 380 stores, including Kay, Piercing Pagoda and Zales locations

Fathers Day 2020 sales: A list of places you can find discounts of 50% or more

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Nicolette Accardi can be reached at naccardi@njadvancemedia.com. Follow her on Twitter: @N_Accardi. Find NJ.com on Facebook. Have a tip? Tell us. nj.com/tips

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Chuck E. Cheese on the brink of bankruptcy, report says - NJ.com

Dive Brief:

Retailers of all financial profiles have scrambled to maintain cash positions since the COVID-19 crisis began. Distressed retailers have been thrown into chaos or already sought shelter in bankruptcy. With the country reopening, the crucial need for liquidity has not gone away.

Tailored Brands, which along with Men's Wearhouse owns Jos. A. Bank, Moores and K&G, had seen signs of promise before the pandemic threw it off course. Now, Bloomberg is reporting the company is working with advisers on its debt and considering filing for bankruptcy.

After years of declining sales, the retailer said that comparable sales were up 2.4% in February, with all brands comping positive. But then the pandemic started winding through the country and local and regional governments began ordering nonessential businesses, including apparel stores, to close. Tailored Brands closed all of its stores on March 17 and its e-commerce fulfillment centers on March 20.

To free up liquidity during that period, it pushed out payments to vendors, cut salaries, furloughed or temporarily laid off all store employees and the majority of its corporate staff, and drew down $310 million from its credit facility. With that draw, the company ended Q1 with $244.2 million in cash and cash equivalents (a number that dropped to $201.3 million by June 5), and another $88.8 availability under its revolver.

But it may not be enough. Looking at Tailored Brands by banner, comp sales where stores have been open at least one week were down 65% at Men's Wearhouse, down 78% at Jos. A. Bank and down 40% at K&G. E-commerce comps to date for the second quarter are down 32% not good in an era where apparel retailers are leaning heavily on their digital channels to make up lost store sales.

Without generating cash from sales, the retailer is highly dependent on any capital it can raise. It said in the filing that its liquidity could be further constrained if its bank starts requiring reserves that would cut into the borrowing availability on its asset-based facility. Moreover, if it violates its financial maintenance covenant it could default on the ABL, which could trigger defaults on other debt as well.

How the pandemic will continue to affect the retailer's operations remains "highly uncertain," the company said, pointing to a laundry list of unknowns, including "the duration of the outbreak, new information that may emerge concerning the severity of COVID-19 and the actions, especially those taken by governmental authorities, to contain the pandemic or treat its impact."

If the impact of the pandemic wears on and Tailored Brands can't raise more liquidity, the company said that "we may be forced to scale back or terminate operations and/or seek protection under applicable bankruptcy laws."

CEO Dinesh Lathi said in the release that he expects the company's sales to rebuild "gradually" through 2020. He also said the company had already identified trends toward casualization and in digital marketing that the pandemic has accelerated. He added that "we are pleased to have already made progress transforming our business to address these trends."

With debt of $1.4 billion and liquidity issues, the clock is ticking.

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Tailored Brands says it may have to file bankruptcy if COVID-19 crisis wears on - Retail Dive

Bankruptcy filings in Buffalo plummeted in April and May from a year ago.

But don't be fooled by those numbers.

Experts say the declines more likely reflect a delay in filings, and they expect to see an increase in cases soon.

"I think there's a wave that's probably going to hit," said Raymond Fink, an attorney with Lippes Mathias Wexler Friedman.

In May, 124 bankruptcy cases were filed in Buffalo, down 53% from 264 a year ago, according to the U.S. Bankruptcy Court's Western District. In April, the number of cases filed in Buffalo was down 65% from a year earlier, to just 96.

Bankruptcy court has remained accessible for filings during the Covid-19 pandemic. But lawyers say the typical pace of filings was probably slowed by disruptions in the economy over the past two months.

With so many people following stay-at-home orders, people considering bankruptcy filings may have put off meeting with their lawyers,said Paul Pochepan, an attorney with HoganWillig.

Some of the legal actions that might ordinarily spur bankruptcy filings also have been on hold, such as the state's moratorium on certain types of foreclosures. Even some debt collectors have furloughed their workers, instead of making calls to pursue collection of debts.

"Some of the reasons people would be seeking out a bankruptcy attorney's help were temporarily, at least, put on hold," Pochepan said.

On top of what are essentially delayed cases are the new cases that could surface. Small businesses that have suffered financial trauma over the past two months might reach a breaking point. The federal government's Paycheck Protection Program has helped many of them endure and keep workers on the payroll, but that program spans just eight weeks. And business reopenings are just getting underway.

Pochepan said he is hopeful many small businesses will survive, but he recognizes what they are up against.

"Any of them that were sort of teetering before they lost that flow of income altogether, I can't imagine how we're not going to see more business [bankruptcy] filings," he said.

Nationally, some big names, including Pier 1 and JC Penney, have filed for bankruptcy, reflecting the pressures retailers are under.

Small businesses that file for bankruptcy have a new tool at their disposal.

The Small Business Reorganization Act, which took effect in February, is designed to help small businesses reorganize under Chapter 11 in a faster, less expensive manner, Fink said. A process that used to take a year or longer should now only take them 90 to 120 days.

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As economy reopens, wave of bankruptcy filings likely on the way - Buffalo News

Art Van Furniture, Bar Louie and True Religion all sell different products, but they all have one thing in common: Each has gone bankrupt this year, as the coronavirus-induced recession that started in February flattens businesses large and small.

Recent data show 722 companies sought bankruptcy protection around the U.S. last month, a 48% increase from the year-ago period. Chapter 11 filings also jumped in April and March, as states started imposing business restrictions amid thecoronavirusoutbreak.

"This is a sign that already weak companies are succumbing to the lockdown recession," Chris Kuehl, an economist with the National Association of Credit Management, which tracks bankruptcies, said in a research note. Businesses that were struggling before the pandemic "are starting to get in some real trouble," he added

Among those long-distressed companies finally tipped into bankruptcy by the economic fallout from COVID-19:Gold's Gym,Hertz,J. Crew,J.C. PenneyandNeiman Marcus.

Altough Congress has passed relief programs designed to help businesses survive shelter-in-place orders, including the Paycheck Protection Program and Economic Injury Disaster loans, the aid won't help floundering companies for long, one expert said.

"As this relief runs its course, however, mounting financial challenges may result in more households and companies seeking the shelter of bankruptcy," said Amy Quackenboss, executive director of the American Bankruptcy Institute.

Some analysts expect awaveof bankruptcy filings, particularly in hard-hit industries like retail and the energy sector, which has been slammed by falling oil prices and plunging demand during the virus. Boeing CEO Dave Calhoun also has predicted that a major U.S. airline will go bankrupt this year.

Of course, bankruptcy doesn't necessarily spell doom. Court supervision is designed to help companies shed or restructure their debt, restructure their business, and emerge from Chapter 11 as a streamlined, more competitive company. For other companies that have recently gone under, such as Pier 1 and Modell's Sporting Goods, bankruptcy is the end of the road.

Meanwhile, companies with healthy revenue streams, options for cutting costs and access to credit will rebound, predicted investment strategists Indranil Ghosh and Gina Sanchez. Although car sales have slumped, for instance, automakers are expected to bounce back as pent-up demand recovers and as many people shun public transportation due to virus concerns.

"Car manufacturers have been discounted in recent years due to falling ownership rates among the young, but they may regain lost ground due to COVID," Ghosh and Sanchez said. "Car traffic in China is back to 90% of normal levels whereas public transport is still only at 50% because consumers feel safer in their car."

Read more:

Chapter 11 bankruptcy numbers higher than 2019 due to coronavirus - CBS News

The market dislocation wrought by the coronavirus pandemic has a poster child in Hertz Global Holdings Inc.

A bankruptcy court late Friday approved Hertzs HTZ, +37.37% request to sell up to $1 billion in stock. The car-rental company appears to be seizing on a wave of intense, speculative interest in its shares since it declared bankruptcy late last month, drowning in debt and hit hard by the global restrictions on travel designed to slow to spread of the coronavirus.

Hertz stock topped a popularity chart among Robinhood app users on Friday.

The selling of new shares would be a head scratcher, analysts at Credisights said in a note before the court decision. Hertz got a delisting notice this week and an even more compelling negative is being in chapter 11 with unsecured bonds at a very steep discount, the analysts said.

Unless a genie or a lamp showed up the collateral pool, we expect the eventual equity value will be zero, the CreditSights analysts said.

Investors eyeing Hertz might be some of the same who have been buying deep value penny-like stocks on Robinhood, said Nancy Tengler, chief investment officer at Laffer Tengler Investments, also ahead of the decision.

This is not investing. It is gambling, she said.

This is for the quick buck crowd, not long-term investors, Tengler went on. Before Fridays decision, there was no similar precedent, she said.

Even so, the proposed stock sale still needs to spell out that any money put into this company could be a total loss, said Amy Lynch, a former U.S. Securities and Exchange Commission staffer and founder of FrontLine Compliance, which advises institutional money managers on compliance issues.

The disclosures would have to be air tight in order to avoid lawsuits in the future, Lynch told MarketWatch.

Hertz stock has nearly tripled in June, and gained 10% this week, the Wednesday delisting notice from the New York Stock Exchange notwithstanding. The stock fell around 3% in the extended session on Friday after the court decisions news, but ended the regular trading day up 37%.

The shares hit an all-time closing low of 56 cents on May 26, a few days after the companys May 22 bankruptcy filing and a far cry from their Aug. 2014 record closing high of at $110.61. The next day, they logged their largest one-day increase ever, jumping 136%.

Recent average volume has been more than 16 times the volumes before the filing. Notably, Carl Icahn took the first opportunity after the filing to sell all of his stake at a steep loss.

Hertzs motion to the bankruptcy court characterized the potential equity sale as an opportunity for the debtors to raise capital on better terms. The company did not immediately reply to a request for comment.

Hertz is No. 1 at a popularity list at Robintrack, a site that tracks activity on the Robinhood app.

From our vantage point, the 30-handle unsecured bond prices should create some reconsideration of equity upside for a company in chapter 11. We are old fashioned that way, the CreditSights analysts said.

Hertzs most widely traded October 2022 corporate bonds were changing hands at an average price of about 40.50 cents on the dollar Friday, a plunge from nearly 100 cents on the dollar at the start of March, according to bond trading and pricing platform MarketAxess. Bonds often are considered distressed once they trade below 70 cents on the dollar.

We think this deal would be more robbing from the misinformed to give to the senior secured," they said.

Originally posted here:

Bankrupt Hertz gets approval to sell up to $1 billion in stock but experts expect equity to be wiped out - MarketWatch

Text size

Marc Lasry, co-founder and head of hedge fund Avenue Capital Group, believes that the biggest opportunity for investment right now is in bankrupt companies or those that are restructuring, otherwise known as distressed debt.

Lasry, who made the comments during a SALT Talks webinar, pointed to Hertz Global Holdings (ticker: HTZ), the car rental chain that filed for bankruptcy protection in May. No one was willing to lend them more money. All their collateral was in bonds, Lasry said during the webcast. Avenue Capital does own some Hertz debt, Lasry told Barrons.

Hertz had $18 billion in debt when it filed for chapter 11 on May 22. Its stock closed at 56 cents the day it filed for bankruptcy and then saw its shares increase tenfold, closing at $5.58 on June 8, according to a June 11 bankruptcy filing. This spurred Hertz debtors to ask a bankruptcy judge on Thursday to allow the rental company to take advantage of the trading and sell 246.8 million shares through Jefferies, the filing said.

The sale would allow Hertz to raise capital on terms that are better than any debtor-in-possession financing it could get, Hertz debtors said, and the company could use the proceeds for general working capital purposes. The Delaware bankruptcy court on Friday granted Hertz debtors motion to sell shares, according to a bankruptcy filing. Hertz can sell no more than 246,775,008 shares valued at up to $1 billion. Hertz didnt return calls for comment.

Hertz selling shares is better for debtholders, Lasry said. Hertz wouldnt need to pay interest on the equity the way it would for a debtor in possession, or DIP, loan, he said. We own bonds and debt, any equity that is put in is beneficial because its always junior to me, Lasry said. That means I get paid first.

Avenue Capital, of New York, invests in distressed debt and other special situations. It manages an estimated $9.7 billion in assets as of May 31. The firm typically invests in companies when they file for chapter 11, Lasry said. The Covid-19 recession has pushed many companies, including Golds Gym, J.Crew, and J.C. Penney (JCP), into bankruptcy.

Bankruptcies represent good opportunities to buy from noneconomic sellers or people who need to sell, Lasry told Barrons. This means firms like Avenue Capital can buy debt assets at a discount, he said. If things turn out, I will do exceptionally well. If a company has to liquidate thats OK, because Ill make money on the liquidation, Lasry said during the webinar. Lasry, who is Avenue Capitals chairman and CEO, said he considered distressed debt a massive opportunity, estimating the global market opportunity at from $500 billion to $1 trillion.

The SALT Talks webinars feature Anthony Scaramucci interviewing business leaders and policy experts. Scaramucci is the founder and co-managing partner of SkyBridge Capital, the hedge fund, and the chairman of the SkyBridge Alternatives Conference, or SALT.

The Avenue Capital CEO said he feels more confident investing today, than he did 12 years ago when the country was suffering during the great financial crisis. Lasry said his biggest worry in 2008 was whether the banks could survive that recession. By comparison, the biggest issue facing companies today is whether they will have enough liquidity to survive until people return, he said.

Lasry made the comments as U.S. businesses are beginning to reopen. States, including Alabama, Alaska and Arizona, have lifted their stay-at-home orders that were put in place earlier this year to stop the spread of the virus. People, in some states, are turning out to restaurants and bars.

Today we all know something, Lasry said during the SALT webinar. We will be fine in two years. People will be back out, there will be a vaccine. The question is how long will it take to get back to normal.

Write to Luisa Beltran at luisa.beltran@dowjones.com

Original post:

Bankruptcies Like Hertz Are a Great Investing Opportunity, Hedge Fund Head Says. He's Not Talking About Its Stock. - Barron's

Many U.S. shale firms have cruised through the past couple of years by borrowing money and drilling new wells, making the United States the world's top crude oil producer. The strategy worked for a while, especially when oil prices were around $60 a barrel.

But this year's oil price crash exposed the financial vulnerability of many U.S. shale companies who are now fighting for survival. All producers across the U.S. patch pulled back production volumes in April and May in response to the collapse in prices.

For some oil and gas firms, reduced capital budgets will not be enough to save them from defaulting on debt or seeking restructuring as cash flows are shrinking, while the window of access to capital markets and new debt remains, for the most part, closed.

Those firms who choose not to seek (or are not forced to seek) protection from creditors via Chapter 11 restructuring could look at other options to avoid bankruptcy, some of which may be a little unconventional.

Today, unconventional may be an understatement when it comes to describing the oil industry's state of affairs. All options regardless of how (un)common they are are on the table for struggling oil producers.

Industry consolidation, private equity firms acquiring assets or distressed companies, banks ending up holding oil and gas assets, or power utilities buying their providers of energy could be some of the options that oil firms might consider, Suzy Taherian, who worked with Exxon and Chevron at the start of her career, writes in Forbes.

Mergers & Acquisitions Hit By Uncertainty

U.S. shale firms have fewer financing options now than they did in the 2015-2016 downturn. Thus could drive consolidation in the industry with some attractive M&A opportunities emerging, according to Robert Polk, principal analyst with Wood Mackenzie's U.S. Corporate Research team, covering Lower 48 independents. Related: Oil Infrastructure Operators Grapple With A New Energy Reality However, the industry isn't launching into a buying spree just yet, due to the heightened uncertainty and volatility in the oil market.

The U.S. upstream deal market collapsed in the first quarter of 2020, with all M&A transactions occurring before the oil price crash in early March, according to the Q1 2020 U.S. Upstream M&A Review of energy data analytics company Enverus. The largest deals in Q1 included bankruptcy sales and a royalty deal, Enverus's analysis showed. There may be opportunities ahead for select buyers who have access to capital, but the restart of M&As will likely take place when oil prices stabilize.

In Texas alone, M&A deals plummeted in Q1 with the collapse in oil prices. The deals dropped off so much so that the energy industry was not the leading sector in dealmaking in Texas for the first time in more than 12 years, Claire Poole from The Texas Lawbook wrote in the Houston Chronicle last month.

Going forward, the international oil majors will be the only companies left who can afford to buy shale assets at bargain prices, Boston Consulting Group said in an analysis in April. However, the current priorities of supermajorspreserving cash and, where possible, dividends--and the uncertainty about the market recovery would likely mean slow M&A activity in the coming months. Majors will also be likely looking to scoop top-quality assets if they consider acquisitions, BCG said.

"Given these constraints, oil and gas deals will be thin on the ground in the months ahead. Although many billions of dollars of assets and companies are up for sale, the supply of large, world-class ones is limited," BCG noted.

Banks Could End Up Managing Oil & Gas Assets

Lenders to the oil and gas industry may choose to refinance loans to struggling firms with some kind of transaction that converts debt into equity rather than allowing them to default on debt and declare bankruptcy, Taherian argues.

According to research firm CreditSights, cited by MarketWatch, Citigroup, Wells Fargo, Bank of America, and JP Morgan had the highest amounts of loans outstanding to energy firms as of the end of 2019. In terms of the percentage of energy loans of all loans, Goldman Sachs leads the ranking with 11.2 percent.

According to Reuters sources familiar with plans at the banks, Citigroup, Wells Fargo, Bank of America, and JP Morgan started working in early April on forming independent companies that would manage oil and gas assets in case distressed oil firms became unable to pay back loans. The process could take months, but it could allow banks to hold to the assets until conditions and oil prices improve to sell them at fair values, instead of at fire-sales for pennies on the dollar.

Related: The Most Dramatic Year In The History Of Oil

Utilities Acquiring Their Energy Providers

Some distressed energy producers could find their potential saviors among their utility customers, according to Taherian, who says that struggling oil and gas firms have approached some utilities looking for a possible friendly buyer.

This would be an unconventional approach to saving oil firms from going under, but these days, nothing is off the table when it comes to the oil industry.

North American Oil Bankruptcies Set To Surge

Meanwhile, between January and May, a total of 18 oil and gas firms filed for bankruptcy protection in North America five in Q1 and 13 in the first two months of Q2, law firm Haynes and Boone said in its latest Oil Patch Bankruptcy Monitor with data to May 31.

"Lower for longer remains the watchword for producers and their creditors. It is reasonable to expect that a substantial number of producers will continue to seek protection from creditors in bankruptcy even if oil prices recover over the next few months," Haynes and Boone said.

By Tsvetana Paraskova for Oilprice.com

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The Unique Ways Oil Companies Are Looking To Avoid Bankruptcy - OilPrice.com

June 12, 2020 - SACRAMENTO Attorney General Xavier Becerra on Thursday provided important information and resources regarding business bankruptcies and consumer rights amidst the COVID-19 pandemic. Families, businesses and communities throughout the country are facing unprecedented financial strain as a result of the public health emergency. The economic impact of the pandemic has caused many companies such as J.C. Penny, J. Crew, Dean & Deluca, Golds Gym,Hertz,and California-based businesses such as those that operate the family entertainment center Boomers! and the popular childrens camp Camp Galileo to file for bankruptcy. The economic climate continues to be challenging for businesses, and consumers should know their rights during these trying times.

Consumers have rights when a business fails,said Attorney General Becerra. Bankruptcy does not grant debtor companies blanket freedom from their commitments and obligations to their customers and creditors. I urge California consumers to know their rights.

Consumer Bankruptcy Rights

General Bankruptcy Information for Consumers

AdditionalConsumerResources

Information and forms for creditors are provided by the Bankruptcy Courts throughout California; you can find that informationherefor the Central District (headquartered in Los Angeles),herefor the Northern District (headquartered in San Francisco),herefor the Southern District (headquartered in San Diego), andherefor the Eastern District (headquartered in Sacramento). Resources and help for those without an attorney can be foundherefor the Central District andherefor the Northern District. Please note that due to COVID-19, schedules are subject to changeand some courts may be offering remote assistance.

The Attorney General is Californias chief law officer and is charged with representing the people of our state, not specific individuals or groups; therefore, he cannot represent or provide legal advice to individuals or groups.If you are interested in seeking pro bono legal services, please visithttp://lawhelpca.organd click the Search for Legal Help tab at the topof the page.

If you believe that a bankrupt business is not honoring your bankruptcy rights, youmay file a complaint with the Attorney Generals office atoag.ca.gov/report.

For help finding a private lawyer, you can also call the State Bar at(866) 442-2529or(415) 538-2250, or visithttp://www.calbar.ca.gov.

This consumer alert is also available in Spanishhere.Source: CA. DOJ

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California Attorney General Highlights Consumer Rights and Resources in Response to Recent Business Bankruptcies During the COVID-19 Pandemic - Sierra...

Photograph: Shutterstock

The coronavirus pandemic and ensuing shutdown have had a massive impact on restaurants, with industry sales at one point cut in half compared tolast year. Some chains that had been struggling before the pandemic were unable to weather the storm.

Seven chains have declared bankruptcy, though thesemay well be the tip of the iceberg, as HopCat CEO Mark Sellers said after his chain filed earlier this month. Here's a look at the restaurant chains that have filed for credit protection since the shutdown began.

Vapiano

The German chain of Italian fast casuals filed an application in Cologne, Germany, to open insolvency proceedings in early April.

It operated six units in the U.S. and blamed its financialproblemson closures related to the COVID-19 outbreak.

No solution could be found for the companys liquidity problem, which has increased significantly due to the COVID-19 crisis. All of the chains locations remained closed until further notice due to the coronavirus crisis.

FoodFirst Global Restaurants

The parent of the Brio Italian Mediterranean and Bravo Fresh Italian casual chains filed for Chapter 11 bankruptcy protection in mid-April and raised the possibility of seeking a buyer after closing 71 of its 92 remaining restaurants.

FoodFirst said the chains had been struggling with sales and profit declines before the COVID-19 pandemic.The mandated dining room closure orders wiped out 60% of our restaurants within days and since then we have experienced nothing short of devastating sales declines, said CEO Steve Layt.

In late May, concept collector Robert Earl teamed up with the financial backer of the brands to buy 45 of the chains locations for $50,000 in cash, $25 million in forgiven credit and $4 million in assumed liabilities.

TooJays

TooJays Original Gourmet Deli filed for federal bankruptcy protection in late April, blaming the weekslong coronavirus shutdown for taking what hadotherwise been a profitable company into the red.

The 28-unit New York-style deli concept had received a $6.4 million Paycheck Protection Loan shortly before the filing, which it planned to use on payroll and expenses.

Sustainable Restaurant Holdings

The parent company for seafood chains Bamboo Sushi and QuickFish filed for federal bankruptcy protection May 12, blaming the coronavirus shutdown for limiting its ability to generate revenue or get financing to make it through the crisis.

It operated 10 restaurants at the time, and had furloughed or laid off 90% of its employees in March.

By filing for bankruptcy, the company was able to secure financing to stay in business while it looks for a buyer. Sustainable Restaurants saidfunds from investor Bain Capital and available cash would help it continue tooperate through the bankruptcy process.

Garden Fresh Restaurants

The owner of buffet chains Souplantation and Sweet Tomatoes, filed for Chapter 7 bankruptcy protection in mid-May, opting to liquidate its assets and close its doors for good.

The filing came shortly after executives notified the companys 4,400 employees that its97 restaurants would not reopenafter their initial March closure.

Executives said they saw no proper strategy for reopening as federal regulations forbid self-service operations such as salad bars.

Le Pain Quotidien

The fast-casual chainfiled for Chapter 11 bankruptcy protection May 27 and proposed a sale to Aurify Brands for $3 million to save some of its operations.

The chain, which had been struggling before the pandemic, closed all of its stores amid the coronavirus crisis and laid off the majority of its employees.

A sale to Aurify would allow for the reopening of at least 35 of its 98 restaurants and avoid a liquidation, Le Pain said in its filing.

BarFly Ventures

The parent of the HopCat brewpub chain filed for Chapter 11 bankruptcy protection June 3, citing the challenges of operating beer-focused restaurants while dining rooms are closed because of the COVID-19 pandemic.

The company operates three one-of-a-kind restaurants in Grand Rapids, eight HopCats in Michigan and three outside the state. HopCat revenues fell 100% after the pandemic hit, said CEO and founder Mark Sellers.

In testimony before the Regulatory Reform Committee of Michigans House of Representatives, Sellers warned that his companys bankruptcy is the tip of the iceberg, and that there is going to be a giant wave of bankruptcies very soon.

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These restaurant chains have declared bankruptcy due to the coronavirus - Restaurant Business Online

U.S. retailers and restaurantsare finally starting to welcome customers again around the U.S., ending months of little to no income. But the future may still be grimand experts believe some mayimmediately call it quits after seeing the reality of operating in the wake of the coronavirus pandemic.

As the consumer comes back, its not like turning on and off a light switch, Coresight Managing Director of Luxury and Fashion Marie Driscoll said.

It is going to be gradual and depending on how gradual it is and how safe consumers feel going back to the stores that is going to influence the productivity of the stores and whether or not there are morestore closingsand ... bankruptcies.

Bisnow/Mark F. Bonner

New York City still isn't totally open for business.

This year has already been rough for retailers: Coresight Research reports15 major U.S. retail bankruptcies in the first five months of 2020, including JCPenney, Pier 1 Imports,Neiman Marcus,True Religion Apparel, J. Crew and Papyrus.

Coresight has tracked 4,005 store closures so far this year and is projecting20,000 to 25,000 total will shutterin 2020.

Experts in the bankruptcy space expect an even bigger surge ofChapter 11or Chapter 7 bankruptcy filings by the third quarter.

Veteran bankruptcy attorney Gregory Wade with the law firm of Wade, Grimes, Friedman, Meinken & Leischner saidthe third quarter may be when the impact of the coronavirus pandemic is fully understood, particularly with so many businesses and individuals staying afloat right now on government Paycheck Protection Programloans and unemployment.

Right now, we have never had this before because the government through its economic incentives is literally propping up the [companies], Wade said. It's almost as if what the federal government did was it took its own notion of a Chapter 11 and said, 'OK, we are going to prop up the economy for a few months and see what happens,' but when this stops, it could be a bloodbath.

That bloodbathhas the potential to clog up the bankruptcy courtsfor months on end.

I think its going to come in a rush, Wade said. You have all of these problems that are building up, and when the government stops putting that money in, you are going to have a cascade of bankruptcies, both commercial and consumer.

Even as retailers open to the public, they face financial struggles. In Coresight Research'sMay 27 consumer survey,half of consumers who reported changes in their post-pandemic spending habits believe it will take five to six months before retailbuying habits return to normal.

I am sort of baffled that we havent felt more stress [on restaurants and retail] yet, said bankruptcy attorney Megan Murray, founder of Tampa-based law firm Underwood Murray P.A.

Murray has seen an increase in bankruptcy filings from both restaurants and stores dining facilities are taking as much of a hit as goods retailers even though they remained viable parts of the experiential retail economy before the pandemic. Restaurants are low-margin businesses and stalled traffic has takenits toll on restaurant revenue, resulting in restaurant chains like the parent company of Brio Tuscan Grillfiling for bankruptcy reorganization.

Retailers and restaurants arehaving to make hard decisions about whether they need to file for Chapter 11 or Chapter 7 to salvage their businesses through a bankruptcy reorganization or to just escape the financial squeezealtogether by liquidating locations and assets.

I definitely have seen an increase [in filings], Murray said. We have a few big ones here in Florida. I have seen other ones across the country.

Wikimedia/Steve Morgan

Pier 1 Imports is one major retailers that filed for bankruptcy this year.

For some of these retailers and restaurants, bankruptcy is not about a long-standing financial battle against Amazon ande-commerce, but rather a strategy to keep the lights onduring a temporary downturn.

I think its being used in the traditional 'I need breathing room, and I need to figure out how I am going to come out of this as a living, breathing company,' Murray said.

Thus far, landlords and lenders have largely giventhat kind of breathing room for the last three months outside of the bankruptcy process. But Stark & Stark bankruptcy attorney Joseph Lemkinsaid bankruptcies will accelerateif landlords and creditors reach a point where they no longer can justify forbearances and other savings mechanisms for retail tenants who cannotpay the rent.

There will be more [bankruptcies] because I think a lot of what was happening is in certain areas, the landlords have held off on being aggressive, Lemkin said.

It's not all grim news for retailers, however. Many are surprised when they do reopen to find that productivity levels are better than expected, although not yet at pre-crisis levels, Driscoll with Coresight said. The Chapter 11 option also gives retailers the flexibility to rebuild their brands and escape expensive liabilities.

Bankruptcies can give a retailer wiggle room in terms of exiting leases that they otherwise would not be able to contractually and it allows them to restructure their debt, Driscoll said.

She saidback-to-school and holiday sales will be major tests for retailers this year since many retailers use these periods to determine if it's time to file for bankruptcyin the coming year.

Forsome, there's a risk the effects of the pandemic could prevent them from surviving until the holiday shopping season.

As your vendors see how tenuous your business is, a lot of vendors wont ship to [those] retailers, and they [can] actually push the retailer into bankruptcy. These are totally unprecedented times, Driscoll said.

Murray thinks even those companies that survive 2020 without going bankrupt will not look the same.

I think once the PPP money runs out and some restaurants and retailers make a pivot and decide they are going to change their structure for good, they are not going to open in the same ways, she said. I think we are going to have some real lasting effects. We may not be feeling anything yet.

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Expect Another Wave Of Retail Bankruptcies By Year's End - Bisnow

Here's how Hertz bankruptcy has impacted used car prices

Updated: 5:40 PM EDT Jun 9, 2020

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BEN: WITH THE PANDEMIC FORCING FAMILIES TO STAY CLOSER TO HOME, THIS YEAR COULD BE THE WORST FOR THE TRAVEL INDUSTRY, BUT ONE OF THE BEST FOR CAR SHOPPERS. AS WE REPORTED LAST MONTH, NO ACTIVITY AT AIRPORTS FORCED HERTZ RENTAL CAR TO DECLARE BANKRUPTCY. THE COMPANY HAS ALREADY STARTED SELLING ITS LARGE FLEET ONLINE AT DISCOUNT PRICES, AND THAT COULD PUT PRESSURE ON OTHER AUTO DEALERS TO DROP THEIR USED CAR PRICES AS WELL. HOW GOOD ARE THE DEALS RIGHT NOW? AUTO WEBSITE I-SEE-CARS.COM ANALYZED SALE PRICES FOR MORE THAN 170,000 VEHICLES ON THE HERTZ WEBSITE LAST MONTH. ALL ARE FROM MODEL YEARS 2017 TO 2019. THE WEBSITE FOUND, HERTZ SELLING CARS FOR NEARLY $1400 LESS ON AVERAGE THAN MARKET VALUE. MANY OF THE HERTZ CARS HAVE HIGHER MILEAGE THAN A TYPICAL USED CAR, BUT EXPERTS SAY, THEYRE ALSO GENERALLY IN GREAT CONDITION WITH A REGULAR MAINTENANCE SCHEDULE. I-SEE-CARS.COM SAYS HERTZ IS OFFERING ITS BIGGEST DISCOUNTS ON LUXURY CARS. AT THE TOP OF THE LIST, BMW 7-SERIES SEDANS SELLING FOR ABOUT $43,000. THATS ABOUT 13.7% LESS THAN MARKET VALUE, OR A SAVINGS OF NEARLY 7,000. THE WEBSITE ALSO FOUND, SHOPPERS CAN GET A MERCEDES CLASS-A SEDAN FOR ABOUT $28,000. THATS 13% LESS THAN OTHER DEALERS, OR A SAVINGS OF 4200. HERTZ IS OFFERING BIG DISCOUNTS ON OTHER TYPES OF VEHICLES TOO. TOYOTA TUNDRA, KIA FORTE, VOLKSWAGEN GOLF, NISSAN SENTRA. ALL AVAILABLE AT PRICES MORE THAN 10% LESS THAN MARKET VALUE. BARGAIN-HUNTERS SHOULD KNOW, YOU WONT BE ABLE TO DRIVE DOWN THESE PRICES EVEN MORE. HERTZ SAYS ITS A ZERO-HAGGLE SELLER, BUT BEFORE YOU BUY, YOU SHOULD STILL INSIST ON TAKING THE CAR TO AN INDEPENDEN

Here's how Hertz bankruptcy has impacted used car prices

Updated: 5:40 PM EDT Jun 9, 2020

No activity at airports forced Hertz Rental Car to declare bankruptcy. The company has already started selling its large fleet online at discount prices, and that could put pressure on other auto dealers to drop their used car prices as well.Auto website iSeeCars.com analyzed sale prices for more than 170,000 vehicles on the Hertz website last month between the model years 2017 to 2019.The website found Hertz selling cars for nearly $1,400 less on average than market value.Many of the Hertz cars have higher mileage than a typical used car, but experts say, they're also generally in great condition with a regular maintenance schedule.The auto website said Hertz was offering the biggest discounts on luxury vehicles, but the website also found discounts for other vehicles as well. The BMW 7 Series, Toyota Tundra, Kia Forte, Volkswagen Golf and Nissan Sentra were all available at prices more than 10 percent less than market value.

No activity at airports forced Hertz Rental Car to declare bankruptcy.

The company has already started selling its large fleet online at discount prices, and that could put pressure on other auto dealers to drop their used car prices as well.

Auto website iSeeCars.com analyzed sale prices for more than 170,000 vehicles on the Hertz website last month between the model years 2017 to 2019.

The website found Hertz selling cars for nearly $1,400 less on average than market value.

Many of the Hertz cars have higher mileage than a typical used car, but experts say, they're also generally in great condition with a regular maintenance schedule.

The auto website said Hertz was offering the biggest discounts on luxury vehicles, but the website also found discounts for other vehicles as well.

The BMW 7 Series, Toyota Tundra, Kia Forte, Volkswagen Golf and Nissan Sentra were all available at prices more than 10 percent less than market value.

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Here's how Hertz bankruptcy has impacted used car prices - WCVB Boston