Acrossing the Miles: RON CHAN of Figaro – Comics Beat

In Acrossing the Miles, the Beats intrepid Animal Crossing travel reporter Avery Kaplan will leave her home base on Dharma Island to soar across the Dodo skies and visit the finest creators in comics on their respective virtual islands. This week, shes heading to an island thats a secret to everybody: Figaro!

It was shortly after noon on May 30th, 2020 when I left Dharma Island to visit Ron Chan on his Animal Crossing island, Figaro. Ron is a cartoonist wholives in Portland, Oregon, and you may recognize his art from his work from thePlants vs. Zombiescomics, the comic book versions of Stranger Things and The Guild, or his Patreon comic, Earth Boy and fans of Star Trek will want to be sure and visit his website, where you can see his Trek-inspired Inktober drawings.

Ron was waiting for me in the airport when I arrived. I must have missed the sign he was holding with my name on it near the gate, but we sorted it out just outside the airport.

Then, we jumped over the little puzzle islands and entered Figaro proper, where the emphatic Hey sign prominently displayed on the ground near the entrance greeted me. Ron explained that before he had added the jumping puzzle, the Hey had been at the immediate entrance, but jumping over the water is a cinch, which is part of the design philosophy of Figaro.

As soon as I got terraforming, I decided my town was going to be a no-pole, no-ladder zone, Ron told me. Everywhere is accessible by ramp or hop, no extra tools needed.

The Local Watering Hole & Concert Hall

The first stop on our tour of Figaro was Two Gnomes Bar & Grill, the local watering hole.

Ron explained that the gnomes are incredibly devoted employees who work around the clock to ensure Figaros tiki bar can remain open at all hours.

Teamwork isnt just important at the Two Gnomes Bar & Grill on Figaro, its also important in Rons professional life. The all-ages comic currently available through Rons Patreon, Earth Boy, is written by Paul Tobin, Rons collaborator on the Plants vs. Zombies comics.

Ron told me that after doing seven or eight volumes of Plants vs. Zombies, he was looking for a different type of project.

It was a good project, but after a while, my brain just craves a little variety, Ron said.

Paul suggested a creator-owned gig, and asked Ron if hed be interested in working on a sci-fi project (the comic follows Benson Chow, the only human boy in an all-alien school).

Ron said that he leapt at the idea: Im like, Paul, are you asking me to draw Mass Effect High? And hes like, Yeah, sure, close enough. Ron laughed. Im a huge Mass Effect fan and Ive never really gotten to draw sci-fi before, so I thought it would be fun!

After showing me around his wood-farm turned arboretum, we passed K.K. Slider in the Figaro Plaza and headed down to Rons giveaway area, clearly marked with a free sign. I was fortunate enough to find the DIY recipe for a western-style stone, which has proven invaluable in the construction of the Dharma Cemetery.

Next to the free area is Rons overflow garden, where friends can dig up any hybrid flowers that might catch their eye. Beyond that is one of the recent additions to Figaro, an outdoor music area.

Russ Frushtick of Polygon posted a video of his animals playing some instruments, and I was like, What? Animals can play instruments outdoors! Ron said. So the next thing on my goal list was immediately to make an outdoor music area.

The outdoor music area is adjacent to the island plaza, where the Figaro flag is displayed.

Ron explained that he used the Figaro flag as a touchstone for the signage all over the island. I just adapted that color scheme and lettering to make town signs all over my different neighborhoods.

The first neighborhood we visit is Lower Figaro, which is home to Ursula the bear, Anchovy the bird, and Pom Pom the duck.

All Around Figaro

East of Lower Figaro is Rons orchard. While he recently reduced the number of fruit trees he had growing in this area in order to make more room for growing flowers, he had initially had roughly fifteen of each fruit tree.

As it happens, Ron is no stranger to copious amounts of fruit. In fact, he is responsible for a Clip Studios tool that produces piles and piles of bananas.

The banana brush! That came from a Plants Vs. Zombies comic, Ron said. One of the zombies, theres just a gag where a zombie runs into a banana truck, and flings bananas everywhere. And at the time, I was getting into customizing Clip Studio paintbrushes and so I was like, I could individually draw bananas, or I could make a banana brush. And I did just that, and I used it in the issue, and it worked great.

However, Ron revealed to me that hadnt been the conclusion of the legend of the banana brush: I passed it around a little bit just as a joke, but then Steve Lieber ended up needing to draw a bunch of bananas for Jimmy Olsen, so he used it for that! It was perfect! The banana brush proudly lived on.

From the orchard, we headed downtown, where Figaros shops are located.

In addition to Able Sisters and Nooks Cranny, there is also a courtyard area with coffee and tea.

And we also ran into one of Rons villagers, Roald.

Next, we headed to Midtown, which is home to several more Figaro residents, including Dallas and Boris.

Separating Midtown from Figaro Heights is the Great Waterfall, a scenic area that its necessary to jump across.

Elsewhere Outdoors

In addition to the neighborhoods where the villagers of Figaro make their respective residences, there are also several other interesting outdoor areas on Figaro. One of them is the lovely reception area Ron has designed for use when Redd docks at the beach on the Northern shore of Figaro. Unfortunately, Ron tells me that the lovely reception area has not been effective in attracting Redds attention.

I made him such a nice area and he never shows up, Ron said. He should, too! He makes mad profit when he shows up! Not only do I shop but my friends have to come over and shop too.

There is another nicely designed courtyard outside the Figaro Museum. To the left we have this outdoor display area for various models and fossils, Ron explained.

Ron has also designed an altar area, located in the center of several waterfalls. When I first built this area with the waterfalls, I didnt actually have a plan for what to put in the middle of it, Ron explained. I just knew I wanted like a waterfall area. However, as he obtained more furniture, the ultimate purpose for the altar became clear.

Finally, there is a location Ron told me only visits when hes searching for star fragments: Dead Mans Cove!

Inside Rons House

With the tour of the island of Figaro completed, we head to Rons house.

The main room is arresting, to say the least: centered around the UFO centerpiece, the egg lamps on the floor add an eerie, Alien-esque air to the proceedings.

Ron explained that he favored the strange and unusual for his main room: The last three iterations were all some version of egg curse with these egg lamps, Ron said. Before this, it was just about thirty-five egg lamps with the lights off, and a dark wall with a creepy floor.

To the right of main room is the Arcade. I didnt even know that this game had arcade machines until I visited one of my friends who is like a serious, serious power gamer, said Ron. It was pretty early on but he had like almost everything already. He gave me one of these arcade machines to start as my first arcade machine And eventually, of course, I collected them all!

The next room on the main level is Rons Castlevania-inspired room.

Ron explained that he used a combination of custom designs and existing furniture items to create the undead atmosphere in the room. I used lots of candles, and I made this custom portrait of Draculas wife Lisa to go about the fireplace, Ron said. And a dress on the wall perhaps it was Lisas dress, before the humans killed her!

The next room on the tour of Rons house is his bedroom, where he has used custom patterns he found online to create the illusion of a multi-level floor. Although the illusion can be easily broken, he nevertheless appreciates the interesting perspective on how to organize the furniture in his room.

Upstairs, Ron has a room that includes both an area for food preparation and a dining area. The setup includes several items from one of the most popular types of furniture in New Horizons, the Ironwood set. Ron told me that early in the game, he and many of his friends put plenty of time and effort into gathering the necessary materials for crafting the Ironwood Kitchenette and Cupboard.

Speaking of getting together, Ron told me that he is missing comic conventions.

I miss having my hometown show, Rose City Comic Con, which would have happened later in the year anyway but they already announced that theyre not doing it, Ron said. I miss Emerald City Comic Con. Emerald City in Seattle has been my favorite show for like a decade.

Ron explained that going to ECCC has become something of a tradition for him. Ive been driving up to Seattle from Portland for so many years to go to that show, and watching it grow to what it has now has been great, said Ron. Its just the greatest reunion party of all of my comic friends from across the nation. So that a big hit to lose that. I know they still have it planned tentative for August, but I dont think anyone really expects its going to happen.

Ron told me that one of the things he misses most about conventions is getting the chance to meet his fans.

I love talking to fans, especially I have regulars who come and get commissions from me like every single year, and I love seeing them, Ron said. All the kid fans of Plants vs. Zombies are very adorable when they come to my booth, and ask me questions I dont know the answers to because they know a lot more about Plants vs. Zombies than I do!

In the basement, Ron has a personal collection of fish.

It gives me a reason to try and find more than one of each fish: one for Blathers, one for my fish room, Ron said. I got my very first Mahi Mahi last night, but I wouldnt mind catching a second one to put in this room.

Back at Two Gnomes

After the tour had concluded, Ron and I returned to Two Gnomes Bar & Grill. As we settled in with a frosty vacation juice, I asked Ron whether or not he had any special process for depicting characters that people might be most familiar with through live-action incarnations.

I dont know if I have a real specific process, Ron said. Other than the typical sort of, look at photos of them and do some sketches to kind of figure out how I want them to look. And depending on project to project, getting the likeness close to the original actor can be more or less important.

Ron said that certain properties require more accurate likenesses. For the Stranger Things covers that I do, they definitely want them very much to look like the actors, Ron explained. They want them to be very recognizable. And actually that makes a lot of sense for a cover, especially for something like Stranger Things.

However, not every project demands such a high degree of accuracy. For The Guild, general look was important, but they werent terribly concerned with having it exact, because theyre sort of fantasy characters anyway, Ron told me. So on that there was a lot more leeway to sort of cartoon it as opposed to go for a more realistic likeness.

Shes very cute, and if you bring her celestial items for her to tell you about, shell tell you some myths around the constellations, and she always throws tons of shade at Zeus, Ron said. Its pretty great. All of her stories are like, This happened, and this happened, and basically Zeus is a big asshole.

After returning to Dharma Island, I grabbed a Aires rocking chair and brought it to Celeste, who confirmed Rons statement to be entirely accurate.

Be sure and follow Ron on Twitter to keep up with his work. Next time on Acrossing the Miles, Avery will be visiting Mathew New of Koriko.

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Acrossing the Miles: RON CHAN of Figaro - Comics Beat

Trump No Longer the Odds-On Favorite to Win in November – TheStreet

Until now, the one thing Trump supporters could and did repeat was their guy was ahead. That's no longer the case.

A quick check on PredictIt shows Biden is ahead of Trump and has been there for a while.

That chart is stale by a day. As I type, it is 54-47.

Bible-Toting Fiasco

Trump's bible toting fiasco was the impetus for the change.

Something Changed for the Better: Trump's Bubble Just Shattered

On June 3, I commented Something Changed for the Better: Trump's Bubble Just Shattered

Trump made a complete fool out of himself. Fout Republican Senators criticized his photo-op stunt as didMike Mullen , Seventeenth chairman of the Joint Chiefs of Staff.

Millen wrote an Op-Ed:I Cannot Remain Silent.

James N. Miller Resigns

James N. Miller, Defense Science Board Member and former under secretary of defense for policy from 2012 to 2014 resigned.

Miller accused Trump and Secretary of Defense Esper of blatant actions that cross the line.

Retired Marine General Latest to Admonish Trump

On June 4, a Retired Marine General Admonished Trump.

Retired top Marine Gen. John Allen joins Mattis dissent from Trump.

Allen warns of 'Beginning of the End' for Democracy if troops are used against protests.

Facts of the Matter

Clearly, some people are still in denial.

How do I know that?

Easy.

Trump's supporters look the other way.

They fabricate excuses like the protest was not peaceful, besides "It was not teargas".

Amazing Lengths

Trump's supporters twist themselves in knots to avoid admitting he did anything wrong.

Regardless of denials something snapped.

I chimed in with the same message Trump is a Threat to the Constitution.

Donald Trump is the first president in my lifetime who does not try to unite the American peopledoes not even pretend to try. Instead, he tries to divide us, Mattis writes. We are witnessing the consequences of three years of this deliberate effort. We are witnessing the consequences of three years without mature leadership.

Trump's Disapproval Over Time

Trump's core support is about 36-38%.

These people will vote for Trump no matter what he does. But except for one brief moment at election time Trump cannot break the 45% approval line.

A quick check on the 538 Trump Tracker shows Trump is still at 41.6%.

This election will not be wonm nationally but at the state level. There, Trump continues to fall further and further begind.

Mish

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Trump No Longer the Odds-On Favorite to Win in November - TheStreet

We need a separation of medicine and the state: Ron Paul – Press-Enterprise

It seems like only yesterday. Americans were denied the right to go to their churches. They were denied the right to visit their loved ones in the hospital. They were denied the right to open their businesses and go to work to provide for themselves and their families. They were denied the right to go to restaurants, to bars, to hair salons.

No laws were passed denying these rights. Even that would be illegal and immoral. But what happened was worse. They were denied these basic rights by governors, county judges, and even local mayors who used the coronavirus outbreak as an excuse to rule by decree. They stole power that was not theirs to take and wielded it at all levels to force America into three months of house arrest.

Then, in the midst of stay-at-home orders across the country, the same governors and local officials who locked Americans in their homes suddenly came around with their keys and threw open the doors. Suddenly not only was it OK to go out into the street, it was required to go out into the street!

What happened? A cure? A miraculous vaccine? No. The officials who locked Americans up found a cause they felt required Americans in the streets to protest. Police had killed a black man, Floyd George, in their custody in Minneapolis and suddenly the need to protest trumped the need to stay home, save lives.

Suddenly the same health experts who told us we must not gather in crowds or there will be death in the millions from coronavirus issued statements supporting gathering in crowds. An open letter on the Floyd George protests signed by more than 1,200 doctors and other health professionals clarified that they do not condemn these gatherings as risky for COVID-19 transmission. However, they wrote, this should not be confused with a permissive stance on all gatherings, particularly protests against stay-at-home orders.

Did the coronavirus develop some kind of superior intelligence enabling it to distinguish between those who were congregating for a good cause and those who were congregating for a bad cause? Of course not. What has happened from the beginning of this shameful coronavirus episode is the politicization of public health at the hands of authoritarians.

Two prestigious medical journals, The Lancet and the New England Journal of Medicine, were forced to retract studies they had published concluding that hydroxychloroquine was harmful to COVID-19 patients. The rush to print the studies looks very much like a political move rather than one based on scientific principles. Once President Trump revealed that he was taking hydroxychloroquine the mainstream media and even expert journals began attacking the drug.

This is what happens when medicine merges with the state. We get the worst of both. We get career bureaucrat Dr. Fauci telling us we can never shake hands again and that we must stay home until a vaccine is found.

We have a tradition of separation of church and state in the United States for good reason. The merger of state and church invites oppression and corruption. We need to adopt this same approach to medicine and the state. We now see how this merger has produced the same kind of widespread tyranny and corruption.

Dr. Ron Paul is a former member of the House of Representatives. This article was written for and published by theRon Paul Institute for Peace and Prosperity.

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We need a separation of medicine and the state: Ron Paul - Press-Enterprise

Local golf league results, holes-in-one and upcoming events – The Ledger

Results from golf league play around Polk County through June 8.

Results from golf league play around Polk County through June 8 with format, date, event and winners by flight or class in alphabetical order.

Big Cypress 18-Hole Ladies, Low Gross/Low Net, June 2: First Flight Gross - Jean Witchekowski 85, Cathy Kosmick 87, Net - Kay Hink 73, Joanne Burkemper and Paulette Hall tied at 76; Second Gross - Kathi Wagner 90, Anne Merritt 94, Net - Allison Letourneau 71, Karen Oldenkamp 72. Closest to pin: Diana Berube 0-20 HDCP, Kathi Wagner 21+ HDCP.

Big Cypress Men's Thursday, Low Gross/Low Net, June 4: First Flight Gross - Tim O'Neil 71, G. Grandinetti 77, Joe D'Ambrosio 78, Net - C.V. Woodring 65, Eddie Lane 68, Steve Murray 70, Second Gross - Jerry Wheeler 86, Joe Greco 91, Keith Karanzas 94, Net - Timmy Monahan, Gary Lind and Joe Locey all at 80. Closest to pin: No. 5 - Joe DAmbrosio, Joe Greco, Rusty Doutt; No. 8 - Cliff Chasse, Brian Klinge, C.V. Woodring; No. 13 - G. Grandinetti/Gary Lind; No. 15 - Ray Berube, Mike Klein, Bart Tokas.

Big Cypress North Star Ladies, Scramble, June 3: First Flight - Donna Lewis/Diane Hoeh/Madeline Fostveit/Charlotte Kiefer 59; Second - Allison Letourneau/Kathleen Hilber/Sandie Hackett 60; Third - Deb Wilbur/Carol Anderson/Bonnie Cochran/Bonnie Barrett 62.

Cleveland Heights Men's Wednesday, June 3: Green Tee - Lincoln Jacobs plus 7, Tim Colpean plus 3, Paul Boeh plus 2; Yellow - George Johnson plus 8, Ted Hamilton and Ted Thrasher both at plus 3, Bill Griffith and Bob Shearer both at plus 2. Closest to pin: Green - Paul Boeh; Yellow - Bill Griffith.

Cleveland Heights Tuesday Men's, Draw and Quota Points, June 2: Joe Albright/Tim Colpean/Bob Shearer/Dave Neal plus 8, Kevin Mimbs/Gene Steffen/Herb Koffler/Pete Selmon plus 5, Ron Moisuk/Dave Waller/Bennie Boutwell/Keith Lohman plus 4. Closest to pin: No. A2 - Bob Shearer; No. A9 - Steve Criss; No. C8 - Mike Parrish. Best Over Quota: A Flight - Herb Koffler plus 1; B - Mike Parrish plus 7; C - Joe Albright plus 5.

Eaglebrooke Men's Early Morning Group, Team Best vs Average Score, June 6: Al Hanif/Dave Conway/Joe Whitfield/Mark Neville minus 1.7, Steve Sharp/Smith Patterson/Tony Longa plus 8.5. Team Point Quota, June 7: Chris Haake/Albert Sagnella/Mike Schwartz/Joe Hoggard plus 5, Smith Patterson/Joe Whitfield/Mike Gilbert and John Tillis/Dave Conway/Joe Pozek/Matt Antos tied at plus 3.

Hamptons Men's, Net Stroke Play, June 2: A Flight - Terry Andrews 56, Chuck Swafford 60, Don Verhey 61; B - Tom Vennard 51, Bill Mann 55, John Hughlett 56 on a match of cards over John DeBonis. Closest to pin: No. 6 - Bob Krueger; No. 16 - Bill Spivey; No. 18 - Don Verhey.

Hamptons Sunday Duffers, Scramble, June 7: Angela Rotondo/Joe DeBonis minus 2, Terry Foster/Judy Orioli/Wayne Smithson even.

Lake Ashton Blue Man Group, Four-Player Scramble, June 3: Front 9 - Steve Burrell/Jerry Getters/Jim Smith/Ed Costello 23, Larry Griffin/Darrell Saxton/Jim Jameson/Nolan Hake, Ken Engh/Dana Ferrande/Bob Yeager/Ron McKie and George Wilkinson/Paul Panone/Tom Prindiville/Ghost all tied at 26; Back 9 - Steve Burrell/Jerry Getters/Jim Smith/Ed Costello 22, Larry Griffin/Darrell Saxton/Jim Jameson/Nolan Hake 24, Doug Stanforth/Ron Waterson/Jim Wagner/Gary Hunt 25.

Lake Ashton Ladies 18-Holers, One Best Net Holes 1-6, Two Best Net Holes 7-12, Three Best Net Holes 13-18, June 2: First Flight - Deb Louder/Kim Kutsch/Carole Ferieri/Maija Baynes and Liz Leigh/Mary Lou Wheat/Jane Fuller/Carol Seavey tied at 122, Colette McKie/Char Walter/Rita Edmunds/Pat Hodges 124; Second - Deb Nettleton/Mary Ann Mentjes/Nancy Bishop/Cecily Harmon 121, Pat Amstutz/Pam Pagel/Gwen Novak/Dana Cunningham 131, Margie Dersham/Patti Panone/Mary Donaldson/Judy Wyckoff 132.

Lake Ashton Ladies Niners, Four-Player Shamble, Two Best Nets, June 2: Fran Salb/Jan Wagner/Liz Meigel/Linda Ruston 47, Fran Kramer/Brenda Arant/Donna Butch/Mary Lopez 50, Dawn Neigh/Cathy Kapinus/Cynthia Halde/Blind Draw 51.

Lake Ashton Men's, Quota Points: Gold First Flight Charlie Mutz plus 5, Larry Wilson plus 3, J. Ramalho plus 1; Second - Denis Lussier plus 8, Tony Lopez plus 7, Rolly Geyer plus 2; Third - Don Connors plus 5, Jim Ford plus 1, Frank Vasquenza minus 4; White First - Frank Duffy plus 3, Jim Phillips even, John Wyckoff minus 1; Second - Ken Keding plus 8, Mike Krigelski plus 3, Norm Wilderson plus 2; Third - Nelson Chagnon plus 5, Don Feliks and Ed Castellanet tied at plus 1, Denis Mulhearn and Tom Williams both at even.

Lakeland Elks Lodge 1291 Monday League, Lake Bernadette, June 8: Bill Soldrich plus 2, Dave Montgomery plus 1 on a match of cards over Mark Dillon. Closest to pin: No. 6 - Dave Montgomery; No. 11 - Bob Lutz (50/50).

Lakeland Men's Senior, Huntington Hills, June 8: First Flight - Dean Fleming plus 3, Mike Parrillo and Joe Stevens both at plus 2; Second - Bill Landen plus 5, Rich Labiak plus 4, Ed Young plus 3. Low Gross: Bob Box 73. Closest to pin: No. 3 - Mike Parrillo; No. 14 - Bob Capilla.

ACES

Tom Vennard, The Hamptons, No. 15, 100 yards, eight-iron, June 2.

TOURNAMENTS & LEAGUES

BARTOW INDIVIDUAL POINTS, Wednesdays, nine holes, make up your own foursome, $17 ($12 green fee and cart), pays all plus scores, night specials in the lounge. Call 863-533-9183.

CLEVELAND HEIGHTS MENS, tee times available 7:30-8:30 a.m. Wednesday through Monday and Friday, groups or individuals welcome, quota points with skins optional, eight to 10 groups now play. Call Paul Boeh at 863-738-4129.

CLEVELAND HEIGHTS TUESDAY WOMENS, every Tuesday, tee times start at 8:30 a.m. Call Shirley Kalck at 863-853-9566.

HUNTINGTON HILLS TWO-ASIDE, Saturdays, 18-Hole Points Quota. Check in by 8:15 a.m. Contact Terri White at 863-5594082 or eagle-2par@aol.com.

HUNTINGTON HILLS WHY WORRY WEDNESDAYS, Nine-Hole Quota Points, 5:15 p.m. shotgun start. Contact Terri White at 863-559-4082 or eagle-2par@aol.com.

LAKELAND MENS SENIOR GOLF, 7:30 a.m. shotgun starts, play against golfers within your handicap. Call Ed Young at 863-648-9695.

LPGA AMATEUR GOLF ASSOCIATION is looking for women and men to play in weekly Wednesday league and every other Saturday at various courses in the Winter Haven/Lakeland/Orlando and other areas. For more information, email Kathy Mannahan at pjacobs21@tampabay.rr.com.

POLO PARK MENS TUESDAY SCRAMBLE, 7:30 a.m. sign in. Random team draw. 18-Hole. For more information, call Polo Park Pro Shop at 863-424-3341.

POLO PARK MENS SATURDAY SCRAMBLE, 7:30 a.m. sign in. Random team draw. 18-Hole. For more information, call Polo Park Pro Shop at 863-424-3341.

RIDGE MENS THURSDAY QUOTA POINTS TOURNAMENTS, 7:30 a.m. tee time starts. Call Carroll Lasseter at 863-299-5350.

WEDGEWOOD THREE-MAN SCRAMBLE, nine holes; Tuesdays at 5 p.m.; call Marcus at 863-858-4451 by 2:30 p.m. to play.

WEDGEWOOD TWO-ASIDE GAME, 9 a.m. on Wednesdays and Fridays; 18-hole points game with skins and blind draw; call Marcus at 863-858-4451.

WEDGEWOOD MIXED CO-ED SCRAMBLE, 2 p.m. Thursdays. Call Marcus at 863-858-4451 by 1 p.m. to play.

E-mail results of local golf tournaments, aces and upcoming tournaments to mquinn@theledger.com; or mail to Golf News, Ledger Sports Department, P.O. Box 408, Lakeland, FL, 33802. Include complete scores and league names. Deadline is Monday at 5 p.m.

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Local golf league results, holes-in-one and upcoming events - The Ledger

Republicans eye police reform and search for Trump’s blessing – POLITICO

But Scott said hes on a separate track from the White House. And other Republicans said Tuesday afternoon that Trump himself is not yet intimately involved in negotiations on what could become law.

Donald Trump has great respect for Tim Scott. He looks to him a lot for this kind of a thing, said Sen. Kevin Cramer (R-N.D.). Trump isnt going to lead on it right now. But he could get behind it.

Republicans have had mixed success waiting for Trump to get them across the finish line on controversial issues. Add in a pandemic and a presidential campaign in which Trump is touting his law-and-order bona fides and a deal faces steep odds. But without Trump, police reform doesnt have a shot in a critical moment for the movement.

The presidents endorsement of sentencing reform legislation got it passed in 2018 despite McConnells reluctance. Last year, the White House abandoned an effort to enhance background checks after a spate of mass shootings.

Efforts to cut deals with Trump on immigration and infrastructure also crashed and burned. And after a Trump veto threat led to the longest government shutdown ever in 2019, the GOP learned not to get ahead of a president who has repeatedly undercut their plans. Trumps firm hold on the party also continues to dictate Republicans approach to any police debate.

But the fact that Republicans on both ends of the Capitol feel pressure to craft their own policing proposals even in the absence of a clear green light from Trump reflects how rapidly the political terrain has shifted underneath the GOP. Senate Majority Whip John Thune (R-S.D.) said he hoped Senate Republicans could propose ideas that suggest that we hear what people are saying and we want to do better at this.

Meadows expressed some optimism about reaching a consensus. We want to let our actions speak louder than our words, he said after meeting with Scott. Were hopeful for something sooner than later.

Scott presented Senate Republicans with proposals centered on improving federal data collection on the use of force and no-knock warrants as well as training for police. It does not include a federal chokehold ban; GOP senators may also add a long-stalled anti-lynching bill to the mix to evade Sen. Rand Pauls procedural objections.

Regardless, the GOP approach appears far narrower than House Democrats sweeping plan, which would end police chokeholds, make it easier to sue police officers, prohibit racial profiling, make lynching a federal hate crime and end no-knock raids, among other things.

In just the two weeks since the killing of George Floyd, public opinion has swung in favor of police reforms, while several GOP lawmakers have marched alongside Black Lives Matter protesters. That would have been unthinkable a few years ago.

Trumps inflammatory comments about the Buffalo protester and treatment of demonstrators in D.C. also raise doubts about how committed Trump might be to police reforms. Still, in an election year anything could happen with the mercurial president especially with the GOP eager to shed its image as a party that appeals mostly to older, white males.

Several close Trump allies, like Sens. Lindsey Graham of South Carolina and John Cornyn of Texas, said Trump could conceivably embrace a product from the Senate. And GOP lawmakers have become well practiced in trying to win Trump over.

Any time you want to pass a bill you hope to have the presidents signature, or it cant become law. We regularly make proposals of our ideas and then try to persuade him that theyre good, said Sen. Lamar Alexander (R-Tenn.).

The president says hes open to gentler police tactics but declined to name specifics. And his Twitter feed in recent days has been focused on calling for law and order including backing up the Buffalo police officers who shoved a 75-year-old protester and reiterating his calls to bring in the National Guard to deal with at-times violent protests.

White House press secretary Kayleigh McEnany said the president had not reviewed legislation put forward by Democrats but drew the line at provisions that would end qualified immunity, which protects police officers from civil lawsuits. McEnany said it was a nonstarter because it could result in police pulling back.

The president met recently with Housing and Urban Development Secretary Ben Carson, the only African American Cabinet member, to discuss policy ideas, per an administration official. Trump also held a roundtable with law enforcement officers from around the country to discuss reform ideas on Monday. Still, he lashed out at calls by some progressives to defund the police.

We wont be dismantling our police. We wont be disbanding our police. We wont be ending our police force in a city, Trump said.

Developing News on Nationwide Protests

Theres also deep antipathy among Republicans to having the federal government dictate to local police forces, hence Scotts state-based approach which Democrats argue makes for weaker reforms.

The people who have the most direct control over what the police do or dont do is the police chief, or the city council and the mayor. And I dont know why people look to Washington, Cornyn said.

Further complicating the push for police reform, the GOP which has long been resistant to curbing police powers is eager to echo Trumps law-and-order message and align themselves with law enforcement ahead of the November election.

Sen. Tom Cotton (R-Ark.), a top Trump ally, is readying a resolution condemning the "defund the police" movement. GOP members on the House Judiciary Committee plan to call the sister of a slain police officer as well as Fox News commentator Dan Bongino an outspoken defender of law enforcement as witnesses for a high-stakes hearing on police brutality Wednesday.

On the House side, GOP leaders have signaled theyre open to tying federal funds to better police training and ensuring that bad officers can be removed. But Republicans are complaining that their Democratic colleagues crafted a policing package without their input, even after House Minority Leader Kevin McCarthy (R-Calif.) declared he was ready to work on the issue. Thats one reason why House Republicans are pressing ahead with their own proposal.

Even if Republicans in the House and Senate, along with Trump, were able to come up with a single plan, its hard to imagine a compromise with Democrats, who are also under pressure from their base to go big. Thats all the more true because its an election year.

My fear is that both camps will retreat...put forward competing proposals, and then nothing will get done, said Sen. Rand Paul (R-Ky.), who has backed police reforms in the past but is now angering both parties over his resistance to an anti-lynching bill. So I am concerned.

Marianne LeVine and Andrew Desiderio contributed to this report.

Continued here:

Republicans eye police reform and search for Trump's blessing - POLITICO

Sound check: Paul Cebar on the road, Ron Onesti on the screen – Chicago Daily Herald

Paul Cebar on the road

FitzGerald's in Berwyn continues its weekly Stay-At-Home Concert Series this weekend with funk artist Paul Cebar of Tomorrow Sound at 4 p.m. Saturday, June 6. Cebar will take to the streets in the FitzGerald's pickup truck for a free outdoor performance fans can see from the safety of their front yards or online for free at fitzgeraldsnightclub.com. Also, Toronzo Cannon's performance set for last weekend was postponed because of protests in the area. Watch FitzGerald's page for an upcoming date announcement. Donations to support the artists and FitzGerald's staff can be made through Venmo @fitzgeraldsnightclub or PayPal at paypal.me/fitzgeraldsnightclub.

Ron Onesti and Onesti Entertainment present two streaming shows for your home-viewing pleasure this weekend. Episode 3 of the Artists on Lockdown Series features "Hangin' and Bangin' with Carmine & Vinny Appice and special guest Derek Sherinian" conversing directly with Onesti at 6 p.m. Friday, June 5, on the Artists on Lockdown Facebook page at facebook.com/ArtistsOnLockdown. At 7 p.m. Saturday, June 6, catch Chicago's own Piano Man Band playing a streaming set on Facebook at facebook.com/ron.onesti.54.

This week, Side Street Studio Arts' annual Battle of the Bands puts three new artists in the ring for a chance to win the $100 weekly prize and a slot in the Final Round, set for Aug. 8. Visit the virtual battle from 5 to 9 p.m. Saturday, June 6, at sidestreetstudioarts.com/battleofthebands to check out a song from this week's candidates -- Splits, The Data Waves and Swimshirt -- and cast your ballot. Votes and a selection from the panel of five judges will determine this week's winner. For details or questions, visit sidestreetstudioarts.com/battleofthebands.

Also, congratulations to last week's winners: Foresight on May 29 and a tie between The Romantic Satire and Homie Stock on May 30. All three winners earned cash prizes and slots in the finals.

Brian Shamie is a Daily Herald multiplatform editor and local music junkie. Email him at bshamie@dailyherald.com, find him on Facebook or follow him on Twitter (@thatshamieguy) or Instagram (@chicagosoundcheck). Brian also keeps tabs on the Chicago-area music scene at chicagosoundcheck.com.

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Sound check: Paul Cebar on the road, Ron Onesti on the screen - Chicago Daily Herald

VA Governor Northam Condemned Peaceful Gun Rally, but No Comment on Violent Left Rioters – AmmoLand Shooting Sports News

Opinion by Erich PrattSenior Vice PresidentGun Owners of America, Inc.

Virginia -(AmmoLand.com)- Virginia Royal Governor Northams reaction to the rioting in Richmond, Manassas, and other areas in Virginia, in the wake of George Floyds disturbing killing by Minneapolis police, is worthy of discussion.

Governor Northam recently commented that there are many voices speaking out for justice and healing across the United States and in our Commonwealth, but others are exploiting this pain and inciting violence.

The Governor apparently believes that violence is being perpetrated only by a small minority that do not represent the values of the majority of protesters.

But isnt it reasonable to say that a person who throws objects at the police ceases to be a protester and becomes a rioter? The photos from Richmond and Manassas sure make it seem that there were a significant number of rioters among the protesters. Governor Northams expression of solidarity is concerning, especially when placed into context.

Back in January, during the Virginia Citizens Defense League Lobby Day rally, Governor Northam took quite a different tack. He announced that he had heard vague and entirely unsupported rumors of violence surrounding the event, along with white nationalist rhetoric which he used as justification for ignoring state law, and ordering a firearms ban on Capitol Square during Lobby Day.

He gave gun owners the classic Saul Alinsky Rules for Radicals treatment pick the target, freeze it, personalize it, and polarize it. But when many of his people (radicals on the extreme left, including felons who likely voted for Northam) riot violently in the streets, the Governor attempts to minimize the problem.

That is not to say that many of those protesting the police killing of George Floyd do not have a righteous cause. Indeed, GOA has long opposed the militarization of police, heavy-handed tactics such as no-knock warrants, and the adoption of an us-versus-them mentality. Far too many gun owners especially minorities have been on the receiving end of police misconduct including examples in Texas, Arizona, Alabama, and Minnesota.

That does not excuse smashing windows of small businesses, looting Target, or burning down AutoZone.

Back in January, tens of thousands of Americans converged on Richmond, with most of them armed to the teeth. Yet, in stark contrast to the Governors dire predictions, there was no violence of any kind none. Nor was there nor any sight of Northams promised white supremacists. To the contrary, Gun Owners of Americas Director of Outreach Antonia Okafur a black woman later quipped that [t]his was, by far, hands down the worst white supremacist rally Ive ever seen. There were people shaking my hand. I mean, they even let me speak.

In January, Governor Northam issued the following challenge to gun owners: I call on them to disavow anyone who wishes to use Mondays rally to advance a violent agenda. Yet in response to the recent riots, Governor Northam has done little disavowing making pale pastel statements like [t]here are many voices speaking out for justice and healing across the United States and in our Commonwealth.

As an editorial in the Richmond Times-Dispatch notes, [w]e find it curious that it was only after two nights of escalating violence that Virginians finally heard from Gov. Ralph Northam. The author continued why has [Governor Northam] yet to come out in condemnation of the wanton destruction and vandalism that occurred in Richmond and other areas in the commonwealth?

Its time for Governor Northam to take a firm stand against those who commit actual violence not a stand against perceived threats based on his irrational fear of law-abiding gun owners. The Governor should have welcomed the tens of thousands of gun owners who came to Richmond back in January, just like he should now be telling the rioters that they will not be tolerated.

But, as with Northams gun control agenda, he has everything upside down.

About Gun Owners of America (GOA) :

Gun Owners of America (GOA) is a non-profit lobbying organization formed in 1975 to preserve and defend the Second Amendment rights of gun owners. GOA sees firearms ownership as a freedom issue. `The only no comprise gun lobby in Washington' Ron Paul Visit: http://www.gunowners.org to Join.

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VA Governor Northam Condemned Peaceful Gun Rally, but No Comment on Violent Left Rioters - AmmoLand Shooting Sports News

Pre-Bankruptcy Retention Bonuses – At Hertz, Penney, Libbey, Others – Are Rampant – Forbes

Hertz is one of several bankrupt companies putting its executives in generous driver's seats. ... [+] (Photo by Cindy Ord/Getty Images)

Hertz, JC Penney JCP , Libbey, Borden, Chuck E. Cheese: All of these well-known American companies have two things in common. They all have filed or are expected to file for bankruptcy and they all paid out generous bonuses to some of their executives, usually right before they filed.

The disparity in pay scales between C-level officers and rank-and-file workers in American business has perhaps never been as wide as it now. Nor has it ever been more contentious an issue as it is now.

With government bail-outs and loans going to many American corporations at the same time they were laying off or furloughing hundreds of thousands of workers, providing six and seven-figure payouts to senior managers has risen to near the top of arguments that big business has gone too far.

These big companies will tell you these are necessary actions, retention bonuses designed to keep these executives onboard even as the company is going through hard times as theoretically at least they could jump ship and go to healthier companies.

Heres the statement one of the companies, JC Penney, put out to defend its actions: We are making tough, prudent decisions to protect the future of our company and navigate an uncertain environment, including taking necessary steps to retain our talented management team... Maintaining continuity of leadership is and will continue to be critical to the future of our companys long-term success. Our compensation program is in line with those of other companies in similar situations and is aligned with milestone-based performance goals to continue incentivizing our team to drive results.

Really?

These executives are often making multi-million dollar salaries plus additional compensation in the form of stock options and other perks. That should be motivation and incentivizing enough, one would think.

These are also often the very same people who led the company during the time it faltered and was forced to file for bankruptcy. Further, these bonuses come at a time when employees of these companies are being fired, their salaries reduced or being put on open-ended layoffs that may or may not end in their rehiring.

Finally, we have an unemployment rate despite government tweaking of the numbers that is approaching 20% and just about every company in the country is in the process of downsizing its workforce. Job opportunities for these executives being retained are not exactly stellar right now.

Yet this practice and yes, its legal and approved by largely rubber-stamp boards of directors continues unabated, worker outcries notwithstanding.

Here are some of the more recent examples:

JC Penney: Days before filing for bankruptcy after skipping a loan payment and then announcing it was closing more than a quarter of its stores with the resulting reduction in workforce, the company handed out $7.5 million in retention bonuses to four executives, including CEO Jill Soltou. She received $4.5 million after taking home close to $17 million in compensation last year.

Hertz: Right before it filed in late May, the company put aside $16.2 million for retention bonuses to 340 employees at director level and above, including $700,000 to its chief executive Paul Stone and additional six-figure payouts to its CFO and CMO. The news came as it announced it had terminated 10,000 employees.

Libbey: The well-known glassware company filed chapter 11 on June 1 after paying out about $3.1 million in bonuses to its executives, including just over $2 million to its CEO Mike Bauer (he got $900,000) and four other executives. At the same time, it suspended its 401(k) matching program for employees.

Chuck E. Cheese: Parent company CEC Entertainment, which has not filed for bankruptcy but is rumored to be considering it, paid retention bonuses to 28 employees, including $1.3 million to CEO David McKillips and $900,000 to its president, J. Roger Cardinale. The restaurant chains 610 units have been closed for months, its workers laid off.

Borden: The iconic dairy company was allowed to pay out about $2 million to a group of employees by the bankruptcy court in Delaware. Details on how many people received the payouts and the amounts were not readily available.

All of these companies go through extreme gyrations to include caveats on the bonuses having to do with the amount of time employees must continue to work and often stipulating that they are in lieu of other incentive payments under previous employment contracts.

However all of those contracts were drawn up before the pandemic and the resulting economic devastation to a wide swath of American business and the labor workforce. And many will argue that this is the way its usually been done. But theres nothing usual about these times, which is why business as usual just doesnt fly anymore.

Giving bonuses to company big-shots right before it files chapter 11 are especially abhorrent under pandemic layoff conditionsThis is one practice that shouldnt be retained any longer.

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Pre-Bankruptcy Retention Bonuses - At Hertz, Penney, Libbey, Others - Are Rampant - Forbes

Brooks Brothers Is Likely On The Edge Of Bankruptcy – Forbes

A Brooks Brothers store. Photo by Alex Tai/SOPA Images/LightRocket via Getty Images

In a recent report, The New York Times NYT described three factories owned by Brooks Brothers that were at risk of shutting down because of current economic conditions. In the course of its report, the Times also revealed several interesting facts which when put together lay down a clear path to a bankruptcy filing. According to numbers seen by the Times, which Brooks Brothers disputes, the retailer will lose $69 million in 2020, will not be profitable until 2022 (earnings before interest, taxes, depreciation and amortization) and management is quoted saying it will not rule out a bankruptcy filing. Revenues have been flat for the last three years, the company has debt of less than $300 million and the the company recently took a loan of $20 million from Gordon Brothers.

While the article was focused on the implications of Brooks Brothers ending its Made In America focus, the implications of the article were much more ominous. Here is why:

Gordon Brothers, their new lender, is a fine firm run by smart people and very successful. But it is best known for expertise in bankruptcy and liquidation with extensive experience closing stores and liquidating them. Often when you see Gordon Brothers in a loan, its because no conventional bank will lend and Gordon Brothers gets first dibs on running the liquidation in the event there is one.

In an economic downturn, almost no investors or lenders will engage with a retailer losing money on that scale. With a forecast for no profitability for two more years, the uncertainty and doubt about ever reaching profitability is too great for any conventional lender.

In the circumstances the economy is in right now, the only buyers for a business like that are investors who would want a trophy brand. But the odds of such a buyer emerging in this economic environment are low. The only chance a retailer in Brooks Brothers condition has to be acquired is to file bankruptcy first and then sell the company with the proceeds going to the creditors to pay off as much of the debt as the price will allow. In that event, the current equity owners would be wiped out. It may also be possible for a stalking horse bidder to emerge where a buyer pre-negotiates to a deal subject to a bankruptcy process. It would not be surprising for a deal to also be conditioned on the closing of a certain number of stores so that only the most profitable ones remain open in the future. It is also very possible that, given the excess retail space that exists in the U.S. right now, there wont be a buyer and Brooks Brothers will liquidate.

Brooks Brothers did not respond to a request for comment.

Retail M&A Post-Pandemic

Theres a lot of talk among mergers and acquisitions bankers about what M&A activity looks like for the retail industry now. What I hear from other bankers is that consumers will return to traditional, quality brands and there will be opportunities to buy those brands at attractive values because of the downturn.

I dont believe that. Consumers move forward and they want the next thing, not the last one. Investors and acquirors want growth and profits, not history. Legacy brands that cant get to profitability get sold for scrap value.

Of course its sad when consumers have fond memories of brands and retailers that cant survive. But when you ask those lamenting consumers if they still shop in those stores and buy those brands they remember so warmly, they usually say, you know, I havent shopped there in a while.

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Brooks Brothers Is Likely On The Edge Of Bankruptcy - Forbes

The hot new thing to make your stock pop: Go bankrupt – CNBC

Passengers wait to get on a Hertz shuttle bus at Los Angeles International Airport.

Patrick T. Fallon | Bloomberg | Getty Images

To get a slice of one of the market's most epic rallies, investors are snapping up stocks everywhereincludingshares in bankrupt companies, which in theory will be worth nothing.

Hertz, Whiting Petroleum, Pier 1and J.C. Penney, which all declared bankruptcy amid the pandemic,saw their shares surging at least 70% each in Monday's trading alone, some of which more than doubling. Imminent bankruptcy filersChesapeake Energy and California Resources also skyrocketedfrom a few pennies to a couple of dollars in a matter of days.

The wild moves in bankrupt names came as the market rallies aggressively with each new sign of economic recovery and the coronavirus easing. The S&P 500 just completed itswild round trip on Monday, turning positive for 2020 after bouncing more than 47% from its March bottom.

With the economic conditions improving suddenly, investors are betting these bankrupt companies are now in better shape than when they limped into Chapter 11. However, to say the bet is risky is an understatement Equity holders technically are last in line for payout and typically get wiped out in bankruptcy.

"Please do not get hurt in Hertz or Chesapeake as these are more likely to be worth little to nothing as common stock has the lowest priority in bankruptcy,"CNBC's Jim Cramer said in a tweet on Tuesday.

"I know Chesapeake common stock is worthless," Cramer said on "Squawk on the Street" on Tuesday. "A lot of people that are coming in and want to make quick money seem to think that if they buy Chesapeake, there's going to be someone willing to pay higher. I question whether it's really a long-term strategy and not just a dice roll, a back-alley dice roll."

Many on Wall Street said this gambling-like behavior speaks to how speculative this comeback has been.Julian Emanuel, chief equity and derivatives strategist at BTIG, called it a sign of "euphoria" he last saw before the burst of the tech bubble.

"Something we really never think we'd see but we saw yesterday Buying hundreds of billions of shares of bankrupt companies, sending their shares 100%, 200% and 300%,"Emanuel said on CNBC's "Squawk Box" on Tuesday. "It's sort of this speculative behavior that we saw at the end of 1999 and the beginning of 2020. It really doesn't make rational sense."

The rally in bankrupt and distressed names in part was boosted by retail investors on stock trading apps likemillennial-favored Robinhood.

Trading activities in those companies on Robinhood surged in the days following their bankruptcy filings, according toRobintrack, which tracks Robinhood account activity but is not affiliated with the company.

"It's great that Vegas is open again but who needs it when you have the stock market instead," Peter Boockvar, chief investment officer atBleakley Advisory Group said, referring to the surge in bankrupt companies.

"After an incredible run since March, we now have clear froth in parts of the market. We know this level of speculation has coincided with a sharp increase in the activity of retail investors," Boockvar added.

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The hot new thing to make your stock pop: Go bankrupt - CNBC

PG&E Is Getting Ready to Exit Bankruptcy – Barron’s

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Pacific Gas and Electric is tapping capital markets this month for $20 billion of financing it needs to exit bankruptcy. But before investors start to chase a rally in the stock triggered by the news, they should remember that a significant part of that sum will come from selling new stock.

The California utility and its holding company PG&E (ticker: PCG) are preparing roughly $9 billion of equity sales and $11 billion of debt sales, according to company statements and filings. The funding will help cover the insured and uninsured costs of catastrophic wildfires caused by PG&E equipment; those costs pushed the companies into bankruptcy in January 2019. In total, PG&E and its operating subsidiary plan to sell roughly $17 billion of new debt to investors, according to the company.

The $17 billion figure isnt new, so it isnt clear exactly why shares soared after Fridays reports that PG&E was planning to market $11 billion of that total. The company said in a presentation last month that the remaining $6 billion will come from temporary bridge financing that it expects to refinance with tax-exempt debt.

Even more puzzling was the continued gains in the companys stock on Monday, after news that PG&E is going to sell $9 billion of new shares to investors. Shares were 1% higher at $12.65 in midday trading, bringing the gain over two days to 7%.

The stock offering will be split between a $3.25 billion private stock offering, and a $5.75 billion public sale. In its public stock sale, the company will reserve $1.25 billion for large institutional investors that own more than one million shares already. About $1.4 billion will be reserved for individual investors buying through retail brokerages. Some of the equitythe company didnt disclose how muchwill be sold as equity units, or prepaid agreements to buy the stock in the future paired with Treasury securities.

The price that underwriters set for the public stock sale will help determine the price for the private share offering.

In the private offering, the company will sell shares to five institutional investorsAppaloosa Management, Third Point, Zimmer Partners, Fidelity, and GIC Private Ltdat a discount to the public offering price. The private investors wont be able to sell their shares for 90 days after the offering, with a few exceptions. If underwriters settled on a per-share price of $12.65 for the public stock offering, the private investors would be able to buy at $10.50 per share, according to terms laid out in a Monday filing from the company.

The $11 billion of debt offerings will be split between $4 billion of high-yield bonds, a $750 million floating-rate loan, and $6.25 billion of investment-grade debt, according to reports from Bloomberg and Reuters. Corporate debt markets have posted double-digit rallies since mid-March, as the Federal Reserve cut rates to zero and pledged to buy corporate debt to ease financial pressure created by the coronavirus pandemic.

A company spokeswoman said that roughly $11 billion of funding was already committed.

We continue to work diligently to obtain approval for our plan of reorganization by the bankruptcy court as soon as possible, so victims will be paid fairly and quickly, she said.

If PG&Es plan is confirmed by the court before the end of this month, the company will gain two important benefits of a state wildfire law passed last year. First, it will gain access to a state fund created to help cover the costs of future catastrophic wildfires. Second, it will be able to benefit from new rules that make it easier for electrical utilities to pass along wildfire costs to customers. State regulators approved the plan on May 28.

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

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PG&E Is Getting Ready to Exit Bankruptcy - Barron's

Many Small Businesses Question Whether to File for Bankruptcy – NBC 6 South Florida

As businesses across South Florida reopen, for some its just not enough. Many small business owners are now faced with a tough decision whether to file for bankruptcy or not.

NBC 6 Anchor Sheli Muiz spoke to business bankruptcy attorney, Joseph Pack with Pack Law about the options.

SHELI: What do you tell companies weighing their options to file for bankruptcy or not?

PACK: Sure, one of the issues I'm seeing a lot is that companies are having this question about what they should do going forward, and their concerns and theyre concerned about whether they can pay their bills not only now but, in the future, as well. We have all talked about the pandemic is a time for self-reflection, and one of the things that Im telling my clients is whether the pandemic is really the problem, or whether the pandemic has been the proverbial nail in the coffin.

SHELI: Oftentimes, people presume if a company files for bankruptcy, theyre going out of business, i.e. JCPenney.

PACK: Sure, bankruptcy doesnt mean at all that a company needs to go out of business, and in fact, with companies like JCPenney and large huge organizations that file for Chapter 11 reorganization, when people read about them closing stores, it doesnt mean theyre going out of business. In fact, what the debtor or the party in bankruptcy, like JCPenney, is doing is utilizing bankruptcy code is to extract or get rid of the leases that are not favorable to their business.

With respect to small businesses and businesses that have less than $7.5 million in debt,whats going is through the Cares Act, there is not only the ability to keep their businesses where they are in bankruptcy, but they dont need to necessarily have to pay their creditors in full.

SHELI: Did the Paycheck Protection Program help stave off bankruptcies?

PACK: I think that the PPP did help stave off bankruptcies. I think it was mostly potent because it was in combination with a lot of other protections. But, as those restrictions are getting lifted, lenders are going to start to exercise their rights and remedies against their borrowers who arent paying their debts, landlords with their respective tenants who are not paying their rents ... its not going to be like this forever.

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Many Small Businesses Question Whether to File for Bankruptcy - NBC 6 South Florida

Weatherford CEO exits as struggling company faces ‘Chapter 22 bankruptcy’ – Chron

Weatherford International CEO Mark McCollum has left his post five days before the struggling oil field service company's stockholder meeting.

Weatherford International CEO Mark McCollum has left his post five days before the struggling oil field service company's stockholder meeting.

Photo: Michael Minasi, Photographer

Weatherford International CEO Mark McCollum has left his post five days before the struggling oil field service company's stockholder meeting.

Weatherford International CEO Mark McCollum has left his post five days before the struggling oil field service company's stockholder meeting.

Weatherford CEO exits as struggling company faces 'Chapter 22 bankruptcy'

Weatherford Internationals chief executive has resigned just days before the struggling oil-field services companys annual meeting and amid a debt crisis that could lead to a second bankruptcy filing in less than a year.

Mark McCollum resigned Sunday, the company said Monday, and COO Karl Blanchard and CFO Christian Garcia will oversee operations during a search for McCollums replacement.

Garcia told investors Monday that McCollums departure was not the result of any dispute or disagreement with the company on any matter relating to the companys accounting practices or financial statements.

His exit, however, comes days ahead of Weatherfords June 12 annual meeting and as a recent filing with the Securities and Exchange Commission reveals that the oil crash created a financial crisis that could lead to the company defaulting on debts and filing for bankruptcy.

The problem is that Weatherford emerged from bankruptcy at the wrong time with too much debt, said Sarah Foss, a Houston-based legal analyst with the London financial news service Debtwire. They left bankruptcy with $2.7 billion of debt. They shed $6.7 billion of debt. Thats impressive but they didnt anticipate the things that are happening now.

Service Sector: Activist investor seeks to unseat three Weatherford board members

McCollum left an executive position at competitor Halliburton to join Weatherford as CEO in March 2017 as the industry was coming out of the 2014-16 oil downturn. Weatherford, which had racked up $10 billion in debt, went more than four years without making a profit and declared Chapter 11 bankruptcy in July 2019.

The company, which is based in Switzerland with principal offices in Houston, emerged from bankruptcy in December and lost $966 million in the first-quarter as a price war between Russia and Saudi Arabia and the coronavirus pandemic began to crush crude prices.

Weatherford delivered materially improved performance this year until the onset of the COVID-19 pandemic and actions by certain oil producing nations created unprecedented uncertainty in the energy and other markets, Weatherford board Chairman Thomas Bates said. We will continue to focus our efforts on reducing costs and managing liquidity in the face of this challenging business environment.

Although the company reported $950 million in cash and available credit at the end of the first quarter, Weatherford had a large debt payment and interest payment due on June 1, Foss said.

Fuel Fix: Get daily energy news headlines in your inbox

Weatherford said it made the June payments, but the company recently retained bankruptcy and restructuring law firm Paul Weiss, according to Foss.

The company's options, she said, include renegotiating payments and credit agreements with lenders or to file a second Chapter 11 bankruptcy.

Some lenders are already showing signs of impatience.New York investment management firm and activist investor D.E. Shaw Group, a bondholder and large Weatherford shareholder, is seeking to unseat three board members at the company's annual meeting Friday.

More: Read the latest oil and gas news from HoustonChronicle.com

Weatherford might also be in jeopardy of violating financial covenants in which a company agrees to keep to a certain amount of cash on hand and debts below certain levels, said Craig Pirrong, a finance professor with the University of Houston Bauer College of Business.

Companies sometimes pay off debt in stock, but a second bankruptcy wouldnt be unheard of if they face violating potential financial agreements with its investors and lenders, Pirrong said.

Weatherford could be in violation of these covenants, which would give the lenders the ability to force the company into default and/or bankruptcy, Pirrong said. Thats an unpleasant option that both the borrower and lenders want to avoid, so the company and some of its lenders are negotiating to restructure the transactions.

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Weatherford CEO exits as struggling company faces 'Chapter 22 bankruptcy' - Chron

A look at the bankruptcy option – Greater Wilmington Business Journal

As the U.S. economy continues to reopen, financial troubles for businesses and individuals are still here or looming. Many will be looking for debt relief, especially if the economy is slow to recover.From everything Im hearing, in a few months this situation is going to be really bad; the word some are using is tsunami, said Richard Cook, an attorney and owner of bankruptcy practice Cape Fear Debt Relief.Be Proactive Cook said that anyone struggling financially as a result of COVID-19 restrictions should take steps right away to avoid becoming overwhelmed.If you have a mortgage, contact your mortgage lender. Most monthly mortgage statements have the contact number, he said, noting that many mortgages, while they are serviced by a financial institution, are actually owned by a federal agency such as Fannie Mae, Freddie Mac, the VA, FHA or USDA.Forbearance options are there, Cook continued. And contact your other creditors. Car lenders are working with borrowers, pushing out repayments. Landlords may be different, but with the courts closed, [eviction] cases wont be heard right away. Landlords have no requirement to offer help, but if their mortgage debt is being temporarily adjusted, they might pass along that forbearance.Cook added that many credit card companies are offering some type of deferral.Forbearance is available also for federal student loan borrowers. However, Cook said, the key here is understanding that the term means temporary postponement and its important to look ahead at what happens when the forbearance period ends probably in three to six months. How should a person or business plan to dig out from all those deferred costs?Cook recommended that people looking at a deep well of financial problems contact a bankruptcy attorney. Many, he said, offer free consultations.Heres what not to do right now: Dont cash out your retirement, Cook said. If you do file for bankruptcy, your retirement account is protected from creditors.Wilmington attorney Algernon Butler III also emphasized that point. Its an unfortunate but well-intentioned impulse, when people or business owners see themselves or their company in financial distress, he said.In an effort to do what they believe is the right thing, they start withdrawing retirement funds to pay [debts]. But [retirement funds] are protected in bankruptcy. Your retirement account cannot be taken in a bankruptcy case, Butler said. Its almost always a mistake to fund a failing situation with retirement funds, but we see it all too often.Butler is a partner with the civil law firm Butler & Butler, which has a specialization in financial reorganizations, including bankruptcy. He thinks that individuals and small corporations in the Wilmington area will experience financial hardship as a result of how the country has reacted to COVID-19.I feel strongly that we need to responsibly permit businesses to reopen and get people back to work, he said. Unfortunately, some individuals and companies may find it in their best interest to consider, as one option, a bankruptcy reorganization.While I dont ever endorse bankruptcy as a first resort, I think that in emergency situations like this, where financial distress is out of someones control, then its wise to at least consider bankruptcy the pros and cons as something that may be in a persons or companys best interest to allow them to get back to being productive as soon as possible.Bankruptcy Chapters Butler added that bankruptcy offers some very powerful relief but it also involves some serious responsibilities.It can be complex and dangerous to navigate without a bankruptcy specialist, he said. Every situation, every set of facts is different.There are different types of bankruptcy processes, each with its own set of regulations and each detailed in a separate chapter of the bankruptcy code. Chapter 11, used most often by businesses, is designed to help an organization discharge its debts and get back on its feet.One of biggest things business owners misunderstand about bankruptcy is they think it means they will have to shut down, said Laurie Biggs, an attorney with New Bern-based firm Stubbs Perdue, which represents clients in Eastern North Carolina, including Wilmington. Its not a going-out-of-business sale. Chapter 11 is designed to help them restructure their debt and stay in business.Even individuals who have complex financial situations sometimes must file under Chapter 11, she added.In Chapter 11, the debtor must meet some minimum payment requirements, Biggs continued. You propose a plan based on what you can pay. My goal is always to help that business owner repay as much as they can, the way they can afford.Chapter 7 bankruptcy, on the other hand, often means total liquidation of a business, but can be a good way for an individual with few assets to pay off debts. It is a viable option for someone who does not own real estate or investments which would be taken to pay off debt but perhaps has a mountain of unsecured debt, such as credit card balances or medical bills.Chapter 7s generally discharge debt within six months, Butler said. You are in and out relatively quickly.And then there is Chapter 13, which is the option chosen by most individuals, he said.Chapter 13 is reorganization: If [people] need up to five years to repay or catch up with certain debts or taxes, and need a payment plan, Butler explained. Its a really simple, streamlined, economical personal reorganization.Recent Changes to RegulationsThe federal CARES Act, enacted in late March, made a change to Chapter 13, Butler explained.Any individuals who are currently in a Chapter 13 reorganization, which normally offers a repayment plan of up to five years, may extend their plan to up to seven years if they need to because of financial distress caused by the COVID crisis, he said. They can go back to bankruptcy court and ask for their plan to be extended. It gives them more flexibility to repay their debts.There has also been a significant recent change to Chapter 11 regulations that Butler said could really help a small business.Under the [2019] Small Business Reorganization Act there was a new type of Chapter 11 reorganization enacted in February of this year, he said, mentioning that this provision was contained in Subchapter V of the chapter. Not only is the Subchapter V bankruptcy process usually less expensive, but It is much easier for the corporate owners who must take their company into bankruptcy, and its less expensive for owners to retain their equity in the corporation after a plan is confirmed.Biggs said that Subchapter V removes many parts of Chapter 11 that dont work well for small businesses.In addition to making the process quicker and cheaper, she added, it removes some provisions that require all creditors to agree to the plan. Normally, in a regular Chapter 11 case, when you file a plan, all your creditors get to vote on it. If they dont agree, you have to go to court.In a Subchapter V, creditors either accept the plan or reject it, but they dont get to vote. It doesnt allow creditors to hold up the process through objections to the plan. [With Subchapter V, a small business] is avoiding big-corporation issues.In March, Congress made a further small-business friendly change. Originally, Subchapter V reorganizations could be used by businesses whose debts did not exceed $2.75 million. But that debt limit was raised to $7.5 million for one year, making more small businesses eligible for this streamlined, less expensive process.Special focus: Taking Care of Business

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A look at the bankruptcy option - Greater Wilmington Business Journal

Considering filing for bankruptcy during the coronavirus pandemic? Read this first – WTMJ-TV

MILWAUKEE -- The economic pain COVID-19 has caused in Wisconsin is undeniable.

Since March 15, more than 620,000 people have filed for unemployment, compared to about 50,000 around the same time last year.

If your claim is still pending and you're drowning in debt, filing for bankruptcy looks like the ticket out.

"A lot of people have bills coming in and no way to pay them, however, we are encouraging people to wait," said Karen Bauer, an attorney with Legal Aid Society of Milwaukee.

"If you file a bankruptcy today and two weeks from now you break your leg and have to go to the hospital, there's nothing we can do about that new debt," Bauer explained.

Bauer explains a bankruptcy resets your finances for that moment in time, so if you're still accumulating debt, that won't get wiped out.

Instead, she urges people to work with creditors.

"You can tell them look I'm on unemployment because of COVID-19, what programs do you have in place to help me?

"A lot of creditors have programs, especially big banks or credit cards, or auto lenders," she continued.

She says there are cases where bankruptcy becomes necessary like if you have a lawsuit pending.

Bauer also suggests asking yourself, 'What will happen if I don't file for bankruptcy right now? If the answer to that is 'Not much,' she says, you don't need to file.

If you want to talk your case over with an attorney, you can contact the Legal Aid Society of Milwaukee at (414) 727-5300.

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Considering filing for bankruptcy during the coronavirus pandemic? Read this first - WTMJ-TV

What would a WeWork bankruptcy look like? – The Real Deal

WeWork CEO Sandeep Mathrani (Wikipedia, iStock)

In April, a Manhattan landlord who leases a large space to WeWork received an email from a broker who was working on behalf of the struggling co-working company to renegotiate its office leases.

I told him politely its not happening, so dont waste your time, the landlord said, noting that because his lease with WeWork is below market-rent, hes comfortable taking the space back. Im going to play hardball.

Brokers at Newmark Knight Frank and JLL have spent the last several weeks reaching out to WeWorks landlords trying to negotiate concessions on billions of dollars of leases that threaten the companys cash flows.

WeWork had $47.2 billion worth of lease obligations on its books as of late last year, and is reportedly looking to reduce those rent liabilities by 30 percent.

Now as Covid-19 puts further pressure on the co-working companys bottom line, critics are raising questions about whether its business model of packing a rotating cast of strangers into tight spaces can survive in a world of social distancing and contact tracing.

That raises the stakes for WeWorks lease negotiations, according to those who believe this could be a make-or-break scenario for the Softbank-backed company once valued at as much as $47 billion before its failed IPO last year. WeWork was recently valued at just under $3 billion, Bloomberg reported in May.

WeWorks critics have long speculated that the company could be forced to file for bankruptcy in a downturn. If that happened, WeWork would have several scenarios laid out in front of it, experts told The Real Deal.

Landlords arent always willing to make concessions outside of bankruptcy, said Timothy Duggan, an attorney at the Stark & Stark in New Jersey who represented office equipment provider Transamerica as a creditor when Regus another large flex-office company filed for bankruptcy in 2003.

But that dynamic often changes once under Chapter 11.

If Im a landlord and I know a bunch of other landlords are making concessions and I have a shot of coming out of bankruptcy, I might be more willing to make a deal, Duggan noted.

Still, under the protection of bankruptcy the companys core challenge would be the same: It still has to convince its creditors that it has a viable plan to turn things around.

Even in bankruptcy, they still have to get people to believe they can come out of this, Duggan added. Its all still one big negotiation.

WeWork had $1.3 billion of long-term debt when it issued its prospectus last year, including credit agreements with JPMorgan and $669 million in corporate bonds. Those bonds were trading for as low as 28 cents on the dollar in May.

Even in bankruptcy, they still have to get people to believe they can come out of this.Timothy Duggan, Stark & Stark

Mathrani joined WeWork earlier this year to help right the ship after its co-founder Adam Neumann was ousted following the IPO debacle.

He is a proven leader with turnaround expertise in the real estate industry, SoftBanks Raul Marcelo Claure, the former interim chairman of WeWork, said about Mathrani in a February statement.

To be clear, WeWork has made no public plans to file for bankruptcy, and that option is by no means an inevitability.

A spokesperson for the company told TRDthat WeWork has a strong financial position with $3.9 billion in cash and commitments that provides us the liquidity to weather this current climate while also executing on our five-year plan and investing in our future.

We continue to rightsize our portfolio by exiting locations that are unprofitable, growing in markets where we see enterprise demand, the spokesperson added, noting WeWork is planning to open more than 60 new locations through early 2021 and is investing $100 million in WeWork India.

But the companys critics have long speculated that WeWork could end up in bankruptcy, particularly during an economic downturn.

The company has laid off thousands of employees since November. Softbank backed out of a financial bailout and IBM is reportedly ready to walk from its WeWork space at 88 University Place one of the first locations in the co-working companys pivot to an enterprise model.

Softbank last month took another writedown on its WeWork investment, saying it expects to take a $6.6 billion loss for the year on the portion of the firms stake held outside of its $100 billion Vision Fund.

Every writedown takes Weworks carrying value closer to reality, Redex Holdings analyst Kirk Boodry opined in Reuters. Clearly the value is zero.

Softbank CEO Masayoshi Son said in April that he expects a significant portion of the 88 companies backed by more than $80 billion in venture capital from the first Vision Fund to end up in bankruptcy.

I would say 15 of them will go bankrupt, Son predicted, adding that he expects another 15 of the funds bets to prosper.

WeWork chairman Marcelo Claure, though, sought to distance his company from those remarks.

Make no mistake: SoftBanks Masayoshi Son and myself are huge believers in the new WeWork and its management team, we will continue to support the company, he Tweeted in May. We have no doubt that WeWork will emerge from COVID19 stronger than ever and are committed to profitability by 2021.

Mathrani said WeWork paid rent at 80 percent of its locations in April and May and that it collected rent from 70 percent of its members. Its difficult to gauge whether or not the Newmark and JLL brokers have been successful in negotiating the necessary concessions from building owners.

Representatives for Newmark and JLL did not respond to requests for comment.

WeWork may be able to avoid the bankruptcy route thanks to a number of leases that are reportedly held by subsidiaries with limited parent guarantees. That means WeWork could walk away from individual leases without triggering liability back to its parent company.

But if it came to a bankruptcy situation, experts laid out several scenarios.

In Chapter 11 a tenant usually makes a binary decision on leases: It either accepts the lease or rejects each deal. Landlords who hold rejected leases get to file a claim as an unsecured creditor and divvy up whatevers left over after the restructuring plan. They usually end up accepting pennies on the dollar for their agreements.

WeWork could have options other than up or down on leases, and the Regus case could provide a blueprint.

Duggan said that Regus got permission from the court to take a second shot at renegotiating its leases during bankruptcy, and the flex-office company was successful in reworking about 70 deals. The benefit of doing it that way, he added, is that landlords are more likely to see it as their last shot at coming away with a more favorable outcome.

The problem outside bankruptcy is, sometimes the landlords dont believe the company is going to file, Duggan said.

If WeWork were to file, though, Duggan explained the company could then go to their landlords with more leverage. Now [WeWork] can say, Heres proof; Were in Chapter 11, he said.

Even if it were to play out that way, Mathrani and his team would still have to convince WeWorks largest landlords that it could come out of restructuring with a successful plan, according to sources.

Bankruptcy experts say that in Chapter 11, a committee of unsecured creditors made up mostly of WeWorks largest landlords would play a significant role in approving or shooting down a restructuring plan.

The institutional landlords are really going to decide whether they believe in the plan or not, said one attorney who spoke on the condition of anonymity because he represents one of WeWorks landlords.

Its really hard to see WeWork coming out of this if they do file, the attorney added. In order for the company to be reorganized, its creditors have to be confident that management can execute.

WeWorks five biggest landlords around the country, as of last summer, were Beacon Capital Partners, Nuveen Real Estate, the Moinian Group, Boston Properties and the Chetrit Group, according to data from Costar Group. A spokesperson for Beacon Capital declined to comment, and representatives for Moinian, Boston Properties and the Chetrit Group did not respond to requests for comment.

Chad Phillips, head of Nuveens Americas office portfolio, pointed out that the company only has 2 percent of its space exposed to WeWork. He added the investment manager believes demand for flexible office space will increase post-Covid as large office tenants move to a hub-and-spoke model.

That said, flexible operators will need to evolve their business models and modify their formats with less density and more company control over their spaces, he said, adding that stronger operators who can pivot in light of the pandemic stand to gain market share in the flex office space.

As observers watch closely, some are planning for a fallout from WeWorks big push to reorganize.

Theres not enough demand to support the scale of what they have. In some buildings they have 300,000 square feet when in reality they might want 60,000 square feet. Ryan Simonetti, Convene

He said Convene which leases meeting rooms and other workspaces on a short-term basis is considering signing its own lease deals for some of the spaces or partnering with landlords to manage them.

Were looking at what would it take to reconfigure a WeWork location to a Convene offering? Simonetti noted. Theres not enough demand to support the scale of what they have. In some buildings they have 300,000 square feet when in reality they might want 60,000 square feet.

In the most extreme scenario, WeWork would fail to convince its creditors of a successful path forward. In that case, liquidation may be the only option.

Theres no magic bullet here, said attorney Hugh Ray, head of the bankruptcy practice at the trial firm McKool Smith.

In some cases, Chapter 11 is a wonderful thing, he added. When it works, its wonderful to see. But it doesnt work for everyone.

Contact Rich Bockmann at [emailprotected] or 908-415-5229

More here:

What would a WeWork bankruptcy look like? - The Real Deal

Valuing Firms In A World Of Pandemic-Induced Bankruptcies – Law360

By Edward Morrison, Andrea Okie and Kerri Leonhardt

Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our daily newsletters. Signing up for any of our section newsletters will opt you in to the daily Coronavirus briefing.

Law360 (June 9, 2020, 12:44 PM EDT) --

For the vast majority of all industries, COVID-19 seems likely to inflict long-term damage. U.S. gross domestic product is expected to fall by at least 30%, on an annualized basis, during the second quarter of 2020.[2] Even if the pandemic eases after June 2020, experts predict a partial recovery, at best, in 2021.[3]

The COVID-19 fallout also seems likely to reverberate through our bankruptcy courts. We already have started to witness the first signs, with Chapter 11 filings by hospital operators, like Quorum Health Corp.; restaurants, like FoodFirst Global Restaurants Inc.; gyms, like Gold's Gym International Inc.; car rental companies, like Hertz Corp.; smaller airlines, like Ravn Air Group; communications providers, like Frontier Communications Corp. and Intelsat Corp.; and major retailers, like J.Crew Group Inc., J.C. Penney Co. and Neiman Marcus Group.[4]

These filings are likely the beginning swell of the wave. The coming months may see filings beyond the corporate sector as municipalities and other government instrumentalities face severe financial pressure due to declining tax revenues and increasing expenditures in the face of the pandemic.

Valuation will be the flashpoint in many of the corporate restructurings ahead. A firm's ability to negotiate a quick restructuring, especially a prepackaged bankruptcy; obtain financing during the restructuring process; obtain consent to a restructuring plan that imposes haircuts on lenders; and avoid a costly fight to "cram down" a restructuring plan that lenders dislike depends critically on the firm's estimated going-concern value and, equally importantly, the range of disagreement over that valuation.

This is true in any Chapter 11 case, but it is especially problematic during the current crisis, which has rendered all but the most predictable future cash flows uncertain. Put simply, how do you restructure claims against cash flows in an environment where you have little visibility on what cash flows will look like going forward?

One reason why valuation is likely to prove particularly complex in the current environment is that many prospective filers will have entered the crisis with preexisting weaknesses. Some became overlevered during a record-setting decade of corporate borrowing. Others were so weak operationally and financially that they had become corporate "zombies," lumbering through multiple years when their earnings were insufficient to cover interest expenses.

But not all businesses had preexisting conditions. Some "shocked-but-sound" businesses had bright futures that were destabilized by the current crisis. Those bright futures may still exist, provided economic activity stabilizes. Indeed, these businesses may not be insolvent in the long run; they just have short-run cash flow problems. Such businesses present very different valuation issues than the firms that entered the crisis with already-disabling financial and operational problems.

This article has two goals: (1) to calibrate the importance of these three categories of companies shocked-but-sound, overlevered and zombies for bankruptcy cases in the near term; and (2) to identify the critical valuation questions that will loom large in a COVID-19 world and examine how these valuation questions will vary by company category.

Category 1: Shocked-But-Sound

COVID-19 has triggered a short-term liquidity crisis for many firms that had modest leverage prior to the crisis but are now experiencing sharp declines in revenue. Because many of these firms may be unable to pay key short-term obligations as they come due, they may be forced to seek relief in Chapter 11 bankruptcy.

To get a sense of how many publicly traded firms fall into this shocked-but-sound category, we calculated the market leverage ratio for all nonfinancial[5] firms in the Russell 3000 as of December 2019.[6] We then identified the leverage ratio that distinguishes the top 10% of firms from the bottom 90%. We view this threshold as a proxy to identify firms with the highest market leverage.

Finally, we identified firms that were below this threshold in December 2019, but above it as of May 2020.

These shocked-but-sound firms had comfortable leverage ratios prior to the pandemic, but now find themselves among the firms with the highest level of market leverage in their industry because investors have suddenly devalued the firms' equity.

Figure 1 shows what we find, with results broken out by industry. We show the percentage of firms within each industry that have seen their market leverage ratios jump above the 90th percentile (or 75th percentile).

Unsurprisingly, the largest impacts are being felt in consumer retail consumer discretionary and the energy sector, where 13% and 18% of firms, respectively, have seen a jump in their leverage ratios. The former has been hit hard by social distancing; an oil glut is hammering the latter.

But many other industries have seen nearly 10% of firms experience a spike in leverage ratios, including industrials which includes the transportation sector, communication services, utilities and consumer staples. It seems highly likely that these industries will be well-represented in bankruptcy courts.

Figure 1: Shocked-But-Sound Firms by Sector as of May[7]

Category 2: Overlevered

Many firms were financially fragile before the advent of COVID-19. They had taken on high levels of debt during the past decade, which some have dubbed a corporate debt bubble. These overlevered firms were in striking distance of insolvency prior to the crisis and have now been plunged into that category.

Whereas shocked-but-sound firms are suffering a liquidity crisis, overlevered firms are suffering a solvency crisis, with liabilities now exceeding assets. They are the prototypical candidates for Chapter 11 restructuring, because they need an overhaul of their balance sheets.

In Figure 2, we provide a rough estimate, by industry, of how many firms fall within the overlevered category in 2013, a year intended to represent a post-Great Recession baseline, and 2019.

Focusing on nonfinancial, publicly traded firms in the Russell 3000, we calculate the net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, ratio[8] for all firms and plot the percentage of firms with a ratio greater than six.

We chose this 6-1 ratio because market actors have assumed that regulators view ratios above this level as red flags.[9] It is also the threshold applied by the Federal Reserve's Main Street Expanded Loan Facility Program.[10]

As shown in Figure 2, some sectors, especially health care and information technology, saw large increases in the proportion of overlevered firms during the past decade. Notably these two sectors had the lowest percentage of firms falling in the shocked-but-sound category, suggesting that these may be industries where leverage is high, but investors still expect strong demand for services going forward which explains why equity values have not plummeted enough to send many firms into the shocked-but-sound category.

Nevertheless, in these two industries, as well as communication services, approximately 20% or more of firms were overlevered as they entered the COVID-19 crisis. Absent aggressive out-of-court restructurings, we expect to see many of these overlevered firms land in our bankruptcy system in the months ahead.

Figure 2: Overlevered Firms in 2013 and 2019

Category 3: Zombies

Financial crises in other parts of the world, especially Japan, have drawn attention to zombie firms that have insufficient cash flows to service their debt, but survive for years because lenders offer forbearance a form of life support for the zombies.[11] Perhaps surprisingly, there are many zombies in the U.S. today.

Using the definition applied by the Bank of International Settlements,[12] which calls a firm a zombie if it is at least 10 years old and has a ratio of earnings before interest and taxes, or EBIT, to interest expense that is below one, we see in Figure 3 that zombies are prevalent in all industries.

In this figure, we identify two kinds of zombies as of 2019: (1) long-term zombies (firms with EBIT below interest expense throughout 2017-2019), and (2) all zombies (these firms may not have been zombies in previous years).

What is surprising is that long-term zombies account for a large fraction ranging from 18% to 29% of firms in the health care, information technology, energy and communication services industries. If we look exclusively at 2019 data, zombies account for 40% of all firms in both the health care and energy sectors.

Figure 3: Zombie Firms

Implications for Valuation in Bankruptcy

Each category shocked-but-sound, overlevered and zombies raises distinct valuation questions in a Chapter 11 case. Across all categories, however, COVID-19 raises common valuation challenges. We start first with these common challenges and then turn to category-specific issues.

The building blocks for valuation are (1) estimated free cash flows, and (2) the cost of capital. This is true whether the valuation is done inside or outside of a crisis, and whether it is done inside or outside of bankruptcy. What is different during this crisis is the uncertainty surrounding these building blocks.

What is different in bankruptcy is that the investor waterfall senior creditors, junior creditors and shareholders often erupts into sharp disagreements about how to measure these building blocks. These disagreements are resolved by bankruptcy judges who typically have little to no ability to conduct their own, independent valuations.[13]

Put differently, the uncertainties that exist outside of bankruptcy, which are large in the current crisis, are magnified in bankruptcy as investors fight to increase their recoveries. These fights are costly and often frustrating for judges who frequently see two experts reach wildly different estimates using the same methodology. These fights can be moderated by focusing on the right issues.

Cash Flows

How long will it take to reach pre-COVID-19 cash flow levels, if they ever return? Every valuation model needs to explore alternative pathways for future cash flows. Macroeconomists are unsure whether the recovery will be swoosh-shaped, V-shaped, U-shaped, W-shaped or some even worse shape. Those macro possibilities need to be part of a valuation.

Equally important, the shape of the recovery for a particular firm will depend critically on the extent to which its operations rely on labor inputs, which will be difficult to manage with continued social distancing, as well as the extent to which its products or services can be delivered without substantial human contact, which will be very difficult for service industries, including restaurants, entertainment, hotels and airlines.

Relatedly, the pathway to recovery for a firm will depend on upstream and downstream developments as well as changes in the competitive environment. Upstream, firms may find that supply chains have been disrupted by COVID-19. This will be particularly true for businesses that rely on inputs sourced abroad.

Downstream, firms may find that demand for their products has shrunk as consumer incomes have fallen (e.g., travel and leisure is one adversely affected sector). More importantly, this period of social isolation may have permanently changed some consumption patterns (e.g., telemedicine).

Finally, some firms will find that competitors have shrunk or disappeared, while others may find that their competitors are adapting more quickly to the changed environment by, for example, investing in labor-saving technology.

Cost of Capital

The flashpoint in a surprisingly large percentage of bankruptcy valuations is the weighted average cost of capital, or WACC, used as the discount rate, not the projected free cash flows.[14] Experts are much more likely to challenge each other's estimates of the WACC, including inputs such as the cost of equity and beta, than they are to challenge the projected cash flows, which were often prepared by the firm's own managers.

What is surprising about this is that calculating a firm's WACC has well-established theoretical foundations and requires well-understood inputs: cost of equity, cost of debt and capital structure weights.

To be sure, each input is highly contestable and requires assumptions about what, for example, the firm's capital structure will look like in the years ahead.

But where this can go off-the-rails is when experts depart from established theoretical foundations and build up discount rates using methods that are grounded in intuition, not theory or data.[15] That is particularly problematic because the level of uncertainty surrounding the current COVID-19 crisis makes it hard enough to accurately estimate the few inputs needed to calculate the WACC without injecting untestable intuitions into the calculations.

The WACC flashpoint is especially intense when a firm proposes either a reorganization plan or a going-concern sale. In these cases, a valuation expert is often tasked with estimating the cost of equity going forward.

The cost of equity measures the rate of return that shareholders will demand based on the riskiness of future cash flows and the firm's expected capital structure. It is often estimated using either the capital asset pricing model or the Fama-French model.

Regardless of model, the valuation expert generally needs to estimate the risk-free rate usually taken from long-term U.S. Department of the Treasury bonds, the equity risk premium the spread between the return on a well-diversified portfolio such as the S&P 500 and the risk-free rate, and the firm's beta a measure of the firm's risk relative to the broader market.

These three inputs risk-free rate, equity risk premium and beta will present special challenges during the current crisis.

How should we measure the risk-free rate during a crisis as investors flock to treasuries, depressing yields? How should we measure the market risk premium when current conditions raise doubts about the relevance of historical averages? How do we gauge the sensitivity of a firm's equity returns to overall market risk (i.e., its beta) when that sensitivity is changing over time and historical estimates are likely to be highly noisy?

To illustrate, equity returns for some firms (e.g., McDonald's Corp.) were relatively insensitive to the previous financial crisis and such firms had betas substantially below one prior to the COVID-19 crisis. During the current crisis, however, it seems that many of these firms are much more sensitive to systematic risk than previous beta estimates suggest.

While the current environment puts these issues in stark relief, they are actually questions that have been studied by financial economists for many years. Strategies proposed by these economists perhaps including shrinkage estimators[16] could be considered when estimating the expected return to equity.

Although these building blocks cash flows and cost of capital are often the focus in bankruptcy valuations, each company will present special firm-specific issues that must be factored into a valuation inquiry.

And while any one firm may not fit neatly, or even exclusively, into one of our three categories of firms shocked-but-sound, overlevered, or zombie each category raises special valuation challenges:

Conclusion

The months ahead are likely to unveil an unprecedented wave of Chapter 11 filings by many corporations. Some will fit the profile of the prototypical case the overlevered firm; others will be pushed into bankruptcy after avoiding it for many years due to lender life support the zombies. But a substantial number may be healthy firms facing a liquidity crisis the shocked-but-sound.

Although each firm will present distinct valuation challenges, and each may require special tools, such as warrants, to resolve valuation disputes, we believe that these valuation challenges can be overcome by focusing on the bedrock tools of valuation, relying on well-accepted methodologies that have a basis in theory and evidence, and identifying precisely the environmental changes occurring in the current environment. Even in a crisis, valuation can be tractable, provided we focus on the right questions.

Andrea Okie is a vice president and Kerri Leonhardt is a manager at Analysis Group.

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the organization, its clients, or Portfolio Media Inc., or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

[1] Remarks of Warren Buffett at 2020 annual shareholder meeting of Berkshire Hathaway.

[2] "The U.S. Economy Contracted by the Most Since the 2008 Recession," The New York Times, April 29, 2020.

[3] Greg Robb, "IMF sees 'partial rebound' in global economy in 2021 after worst downturn since 1930s, Georgieva says," MarketWatch, April 9, 2020.

[4] Jeremy Hill and Rick Green, "Quorum Hospital Chain Seeks Bankruptcy Amid Covid Onslaught (3)," Bloomberg Law, April 7, 2020. Peter Romeo, "Brio and Bravo Parent Files for Chapter 11 Bankruptcy After Closing 71 Units," Restaurant Business Online, April 11, 2020. Jonathan Randles, "Gold's Gym Files for Chapter 11 to Withstand Coronavirus Pandemic," The Wall Street Journal, May 4, 2020. Chris Isidore, "Hertz files for bankruptcy," CNN, May 24, 2020. Yereth Rosen, "Alaska's RavnAir May Face Bankruptcy Fight Over Jets Grounded by Coronavirus," Reuters, April 7, 2020. Jonathan Randles and Colin Kellaher, "Frontier Communications Files for Chapter 11 Bankruptcy," The Wall Street Journal, April 15, 2020. Rama Venkat, "Intelsat files for Chapter 11 bankruptcy," Reuters, May 14, 2020. Mary Hanbury, "Neiman Marcus, J. Crew, and True Religion are among the first US retailers to file for bankruptcy," Business Insider, May 7, 2020. Sapna Maheshwari and Michael Corkery, "J.C. Penney, 118-Year-Old Department Store, Files for Bankruptcy," The New York Times, May 15, 2020.

[5] We exclude firms categorized in the financial and real estate sectors.

[6] By "market leverage," we mean the ratio of net debt (debt minus cash) to market capitalization. See note [8].

[7] Firms classified as transportation are included in the industrials sector.

[8] Net debt is calculated as long-term debt plus short-term debt less cash and cash equivalents. EBITDA is a firm's earnings before interest, taxes, depreciation, and amortization expenses for the trailing year. All data are from S&P Capital IQ. For the purposes of this analysis, firms with incomplete data (EBITDA and/or net debt) are excluded, firms with negative net debt (i.e., with cash and cash equivalents greater than total debt) are not considered "over-levered," and firms with negative EBITDA are considered "over-levered."

[9] See, e.g., Ann Richardson Knox, "Leveraged Loan Regulatory Uncertainty Presents Opportunities for Direct Loan Funds," newsletter published by Mayer Brown.

[10] The program's term sheet, available here, includes the following language with respect to the amount of the loan, "an amount that, when added to the Eligible Borrower's existing outstanding and undrawn available debt, does not exceed six times the Eligible Borrower's adjusted 2019 earnings before interest, taxes, depreciation, and amortization ('EBITDA')."

[11] See, e.g., Ricardo J. Caballero, Takeo Hoshi, and Anil K. Kashyap, "Zombie Lending and Depressed Restructuring in Japan," American Economic Review 98(5): 1943-1977 (2008).

[12] "Annual Economic Report," Bank for International Settlements, June 2019, p. 19.

[13] Professor Morrison documents sharp disagreement among bankruptcy experts in Kenneth Ayotte and Edward R. Morrison, "Valuation Disputes in Corporate Bankruptcy," University of Pennsylvania Law Review 166(7): 1819-51 (2018).

[14] See e.g., Kenneth Ayotte and Edward R. Morrison, "Valuation Disputes in Corporate Bankruptcy," University of Pennsylvania Law Review 166(7): 1819-51 (2018).

[15] For a similar critique of methods used by many experts, see Aswath Damodaran, "The Cost of Capital: The Swiss Army Knife of Finance," working paper (2016).

[16] Yaron Levi and Ivo Welch, "Best Practice for Cost-of-Capital Estimates," Journal of Financial and Quantitative Analysis 52(2): 427-63 (2017).

For a reprint of this article, please contact reprints@law360.com.

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Valuing Firms In A World Of Pandemic-Induced Bankruptcies - Law360

What Is Personal Empowerment and Why Is It Important?

Is your life what you imagined it would be? From the many conversations I have had over the years for too many the answer is no. They tell me that life gets in the way, circumstances change, and they find themselves with responsibilities. Or they tell me that life doesnt work like that or they just havent had their lucky break yet. Or maybe theyre waiting for the right moment. And so it goes on.

Did you know that nothing changes unless you change it? If you want to live the life you imagine that you can live, should live, or want to live, then you have to be the one in control. Its not always easy. If you dont feel empowered to direct and control your life, it can get away from you.

No matter what you are seeking - more wealth, less weight, a happier marriage, a better job it can only happen if you do something about it. Tired of people treating you poorly? Do something about it. Tired of being sick and unhealthy? Do something about it. Want your kids to do what they are told without ever arguing? Do. well, that might be impossible, but you can make it better. The point is, nothing changes if nothing changes. If you want something to be better, its up to each of us to take the necessary steps to see that it happens.

Personal empowerment is a collection of beliefs, actions and skills all working together to help you live a life that you design. Personal empowerment begins with a bit of self-awareness. You need to know your strengths and weaknesses. Its important to have a positive but realistic view of yourself.

The awareness thats required doesnt stop with your skills and abilities. It also includes your values and your goals. To be empowered you have to know what you want for your life and why.

Imagine deciding to choose a career based simply on the salary you might earn. Some people do make this choice; however, if theyre not motivated by money or dont feel like their values are aligned with their career choice, ultimately theyll end up unhappy and unsatisfied. The characteristics of empowerment are important.

Another element or component of personal empowerment is a positive mindset and a belief in yourself. Its not enough to want to achieve a goal; you have to know that you are capable of achieving your goal. If you dont, you wont.

Finally, while its not talked about often as a dimension of personal or self-empowerment, its also important to be ready, willing, and able to go after what you want. Someone can set goals and then plan and learn for years. However, if they dont actually follow through and take action, nothing happens.

When we think about what Personal empowerment is it comes down to belief in yourself, and follow-through. Its important because without some degree of personal empowerment, your life will live you. Youll continue to be a victim of circumstance and youll continue to live a life that isnt really what you want.

You might be wondering if these dimensions of personal empowerment are something that youre born with or if they need to be learned?

Thats a topic I will cover in the next post.

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Thanks for reading! You can find more of my articles at Paul Duxbury - Learning and Development in Focus

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What Is Personal Empowerment and Why Is It Important?

Consumers Using Paid Streaming Services More as a Result of COVID-19; Trend May Be Here to Stay – Yahoo Finance

TransUnion survey highlights consumer media consumption and generational differences

CHICAGO, June 09, 2020 (GLOBE NEWSWIRE) -- COVID-19 has brought on many changes in the way people consume media with more than half of Americans (56%) saying they are using paid streaming services at a higher rate today than before the pandemic. As shelter-in-place mandates begin to lift, a new TransUnion (TRU) survey found that these new media consumption behaviors will likely continue with 45% of consumers saying they will make paid streaming services a permanent part of life moving forward.

As consumers use of paid streaming services (including platforms such as Amazon Prime, Hulu, Netflix and Apple TV) has increased, so too has the amount of time they are using them. Consumers said their usage increased from 12 hours per day prior to the pandemic to an average of 34 as of the week of May 18th. More than one-third of consumers surveyed spent at least five hours daily with streamed media. This was most prominent for consumers in the 18-29 year-old age group as 66% of these respondents indicated an increase of daily viewing.

The use of digital platforms has accelerated as younger generations seek more control and flexibility over how they consume content, said Matt Spiegel, executive vice president and head of the media vertical at TransUnion. In todays global, tech-driven economy, this consumption is occurring across multiple channels and devices as consumers shift away from traditional cable and broadcast. To account for this profound shift in consumption behaviors, advertisers need greater insight into the people behind the devices to gain a more holistic picture of the connected consumer.

Consumers are not only streaming more content, but also subscribing to more platforms since the onset of the pandemic. The percentage of consumers subscribed to 35 streaming services increased to 48%, up from 37% prior to COVID-19. Furthermore, the cord-cutting trend continues to gain a foothold in the media ecosystem with 53% of consumers indicating they use a subscription streaming service in place of a traditional cable TV package. The generational divide regarding this trend was most evident among younger consumers as they were most likely to belong to the cord-cutting group.

Youngest Consumers Cutting the Cord at the Highest Rate

The survey found that SmartTV was the most popular streaming device overall with 37% using this platform. Age demographics played a role in terms of streaming device preference as consumers in the 1829 age group also preferred mobile devices (25%) for streaming while those in the 3044 demographic had a preference for OTT devices (19%). Meanwhile older age groups such as those 60+ demonstrated the highest preference toward SmartTVs (41%), with their next choice for streaming being computers. However, streaming as a whole may still be a fairly new concept as 19% indicated they do not stream content at all.

As more consumers leverage digital channels and look for entertainment options in the comfort of their homes, its important to take a pulse check as to how consumer behaviors are changing and have changed since the onset of the pandemic. These insights will be instrumental to advertisers as they adapt their positioning and targeting in the marketplace to create more relevant experiences, said Spiegel.

TransUnions suite of identity, audience and insights solutions help marketers and media companies understand and reach the consumers on the other side of the screen. To learn more, please visit https://www.transunion.com/media-consumption.

About the Survey

The online survey was conducted the week of May 18, 2020 and included responses from 2,639 U.S. consumers, ages 18 and over.

About TransUnion (TRU)

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.

A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.

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Consumers Using Paid Streaming Services More as a Result of COVID-19; Trend May Be Here to Stay - Yahoo Finance

Where would racial progress in policing be without camera phones? – Brookings Institution

On May 25, 2020, unarmed, 46-year old Minneapolis resident George Floyd died after being restrained by officer Derek Chauvin whose knee was lodged into his neck as he lay handcuffed, face down in the street for 8 minutes and 46 seconds. Considered a gentle giant by family members, friends and co-workers because of his height, George Floyd was an African American man who was arrested by Chauvin, a white police officer, for allegedly using a counterfeit $20 bill to buy cigarettes at a local grocery store. Before his death at a local hospital about an hour later, bystanders watched as Chauvin maintained pressure on George Floyds neck as three other officers did absolutely nothing to stop what clearly was an intrusive use of force. All of these actions were captured on the camera phones of nearby onlookers attempting to help yet another Black man immobilized by the police.

In the last eleven years, mobile technology has become a communications staple for vulnerable populations, particularly smartphones. Twenty-five percent of African Americans and 23 percent of Latinos are smartphone-dependent, carrying the medium as their primary mode of communication. In recent years, individuals, who have witnessed physical encounters between citizens and the police, recorded them, sometimes revealing the depth of the institutional terror waged on Black people by law enforcement.

With the long history in America of violence against Black people, the ubiquity of video recordings has recast the narrative surrounding police violence and heightened public concerns about law enforcement. In todays world, virtually anyone can be a videographer and filmmaker. The combination of smart phones, video recording apps, and social media platforms have generated a revolution in public empowerment. Rather than having to take the word of African Americans over the police, people can see the violence for themselves and demand justice.

These factors should explain why recorded observations of police brutality against African Americans trigger protests, even during a global pandemic. Technology is becoming part of the story regarding how marginalized populations in the U.S. and across the world are recording injustice and thereby, gaining personal empowerment. Leveraging the internet, civilian-generated video content can move public opinion toward more critical views of law enforcement and mass incarceration.

The troubling pattern

In the Floyd case, videos taken by onlookers camera phones showed his final moments as he screamed out three words, I cant breathe! followed by cry for help to his deceased mother. The recordings reminded people of the same phrase previously heard from another unarmed Black male named Eric Garner, who was placed in a tight chokehold by officer Daniel Pantaleo in Staten Island, New York. After being arrested on July 17, 2014 for allegedly selling single cigarettes from a carton without a tax stamp, Garners physical exchange with law enforcement ended with him on the ground, turned on his side to stabilize his breathing until his death an hour later at a local hospital. After seeing Eric Garner overpowered by police, more than 50 national demonstrations rejecting Pantaleos actions erupted. One month later these would be followed by the protests and riots in Ferguson, Missouri, after Officer Darren Wilson failed to be charged for killing unarmed 18-year old Michael Brown after he was accused of stealing cheap cigars and shoving a convenience store clerk. Three years after Browns death, surveillance footage revealed a non-violent African American male in a convenience store, countering Officer Wilsons story.

George Floyds fate is shockingly similar to those of Eric Garner, Michael Brown and the countless others whose lives were shortened by police brutality. The recordings of his encounter sparked protests among thousands of Minnesotans and out-of-state protestors, demanding that all four officers be immediately fired and charged. Five days later, Chauvin would be charged with third-degree murder and within days of transferring his case to the states attorney general, Keith Ellison, the charges were upgraded. Ten days into the national protests, the remaining three officers were charged with aiding and abetting in the crime that caused Mr. Floyds death.

Why are police shootings more visible?

Not since the painful images of the open casket for Black teenager Emmett Till in 1955 has all of America seen what racial violence looks like in the U.S. Emmetts mother, Mamie Till Bradley, decided to televise his funeral with an open casket, allowing mourners in person and on television to see his mangled stature, swollen face, and body after being brutally attacked in the South.

Despite Trayvon Martins fatal encounter with White vigilante George Zimmerman not being videotaped, the 17-year olds death in 2012 was probably the next most powerful image of an unarmed, Black man in a hoodie, that invoked suspicion of this young student who was walking in his mothers neighborhood.

But before Martin, the murder of 22-year old, Oakland native, Oscar Grant, was the first police brutality incident to be recorded and shared via an early generation smartphone. Grant, whose story was later told in the 2013 movie Fruitvale Station, was fatally shot after being handcuffed and restrained by two Bay Area Rapid Transit Officers working for Oaklands public transit system. Bystanders used their camera phones to capture the moments when unarmed Grant stood up only to be pushed back to the ground and shot by one of the police officers within seconds. But this video did not reach the scale of online audience of others, mainly because social media companies like Twitter and Facebook, as well as other online platforms, were not as quite mature. Compared to its 2.6 billion subscribers in the first quarter of 2020, Facebook only reported 150 million users at that time, which contained the images of activism around Oscar Grants death to the Oakland area, where several days of protesting occurred.

1 in 1,000 African American men have a higher chance of being killed by the police over their lifetime, according to 2019 research. The deaths of Black women follow, despite the lack of national visibility on their cases. The 2015 police body cam footage of Sandra Bland showed a violent slamming of her body to the ground after being stopped during a routine traffic stop in Waller, Texas. Three days later, she would be found dead in her jail cell, which the chief medical examiner ruled a suicide. The recent police shooting of EMT Breonna Taylor in Louisville, Kentucky, has gained greater profile during the protests, especially as its been shared that she was shot at least 8 times during a police search warrant executed at the wrong home. To raise the profile of Black women and girls shot by police in the national debate, legal advocate, Kimberlee Crenshaw, launched an online campaign, #SayHerName to tell their stories.

Even when theres video, indictments of police are not easy

One of the few cases where a video recording led to an indictment of an officer was the death of Walter Scott in North Charleston, South Carolina. Scott, an unarmed Black man was shot in his back as he ran from a routine traffic stop in 2015. After his death, the arresting Officer Michael Slager tried to lie about what happened, but an onlooker, Feiden Santana, recorded the entire incident on his cell phone. The recording and Santanas testimony were presented in court, resulting in a 20-year sentence in jail for this rogue cop.

But incriminating footage from camera phones may not always result in charges being filed against a given police officer(s). Even with a video, it took five years in the Eric Garner case to fire Pantaleo, due to a lengthy federal investigation and a strong New York City police union who decried any punitive actions against him. In 2019, Attorney General William Barr ordered the case to be closed. In Baltimore, the very public arrest of African American Freddie Gray in 2015, followed by the immediate indictments of all six police officers by States Attorney Marilyn Mosby, still resulted in no convictions.

Immediately after George Floyds death, President Donald J. Trump asked the Department of Justice and FBI to expedite the investigation into the details. But that all shifted within one week when the White House leaned into the protests and started focusing on far-left groups, progressive anarchists, and bona fide criminals, all of whom they suggested were infiltrating legitimate protests. Attorney General Barr would soon announce an investigation into far-left groups, like Antifa, despite the presence of known white supremacist disrupters driving some of the looting and violence in various cities.

And now, President Trumps new focus on law and order, rather than the restoration of democracy and racial healing, is increasing the proliferation of surveillance by the police and military to censure these ongoing mass protests around the country. The images and videos of military de-escalation tactics that include tear gas drops and batons from protestors camera phones are as equally disturbing as the recording of Floyds murder. In various cities, some police are also deploying facial-recognition-technologies to scan the crowds of protestors and gathering location data to improve upon protest surveillance and restraint.

Technology brings pain to life

Police brutality has emerged from a history of the states invasive surveillance and persistent assaults on African Americans and their lifestyles. These recordings bring visibility to the historical terror and fear African Americans feel in the presence of police. Sometimes, these occurrences result in deadly consequences for Black people who cannot easily escape the realities of being racially profiled or targeted within and outside of their communities.

But unfortunately, despite how tragic and mentally traumatic the deaths of Oscar Grant, Trayvon Martin, Eric Garner, Michael Brown, Walter Scott, Sandra Bland, Breonna Taylor, George Floyd, and the countless others have been, there will be more Black men and women dying while in police custody without the structural, behavioral and policy changes to policing in America. And before these changes are even instituted, we need a national acknowledgement that racism and discrimination have normalized violence against people of color.

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Where would racial progress in policing be without camera phones? - Brookings Institution