The Wall Street Journal discusses the $11.2 trillion in outstanding corporate debt, and considers whether companies that took advantage of “cheap money” this past year merely delayed a reckoning coming in the next economic downturn. [WSJ; June 14, 2021]
CNN Business covers the bankruptcy filing of Washington Prime Group, an owner of more than 100 malls across the United States. The company cited temporary closures and relaxation of rent payments from some tenants as the primary causes of its bankruptcy filing. Washington Prime Group is using chapter 11 to “implement a comprehensive and consensual financial restructuring” to deleverage nearly $1 billion in debt. [CNN Business; June 14, 2021]
Bloomberg analyzes retail investors’ continued interest in financially-distressed companies and the increased popularity of “meme stocks” (e.g., AMC Entertainment Holdings Inc., GameStop Corp.). AMC, once on the brink of bankruptcy, now has a “path to a sustainable capital structure,” in part because of the increased demand from retail investors allowed it to sell new shares. Investors also continue to purchase shares of companies already in bankruptcy, a risky bet that has paid off for some investors so far. [Bloomberg; June 11, 2021]
Barron’s analyzes why Hertz’s stock continues to rise when the company is still in bankruptcy, noting the recently-confirmed plan that provides a payout to shareholders. [Barron’s; June 16, 2021]