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PG&E shares surge after company secures $5.5 billion in bankruptcy financing

“Employees of Pacific Gas & Electric work in the aftermath of the Camp Fire in Paradise Thomson Reuters (Reuters) – U.S. power producer PG&E Corp’s shares surged more than 10 percent on Tuesday after it said it had secured $5.5 billion in debtor-in-possession (DIP) financing from four banks as it prepares to file for Chapter-11 bankruptcy protection” reports businessinsider.com. Investment banks JPMorgan Chase & Co , Bank of America Merrill Lynch , Barclays Plc and Citigroup Inc will provide financing, the company said in a filing. The company said it…

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Leasing firm seeks earlier return of 10 Avianca Brasil planes

“Avianca Brasil filed for bankruptcy after falling behind on lease payments, setting off a scramble to repossess its planes” reports businessinsider.com. Aircastle is the second lessor to seek an earlier return of the planes after Avianca Brasil, which filed for bankruptcy in December, obtained the 15-day stay on any repossessions of its planes in a court hearing on Monday. Source: businessinsider.com

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Sears creditors seek to sue Eddie Lampert and challenge his victory in purchasing the company out of bankruptcy

“A group of Sears creditors is challenging Eddie Lampert’s victory in purchasing the company out of bankruptcy and asking for permission to sue Lampert and his hedge fund, ESL Investments” writes Hayley Peterson for businessinsider.com. Lampert, who is Sears’ chairman, won a bankruptcy auction on Wednesday to keep the 126-year-old retailer from liquidating.ESL has said there was nothing improper about Sears’ deals, which included the sale of hundreds of stores to a company called Seritage Growth Properties, which Lampert created in 2015. Source: businessinsider.com

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Too soon for PG&E to cave to California wildfire risk, hedge fund claims

“PG&E, which expects to file its bankruptcy petition around Jan. 29, was required by California law to notify state officials 15 days in advance” reports washingtonexaminer.com. It’s too soon for PG&E, the electrical utility threatened by possible liabilities in one of California’s deadliest wildfires, to declare bankruptcy, says a $21 billion hedge fund with a stake in the company.Under U.S. law, companies can use a Chapter 11 bankruptcy to reorganize and obtain new financing under court oversight; firms planning to go out of business typically opt for a Chapter 7…

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‘There is no way Sears is going to survive’: Sears may live on, but some say failure is inevitable

“In a statement to the Associated Press this week, Lampert said “there is every reason to fight” for Sears’ future” writes Hayley Peterson for businessinsider.com. “There is no way Sears is going to survive,” said Cohen, who is now the director of retail studies at Columbia Business School.The company’s advisers have elected to keep its lights on by accepting Lampert’s bid, but Sears’ future remains very much in doubt, according to former Sears Canada CEO Mark Cohen.Lampert’s bid still needs approval from the US bankruptcy judge at a hearing that…

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PG&E shareholder BlueMountain says bankruptcy unnecessary

“FILE PHOTO: PG&E crew work on power lines to repair damage caused by the Camp Fire in Paradise, Thomson Reuters (Reuters) – PG&E Corp shareholder BlueMountain Capital Management LLC on Thursday “challenged” the U.S. utility’s decision to file for bankruptcy, saying it was unnecessary” reports businessinsider.com. Earlier this week, PG&E, owner of the biggest U.S. power utility by customers, said it was preparing for Chapter 11 bankruptcy protection as soon as this month amid pressure from potentially crushing liabilities linked to California’s catastrophic wildfires in 2017 and 2018. Source: businessinsider.com

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PG&E bankruptcy could mean price hikes, unpaid fire lawsuits

“PG&E customers could bear some of the cost from the bankruptcy as a charge on their power bills” writes Kathleen Ronayne for seattletimes.com. PG&E customers still have a charge on their monthly bills from the utility’s 2001 bankruptcy.The earlier bankruptcy stemmed from rising electricity costs during a shortage caused by the state’s attempts at deregulating the power industry.PG&E, which also went through bankruptcy early 20 years ago, has been considering splitting off its gas division. Source: seattletimes.com

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Sears chairman’s takeover proposal faces moment of truth

“After two days of haggling, U.S. Bankruptcy Judge Robert Drain set a Wednesday deadline to complete the bankruptcy auction for the 126-year-old retailer, the people said” writes Midwest Communications Inc for 95kqds.com. Last week Lampert, through his hedge fund ESL Investments Inc, made an improved $5 billion offer for Sears after the company turned away his earlier $4.4 billion bid.The bankruptcy auction for Sears began on Monday morning in Manhattan at the offices of law firm Weil, Gotshal & Manges LLP, which is representing the retailer.On Tuesday, representatives for Sears…

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Shoe retailer Payless to explore options, including sale: sources

“As part of the bankruptcy, a group of creditors, including hedge fund Alden Global Capital LLC, took over ownership, according to bankruptcy court records” writes Midwest Communications Inc for 95kqds.com. The retailer may also consider filing for bankruptcy, the sources said, cautioning that no decisions on the company’s future have been made.Payless is not the first retailer to face bankruptcy for the second time in almost as many years.(Reuters) – U.S. discount retailer Payless ShoeSource Inc has hired an adviser to help evaluate strategic alternatives, including a sale or restructuring,…

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PG&E plunges for second day after step toward bankruptcy

“Our new fair value estimate for PG&E is $11 per share after considering possible bankruptcy scenarios.”” writes Midwest Communications Inc for 95kqds.com. (Reuters) – Shares in California power company PG&E fell sharply for a second day on Tuesday as investors took fright at the prospect of bankruptcy proceedings to protect from $30 billion in potential liabilities related to wildfires in 2017 and 2018.Its chances of emerging from bankruptcy proceedings hinge in part on an arcane California legal rule that threatens to keep it perpetually on the hook for liabilities from…

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