Unstructured Finance

Bankruptcy decline has advisers scrambling for crumbs of business

           A sharp drop in business bankruptcy filings has restructuring advisory firms scrambling for crumbs of business.  Some 29 attorneys signed up to pitch their services to the creditors committee of U.S. regional airline Mesa Air Group, which filed for Chapter 11 protection in early January. 

Another 17 financial advisers showed up at the so-called beauty pageant, anxious for new business..

            “It’s definitely a shift,” said Ed Albert, managing director at Macquarie Capital (USA) Inc, who attended the gathering. “A sea of people is showing up.  There are fewer bankruptcy filings, and a lot more restructuring firms were created in the last three years.”

            Bankruptcy filings of publicly traded companies dropped by a third in December and January, year to date,  compared to the same period last year, according to bankruptcydata.com.

            “It’s significant that a lot of firms at Mesa were debtor firms, which typically pursue the bigger debtor cases for bigger fees,” said Albert, who is also co-head of  Macquarie’s New York restructuring advisory business.

Reliance aims big with $12 bln bid for LyondellBasell

Ranked by Forbes as India’s richest man with a net worth of $32 billion, Mukesh Ambani is no stranger to taking risks.

The move by conglomerate Reliance Industries, controlled by Ambani, to bid for bankrupt LyondellBasell is a calculated one. Markets seem to think this is a bargain and investors pushed up Reliance’s stock nearly 4 percent on Monday.

If the deal, which sources say may be worth $12 billion,  goes through, it would catapult Reliance into the ranks of top petrochemical makers such as Saudi Arabia’s SABIC, Germany’s BASF and Dow Chemical Co.

Reliance aims big with $12 bln bid for LyondellBasell

Ranked by Forbes as India’s richest man with a net worth of $32 billion, Mukesh Ambani Mukesh Ambani, chairman of Reliance Industries, is no stranger to taking risks.

The move by conglomerate Reliance Industries, controlled by Ambani, to bid for bankrupt LyondellBasell is a calculated one. Markets seem to think this is a bargain and investors pushed up Reliance’s stock nearly 4 percent on Monday.

If the deal, which sources say may be worth $12 billion,  goes through, it would catapult Reliance into the ranks of top petrochemical makers such as Saudi Arabia’s SABIC, Germany’s BASF and Dow Chemical Co.

Did the crackdown on illegal workers cost Apollo $76.5 mln?

tomatoEuroFresh, a leading producer of greenhouse tomatoes and cucumbers, filed for Chapter 11 bankruptcy protection Tuesday, partly blaming crackdowns on undocumented migrant workers for its woes.

In a bankruptcy filing in Arizona, where it is based, EuroFresh essentially said the government’s actions has raised demand for workers with legal papers, making them scarce.

“The pool of illegal immigrant labor in the area surrounding the Facilities shrank, creating higher overall demand for legal immigrant labor,” the company complained.

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