hoc group

Judge rejects PREPA bondholders’ arguments

The judge in the Puerto Rico Electric Power Authority bankruptcy rejected five bondholder arguments Tuesday, bringing approval of the Oversight Board’s plan of adjustment closer.

U.S. District Judge Laura Taylor Swain granted the Oversight Board’s motion to dismiss the bond parties’ — bond trustee U.S. Bank N.A., Assured Guaranty, Syncora Guarantee and the now defunct Ad Hoc Group of PREPA Bondholders — five remaining counterclaims from a 2019 adversary proceeding. Some of the Ad Hoc group’s members — like GoldenTree Asset Management — are actively working against the board’s proposed plan of adjustment.

One attorney not involved in the case was not surprised by the ruling, noting Swain consistently rules against bondholders.

Laura Taylor Swain, U.S. District Judge

U.S. District Judge Laura Taylor Swain’s latest ruling removed further hurdles to her approval of the proposed PREPA plan of adjustment.

The timing of the ruling is “interesting,” said Puerto Rico Clearinghouse Principal Cate Long, coming “just days before the First Circuit [Court of Appeals] hears oral argument on GoldenTree’s lift stay” motion.

The bond parties claimed PREPA was in breach of its obligations to increase rates so that its revenues were sufficient to pay bondholders. Swain said the authority is not required to raise rates to pay

Read the rest

Revlon Stock: Fasten Your Seatbelts, It’s Going To Be A Bumpy Bankruptcy (NYSE:REV)

Revlon Shares Drop Sharply After Cosmetics Giant Reports Q2 Loss

Justin Sullivan

Trading in bankrupt Revlon (NYSE:REV) stock has had a bumpy ride over the last few weeks and I expect that their entire Ch.11 bankruptcy process is going to have an extremely bumpy ride because of the complexities of this case. Of course, actual Revlon future operating results are critical for stakeholders, but there are some future judicial decisions that could have dramatic impact on investors holding Revlon’s debt and stock. This article is an update to my prior Revlon bankruptcy article.

Official Equity Committee

As expected, some shareholders filed a request with the U.S. Trustee for an appointment of an official equity committee. (Seeking Alpha broke this story on July 13.) I have reached out to the Office of the U.S. Trustee, but I have not received any official response, but since a committee has not been appointed yet, I am assuming that it was denied at this point. The next step would be for these equity holders to file a request with the bankruptcy court requesting Judge Jones to instruct the U.S. Trustee to appoint an official equity committee. Since he is a very new judge, he has no history on this issue.

Official equity

Read the rest