Bloomberg reports that shareholders in Latam Airlines Group SA’s chapter 11 case have organized into an ad hoc committee and hired the same counsel that represented equity holders in Hertz. Shareholders see the potential for the Latam bankruptcy to produce a recovery to common equity; similar to Hertz, Latam is a travel company, was in good financial health before the COVID pandemic, and is arguably in position for a fast recovery after the pandemic. [Bloomberg; May 20, 2021]
The Wall Street Journal and Reuters report that TAL Apparel Ltd., a former minority owner of Brooks Brothers, has sued the Del Vecchio family for not accepting deals for the company that could have prevented its 2020 chapter 11 filing. Brooks Brothers was sold out of bankruptcy last year to Authentic Brands Group LLC and mall operator Simon Property Group Inc. for $325 million. The suit alleges that the Del Vecchio family rejected the pre-bankruptcy offers because the valuation was not high enough to prevent the Del Vecchios from paying under a make-whole provision in their agreement with TAL. [Wall Street Journal; May 18, 2021] [Reuters; May 18, 2021]
Various experts opine on what is driving the current labor shortages in the New York Time’s DealBook newsletter, including what roles unemployment benefits, wages, childcare, and health concerns may be playing. [New York Times; May 22, 2021]