Correspondent, New York
Megan's Feed
Apr 8, 2015

Insight – Emanuel’s re-election present: Chicago’s fiscal nightmare is just beginning

CHICAGO/NEW YORK (Reuters) – Rahm Emanuel may have been elected to a second term as Chicago’s mayor on Tuesday but now he faces a stark choice: inflict pain on the city’s population in the form of unpopular measures such as higher taxes or kick its problems further down the road and risk a fiscal crisis that could even lead to bankruptcy later.

While voters appear to have seen President Barack Obama’s former chief of staff as more able than labour union-backed challenger Jesus “Chuy” Garcia to deal with Chicago’s massive public pension liabilities, neither candidate squarely addressed what could be a fiscal nightmare for the city.

Apr 8, 2015

Emanuel’s re-election present: Chicago’s fiscal nightmare is just beginning

CHICAGO/NEW YORK (Reuters) – Rahm Emanuel may have been elected to a second term as Chicago’s mayor on Tuesday but now he faces a stark choice: inflict pain on the city’s population in the form of unpopular measures such as higher taxes or kick its problems further down the road and risk a fiscal crisis that could even lead to bankruptcy later.

While voters appear to have seen President Barack Obama’s former chief of staff as more able than labor union-backed challenger Jesus “Chuy” Garcia to deal with Chicago’s massive public pension liabilities, neither candidate squarely addressed what could be a fiscal nightmare for the city.

Apr 7, 2015

Former JPM infrastructure exec starts alliance, draws CalSTRS

NEW YORK, April 7 (Reuters) – JPMorgan’s former OECD
Infrastructure Investment Fund Chief Investment Officer is
starting an infrastructure alliance and has secured $500 million
of commitments from investors including Californian pension
giant CalSTRS, the partnership said on Tuesday.

The investment manager, named Argo Infrastructure Partners,
is founded by Jason Zibarras who left JPMorgan in 2013. It will
initially focus on low-risk investments in energy infrastructure
in Canada and the United States, including midstream, utilities
and contracted power assets and will target “really high grade
low-risk assets,” Zibarras said.

Apr 2, 2015

Ex-TPG executive alleges partner said he wanted to ‘smack’ him against a wall: lawsuit

NEW YORK (Reuters) – TPG Capital was sued on Thursday by its former head of public affairs, who accused the private equity giant of ignoring his warnings that the firm may have violated securities regulations and defrauded investors out of millions of dollars as a result.

The whistleblower lawsuit, almost without precedent in the tight-knit world of private equity, was filed by Adam Levine, who had been an assistant White House press secretary under President George Bush in 2002-2003 and then worked at TPG from 2008 until the end of 2014. Levine says he was asked to leave the firm by senior executives after he raised concerns about TPG’s conduct, according to his lawsuit.  

Apr 2, 2015

Ex-TPG executive alleges partner said he wanted to “smack” him against a wall-lawsuit

NEW YORK, April 2 (Reuters) – TPG Capital was sued on
Thursday by its former head of public affairs, who accused the
private equity giant of ignoring his warnings that the firm may
have violated securities regulations and defrauded investors out
of millions of dollars as a result.

The whistleblower lawsuit, almost without precedent in the
tight-knit world of private equity, was filed by Adam Levine,
who had been an assistant White House press secretary under
President George Bush in 2002-2003 and then worked at TPG from
2008 until the end of 2014. Levine says he was asked to leave
the firm by senior executives after he raised concerns about
TPG’s conduct, according to his lawsuit.

Mar 31, 2015

Creditors grant Puerto Rico utility 15-day payment relief

NEW YORK (Reuters) – Creditors of Puerto Rico’s electric power authority on Monday agreed to extend a forbearance agreement for 15 days, aimed at giving the struggling utility laden with $9 billion debt some breathing room and avoiding a potentially messy default.

Solving PREPA’s problems would go some way to resolving a major uncertainty for investors at a time when the U.S. commonwealth is seeking to raise around $3 billion to stabilize its finances.

Feb 26, 2015

Future of Puerto Rico bankruptcy bill uncertain in Congress

WASHINGTON/NEW YORK (Reuters) – A bill to give Puerto Rico’s ailing public utilities a way to restructure debt under the U.S. bankruptcy code drew skepticism from congressional Republicans but support from Democrats, who said it would relieve the island’s problems.

The Republican-controlled Judiciary subcommittee on regulatory reform of the House of Representatives on Thursday held a hearing on the bill, proposed by Puerto Rico’s non-voting congressional delegate, Democrat Pedro Pierluisi. The legislation would allow the territory’s government-owned corporations to file under Chapter 9 of the bankruptcy code.

Feb 26, 2015

Bondholders split on merits of Chapter 9 for Puerto Rico agencies

NEW YORK (Reuters) – Bondholders are split on a proposed
bill to give Puerto Rico’s ailing public agencies a way to
restructure debt under U.S. bankruptcy law, with some saying it
would give confidence to the market and others arguing it is a
“Wild West” solution.

The bill to give Puerto Rico’s agencies the ability to file
under Chapter 9 of the U.S. bankruptcy code – used by Detroit,
Michigan, and Stockton, California – was proposed by the U.S.
territory’s representative to Congress, Democrat Pedro
Pierluisi. It will be heard on Thursday.

Feb 24, 2015

Atlantic City’s Revel reaches new deal with Straub for $82 mln

NEW YORK (Reuters) – The shuttered Revel Casino Hotel in
Atlantic City, New Jersey, again has a buyer – and again it’s
Florida developer Glenn Straub, who was lured back by a
discounted price of $82 million.

The deal follows two failed sale agreements for the casino
hotel, which cost $2.4 billion to build and is struggling to
emerge from the second bankruptcy since it opened in 2012.

Feb 9, 2015

Puerto Rico set for tougher debt struggle after court ruling

NEW YORK (Reuters) – Hopes of an orderly resolution to Puerto Rico’s debt crisis suffered a heavy blow after a court voided the island’s restructuring law, raising fears it may be heading for a longer, messier debt overhaul.

Late on Friday a U.S. federal judge ruled that the U.S. commonwealth’s so-called Recovery Act, which made some of Puerto Rico’s agencies eligible for court-supervised debt restructuring, violated the U.S. constitution by allowing a state government to modify municipal debt.