What we read this week [November 1, 2022] – Insolvency/Bankruptcy
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- In an article from October 31, 2022, Reuters reports that theater chain Cineworld Group has reached an agreement with its landlords and lenders whereby Cineworld has agreed to pay at least $20 million in rent that will accrue after September 30, 2022. Cineworld Group, which operates nearly 800 movie theaters in ten countries, filed its Chapter 11 case in the Southern District of Texas Bankruptcy Court in September 2022, and the case is currently pending before Judge Marvin Isgur. Following the announcement of the settlement, Judge Isgur said the deal was “pretty astounding” given the distance between Cineworld and its owners and creditors on the issue at the start of the case. [Reuters; Oct. 31, 2022]
- Report of Bloomberg indicates that distress is growing in the US corporate bond market. In the last full week of October 2022, the amount of dollar-denominated bonds and loans trading at distressed levels reached $271.3 billion, the largest volume since September 2020, and representing the fifth consecutive week of growth.
[Bloomberg; Oct. 28, 2022]
- The the wall street journal reports that Core Scientific Inc., which is one of the largest bitcoin miners in the world, has hired restructuring advisers in recent weeks, continuing a trend of restructuring activity in the crypto industry. Core Scientific said it will miss upcoming debt payments due to ongoing legal disputes with crypto lender Celsius Network LLC, which Core Scientific said has impacted its performance and liquidity. [WSJ; Oct. 27, 2022]
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