Brookfield Asset Management is aiming to invest approximately $5 billion in a retail revitalization investment fund to assist retailers impacted by the COVID-19 pandemic, reports the Wall Street Journal. Brookfield will reportedly focus on obtaining noncontrolling interests in retail businesses with greater than $250 million in pre-pandemic revenue. [WSJ; May 7, 2020]
Bloomberg reports that United Airlines was forced to increase the yield offered on a $2.25 billion bond issuance from approximately 9% to 11% after investors expressed concerns with the aging fleet being offered as collateral. [Bloomberg; May 7, 2020]
The Eighth Circuit Court of Appeals affirmed decisions by the United States Bankruptcy Court for the Eastern District of Missouri and the United State District Court for the Eastern District of Missouri that barred various California municipalities from continuing post-bankruptcy lawsuits against the reorganized debtors for strict liability, negligence, trespass, and nuisance in connection with the debtor’s pre-petition role in “climate change science denial.” The Eighth Circuit agreed with the lower courts that the municipalities’ claims were barred by a plan injunction and did not qualify as claims arising from federal, state, and local statutes for “pollution or protection of the environment, or environmental impacts on human health and safety,” which were excepted from the plan injunction. [8th Cir.; May 6, 2020]
The Federal Reserve Bank of New York released guidance for its Primary Market Corporate Credit Facility and Secondary Market Corporate Credit Facility, which are intended to provide a funding backstop to eligible issuers and support market liquidity for corporate debt. [Federal Reserve Bank of New York; May 4, 2020]