Borrowers reign despite Caesars defeat

September 28, 2016

Efforts by Apollo and TPG to salvage something from their $30 bln casino buyout largely failed after creditors fought back. Under a new deal, junior lenders will recover 66 cents on the dollar. Most debt investors bow to lame terms, however, meaning Caesars will be an exception.

Illinois governor all but summons bond vigilantes

May 17, 2016

In an interview with Breakingviews, Republican Bruce Rauner challenged a pervasive belief in markets that governments can always just raise taxes to plug deficits. The issue resonates beyond his state’s $140 bln fiscal mess. Debt investors have neglected to focus political minds.

Bankruptcy overhaul could tame India’s tycoons

November 18, 2015

A proposed insolvency code aims to tackle troubled firms swiftly, stop large shareholders from stripping assets, and limit the role of the stagnant courts. While India will need to build institutions to implement the overhaul, the days of moguls trampling creditors are numbered.

U.S. election complicates Puerto Rico repair job

November 3, 2015

President Obama wants Congress to help the island out of a $72 bln hole. His calls for debt restructuring, better oversight, tax and healthcare tweaks make sense, but risk falling prey to candidate posturing. It may take a full financial meltdown for D.C. to roll up its sleeves.

Rob Cox: Donald Trump’s bankrupt character

By Rob Cox
September 24, 2015

Loose monetary policy has helped the brash presidential contender amass riches while reneging on his debts four times. Bankruptcy laws long ago undermined “dictum meum pactum” in business dealings. But it’s unsettling to see the popularity of a man whose word is worth so little.

Trump and China give opposing lessons in failure

August 7, 2015

Presidential hopeful Donald Trump says bankruptcy in America is no reason to be embarrassed. In debt-laden China it’s different: the state throws money at avoiding failure. Both positions end in the same place. If going bust brings too much pain or too little, disaster follows.

Why investors were taken in by Gowex

July 11, 2014

The scandal-hit Spanish wifi provider raised many red flags. Why were they all ignored? Because more people benefit when companies flourish, and Spain needs success stories. Gotham City, Gowex’s nemesis, did everyone a service, but its work shouldn’t have been necessary.

Gowex collapse leaves egg on many faces

July 7, 2014

The Spanish wifi provider has said its CEO admitted falsifying the accounts, days after short-seller Gotham City attacked the company. Gowex’s status as a poster child for Spanish entrepreneurialism means the fallout will go beyond increased risk aversion to junior listed stocks.

Rob Cox: Can we Grand Bargain before going bust?

By Rob Cox
May 29, 2014

Kumbaya has broken out in Detroit: Michigan’s legislature, the UAW and even JPMorgan are chipping in to help the city emerge from bankruptcy protection. While good news, it’s also a sad comment on America’s broken political system that it takes so much failure to come together.

Loss of bankruptcy card would weaken cities’ hands

August 2, 2011

Taking away the bankruptcy card would weaken the hand of U.S. cities and counties.