Category Archives: Bankruptcy

When Covid-19 first plunged Europe into lockdown last spring, there were plausible predictions of a tidal wave of corporate insolvencies. Thathasnt happened, at least not yet.

The number of companies declaring bankruptcy declined by about a fifth in the euro area last year, even as economic output contracted more than 6%. Firms were saved by overwhelming government support,including hundreds of billions of euros of public loan guarantees, wage subsidies and loan forbearance by banks. Rules were relaxed on when businesses must file for insolvency.

European bankruptcies are being artificially suppressed

Source: Eurostat

The big question is whether Europe has merely delayed the inevitable by propping up financially distressed enterprises (unkindlydubbed zombies by economists), or whether resurgent demand and accelerating vaccination rates can keep the bankruptcy wave at bay. Theres been more groundfor optimism recently but many company failures stilllookunavoidable.

Leaving aside high-profile implosions, like the ones at budget airline Norwegian Air Shuttle ASA, Topshop owner Arcadia Group and fraudulent fintech Wirecard AG, the recent insolvency trend has been the opposite of what usually happens in a recession.

Bankruptcies soared during the last crisis. This time they fell

Source: Coface

Compared with the U.S., where large companies such as car-rental giant Hertz Global Holdings Inc. and telecoms provider Frontier Communications Corp.had to file for Chapter 11 bankruptcy, some European countries have beenespecially forgiving. Germany recorded the smallest number of corporate insolvencies since at least 1999;English and French bankruptciesare the lowest in more than 30 years.

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With big parts of the economy left relatively unscathed by the pandemic, interest rates still at rock bottom, consumers ready to spend their pandemic savings and Europes 750 billion-euro ($900 billion) Covid recovery fund poised to start disbursements, its tempting to think the worst is over.

Policy makers, though, shouldnt consider the low number of insolvency filings in Europe as a sign of corporate health,the European Systemic Risk Board which oversees the continents financial system has warned.It noted that in a worst-case scenario the current calm might be the sea retreating before a tsunami.

Because of government loan guarantees, business failureswould also further damage public finances. Thats one reason Frances President Emmanuel Macron and other leaders are in a hurry to relax lockdown restrictions. Every day of lost revenues deepens the hole from which companies must climb.

Genuine zombie businesses those that were financially distressed before the pandemic but were able to avoid filing for creditor protection last year will, however, remain in that hole. Many insolvencies have been postponed rather than prevented, notes French credit insurer Coface SA. Euler Hermes, another credit insurer, expects global insolvencies to be 13% higher in 2021 than in 2019. In 2022 it expects insolvencies will be 27% higher than in 2019.

Given the circumstances, that would be a decent outcome. Even once-healthy companies are burdened with huge borrowings and reopening for business brings new risks.After a long hibernation firms have to rebuild inventory and rehire staff, potentially sinking them further into debt.The travel and hospitality industries face the biggest difficulties, which bodes ill for southern Europe where they account for a bigger share of output and governments have less fiscal firepower. Spain and Italy may see more insolvencies than Germany.

A tricky dance is now underway in which governments and lenders try to wean companies off financial support while separating businesses with sound long-term prospectsfrom the no hopers. Telling one from other isnt easy.

After a long hiatus Germany says over-indebted businesses should file promptly for insolvency. A German government backstop for the credit insurance that underpins vital trade expires next month.

And yet, with national elections looming in Germany and France and governments everywhere under pressure over their handling of the pandemic, theres a strong temptation to keep the cash spigot open. Look at how Paris has showered money on Air France-KLM. Britains small businesses have been given up to 10 years to repay so-called Bounce Backloans. Much of the 47billion pounds ($65billion) theyve borrowed will probably never be recouped.

Its no wonder European banks are sounding more sanguine about commercial lending. Lloyds Banking Group Plc and HSBC Holdings Plc have unwound some bad-loan provisions, while Austrias Erste Group Bank AG says the vast majority of customers resumed loan payments without delay.Even if this confidence turns out to be misplaced, the financesector is better capitalized now than before the last recession. Shareholders are more upbeat, too: The Euro Stoxx banks index has gained 23% this year.

Free-market acolytes will say Europes decision to prop up zombies has already done lasting damage by preventing labor and capital from shifting to more dynamic businesses. Creative destruction is essential to capitalism, they say. Productivity will suffer.

Thats too crude. While massive government intervention is often targeted poorly, it has preventedthe collapse of healthy businesses. Employees kept their jobs and banks were able to keep extending credit. Europes recession was brutal but it could have been much worse.

A year ago no lender or government could judge reasonably which companies prospects had been permanently impaired. By the summer they should have a much better idea. Some hard decisions await.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:Chris Bryant at cbryant32@bloomberg.net

To contact the editor responsible for this story:James Boxell at jboxell@bloomberg.net

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We Can't Hold Off the Bankruptcy Wave Forever - Bloomberg

The Henry Ford Village: Senior Living Community on Thursday, Jan. 14, 2021, in Dearborn. (Photo: Antranik Tavitian, Detroit Free Press)

A New York firm has won an auction to buy the1,038-unitHenry Ford Village retirement community in Dearborn out of bankruptcy and intends to paya portion of current residents' refundable entrance fee deposits that bankruptcy had put at risk.

The village announced Thursday thatSage Healthcare Partners won the auction with a$76.3 million bid, beating a $69 million offer fromMED Healthcare Partners, the only other bidder.

The deal is still subject to U.S. Bankruptcy Court approvaland is scheduled for a May 24 hearing. Sage plans to continue operating the village, but will convert it to a "rental only" residential model and stop theentrance fee deposits.

Henry Ford Village,15101 Ford Road nearthe birthplace of Henry Ford,declared Chapter 11 bankruptcy Oct. 28, citing asits biggest financial challenge the liability associated with the entrance fee deposits, which range from $27,500 to $356,000andcan be refundable when a residentmoves out or dies.

The deposits were supposed to be 100% refundable and totaled more than $112 million for current residents, as well as some former residents and their heirs who are still waiting to get deposits back.

But the village struggled inrecent years to make good onthe refunds because its occupancy ratehasslumped especially during the COVID-19 pandemic and it dependedonnew deposits from incoming residents to pay out those of former residents.

More: Henry Ford Village bankruptcy puts seniors' deposits at risk. Here's why they are worried

The proposedSage deal doesnot give formerresidents or former residents' heirsany deposit refunds.

Instead, theywould betreated as unsecured creditors in the village's ongoing bankruptcy case, and may eventuallyreceive some compensation for their unrefundeddeposits.

The Henry Ford Village: Senior Living Community on Thursday, Jan. 14, 2021, in Dearborn. (Photo: Antranik Tavitian, Detroit Free Press)

The deal would allow current residents to become eligible to get a percentage of their entrance feedeposits back after specific anniversariesof the Sage sale's future closing date. These refunds would be triggered oncethey exit the village:

Sage Healthcare Partners was started in 2014 and says it owns 13 properties such as Henry Ford Villagethat are known as continuing care retirement communities. Henry Ford Village isthe largest such community in the country and employed a staff of more than 500.

Chad Shandler, Henry Ford Villages chief restructuring officer, was not available for an interview Thursday, but issued a statement announcingthe auction results.

"Were confident thatSage, as the winning bidder, considers the long-term best interests of our residents, employeesand allthe wonderful people that make Henry Ford Village a true community, Shandler, also a New York-basedexecutive with FTI Consulting,said in the statement.

He continued, Throughout the sale process, our guiding focus was to identify a path forward that upheld Henry Ford Village's values and stabilized its financial position while allowing us to maintain the care and lifestyle our residents have come to know, love andrely on. Under Sages ownership, we believe HFV will achieve just that while providing a distribution to unsecured creditors.

Sage's PresidentAvi Satt said in a statement that his company looksforward to strengthening HFV

financially while enhancing the lifestyle residents have come to love."

Contact JC Reindlat 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter@jcreindl. Read more on business and sign up for our business newsletter.

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New York firm wins auction to buy Henry Ford Village out of bankruptcy - Detroit Free Press

After the rush of bankruptcy filings last summer in the earlier phase of the ongoing COVID-19 pandemic, retail watchers had feared another wave in 2021.

But a combination of factors hasled to an extended lull in restructurings, as lenders nonetheless remain wary of signs of trouble. A recent report by S&P Global Market Intelligence cited Government stimulus, low interest rates and flexible lenders as some of the reasons for the relatively stagnant pace of filings about 155 companies have filed for bankruptcy in 2021, compared to 180 in the same period last year, according to an S&P Global Market Intelligence report in late April.

Just about a dozen of those have involved U.S. retail bankruptcies since the start of the year to mid-April, according to data from S&P Global Market Intelligence. But if companies hit trouble accessing financing to pay vendors or to keep their operations on pace, it could set off a cascade effect, experts said.

Borrowers are currently able to get access to financing to extend the runway, but if theres a climb in rates, or otherwise tightening on the ready access to capital, then youre going to see a relatively significant spike in defaults, said Justin Bernbrock, partner in Sheppard Mullin LLPs finance and bankruptcy practice group.

I think, particularly as it relates to the retail industry, theres now also a fair amount of pent-up consumer demand, he added. I think that to some extent, theres going to be almost a bridge period, where some retailers are going to be propped up by this outpouring of consumer desire to go to a store and try on a pair of jeans.

Lenders are also continuing to monitor covenants to ensure that the businesses are complying with their terms, bankruptcy watchers said. Lines of credit, for instance, are gauged based on accounts receivable, which if they decline, can jeopardize the line of credit and affect a companys ability to borrow.

As that line of credit availability decreases, your ability to use that line of credit to pay for supplies, etc. will also be an issue, said Nanette Heide, a partner in Duane Morris LLPs corporate practice group.

Ongoing stimulus funding through landmark measures including the $1.9 trillion American Rescue Plan, which also boosted the Paycheck Protection Program meant to provide forgivable loans to companies, have helped keep some retailers afloat.

In addition, tweaks to aspects of the bankruptcy code, made in part through COVID-19 stimulus measures, have helped smaller retailers by making the process more accessible and affordable for companies with lower amounts of debt, and making the Chapter 11 process a relatively painless vehicle for recovery. Furla USA, for instance, had used the fairly new subchapter 5 provision of the bankruptcy code to execute a relatively quick restructuring within three months.

When that faucet is turned off, youll see more significant impact on businesses that were relying on that money, that arent recovering as quickly as they would like to, said Heide, referring to life for companies after stimulus funds dry up.

If theyre brick-and-mortar, and they havent transitioned to more of an online presence to give them additional sales, especially if theyre in large locations, like a mall or something like that, because were still experiencing the pandemic, people are reticent to go out into a large crowd atmosphere, Heide said.

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Anticipating the Next Wave of Retail Bankruptcies WWD - WWD

Life is Good was on the verge of filing for bankruptcy protection last year, according to its CEO, but the retailer managed to overhaul its business strategy in a matter of weeks to have its best year ever during the Covid pandemic.

"When [Covid] hit, 50% of our business was wholesale ... and that business died in a hurry," Life is Good co-founder and CEO Bert Jacobs said Tuesday during CNBC's Small Business Playbook event.

"We were in a situation where we were facing bankruptcy, and we were facing having to cut at least half of our staff. That's when we said ... let's play offense really hard. Let's produce this stuff to order, and let's see what happens."

Instead of ordering in bulk shirts, pullovers, hats and other accessories that are already printed with logos, slogans and other designs, Life is Good started ordering batches of blank items last year, the CEO explained. Then, monitoring consumer sentiment, it began printing inventory on-demand that had phrases about staying home and quarantining, wearing masks, and other pandemic-related trends.

"We started speaking to whatever was culturally relevant, which at the time was a lot of difficult things, but we tried to keep it light," Jacobs said.

Bert Jacobs, Co-Founder and Chief Executive Optimist of Life is good

Paul Morigi | CNBC

The strategy clearly helped. Not only did it aid in boosting customers' morale, but it was a financial success story.

"2020 ended up being the best top line we've ever had in 27 years, and the strongest bottom line," Jacobs said. (The privately held company didn't break out exact sales figures.)

"2020 showed us how we should be running our business," he said, adding that sales in 2021 are still "growing like mad" because Life is Good is sticking to the business principles that it picked up on during the past few months.

"We are working for the consumer, and everybody's got to do that," Jacobs explained. "The [retailers] that survive are going to be the ones that listen closely and capture the data. ... The consumer gives you the answers."

A number of retailers were not as lucky as Life is Good last year, as they buckled under the pressures brought on from the health crisis. Dozens filed for bankruptcy, and thousands of store closures were announced by retail businesses, many in the apparel category.

There is a renewed sense of optimism, however, that demand is beginning to rebound as consumers leave their homes and prepare to socialize again. Americans will be returning to work, in droves, in the months ahead, and families are looking to book long-awaited summer vacations.

"This is really a community of rational optimists," Jacobs said. "I say rational optimists because we recognize that there are challenges in the world ... that it's difficult ... but we decide when we wake up in the morning to focus on what's right with our lives, what's right with the world, more than what's wrong with the world."

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Life is Good almost filed for bankruptcy last year. Here's what CEO says saved the retailer - CNBC

A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020. REUTERS/Eric Gaillard

Hertz Global Holdings Inc (HTZGQ.PK) said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management to fund the car rental company's exit from Chapter 11 bankruptcy.

The revised offer aims to fund Hertz's bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion.

A media report on Monday said Knighthead Capital Management and Certares Management's latest offer gives Hertz an enterprise value of more than $6.2 billion.

In March, Hertz said Knighthead and Certares had agreed to buy a majority stake in the company for $4.2 billion. read more

The new offer also rivals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital to fund for Hertz's exit from bankruptcy.

Hertz said it would evaluate the new offer and has not made a decision. The company's shares fell 7% to $2.98 in premarket trading.

Our Standards: The Thomson Reuters Trust Principles.

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Hertz confirms new offer from Knighthead, Certares for bankruptcy exit - Reuters

David (left) and Kathe Sackler, members of the family that owns Purdue Pharma, the maker of Oxycontin, testified via video to a House Oversight Committee hearing on Dec. 17, 2020. Sackler family members have acknowledged that the drug had a role in the opioid crisis, but they have stopped short of apologizing or admitting wrongdoing. House Television via AP hide caption

David (left) and Kathe Sackler, members of the family that owns Purdue Pharma, the maker of Oxycontin, testified via video to a House Oversight Committee hearing on Dec. 17, 2020. Sackler family members have acknowledged that the drug had a role in the opioid crisis, but they have stopped short of apologizing or admitting wrongdoing.

For months, members of the Sackler family that owns Purdue Pharma, the maker of Oxycontin, have portrayed their bid for immunity from future opioid lawsuits as a kind of fait accompli, a take-it-or-leave-it fix to a legal morass.

In exchange for what amounts to a legal firewall for the Sacklers and their remaining empire, members of the family have offered to forfeit control of their bankrupt drug company and pay $4.2 billion from their private fortunes.

Judge Robert Drain, who is presiding over the case in White Plains, N.Y., has suggested that such a deal may be desirable and achievable along these broad lines.

A negotiated settlement could preempt years of costly litigation the Sacklers deny any wrongdoing and might accelerate financial aid to communities struggling to recover from an opioid epidemic that has already cost more than 450,000 lives.

But a growing group of public officials and activists is mounting a last-ditch effort to derail the plan, describing it in legal briefs as an unethical, and possibly unlawful, use of the bankruptcy court's power.

Late last week, 24 state attorneys general as well as the attorney general for Washington, D.C., filed a new brief describing the proposed settlement as "unprecedented," "unjust" and "unconfirmable as a matter of law."

"The bankruptcy system should not be allowed to shield non-bankrupt billionaires," said Massachusetts Attorney General Maura Healey in an interview with NPR.

"It would set a terrible precedent. If the Sacklers are allowed to use bankruptcy to escape the consequences of their actions, it would be a roadmap for other powerful bad actors."

State AGs aren't alone in objecting to the deal. In recent weeks, attorneys representing local and state governments, native tribes and opioid activists filed briefs raising legal and ethical concerns about the plan.

A division of the Justice Department that oversees bankruptcy cases also filed a brief questioning whether the bankruptcy court has the "authority and jurisdiction" to approve such a plan.

Seeking bankruptcy-like protection without filing for bankruptcy

The Purdue Pharma case is dauntingly complex, involving what may be the nation's worst man-made public health crisis, but the central legal dispute now hinges on a simple fact: The Sacklers are seeking bankruptcy-like protections from the court without actually filing for bankruptcy.

Here's how this would work.

One piece of the family's private empire, Purdue Pharma, sought Chapter 11 protection in 2019, exposing the firm to a rigorous accounting by creditors.

But the rest of the Sacklers' vast holdings cash, art, real estate, companies and trusts valued at roughly $11 billion aren't part of that process.

Yet the Sacklers are negotiating to use a rare and controversial bankruptcy procedure known as "non-consensual third-party releases" that would protect them and their assets from lawsuits linked to the opioid crisis.

"They will be shielded from any further scrutiny because the release and injunction that's being contemplated means they can never be sued," said Jonathan Lipson, a bankruptcy expert at Temple University.

In recent weeks, a growing number of local, state and federal governments have filed briefs raising alarm about this provision of the deal.

"The current plan impermissibly allows the Sacklers to escape scrutiny while availing themselves of the 'fresh start' benefits of bankruptcy by free-riding on the Purdue Pharma bankruptcy," attorneys representing a coalition of school districts suing Purdue Pharma wrote in an April 23 legal filing.

"If the Sacklers wish to obtain the benefits of bankruptcy-like insulation from the consequences of their conduct, then Sackler family members and related entities should be required to file their own individual bankruptcy proceedings," the school districts argued.

Experts say some federal appellate courts have agreed, prohibiting outright the kind of third-party releases the Sacklers are seeking. In other parts of the country such deals have been approved but only with strict limitations.

"There's a split among the U.S. courts of appeal on both whether they're permissible at all and ... how do we decide when it's OK and when it's not?" Lipson said.

Can a federal bankruptcy court halt a state investigation?

In their brief filed Thursday, state attorneys general and the attorney general for the District of Columbia argued that this case doesn't involve the "specific" and "exceptional" circumstances that would allow the Sacklers to benefit from such releases.

They note that the bankruptcy court would not only be halting private lawsuits against the Sacklers, but the deal would also force states to suspend efforts to investigate members of the family and hold them accountable.

"The court should not, through third-party non-consensual releases of non-debtors, strip the public of the protections of state-by-state police and regulatory powers," the AG brief argued.

In an earlier brief, the states noted that the Justice Department has taken a position that "the non-consensual release of government claims against non-debtors such as the Sacklers is never lawful."

Purdue Pharma, which has pleaded guilty twice to criminal conduct for its opioid practices, most recently last year, hasn't responded to these objections and a company spokesman declined comment.

The Sacklers who served on the company's board of directors have denied any wrongdoing and have never faced criminal charges. Spokespeople for branches of the Sackler family didn't respond to a request for interviews or comment.

If the deal proposed by the Sacklers is finalized the next court hearing was planned for Monday but has been delayed until May 12 critics say it could set a dangerous new precedent that extends beyond the opioid crisis.

A legal brief filed in April by a group of opioid activists argued that such a settlement would open the floodgates to other wealthy people accused of serious wrongdoing who might use bankruptcy courts to limit their exposure to lawsuits without being required to file for bankruptcy.

"If the American judiciary is available to compel settlements to give billionaires peace because they want it, then billionaires will of course demand it," the brief said.

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Sackler Family Bid For Opioid Immunity Is Fought By 24 States And DC - NPR

What has been the personal recording space for the band Live is now open to musicians from far and wide. York Daily Record

A limited liability company that owns a four-story building in York thats tied to members of the multi-platinum-selling rock band Live has filed for bankruptcy.

120 York LLC filed a voluntary petition for Chapter 11 bankruptcy on April 27 in U.S. Bankruptcy Court for the Middle District of Pennsylvania. The process allows businesses to reorganize and restructure their debts.

The company owns the Think Loud building, which is located on York Street near PeoplesBank Park and contains the offices of United Fiber & Data, a telecommunications startup thats built a 340-mile fiber-optic line connecting New York City to Ashburn, Virginia, in the Washington, D.C., suburbs. The firm has boasted that it would create more than 300 jobs and generate in excess of $2 billion in state tax revenue in 30 years in Pennsylvania.

RELATED: Live from 'S--- Towne': Rock stars returned to build better York, but promises unfulfilled

120 York LLC, the company that owns the Think Loud building in York that's tied to members of the multi-platinum-selling rock band Live, filed on April 27 for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Middle District of Pennsylvania. In 2020, Kinsley Construction obtained a $13.94 million judgment against the company.(Photo: Ty Lohr, York Daily Record)

In 2020, Kinsley Construction obtained a more than $13.94 million judgment against 120 York and later moved to have the building put up for sheriffs sale, which was supposed to take place on June 7. The bankruptcy case automatically puts that on hold.

The members of 120 York are Chad Taylor, Chad Gracey and Patrick Dahlheimer, the lead guitarist, drummer and bassist of Live, respectively, as well as their business partner, Bill Hynes.

Gov. Tom Corbett's administration awarded a total of $7 million to what was billedasthe 210 York St. project, which included included making renovations to the 53,000-square-foot building. The property used to house Bi-Comp, a printing company.

The state has paid out $3.38 million as reimbursement for construction costs, according to the Office of the Budget.

MORE: United Fiber & Data has 'abandoned' its offices in the Think Loud building, lawsuit claims

Court documents indicate that 120 York has at least 14 other creditors, including MetEd, Verizon and York Water Co. The business owes all of them a total of almost$30,625.

120 Yorks general counsel, Jason Confair, could not be reached.

RobertChernicoff, 120 York'sbankruptcy attorney, said the process gives clients time to try to reorganize and improve their financial situations.

CHECK OUT: Sheriff's sale of Think Loud building tied to members of rock band Live is postponed

The York County Tax Claim Bureau recently filed a tax claim against 120 York that totals approximately $95,230 for unpaid taxes on the Think Loud building, according to court records.

Contact Dylan Segelbaum at 717-771-2102.

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Company that owns Think Loud building in York, tied to rock band Live, files for bankruptcy - York Daily Record

By next weekend, Debenhams will no longer have any brick-and-mortar stores.

The British department store chain, which fell into administration last year for the second time, has confirmed the permanent closures of its remaining 49 outposts on May 12 and May 15. It had previously announced that another 52 of its locations will shutter for good this Saturday.

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Over the next 10 days, Debenhams will close its doors on the high street for the final time in its 242-year history, the company wrote in a statement. We hope to see you all one last time in stores before we say a final goodbye to the U.K. high street.

As part of the liquidation process, the retailer whose entire store portfolio is located in the United Kingdom is offering up to 80% off all fashion and home merchandise, as well as up to 70% off beauty and fragrance items.

This the very last chance for our customers to take advantage of some incredible deals, it added. Our sincere thanks go out to all of our colleagues and customers who have joined us on this journey.

Like many retailers, Debenhams struggles were compounded by the COVID-19 health crisis, which led it to temporarily close its units and place workers on furlough. In April, it appointed administrators but was ultimately unable to find a buyer or restructure its business, and in December, the chain moved forward with a wind-down of its operations.

At the start of the calendar year, online fashion retailer Boohoo announced that it acquired all of the intellectual property assets of Debenhams, including customer data and selected contracts, for 55 million pounds (or $75.4 million at the time). However, the deal did not include the department stores outposts or its staff members meaning more than 12,000 people will lose their jobs upon the shutdowns.

Debenhams goodbye marks the latest development in the blow to Britains retail sector. Just yesterday, Topshop whose parent Arcadia Group collapsed into administration in late November launched a sale process for its iconic flagship store on Oxford Street. The building, which was valued at about 500 million pounds as recently as two years ago, now carries a price tag of 420 million pounds (or $582.1 million).

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Post-Bankruptcy, Debenhams Is Permanently Closing the Last of All of Its Stores by Next Weekend - Yahoo Lifestyle

Recent development

As part of the measures to combat the COVID-19 pandemic, in the Presidential Cabinet meeting held on 26 April 2021, a full lockdown has been decided on for the period 29 April-17 May 2021. In order to prevent the loss of rights that may arise from these measures, Article 15 of the Law No. 7318 dated 29 April 2021 (Law) has brought certain restrictions for the transactions that will be made upon the submission of checks and has regulated that for receivables based on due commercial bills, enforcement and bankruptcy proceedings cannot be initiated, an interim decision cannot be rendered and the proceedings that have already initiated will be suspended until the end of May. You may access the content of the decision via this link: https://www.resmigazete.gov.tr/eskiler/2021/04/20210430-10.pdf. The procedures and principles regarding the implementation of subparagraph (a) of Article 15 of the Law have been regulated by the Ministry of Commerces Communiqu (Communiqu) dated 30 April 2021.

What does the Law and the Communiqu say?

As per Article 15 of the Law and the Communiqu issued for the implementation of subparagraph (a):

between the aforementioned period.

Conclusion

The COVID-19 pandemic has a significant impact on judicial works. With the abovementioned regulations, in addition to protecting the rights of the creditors who could not submit their checks to the bank within the scope of the restriction measures applied due to the pandemic, the debtors have also been allowed to pay their debts that became due in this period, after 1 June 2021. At this point, we would like to underline that enforcement and bankruptcy proceedings within the scope of the Law are specific to the collection of receivables based on commercial bills, and no restrictions have been imposed on enforcement proceedings filed for the collection of ordinary receivables.

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COVID-19: Enforcement and bankruptcy proceedings for commercial bills are postponed until the end of May and transactions made upon the submission of...

As Frontier Communications emerged from Chapter 11 bankruptcy on Friday, officials with the Norwalk-based telecommunication company made it clear they expect high-speed internet service delivered by fiber optic cable to deliver them from the financial wilderness.

The focus is on fiber, said John Stratton, the incoming executive chairman of the board for Frontier, which saw its executive team undergo a dramatic reorganization during the full year it was under Chapter 11 bankruptcy protection. The goal is to replace our existing copper network with fiber.

Stratton and other Frontier executives explained the companys strategy during a call with financial analysts reporting on its first quarter earnings. The company had earnings of $60 million in the three-month period that ended March 31 a dramatic reversal from the same period in 2020, when the company lost $186 million.

Frontier filed for Chapter 11 protection on April 14, 2020. Prior to the analyst call, it was announced that Frontier had signed a new lease for 48,000 square feet of office space for its headquarters staff in the Merritt 7 office complex in the northern end of Norwalk.

Since entering Chapter 11, Frontier executives had been cagey with state officials about whether the company would keep its headquarters in Connecticut. Even while making the announcement about its renewed lease in Norwalk, a company vice president, Jim Campbell, acknowledged that Frontier executives toured the market to find the best fit for our firm in the post-pandemic office world.

Merritt 7 stood above all the competition Campbell said.

Nick Jeffery, Frontiers new chief executive officer, said the company will aggressively target data products and fiber going forward.

Frontiers purpose will be to become a leader in building digital America, said Jeffrey, who led a turnaround of British telecommunications giant Vodafone before taking his current job. We have a lot of work to do, but I could not be more excited about the year ahead.

He said Frontier plans to:

Install new fiber in 495,000 locations across Connecticut and 24 other states over the next year.

Increase the penetration rate in the markets where the company provides fiber-based Internet service from its current level of 41 percent to at least 50 percent. (Penetration rate in this case refers percentage of customers in a given area that use Frontiers service compared to the total number of internet service customers.)

Phase out Internet products over time that make use of copper cable to deliver the service.

Company officials did not reveal any plans for an increased fiber optic roll-out that are specific to Connecticut, but said expanding that technology in the state was a priority, along with increased availability in California and Texas.

We have proven we can win market share where we have fiber, Jeffery said. A fiber-centric future for Frontier is feasible and financially attractive.

The opportunity for the company to grab market share by expanding its fiber optic network has great potential, he said, since fiber optic cable passes only 38 percent of all homes in the United States.

Using fiber optic cable to deliver broadband Internet service is preferable because it allows data to move at higher speeds, according to Lon Seidman, an Essex-based technology expert who reviews products on his YouTube channel, LON.TV.

Fiber, at the moment, delivers significantly faster upstream performance versus cable (Internet service) and is the better technology over long distances, Seidman said. And fiber is more reliable. That will be important for businesses and home workers if they can get enough reach (within the communities Frontier serves).

But if Frontiers fiber optic push is to be successful, he said, the company needs to do a better job marketing its availability.

Until recently, according Seidman, the company didnt have map showing where fiber optic service is available in Connecticut, even though it has been marketing its availability online for months.

But installing increased volumes of fiber optic cable is going to be an expensive proposition, he said. And because of the expensive involved, Seidman said it is likely that the first areas to get the new fiber optic cable installed will be more densely populated.

When viewed in the long term, Jeffrey said fiber optic cable is more cost effective than a copper network.

The fiber we are laying now will last for up to 50 years and will cost less to maintain, he said.

Jeff Kagan, an independent telecommunications analyst based in Atlanta, said regardless of the expense involved, Frontier has no choice but to forge ahead with its plan if the company wants to continue to exist.

The future is about the Internet: Every thing will be coming over the Internet, whether its delivered by wire line or wireless, Kagan said. This is the direction they (Frontier) have to move in. They have already waited too long to pull the trigger.

luther.turmelle@hearstmediact.com

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As it emerges from bankruptcy, Frontier Communications officials say the companys future is in fiber optics - New Haven Register