Family drama. One month after real estate developer Mohamed Hadid was ordered to tear down his $100 million Bel Air mansion due to safety concerns, neighbors allege that Gigi and Bella Hadids dad is committing bankruptcy fraud by removing valuables from the property.

The real estate developers 901 Strada LLC declared bankruptcy on November 27, a move that, while stressful, Gigi and Bella are relieved about. [They] know that the filing caused a lot of stress but are happy its settled, a source exclusively reveals in the new issue of Us Weekly.

The neighbors suspect the tycoon, 71, will try to avoid paying for the mansions $5 million demolition, which hes said he cant afford, and therefore the responsibility would fall on local taxpayers. However, Hadids lawyer denies any wrongdoing.

Formoreon the Hadid scandal, watch the video above, and pick up the new issue of Us Weekly, on newsstands now.

With reporting by Brody Brown

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What Gigi and Bella Hadid Think of Dad Mohamed Hadids $100 Million Bankruptcy Nightmare - Us Weekly

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

If you owe past due federal taxes that you cannot pay, bankruptcy may be an option. Other options include an IRS payment plan or an offer in compromise.

If you are a person that has filed bankruptcy, a debtors attorney or a U.S. Trustee with questions about an open bankruptcy you may contact the IRS Centralized Insolvency Operations Unit, Monday through Friday, 7:00 a.m. to 10:00 p.m., EST, at 1-800-973-0424.

For individuals, the most common type of bankruptcy is a Chapter 13. Before you consider filing a Chapter 13 here are some things you should know:

Partnerships and corporations file bankruptcy under Chapter 7 or Chapter 11 of the bankruptcy code. Individuals may also file under Chapter 7 or Chapter 11. For additional tax information on bankruptcy, refer to Publication 908, Bankruptcy Tax Guide and Publication 5082, What You Should Know about Chapter 13 Bankruptcy and Delinquent Returns (PDF).

Other types of bankruptcy include Chapters 9, 12 and 15. Cases under these chapters of the bankruptcy code involve municipalities, family farmers and fisherman, and international cases. For information see Other Types of Bankruptcy Chapters 9, 12 & 15.

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Declaring Bankruptcy | Internal Revenue Service

The attorney for the owner of Connellsvilles only hotel has filed a motion asking to close its case in bankruptcy court.

Attorney Daniel R. Schimizzi, who represents Trailside Lodging, filed a motion for entry of final decree in U.S. Bankruptcy Court for the Western District of Pennsylvania.

Trailside owned the former Cobblestone Hotel on North First Street. The hotel has since been rebranded and is open and operating as a Comfort Inn.

Its always been the goal to keep the hotel open and running in the Connellsville area, Schimizzi said on Thursday. I know that the company is excited to keep operating and moving forward.

In February, two years after the three-story, 54-room hotel opened, Trailside filed for Chapter 11 bankruptcy. The filing came after Cobblestone, a national chain, cut off the hotels ability to accept reservations, because Trailside owed $20,595 in fees. The petition indicated that the hotel thrived during the warmer months with people using the nearby Great Allegheny Passage, but struggled in the winter months.

In August, the Connellsville Redevelopment Authority board voted to authorize a ballot in favor of the sale of the hotel because officials in Connellsville invested $100,000 in the project in exchange for a 5.1% share in the hotels profits and a portion of the rent from a retail shop planned for the first floor.

In September, the Cobblestone became a Comfort Inn. Its sole proprietor under the agreement reached in bankruptcy court is listed in court paperwork as Nate Morgan.

Now, Schimizzi wrote, the case is ready to be closed.

We were fortunate enough to have a lot of cooperation with all the parties involved and accomplished the goal in a relatively short period of time, he said.

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Connellsville's only hotel is closer to closing bankruptcy case in court - Uniontown Herald Standard

IRVING, Texas, Dec. 12, 2019 /PRNewswire/ --On December 7, 2019, the business operations of Think Finance, LLC and its subsidiaries emerged from Chapter 11 bankruptcy proceedings as reorganized entities following approval of their joint Chapter 11 plan by the United States Bankruptcy Court for the Northern District of Texas. As part of the ruling, the Think Finance entities resolved all governmental and private lawsuits and claims against them. The reorganized business will operate as new subsidiaries of TF Holdings, Inc.

Think Finance was founded in 2001 and quickly became a software and financial services innovator by making one of the first online loans. The company provided online lenders with loan origination, underwriting, and loan management products. In 2014, the company split into two independent companies as part of a larger growth strategy.

"It's been a long two years waiting to finalize our exit from bankruptcy proceedings," said Martin Wong, CEO of TF Holdings. "The restructuring was complicated and involved the settlement of multiple class action and regulatory claims that we vigorously fought. Throughout the ordeal, we have steadfastly maintained that we have conducted our business in compliance with law. I am pleased that we were able to work our way through it and exit bankruptcy with core assets including our technology and personnel intact. We will emerge a materially stronger and more competitive company with this behind us."

With this milestone, TF Holdings and its subsidiaries will be able to grow their offerings with cutting edge credit and financial wellness tools.

"TF Holdings will continue the legacy started by Think Finance 18+ years ago, and this will be reflected in our best-in-class product offerings and commitment to being a market leader," Martin noted. "We look forward to furthering our mission to serve consumers and lenders with the best technology solutions."

About TF Holdings, Inc.

TF Holdings, Inc., through its subsidiary companies provides credit and financial wellness tools to consumers, and licenses loan origination, risk underwritingand loan management software to lenders. The company's businesses serve consumers and lenders with a portfolio of innovative products, including Jora Credit, Echo Credit, iQ Decision Engine and the Cortex loan management platform. TF Holdings, Inc. is based in Irving, Texas, and backed by prominent venture capital firms Sequoia and Technology Crossover Ventures.

SOURCE TF Holdings, Inc.

https://tfholdingsinc.com/

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Think Finance Reorganizes and Exits Bankruptcy Protection - PRNewswire

Allegheny County, Pennsylvania, is poised to implement a major change in the way families are hooked up with social services come January 2020. If Allegheny County sounds familiar, its probably because the county recently received significant attention for its child welfare investigative process. In 2015, it incorporated a predictive algorithm called the Allegheny Family Screening Tool into its child welfare program. That algorithm analyzes parental and family data to generate a risk score for families who are alleged to have maltreated a child.

In 2020, Allegheny will begin applying a similar algorithm to every family that gives birth in the county, with the goal of linking families in need to supportive services before a maltreatment case is opened. But some critics insist that it will be just another way for government to police the poor.

The new program is called Hello Baby. The plan is to eventually apply it across the county, but the January launch will begin in only a select few hospitals. Like the Allegheny Family Screening Tool, the Hello Baby algorithm analyzes family data to apply an individual family score.

Emily Putnam-Hornstein, who helped design both programs, told TalkPoverty that Hello Baby uses slightly different data than the child maltreatment algorithm, which was criticized for targeting poor families because much of the data used was available only for people who used public services.

This is a universal program, explained Putnam-Hornstein. In the [child services] model the county was being forced to make a decision after an allegation had been received; in this case were taking about more proactively using data so we wanted that to be built around universally available data.

But these exclusions dont guarantee that the data will not end up targeting low-income families again. They rely on data where the county has the potential to have records for every family, said Richard Wexler, the executive director of the National Coalition for Child Protection Reform. The county acknowledges they will probably use data from [Child Protective Services], homeless services, and the criminal justice system, so yes, theoretically everyone can be in that, but we know whos really going to be in it.

An overview provided by the county online cites birth records, child welfare records, homelessness, jail/juvenile probation records as some of the available service data incorporated into the predictive risk algorithm, indicating that Wexlers assessment was absolutely correct. Although that data is potentially available about anyone, several of these systems are known to disproportionately involve low-income people and people of color.

Putnam-Hornstein said via email that the Hello Baby process is truly voluntary from start to finish. A family can choose to drop-out of the program or discontinue services at any time.

The option to drop out will be presented at the hospital, when families are first told about the program. A second notification, and chance to opt-out, will then be made by postcard. If a family doesnt respond to the postcard, they are automatically included in the next phase of the program, which involves running available data through the system to determine how much social support each family needs.

According to Putnam-Hornstein, scores will be generated about four to six weeks after birth for families that do not choose to opt out (or who are too busy to realize they want to). Once a family is scored, what happens next varies based on which of three tiers they fall into.

Under the universal tier, the most basic approach, families receive mail notifications about resources available throughout the county. Families grouped in the second, family support, tier will receive a visit from a community outreach provider and an invitation to join one of 28 Family Support Centers located around the city of Pittsburgh.

The priority tier engages families with a two-person team made up of a peer-support specialist and a social worker who will work closely with the families to identify their needs and partner them with appropriate providers. It is designed to be an individualized program that grants families access to the full range of support services available on a case-by-case basis. That could mean helping a parent navigate the complexities of applying for housing assistance or ensuring timely placement in a substance use treatment program. The county said in its promotional material which was reinforced by Putnam-Hornstein over the phone and by email that choosing not to engage with any aspect of the program will not lead to any kind of punitive action.

But parents who need supportive services still have reasons to fear intervention from child services. The reality is that any program putting families in contact with social service and medical providers means, by default, also putting those families at greater risk of being reported to child services by placing them in more frequent contact with mandated reporters.

A mandated reporter is someone who is legally required to report any suspicions of child maltreatment they encounter. The intention is to ensure timely detection of as much child abuse and neglect as possible, but data have not shown that an uptick in mandatory reporting equates to more child safety.

In Pennsylvania, nearly anyone who regularly interacts with children in a professional or semi-professional capacity is legally considered a mandated reporter. An unfortunate side-effect of the mandated reporter system is that even though a referral program like Hello Baby is not directly involved with child services, participating families will always be haunted by the possibility of coming under investigation.

Putnam-Hornstein assured that familys scores will not be retained or shared with child services, even for families under investigation but noted that it is possible that child welfare workers could infer the level of risk if the family has voluntarily agreed to participate in Hello Baby Priority services and a child welfare worker learned that when gathering family history.

Its clear that the new program is not designed to get families involved with child services, although it is spearheaded by the Department of Human Services, which oversees the Office of Children, Youth, and Families that conducts child maltreatment investigations and responses. Rather, Hello Baby was created with the goal of offering a more equitable way to expedite service referrals for families with new children who need them.

Universalizing the assessment of social needs at birth is the only way to avoid discrimination, said Mishka Terplan, an obstetrician and addiction medicine physician, who was not talking specifically about the Hello Baby program. He observed that patients with obvious social needs, such as those suffering from acute addiction, were often screened and referred for other issues, like postpartum depression or housing assistance, while other parents needs were going undetected and unaddressed. That seemed unfair, he lamented. Terplan believes that universal screening programs would eliminate both the disparity between services rendered, and reduce the stigma attached to needing behavioral health treatment and other social supports.

Hello Babys creators hope that offering families these programs before there is a child maltreatment complaint can help keep them out of the system altogether. But by using imbalanced data points like child welfare history, homeless services, and county prison history to auto-generate scores, it assumes poverty as the main basis for family need. While poverty does generate certain needs, it is not the only indicator for the whole range of unique social supports that new parents require, such as mental health screening or child care assistance.

A system that continues to embed data that target the poor may only end up automating the social inequities that already exist, while placing vulnerable families under increased scrutiny by mandated reporters for the child welfare system even if it intends to serve as a universal screening process that helps families avoid punitive interventions.

As long as the system confuses poverty for neglect, any form of such screening is extremely dangerous, said Wexler.

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Bankruptcy Promised Me a Fresh Start. Predatory Lenders Are Trying to Ruin It. - TalkPoverty

Updated: May 25, 2018:

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To Be (Held in Contempt) or Not To Be? That Is the (Bankruptcy) Question - JD Supra

A free job board FreightWaves established to connect those seeking new employment in the freight industry after the Celadon shutdown has quickly gained popularity with employers.

The job and career board connects recruiters, companies and applicants in finding logistics talent nationwide.

On Wednesday, FreightWaves announced that in its first 24 hours, the board had close to 500 job postings from 225 employers. Approximately 50 people have applied for jobs so far a number expected to grow in the coming days.

The holiday season can be stressful for individuals facing a sudden job loss, as well as for their families. That is why FreightWaves is lending a hand to those who make the trucking industry great.

The tragedy of Celadon is impacting so many people across the industry, FreightWaves CEO Craig Fuller said. FreightWaves is a part of driving transparency and connectedness in the freight community, and we wanted to expand that to connecting great talent with prospective employers.

Creating a profile on the job board is free and is a great tool for those who are looking for a career in the freight industry.

To search for logistics jobs, post new opportunities or post a resume, visit FreightCareers.FreightWaves.com.

FreightWaves wants all those affected by the recent closure to find employment as soon as possible. These tips can help applicants stand out to employers and recruiters:

LinkedIn

Resume

Networking

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FreightWaves job board rapidly gains steam in wake of Celadon bankruptcy (with video) - FreightWaves

Celadon Group (OTC: CGIP) will file for bankruptcy protection under Chapter 11 no later than Wednesday, Dec. 11, according to internal sources. The Indianapolis-based, publicly traded trucking carrier employed more than 3,200 drivers and took in more than $1 billion in gross revenue as recently as 2015.

More recent numbers are difficult to come by because Celadon had to restate its financial reporting after mismanagement and a complex accounting scandal that ultimately resulted in former executives being indicted on securities fraud charges yesterday, Dec. 5.

But the imminent bankruptcys immediate cause was a technical default on Celadons covenants, the agreements between borrowers and lenders that can define requirements for cash reserves and earnings. Celadon entered the week with scant cash in its accounts to continue operations but was negotiating with creditors Luminus and Blue Torch to secure further financing. Those talks fell through Thursday morning, Dec. 5, when talks between Blue Torch and Luminus broke down over collateral issues.Blue Torch owned 70% of the debt and Luminus owned 30%.

Over-the-road drivers may be at risk of being stranded our source could not verify that Celadons drivers would get home and should fill their tanks at the earliest opportunity as the companys fuel cards still work.Celadons 3,500 employees could lose their jobs soon.

Many top customers of the company have been notified, in an effort by management to mitigate freight being stranded after a filing. Celadon handles significant volumes of critical automotive freight and told its customers that it did not want their plants to shut down. Sources not associated with the company have also told FreightWaves that FedEx (NYSE:FDX) has stopped loading Celadon-branded trailers.

Celadon will be the largest truckload carrier in history to file bankruptcy. The north-south truckload carrier has 2,695 trucks, including 2,000 in the United States, 360 in Canada and 335 in Mexico. The company is a dominant carrier on the Interstate 35 corridor, running freight from Laredo, Texas, to the Midwest, with a large concentration in the automotive sector.

The companys bankruptcy and likely shutdown will result in some capacity exiting the market at a time when the truckload market is struggling from overcapacity. Large enterprise carriers running similar networks to Celadon will find new lane opportunities and a pool of high-quality drivers. CFI, part of Transforce (TSX: TFII), is Celadons largest north-south competitor. PAM (NASDAQ:PTSI) is also likely to benefit, having deep exposure to the automotive sector and a large cross-border presence. Third-party logistics providers specializing in cross-border freight like Forager Logistics should also benefit from a sudden removal of NAFTA capacity.

Celadon was founded in 1985 by Stephen Russell and Leonard Bennett with 50 leased tractors and 100 trailers its first contract was hauling automotive parts to a new Chrysler plant in Mexico. The company expanded rapidly into a true North American transportation company, offering dedicated, expedited, long-haul, local and refrigerated transportation services. At its peak, Celadon operated 4,000 trucks, while the companys leasing division, Quality Equipment, had 11,000 trucks.

Russell was a native of New York City and earned a bachelors degree and MBA from Cornell University. A collector of Andy Warhols work and a lover of the arts, Russell named his trucking company after a style of ancient Chinese pottery; tellingly, Celadon is one of the very few words that are the same in English and Spanish.

Celadon came to public markets through an initial public offering in 1994 and was listed on the New York Stock Exchange in 2009.

Russell stepped down from the CEO role in 2012; Paul Will succeeded him. Following the onset of illness, Stephen Russell resigned from Celadons board in December 2015 and died the next spring.

Erik Meek and Bobby Peavler, both of whom were indicted on Thursday, were Celadon officers after the Russell era. Meek, the former chief operating officer, and Peavler, the former chief financial officer, are accused of orchestrating a scheme to exaggerate the value of some of Celadons trucks, which should have been sharply depreciated.

A short sellers report that was published on the stock research and commentary site Seeking Alpha on April 5, 2017, Celadon Group: A Story That Ends At Chapter 11, crashed the stock. The report outlined the accounting shenanigans that Meek and Peavler allegedly had been responsible for. A month later, the companys auditor, BKD, pulled out of the company.

Later, Celadon announced it would have to restate some recent financial reporting, and the stock further plummeted. That July, new management was brought in: Paul Svindland, from XPO and EZE Trucking, came on as CEO. Thom Albrecht, who had worked in transportation equity research at Stephens and BBT before serving the industry as a consultant, joined Celadon as chief financial officer.

It was Svindland and Albrechts task to turn around a large truckload carrier whose financial records were completely uncertain. The new management team set to work reassuring investors and creditors, identifying problems and divesting assets. The larger deals were reported in 8-K filings, but many more were too small to require public notice; much of the proceeds went to pay creditors.

Ultimately Svindland and Albrecht had a very narrow margin of error in which to operate the company and achieve profitability; the precipitous collapse of trucking rates in the fourth quarter of 2018 could not have helped. At this time, the impact of the General Motors strike on Celadons revenue is unclear, but that 40-day-long shutdown was certainly detrimental.

This is a developing story. FreightWaves will continue to provide updates as we get more information.

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Celadon, biggest bankruptcy in truckload history expected by mid-week (with video) - FreightWaves

Robert Julian, a lawyer for the wildfire victims, said in bankruptcy court on Tuesday that PG&Es settlement with the insurance-claims holders had become the elephant in the room in the bankruptcy. The claims holders have not attended recent mediation sessions, he said.

We cant resolve this case because theyve taken all the cash, Mr. Julian said.

Gov. Gavin Newsom has also come out against the deal with insurance-claim holders, calling it premature. If victims, PG&E and insurance-claim holders cannot come to an agreement, the State of California will present its own plan for resolution of these cases, lawyers for Mr. Newsom wrote in a recent legal filing.

Lawyers for insurance creditors have said their clients have given up a lot by agreeing to accept $11 billion for claims that originally totaled $20 billion. Any remorse that fire victims lawyers may feel for not moving more quickly and settling their claims is ultimately irrelevant to the bankruptcy courts decision about whether PG&E made the right call by settling with the insurance claim holders, the groups lawyers wrote in a Nov. 11 court filing.

Some California politicians are considering drastic measures. Sam Liccardo, the mayor of San Jose, has proposed turning PG&E into a customer-owned entity. All fire claims in bankruptcy would be paid in cash under that plan, according to Alan Gover, a lawyer who is working on it.

PG&E must emerge from bankruptcy by June in order to participate in a fund that California set up this year to shield the states largest utilities from future wildfire claims. If there is no settlement among PG&E, fire victims and other creditors by early next year, however, two other potentially lengthy trials are set to begin. These would decide the utilitys liability to fire victims with the help of a jury and expert witnesses.

While PG&E has repeatedly promised to pay all fire victim claims in full, bankruptcy experts say that troubled companies often find it difficult to do so, and that many victims are left with much less than they hoped for.

You kind of have to put in full in quotation marks, said Ralph Brubaker, a professor who specializes in bankruptcy at the University of Illinois College of Law.

Originally posted here:

PG&E Struggles to Find a Way Out of Bankruptcy - The New York Times

Eleven biopharmaceutical companies have filed for bankruptcy so far in 2019, the most in a single year within the past decade, according to a new series fromBioPharma Dive.

Why it matters: Its rare for biotechs to go under because they have so much access to extra funding. But more firms have hit dead ends.

Between the lines: The reasons for the biotech bankruptcies run the gamut, but in general, all of the companies burn cash at a high rate.

Why you'll hear about this again: "You're probably going to see more of these situations going forward, where a company is preclinical, went public and is left on their own and has to raise additional money from the public markets, and they flounder," the CEO of a bankrupt biotech firm told BioPharma Dive.

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11 biotechnology companies have filed for bankruptcy so far in 2019 - Axios

Dairy producer Dean Foods has filed for bankruptcy protection. In Utah, St. George Ice Cream is a division of Dean Foods and is the manufacturer of branded and private label ice cream products.

As one of the largest dairy producers in the United States, Dean Foods is over many popular brands that have more than likely made it to your kitchen table at one point. TruMoo, Friendlys, Land-O-Lakes and Dairy Pure are just a few brands that will bear the effect of this bankruptcy.

Kristi Spence, the Senior Vice President of Marketing for Dairy West says farmers will not see an immediate difference. As long as processing capacity stays the same, consumers do not need to worry that milk prices are going to go up.

The dairy industry remains strong," Spence said. "We see that overall dairy consumption continues to grow and when we think of dairy consumption its not just fluid milk consumption, its dairy in all of its forms. So cheese or yogurt or cottege cheese or sour cream, butter - all of those components relate to the overall dairy category and that remains strong.

Here in Utah, farmers whose milk goes to Dean Foods plants all go through their cooperatives first. Cooperatives are farmer-owned organizations, such as Dairy Farmers of America, that are the middle point between the farmer and the distributer.

The benefit of a system like that is that a farmer isnt scrambling to find a home for their milk on a daily basis. They know their milk is going to be collected and that it has an end home to go to, Spence said.

Dairy Farmers of America is currently considering buying Dean Foods.

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The Effects Of The Dean Foods Bankruptcy On Utah - Utah Public Radio

Two years after Bumble Bee Foods pleaded guilty to price-fixing, the canned tuna producer is in talks with seafood industry peer FCF Fishery to buy it during a bankruptcy reorganization, according to people with knowledge of the discussions.

Taiwan-based FCF Fishery would act as a stalking-horse bidder in a Chapter 11 reorganization, which San Diego-based Bumble Bee could file as soon as this week, said the people, who asked not to be identified discussing the private deliberations. A stalking-horse bid sets a floor for any other offers that emerge in a court-supervised sale. Talks could still fall apart and terms of any deal could change, they said.

Representatives for the companies declined to comment.

FCF Fishery, which calls itself the largest tuna supplier in the western Pacific, has discussed a bid for about $925 million made up of $275 million of equity and $650 million of debt, one of the people said. The proposal calls for paying down part of Bumble Bees existing first-lien debt.

Bumble Bee, the largest North American brand of packaged seafood, is beset with criminal fines and civil lawsuits stemming from a federal price-fixing case. It pleaded guilty in 2017 to conspiring with Starkist Co. and Chicken of the Sea Inc. to fix and raise prices of canned tuna in the United States from 2011 through at least late 2013. The company also agreed to cooperate with the antitrust investigation.

Bumble Bee flagged its financial distress during the case, arguing that the $81.5-million fine initially contemplated could push it into insolvency. The U.S. Department of Justice agreed, cutting the amount to $25 million and giving Bumble Bee an installment plan over several years that required no more than $2 million upfront.

Former Chief Executive Christopher Lischewski pleaded not guilty to related criminal charges in 2018, and his trial in California federal court began Nov. 4. The hearings have featured testimony from cooperating witnesses that include executives from Bumble Bee and its competitors.

Starkist pleaded guilty to the price-fixing charges in 2018 and also agreed to cooperate. Chicken of the Sea, owned by Thai Union Group, received conditional leniency from the U.S. Department of Justice for its cooperation with the investigation and didnt have to pay fines.

Ronalds-Hannon and Doherty write for Bloomberg.

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Bumble Bee is in talks to file for bankruptcy and sell itself - Los Angeles Times

227 Grand Street in Williamsburg and Michael Lichtenstein of Heritage Equity Partners (Credit: Google Maps, Heritage Equity Partners)

Michael Lichtenstein has filed for Chapter 11 bankruptcy at an apartment building in Williamsburg, but said he plans to withdraw the application shortly.

Lichtenstein, the president of Heritage Equity Partners and a frequent partner of developer Toby Moskovits, filed the claim for 227 Grand Avenue through the entity MY2011 Grand LLC. He did so independently of his partnership with Moskovits and his role at Heritage Equity Partners, he said.

Toby Moskovits

The property has between $10 million and $50 million worth of assets and $1 million to $10 million worth of liabilities on it, the filing states. It contains 41 residential units across five stories, with rents ranging from about $1,700 to $4,800 per month, according to StreetEasy.

Mark Frankel, an attorney for the LLC, declined to comment.

The bankruptcy filing, made Nov. 6, lists five creditors with unsecured claims on the property, the largest being the architect Karl Fischer at $50,000. Fischer passed away earlier this year, but his company Fischer + Makooi Architects remains active.

The other creditors on the property have claims of between $5,000 and $30,000. Lichtensteins LLC has a stake in the property worth $12.8 million, according to court documents.

S&B Monsey LLC, an entity linked to Moshe Dov Schweid, also filed for Chapter 11 bankruptcy for the same address on the same day, court documents show. That filing lists four creditors with about $250,000 in unsecured claims on the property and says that Schweids LLC has an interest in the building worth $13.2 million.

In 2017 Moskovits, Schweid and Lichtensteins LLC filed a lawsuit accusing Yoel Goldmans All Year Management of stealing funds from 227 Grand Street and operating the building without authorization. Lichtenstein said in a statement that he recently reached a settlement with Goldman over these accusations that should render the bankruptcy filings unnecessary.

I am pleased that we have come to an amicable out-of-court agreement with Yoel Goldman that settles all litigation related to a dispute over the property at 227 Grand, Lichtenstein said. We wish to express our appreciation to Mr. Goldman for working with us to resolve this in a friendly manner. As part of this settlement, all open litigation concerning this matter is being withdrawn.

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Its bankruptcy time for Michael Lichtenstein LLC in Williamsburg - The Real Deal

President Trump came into office promising to save coal. And coal jobs.

Instead, Americas coal industry has continued to slide. The question now is how far will it go? An industry that once employed hundreds of thousands now has about 50,000 workers. Eight coal companies have declared bankruptcy in the last year.

For ourTrump on Earthpodcast, we talked about the state of coal with an expert on the topic.Taylor Kuykendallcovers the industry for S&P Global Market Intelligence.

The latest coal company to declare bankruptcy is Murray Energy, the largest privately held coal company in the United States. Until recently, Murray had been doing a lot of expanding. When others were filing for bankruptcy, they were scooping up assets.

So why did Murray Energy file for bankruptcy?

They faced a lot of the same pressures that the rest of the coal industry did, Kuykendall explained. Competition from cheap, natural gas; decline in export demand; but most of all, there was a whole lot of debt on the companys balance sheet [about $8 billion dollars]. Ultimately, their lenders didnt want to keep giving them passes.

Bob Murray, CEO of Murray Energy, is a major ally of President Trump. Early on in Trumps presidency, Murrayhand-delivered a wish listof sorts to the new Energy Secretary, Rick Perry.

One of the first things the administration checked off that list was getting rid of the the Obama-eraStream Protection Rulethat would have restricted coal companies from dumping mining waste into streams and waterways.

Murray didnt get everything on his list. Kuykendall says even where Murray was successful, it hasnt really proven to move the needle as far as coals long-term or even medium-term prospects.

Weve seen a lot of coal plant retirements already, said Kuykendall. Those arent going to come back. And nobody is really building any new coal plants as a general rule. Power plants are getting older and less efficient or they require more investment to become more efficient. Meanwhile, theres tons of cheap up options right now. Natural gas is very cheap. Renewable energy is increasingly getting more into that space.

So has the coal industry plateaued or is it just on a steady trajectory to become less and less important to the American electric grid? And will it matter who wins the election in 2020?

I think its pretty safe to assume that, no matter who comes in, coal is going to continue to decline. Its just a matter of speed, Kuykendall said. I was just at a coal conference, and the consensus there was that coal country has more bankruptcies coming, whether its under Trump or not.

During the 2016 election, Trump talked about bringing back coal and ending the so-called war on coal. But with the industry so clearly on the decline, can he still use that kind of framing? Kuykendall says its going to be tough, partly because the average voter isnt going to be checking Trumps track record.

If you look at the numbers, he clearly did not bring back the coal industry, he said. Even before the [2016] election, when I talked to people in the mining industry, [they said] the war on coal language was divisive and not really effective.

Kuykendall will be watching to see how Trump plays coal going forward and whether he will continue to cater to the voter who wants to hear the message that coal is coming back or that something can be done.

For the miners no longer getting a paycheck, its hard to imagine theyd get much comfort from that.

Find this report and others at the site of our partner, Allegheny Front.

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After Murray Energy Bankruptcy, What's The Future Of Coal? - 90.5 WESA

Store closures and retailer bankruptcies have become a huge drag on mall REITs' financial results in recent years. Owners of low- and mid-tier malls have been hit hardest. Falling traffic to those properties caused two department store chains, Bon-Ton and Sears Holdings, to file for bankruptcy last year. In 2019 alone, numerous chains that were once ubiquitous at mid-tier malls -- such as Gymboree, Crazy 8, Payless ShoeSource, and Things Remembered -- have closed their doors for good.

However, one of the more recent retail bankruptcies is impacting a different slice of the REIT world. Fast-fashion giant Forever 21 filed for bankruptcy a little over a month ago and announced plans to close up to 178 stores in the U.S. Its restructuring is disproportionately hurting high-end mall REITs, as seen in recent earnings reports from Taubman Centers (NYSE:TCO) and Macerich (NYSE:MAC).

Taubman Centers owns some of the best malls in the U.S. It recently reported that sales per square foot for comparable centers in the U.S. reached $964 for the 12-month period ending on Sept. 30, up nearly 14% from $848 during the prior 12-month period. Yet Taubman has struggled to translate this portfolio of superior malls into strong growth in funds from operations (FFO) per share, due to a combination of poor execution and questionable investment decisions.

Taubman's third-quarter earnings report revealed more of the same. Adjusted FFO per share plunged to $0.86 from $1.01 a year earlier. Higher interest expense, lower land sale gains, and a decline in lease termination revenue all contributed to the FFO decrease. Management also said that the Forever 21 bankruptcy reduced FFO per share by $0.03.

Excluding lease cancellation revenue, net operating income (NOI) from comparable centers fell 1.5% year over year, driven entirely by the Forever 21 bankruptcy and exchange rate fluctuations. Taubman now expects full-year comparable-center NOI to increase just 0% to 1%, compared to its previous guidance for 2% growth. Looking ahead to 2020, the Forever 21 bankruptcy will reduce comparable NOI by 1% to 1.5% and will hurt FFO per share by $0.08 to $0.10.

Taubman Centers cut its full-year guidance for comparable center NOI growth last week. Image source: Taubman Centers.

Management noted that only one or two of the Forever 21 stores in Taubman's portfolio are likely to close, whereas Forever 21 had initially planned to close a dozen stores at the REIT's malls. However, Taubman Centers had to offer substantial rent reductions to avoid immediate store closures. In the years ahead, it will look to replace some of those stores with new tenants paying market rents.

Macerich also owns a collection of extremely strong malls, with portfolio sales per square foot of $800 over the past 12 months, up from $707 in the year-earlier period. It has done a little better on the execution front than Taubman in recent years, but has faced many of the same challenges.

Last quarter, Macerich's adjusted FFO per share fell to $0.88 from $0.99 in the prior-year period. Excluding lease termination revenue, same-center NOI ticked up 0.2% year over year. For both of these metrics, Macerich performed slightly better than Taubman Centers in the third quarter. Nearly all of the FFO decline was driven by higher interest expense, lower land sale gains, a decrease in lease termination revenue, and an accounting change.

Macerich management said that on an annualized basis, the Forever 21 bankruptcy will reduce FFO per share by $0.08, including a roughly $0.01 hit in each of the third and fourth quarters of 2019. The annualized impact on comparable NOI will be approximately 1.3 percentage points. Like Taubman Centers, Macerich expects only a few of its Forever 21 stores to close -- and most of that space has already been released. Most of the impact of the bankruptcy will be felt in the form of rent concessions.

In the long run, Taubman Centers and Macerich should have no trouble replacing most of their Forever 21 stores with new tenants paying higher rents, due to the high quality of their properties. The Forever 21 bankruptcy will remain a significant headwind in the first half of 2020, but the impact will recede quickly thereafter. That said, Macerich is likely to see a quicker recovery in NOI and FFO than Taubman Centers.

First, Macerich has reported higher growth in average base rent and stronger releasing spreads than its rival over the past year. Second, Macerich owns 50% of Fashion District Philadelphia, a completely redeveloped city-center mall that recently opened in Philadelphia. As that property moves toward full occupancy during 2020, it should begin to make a meaningful contribution to NOI and FFO. Third, Macerich has a promising redevelopment pipeline. It is nearing completion of a major expansion of Scottsdale Fashion Square -- one of its premier malls -- and has more than half a dozen projects in the works for the next few years to replace closed Sears stores.

Thus, Macerich has a good chance to return to strong FFO growth as soon as the second half of next year. By contrast, based on its anemic rent spreads, it may take Taubman Centers longer to turn things around. Both REITs are likely to perform well in the long run, but Macerich looks like a better investment opportunity today.

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High-End Mall REITs Take a Hit From Forever 21 Bankruptcy - The Motley Fool

Murray Energy, once a symbol of American mining prowess, has become the eighth coal company in a year to file for bankruptcy protection. The move on Tuesday is the latest sign that market forces are throttling the Trump administrations bid to save the industry.

The collapse of the Ohio-based company had long been expected as coal-fired power plants close across the country.

Its chief executive, Robert E. Murray, has been an outspoken supporter and adviser of President Trump. He had lobbied extensively for Washington to support coal-fired power plants.

Mr. Murray gave up his position as chief executive and was replaced on Tuesday by Robert Moore, the former chief financial officer. Mr. Murray, who will remain chairman, expressed optimism that the company would survive with a lighter debt load.

Although a bankruptcy filing is not an easy decision, it became necessary to access liquidity, he said in a statement, and best position Murray Energy and its affiliates for the future of our employees and customers and our long-term success.

Murray, the nations largest privately held coal company, has nearly 7,000 employees and operates 17 mines in six states across Appalachia and the South as well as two mines in Colombia. It produces more than 70 million tons of coal annually.

But with utilities quickly switching to cheap natural gas and renewable sources like wind and solar power, Murray and other coal companies have been shutting down mines and laying off workers. Murrays bankruptcy follows those of industry stalwarts like Cloud Peak Energy, Cambrian Coal and Blackjewel.

Murray was most closely identified with Trump administration promises to reverse the industrys fortunes.

Mr. Murray contributed $300,000 to Mr. Trumps inauguration. Shortly after, he wrote Mr. Trump a confidential memo with his wish list for the industry, including shaving regulations on greenhouse gas emissions and ozone and mine safety, along with cutting the staff at the Environmental Protection Agency by at least 50 percent. Several of the suggestions were adopted.

In July, Mr. Murray hosted a fund-raiser for Mr. Trump attended by the Republican governors of Ohio, Kentucky and West Virginia.

With Mr. Murray applauding his efforts, President Trump installed former coal lobbyists in regulatory positions and slashed environmental rules. But utilities continued to shut down coal plants that could not compete with a glut of natural gas produced in the nations shale fields. More recently, the improved economics of wind and solar energy production hastened coals decline.

Once the source of over 40 percent of the countrys power, coal produced 28 percent in 2018. That share has declined to just 25 percent this year, and the Energy Department projects that it will drop to 22 percent next year.

The only bright spot for Murray and other coal companies in recent years has been growing demand from Europe, Latin America and Asia, but exports have dropped by nearly 30 percent in the third quarter compared with last year. All told, domestic coal production is expected to decline by 10 percent this year from 2018 and by an additional 11 percent in 2020, the Energy Department said recently.

Environmentalists cheered the bankruptcy.

Bob Murray and his company are the latest examples of how market forces have sealed the fate of coal and theres nothing the president can do about it, said Ken Cook, president of the Environmental Working Group.

Murray entered into a restructuring agreement with some of its lenders and said it had received $350 million in loans to keep operating its mines.

Many coal companies have gone through bankruptcy in recent years only to re-emerge smaller, with reduced debts and eroded pension and health care benefits. Murray had been the last coal company contributing to the pension fund of the United Mine Workers of America.

In a statement, the United Mine Workers president, Cecil E. Roberts, warned that Murray will seek to be relieved of its obligations to retirees, their dependents and widows, adding, We have seen this sad act too many times before.

He promised to fight for the interests of workers in bankruptcy court.

While coal is in sharp decline in the United States, it remains a major power source in developing countries like India and China.

For coal to grow again in the United States and other industrialized countries, energy experts and even some coal executives say a concerted effort will be needed to develop technologies to capture carbon dioxide emissions from power plants. So far, the Trump administration has stopped short of pushing such an initiative.

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Murray Energy Is 8th Coal Company in a Year to Seek Bankruptcy - The New York Times

The federal bankruptcy court in Portland was almost empty when apple farmer Richard Blaine walked in. It was mid-October and harvest was in full swing on his orchards in Oregon and Washington. As workers plucked Granny Smiths and Golden Delicious from his trees, Blaine shifted in his seat and absorbed the bankruptcy hearing playing out aroundhim.

Richard Blaine friends call him Rick and his wife, Sydney Blaine, have run Avalon Orchards since 1974, growing apples, pears and cherries. He said the last five years have been a perfectstorm.

Its partly thanks to President Donald Trump that the Blaines have access to a kind of streamlined bankruptcy protection thats meant to help family farmers reorganize and keep farming. But its partly thanks to the presidents trade wars that they needit.

The Blaines have been married for 52 years. He was a schoolteacher when they bought her grandfathers farm in the Upper Hood River Valley. They learned by doing and over the years they expanded Avalon Orchards to five farms in Oregon andWashington.

Sydney, left, and Richard Blaine at Avalon Orchards in Sundale, Wash., Monday, Oct. 7, 2019. The Blaines have run Avalon since 1974. They hope to reorganize and continue farming after filing for Chapter 12 bankruptcy protections due to a variety of financial challenges, includingtariffs.

KateDavidson/OPB

Rick Blaine said now, at age 72, he can drive by an orchard at 50 mph and tell if its well tended. He and his wife are hands-onfarmers.

Mother Nature does almost all of it. But once in a while, if you bend a limb here or bend a limb there, and you do it often enough, the tree will produce lovely fruit, hesaid.

I love the harvest, Sydney Blaine said. Im outdoors all day long and especially when the weather is gorgeous, its just a beautiful outdoorlife.

Their daughter Heather Blaine is Avalon Orchards general manager. She said watching her parents go through this perfect storm, culminating in Avalons bankruptcy, has made this the hardest year of herlife.

I cannot even tell you how many tears have come out of my eyes, Heather Blaine said. And I wake up in the morning with stomach aches wondering how they are going to end their adventure in this livelihood weve had since1974.

When experienced farmers like the Blaines file for bankruptcy, its seldom because one thing went wrong. Its usually because theyve weathered a series of blows, which now include tariffs. In fact, the Blaines account of their perfect storm shows just how tied Northwest apples are to the whims ofgeopolitics.

They say it all started in 2014, with an event thousands of miles away that changed the global flow ofapples.

Binsof apples sit in the sun at Avalon Orchards in Sundale, Wash., Monday, Oct. 7,2019.

KateDavidson/OPB

After Russia seized and then annexed Ukraines Crimean Peninsula, Western nations imposed sanctions. Russia responded with a sweeping ban on imports from those countries, including apples. One of the affected countries, Poland, was a huge apple exporter and Russia was its biggest customer. Without access to Russia, European apples have been muscling into other markets where American fruit is alsosold.

The impact has been intense and right now immeasurable, said Mark Powers, president of the Northwest Horticultural Council. European apples that used to be sold in Russia are now being sold throughout the Middle East, in India and Southeast Asia as a result of those sanctions. Were losing market share as aresult.

But the storm was just gettingstarted.

In November 2014, a severe freeze killed 50-60 acres of Avalons fruit trees and damaged many more. Rick Blaine said it cost hundreds of thousands of dollars to replant the trees, which would take years to fullyproduce.

Victor Covarrubias holds a basket of Granny Smith apples at Avalon Orchards in Sundale, Wash., Monday, Oct. 7,2019.

KateDavidson/OPB

Add to that a monthslong labor conflict between dockworkers and shippers that bled into 2015 and turned some West Coast ports into parking lots. The labor dispute has slowed imports and exports to a crawl at 29 West Coast ports, CBS news reported at the time. Washington growers export about a third of their apples, but the slowdown backed up the regions entire apple supply chain. It cost producersdearly.

So that was the initialstorm.

In 2015 and 16, we started to recover, Rick Blainesaid.

Then, in 2018, President Trump imposed tariffs on imported steel and aluminum and the storm turned into a perfect storm. As the presidents trade wars escalated, the Blaines biggest export markets retaliated. No. 1 Mexico, no. 2 India, and no. 6 China all imposed or eventually raised tariffs on American apples. As foreign markets shrunk, those apples stayed in the U.S., depressing priceshere.

Its so unnecessary and its destroying our livelihood, said Sydney Blaine. The tariffs are destroying the markets and theyre destroying them for a long time into thefuture.

Even if countries later drop tariffs, as Mexico did, it takes time to rebuild thosemarkets.

Its sort of like if youre sitting in a backup on the interstate and youre wondering why has the traffic come to a screeching halt? said Jim Bair, president and CEO of the U.S. Apple Association. Well the accident that caused the backup may have been cleared off to the side of the road two hours ago, but it takes a long time to build back up to the same velocity that you were at. And thats true oftrade.

Vilmer Alcantar drives a tractor hauling bins of Granny Smith apples at Avalon Orchards farm in Sundale, Wash., Monday, Oct. 7, 2019. Alcantar is the foreman here and has worked for Avalon Orchards since1983.

KateDavidson/OPB

Over the past decade, the Blaines made business choices that also shaped their financial course. That includes planting some apples that have lost appeal in America, but are prized inAsia.

Much of our efforts, including planting Red Delicious, even though we know it wasnt domestically acceptable, was designed to be exported to India. The people of India and China and Southeast Asia, they really enjoy red fruit. And I think thats terrific, hesaid.

India now has a 70% tariff on U.S.apples.

If you cant sell your fruit thats designed for export, then you have failed, Rick Blainesaid.

The Blaines say they have never missed a loan payment in their lives. Still, according to court documents, Columbia State Bank looked at their losses and declined further funding for this years crop. It also found them in covenant default on a multimillion-dollar loan, basically alleging theyd failed to maintain enough equity in their operations. A lawyer for the bank said he was unable tocomment.

The Blaines say theyve sold a house and one of their five orchards to raise cash. They wrapped up harvest a few days ago. Now they have to wrap up their bankruptcycase.

Six months ago, Avalon Orchards wouldnt have been able to seek the streamlined protections of Chapter 12 bankruptcy. But on Aug. 23, President Trump signed a law expanding the number of family farmers eligible for that relief. The Family Farmer Relief Act more than doubled the amount of debt a farm can have and still qualify for Chapter 12, without being forced into a more onerous proceeding. The debt cap is now $10million.

Richard and Sydney Blaine had been waiting for that signature. Five days later, they filed for Chapter 12 protection for Avalon Orchards. Theoretically, they should be able to reorganize and keep farming, even if operations aresmaller.

Richard Blaine walks through his orchard in Sundale, Wash., Monday, Oct. 7, 2019. A number of financial forces, including tariffs, forced the family to file for Chapter 12 bankruptcyprotection.

KateDavidson/OPB

Daughter Heather Blaine is grateful her parents could still retire just nicely. She said it makes them feel like it wasnt all for naught. Still the rough ride since 2014 has made the 51-year-old general manager worry about her ownfuture.

I have a great life, but Ive always considered the land my 401(k), she said. When you put basically all your money into dirt, it gets a little stressful when times become very, verytenuous.

Those tenuous times, and the changes to Chapter 12, likely mean more family farmers affected by the storm of geopolitics will seek bankruptcy protection as time goeson.

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Roots Of An Oregon Farm Bankruptcy: When Tariffs, Mother Nature And Geopolitics Collide - OPB News

Uncertainty surrounding the potential that PG&E equipment helped spark the Kincade Fire, shown here burning in Windsor, Calif., this past week, is clouding the investment case for the utility. Photograph by Eric Thayer/The New York Times/Redux

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Wildfires are tearing across California again, and that has made Wall Street anxious about investing in the states electric utilities. But investors seem to be discounting the doomsday scenario for PG&E.

PG&E (ticker: PCG) filed for bankruptcy protection in January to deal with tens of billions of dollars in costs from a series of wildfires caused by its equipment in 2017 and 2018. In a July cover story, Barrons said that risk-tolerant investors might want to consider wagering on the shares. State regulators and PG&E executives both hadand still havestrong incentive to get the utility out of bankruptcy quickly, and the utility was planning to cut customers power to prevent fires.

A lot has changed since then.

First, wildfire victims got permission to pursue a lawsuit in state court against PG&E. They claim the utility is responsible for damages from the 2017 Tubbs Fire, even though Californias Forestry & Fire Division, known as Cal Fire, determined it wasnt the cause. That trial is scheduled to begin in January. The judge also approved a bondholder groups request to propose its own restructuring plan to compete with PG&Es. That plan would give bondholders including Pimco and activist Elliott Management up to a 95% stake in PG&E and leave current shares essentially worthless.

Then on Oct. 23, a blaze of unclear origin began in PG&Es territory. While the utility had implemented blackouts to prevent its equipment from causing wildfires, its large high-voltage transmission lines were still operating in the area, and it reported a problem with one of those towers near the start of the fire.

PG&E stock fell more than 20% following this news on Monday. The stock rebounded 62% from its nadir, but at Thursdays close of $6.17, its still far below the $18.50 it traded at when we ran our cover story.

The price of PG&Es high-coupon bond maturing in 2034 dropped nearly 14 cents on the dollar early last week after climbing most of the year. The bond recovered 10 cents of that loss by Thursday, when it was trading above par at $1.01 per dollar.

The rebound in PG&Es stock and bonds stems from several factors. First is U.S. Bankruptcy Judge Dennis Montalis decision to appoint a mediator to act as a go-between for competing groups in the reorganization. Second is the limited damage so far attributed to the Kincade Fire, the Northern California blaze that PG&Es equipment may have caused.

Its also important to note the benefits that PG&E could derive from a state law passed earlier this yearif it exits bankruptcy by a June 2020 deadline. A quick exit would allow the utility to access a wildfire fund that could pay up to 40% of the wildfire claims against PG&E, and would make it easier to pass along wildfire costs to customers.

Still, thanks to a quirk in bankruptcy law that gives priority to 2019 fire costs, bondholders recoveries have been called into question for the first time. Bondholders had previously expected to get paid back in full, though there was some disagreement between them and shareholders over the rate on interest payments accrued during the bankruptcy process.

Thats where the mediator comes in. The mediation process may help break the stalemate between bondholders and shareholders, who have been fighting to control the company once it exits from bankruptcy. The shareholders had signed a preliminary $11 billion settlement agreement with the insurers and hedge funds that own wildfire claims, while the bondholders had won the support of wildfire victims for their latest reorganization plan.

The PG&E trade remains a tough call. Theres still a small chance shareholders could recover some value, but that possibility could disappear once another severe wildfire starts.

Write to Alexandra Scaggs at alexandra.scaggs@barrons.com

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PG&Es Bankruptcy Has Gotten Trickier and Riskier for Its Stock - Barron's

Forever 21 holds a store-closing sale in London on October 16.

Topline: In an effort to emerge from bankruptcy, Forever 21 will close 200 stores, making the move to streamline its business during a tough time for brick-and-mortar retailers.

Big number: Forever 21 has 800 stores worldwide, with 549 in the U.S. That adds up to a total of 12.2 million square feet of leased retail space and an annual occupancy cost of $450 million.

Key background: Forever 21 was founded by husband and wife Do Won and Jin Sook Chang in 1984. By 2015, the company generated $4 billion of revenue and employed 43,000 people. But fast-fashion, a business model based on bringing low-cost, trendy clothing to market quickly, has floundered in 2019. Wet Seal, Delias, Aeropostale, The Limited and Payless ShoeSource also filed for bankruptcy this year. In their place are online retailers like Asos and Lulus, which can make and sell trendy clothing even faster than Forever 21.

Tangent: Ariana Grande filed a $10 million claim in September against Forever 21 for featuring a lookalike model in a social media campaign earlier this year. Grande also alleges Forever 21 used her photos and song lyrics for its Instagram posts without owning the rights to them.

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Forever 21 Closes 200 Stores Amid Bankruptcy Proceedings - Forbes