* * *
– Why America’s First National Supermarket Chain Just Filed For Bankruptcy… Again (ZeroHedge, July 20, 2015):
Back in December 2010, we were “stunned” when we learned that in a what was a clear case of a supermarket chain unable to pass through costs to consumers, the Great Atlantic & Pacific Company (“Great Atlantic”, “A&P” or the “Debtors”), which in 1936 became the first national supermarket chain in the US, would file for bankruptcy adding that “it is ironic that instead of passing through costs supermarkets are instead opting out to default”. Although perhaps even back then it was clear to A&P that the capacity of US consumer to shoulder higher prices is far worse than what the mainstream media would lead everyone to believe.
– Colt’s Bankruptcy Isn’t Because Civilian Gun Sales Are Down (Government Slaves, June 18, 2015):
(Hognose) The media love the idea that the firearms market is in a state of collapse. This propaganda theme is being fed to them by Bloomberg-funded gun-ban groups, and by Bloomberg’s own propaganda arm, Bloomberg News, and, like any good propaganda campaign, it reinforces the presuppositions, biases, and slants of the intended targets (in this case, Acela Corridor newsmen) with a Narrative® that’s Too Good To Check™.
One writer who didn’t check his Narrative®, or much of anything else, was David Francis at Foreign Policy, the magazine/website that’s expert in strategy because it employs Beltway drones with degrees from The Right Schools. (Most of whom can only function overseas where Loud Slow English is understood).
– Record Low Baltic Dry Casualties Emerge: Third Dry-Bulk Shipper Files For Bankruptcy In Past 3 Weeks (ZeroHedge, Feb 23, 2015):
The unintended consequences of a money-printed, credit-fueled, mal-investment-boom in commodities (prices – as opposed to physical demand per se) and the downstream signals that sent to any and all industries are starting to bite. The Baltic Dry Index has plunged once again to new record lows and the collapse of the non-financialized ‘clean’ indicator of the imbalances between global trade demand and freight transport supply has the real-world effects are starting to be felt, as Reuters reports the third dry-bulk shipper this month has filed for bankruptcy… in what shippers call “the worst market conditions since the ’80s.”
Spot the credit-based mal-investment boom
After 2 brief days of very marginal gains, The Baltic Dry Index dropped again…
A third dry cargo shipper has filed for bankruptcy this month following a collapse in freight rates to historic lows in what shippers call the worst market conditions since the 1980s.
– RadioShack Files For Bankruptcy (ZeroHedge, Feb 5, 2015):
As credit markets have been indicating for 15 months, 94-year-old consumer-electronics chain RadioShack has finally pulled the ripcord…
- *RADIOSHACK FILES FOR BANKRUPTCY PROTECTION AS LOSSES MOUNT
- *RADIOSHACK WILTS UNDER BIG-BOX, ONLINE COMPETITION
RadioShack lists $1.2bn in assets and $1.38bn in debt. Additionally, Bloomberg reports that a post-bankruptcy deal is being worked on with Sprint.
– The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming (ZeroHedge, Jan 7, 2014):
On Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come.
– First Detroit, Now Flint Warns Bankruptcy “Train Is Headed For The Cliff” (ZeroHedge, July 19, 2014):
Flint may be Michigan’s second city to plunge into bankruptcy unless retirees accept cuts in health benefits that threaten to unravel a balanced budget. As Crain’s Detroit reports, Emergency Manager Darnell Earley (Flint’s third emergency leader since it was placed under state control in 2011) warned “If we have no ability to mitigate the cost of retiree health care, that’s going to make it very difficult for the city to remain financially stable over the next few years.” As Eric Scorsone notes, “Flint’s at the forefront, but a lot of cities are on the same train, and that train is headed for the cliff.”
As Detroit draws worldwide attention for its record $18 billion bankruptcy, Flint demonstrates the plight of U.S. cities where unfunded post-retirement costs rival or exceed pension liabilities. In Michigan alone in 2011, municipalities had nearly $13 billion in health-care liabilities for retirees, compared with about $3 billion for pensions. Flint is among 17 cities and school districts under some form of state control.
– No seat at the table: The invisible victims of Detroit’s bankruptcy (Al Jazeera, April 25, 2014):
America Tonight’s Azmat Khan reveals the forgotten creditors who stand to become casualties of the city of Detroit twice over, through no fault of their own and with little means to do anything about it
– The Political Conspiracy Behind the Bankruptcy of Detroit: Anatomy of a Crime (WSWS, Feb 21, 2014):
The Workers Inquiry into the Bankruptcy of Detroit and the Attack on the DIA & Pensions was held Saturday February 15 at Wayne State University. The WSWS published an initial report on the meeting on February 17. Today we publish an edited version of the report to the Inquiry delivered by Larry Porter, assistant national secretary of the Socialist Equality Party and chairman of the Workers Inquiry.
Video coverage of Lawrence Porter’s full report to the Inquiry
Why was Detroit taken into bankruptcy?
In my report, I have the responsibility of uncovering the evidence of a crime.
– Another Chinese High Yield Bond Issuer Declares Bankruptcy (ZeroHedge, April 9, 2014):
Another week, another Chinese default.
A month after Chaori Solar’s default turned on its head a long-held assumption that even high-yielding debt carried an implicit state guarantee, another Chinese firm has succumbed to the inevitable outcome resulting from a lack of cash flows. As a reminder, a technical default late last month by a small construction materials firm, Xuzhou Zhongsen Tonghao New Board Co Ltd, was the first in China’s high-yield bond market. However, in that case the guarantor of that bond eventually agreed to fund the required interest payment, resulting in the first bailout of the first high yield default. Still if Xuzhou didn’t want the distinction of the first Chinese HY default, many are lining up for that particular prize – such as a small manufacturer of polyester yarn based in China’s wealthy Zhejiang province has declared bankruptcy, threatening its ability to meet an interest payment on a high-yield bond due in July.
According to Reuters, the firm sold 60 million yuan ($9.7 million) in bonds in a private placement in January 2013 at an interest rate of 11 percent. The next interest payment is due on July 23, while the bond matures in January next year.
“They want your fucking retirement money!”
– George Carlin (2005)
– Detroit bankruptcy ruling triggers calls for pension cuts across the US (WSWS, Dec 6, 2013):
Within days of a federal judge’s ruling in support of the Detroit bankruptcy, the devastating implications for the working class across the US are becoming apparent. States and cities throughout the country are citing the legal precedent of the Detroit ruling to attack public employee pensions, initiating a new stage in the assault on workers’ rights and living standards.
Politicians of both big business parties, media outlets and financial institutions have welcomed the decision by Judge Steven Rhodes, hailing its categorical assertion that federal courts can override state and local guarantees of public workers’ pensions.
The Michigan Constitution declares that accrued pension benefits are “contractual obligations” that “shall not be diminished or impaired.” Many other state constitutions have similar provisions. But Rhodes brushed aside the Michigan Constitution in order to open the door to the gutting of pensions.
On Thursday, Illinois Governor Pat Quinn signed into law a pension bill that slashes benefits for retired as well as active state employees, in violation of the Illinois Constitution’s prohibition of such pension cuts. Described as a “landmark” law, the Illinois measure will raise the retirement age for younger workers by eight years, slash cost-of-living adjustments for current pensioners, and transfer many workers from state-paid pension plans to employee-paid 401(k) plans.
– Detroit Eligible To File Chapter 9; Pension Haircuts Allowed Bankruptcy Judge Rules (ZeroHedge, Dec 3, 2013):
Update, and it’s official:
- JUDGE: DETROIT ELIGIBLE FOR IMMEDIATE BANKRUPTCY PROTECTION
- DETROIT TO REMAIN UNDER BANKRUPTCY COURT PROTECTION, JUDGE SAYS
As somewhat expected – though hoped against by many Detroit union workers – Judge Steven Rhodes appears to have confirmed Detroit is eligible for bankruptcy protection (after pointing out that the city’s accounting was accurate and it is indeed insolvent) making this the largest ever muni bankruptcy.
- JUDGE RHODES SAYS HE WILL ALLOW PENSION CUTS IN DETROIT’S BANKRUPTCY
- DETROIT JUDGE: NOTHING SEPARATES PENSIONS FROM OTHER DEBT
– Cops in bankrupt Detroit forced to buy own uniforms (RT, Oct 31, 2013):
Patrolling the streets of bankrupt Detroit, Michigan is no easy feat for the local police department, and budget woes are about to make things ever for difficult for law enforcement officers in the Motor City.
The president of the Detroit Police Officers Association told a local CBS affiliate that city cops are going to have to empty out their own wallets if they want to remain fully equipped while on the job. The financially-devastated city is cutting back on spending left and right, and new slashes to the budget mean officers are going to soon be responsible for buying their own uniforms and ammunition.
– Batista’s OGX Files Bankruptcy: Largest Ever In Latin American History (ZeroHedge, Oct 30, 2013):
In line with what we discussed last night, once cajillionaire Eike Batista’s net wealth has now collapsed to less than -$746.5 Million according to Bloomberg as Veja notes, his “take over the world” company OGX has declared bankruptcy following the breakdown of restructuring talks with bondholders:
- *OGX FILES FOR BANKRUPTCY PROTECTION IN RIO, BATISTA LAWYER SAYS
- *BATISTA’S OGX EXTENDS DECLINE TO 30% AFTER BANKRUPTCY FILING
- *BATISTA LAWYER BERMUDES COMMENTS ON FILING BY PHONE FROM RIO
The filing puts $3.6 billion of bonds into default – the largest corporate debt debacle on record for Latin America.
As of this morning his net worth was already -$745 million..
– Eike Batista’s OGX Said To File For Bankruptcy Tomorrow (ZeroHedge, Oct 29, 2013):
Earlier this afternoon, it was Steve Cohen’s final fall from grace. Now, Bloomberg reports that Brazil’s one time super billionaire, and now negativeworthaire, Eike Batista, whose sprawling petroleum empire was once valued in the tens of billions, is set to file for bankruptcy tomorrow.
- BRAZIL’S OGX SAID TO PLAN BANKRUPTCY PROTECTION FILING TOMORROW
We are confident that just like in Europe, there is no bank with any exposure to either OGX, Brazil, or whatever potential intercreditor avalanche will tear down many more Brazilian companies once this first insolvent domino finally tips over.
Those who missed the preface to this story, we repost it below.
When on October 1, fallen billionaire Eike Batista’s OGX Petroleo & Gas, missed a $45 million bond coupon payment, some were surprised but most had seen the writing on the wall. After all, Brazil’s second largest oil company after Petrobras, and the crowning jewel of Batista’s EBX Group, had been under the microscope of investors and certainly creditors (and if it wasn’t it certainly should have been) after oil deposits that Batista had valued at $1 trillion turned out to be commercial failures. And so the countdown to the inevitable bankruptcy filing began. Overnight, Bloomberg reports that the wait should not be long (in fact it may coincide with the default of that other insolvent mega-creditor: the United States), and will mostly certainly take place before the end of the month, following the retention of bankruptcy specialist law firm Quinn Emanuel.
H/t reader M. G.:
“… here is a very interesting story about Detroit and it’s pending bankruptcy.
The greedy guts want it all, and they don’t care who gets hurt or destroyed.”
– Detroit faces crucial trial three months after bankruptcy filing (Guardian, Oct 22, 2013):
An unusual trial starting Wednesday to determine whether Detroit may scrub its books in the largest public bankruptcy in US history
Thousands of Detroit streetlights are dark. Many more residents have fled. Donors are replacing ambulances that limped around for 200,000 miles. Millions in debt payments have been skipped.
Is there really any doubt the city is broke?
A judge starts exploring that question Wednesday in an unusual trial to determine whether Detroit indeed is eligible to scrub its books in the largest public bankruptcy in US history. Unions and pension funds are claiming the city failed to negotiate in good faith before filing for chapter 9 protection in July.
State Circuit Court Judge Rosemarie Aquilina ruled that the law allowing Gov. Rick Snyder (R) to authorize the bankruptcy filing was unconstitutional, according to Reuters. Aquilina ruled in favor of Detroit retirees and workers who argued the Michigan Constitution protected the retirement benefits in their city pension funds.
“They want your f$$$ing retirement money!”
– George Carlin (2005)
– Detroit: federal judge halts legal challenges to bankruptcy filing (Guardian, July 24, 2013):
Ruling is major victory for city which had been sued by pension funds claiming bankruptcy threatened 22,000 employees
A federal judge agreed with Detroit on Wednesday and stopped any lawsuits challenging the city’s bankruptcy, declaring his courtroom the exclusive venue for legal action in the largest filing by a local government in US history.
The decision by US bankruptcy judge Steven Rhodes was a major victory for Detroit, especially after an Ingham County judge last week said that Governor Rick Snyder ignored the Michigan constitution and acted illegally in approving the Chapter 9 filing. That ruling and others had threatened to derail the case.
Retirees had sued, claiming the bankruptcy threatened their pensions that are protected by the constitution.