Category Archives: Bankruptcy

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

Photo: Eddie Seal / Bloomberg

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

Weatherford emerges from bankruptcy with $10 billion of support

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

In a Friday morning statement, Weatherford announced that the company emerged from Chapter 11 with $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, secured a $195 million letter of credit facility, and secured over $900 million of liquidity.

"This is a notable day for Weatherford as we have emerged as a stronger, more focused organization," Weatherford CEO Mark McCollum said in a statement. "With renewed balance sheet strength, a strong customer base and a portfolio designed to meet the needs of our industry, we believe we are well-positioned to build on our reputation as a leader in the oilfield services sector and to capitalize on the growth opportunities ahead."

Service Sector: Weatherford's billionaire board chair dies at age 74

Currently traded as a penny stock, Weatherford expects to return to the New York Stock Exchange after the company reports its fourth quarter earnings, holds an investor call and completes the fresh-start accounting process. That process is expected to be completed by early March.

A post-bankruptcy board of directors has been appointed. Thomas Bates Jr. will serve as chairman supported by McCollum as well as John Glick, Neal Goldman, Gordon Hall, Jacqueline Mutschler, and Charles Sledge.

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With roots in Texas going back to 1941, Weatherford grew to become the nation's fourth-largest oil field services company but racked up $10 billion in debt along the way.

Headquartered in Switzerland but incorporated in Ireland and its principal offices in Houston, Weatherford has not made a profit since the third quarter of 2014.

The oilfield service company filed for Chapter 11 bankruptcy in Houston in July and filed for similar protections with an Irish court in September.

Read the latest oil and gas news from HoustonChronicle.com

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Weatherford emerges from bankruptcy with $10 billion of support - Chron

Hundreds of Property Developers Filed Bankruptcy in 2019, Raising Concerns of Homebuyers Losing Out

More property developers filed for bankruptcy in 2019 than 2018 amid sluggish economic growth and tightening regulatory control over the market. Concerned bankruptcies could lead to an increase in unfinished homes, and homebuyers who bought off-plans losing out, some local governments have begun to implement specific measures.

As of Nov. 27, 459 real estate companies had filed for bankruptcy this year, which is slightly more than the 458 bankruptcy filings seen in the whole of 2018, according to data calculated by property market research institute China Real Estate Information based on public court records.

Some local governments have begun to tighten the regulations governing the funds that property developers take from the sale of off-plan homes. The government of the northwestern city of Xian has announced possible new regulations to order all funds that property buyers, including homebuyers, pay for off-plan real estate to be deposited in special accounts which are subject to regulatory oversight, according to a draft regulation issued last week by the citys housing and urban-rural development bureau for public consultation.

Li Yujia, the chief researcher of a housing policy research institution in Guangdong province, said the move by Xian is to prevent homes from being unfinished due to a breakdown of developers fund chain.

Read the full story on Caixin Global later today.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com)

Related: Home-Price Growth in China Slowest in Almost Two Years

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Hundreds of Property Developers Filed Bankruptcy in 2019, Raising Concerns of Homebuyers Losing Out - Caixin Global

As the lights flashed and the music pulsated, I took a swig of Irish whiskey from my plastic balloon-animal dog tumbler and said to my wife, There is nooooooooo way Doogie Howser is going to take a run at the Wheel of Death.

I was wrong. Neil Patrick Harris himself banged out a couple spins before daredevil Jayson Dominguez got inside and performed breathtaking feats like rope-jumping on top of the ever-spinning-while-also-rotating human hamster cage above a packed tent of wide-eyed audience members.

Its just another day at the Big Apple Circus, now in its 42nd season at Lincoln Centers Damrosch Park, its home since 1981. Well, that evening wasnt just any other. It was opening night, hence Harris guest-hosting gig, attended by other Gotham celebrities such as Jane Krakowski, Mariska Hargitay, and, as my nine-year-old daughter rushed to tell me before she and her mom went to pay their Hamilton-ian respects, Lin. Manuel. Miranda.

Ringmaster Storm Marrero, a singer making her debut after being plucked from the burlesque supper club Duane Park, introduced a cavalcade of killer acts: high-wire cyclists Lopez Troupe, umbrella juggler Kyle Driggs, and the finicky yet ultimately game Savitsky Cats, nine domestic feline acrobats who have hit the big time and are scheduled to perform at the NBA All-Star game after this gig wraps up in February.

The Big Apple Circus is a short-term, high-volume business. The show a wildly energetic and eclectic event where audiences sit within 50 feet of the action hits hard and fast. The show runs under two hours, including intermission, because it has to in order to be successful. Tent capacity is roughly 1,600, with tiered pricing ranging from $35 to $225 for the VIP ringside package unlimited snacks, a free drink, lounge access, and a post-show meet-and-greet. The circus has only three months to try and pack em in: The last quarter of the year is the peak for New York City tourism, accounting for nearly a third of domestic and international visitors

Read the Full Article at Monitor

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How the Big Apple Circus Clawed Its Way Back From Bankruptcy - CircusTalk

Acosta Inc. on Monday said it has received bankruptcy court approval of its prepackaged reorganization and it expects to successfully emerge from Chapter 11 in the coming days.

The Jacksonville-based sales and marketing company, along with several affiliated companies, filed Chapter 11 petitions Dec. 1 in U.S. Bankruptcy Court for the District of Delaware.

The main case was filed under the name Anna Holdings Inc., a holding company formed by The Carlyle Group when the investment firm bought Acosta for $4.75 billion in 2014.

Acosta said in a news release Monday the reorganization plan eliminates about $3 billion in debt.

Acosta said in a memorandum of law filed Saturday in support of confirmation that it began negotiating with lenders to restructure the debt in August and by November, it had approval of a majority of creditors.

The memorandum said it now has unanimous support of all holders of the $3 billion, who will receive stock in exchange for the debt.

The Plan, and the remarkable consensus it represents, is the product of months of good-faith, arms-length negotiations among the Debtors, their first lien lenders, senior noteholders, and other key constituents, who all worked towards a consensual, value-maximizing restructuring, it said.

Court documents have not specified the creditors who will end up owning Acostas stock.

The restructuring includes a rights offering and direct investment to bring $325 million in new capital, sending a strong message to the Debtors employees, vendors, clients, and other business partners that they are well positioned for future success, the memorandum said.

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Acosta says the court approved its bankruptcy reorganization - Jacksonville Daily Record

Conventional wisdom about the outcome of Israel's March 2 election can be summed up with Ecclesiastes 1:9: What has been will be again, what has been done will be done again; there is nothing new under the sun.

The perpetual tie between the two main ideological blocs will prevail; the stalemate that has essentially paralyzed the government for close to a year will endure. In fact, according to Channel 12s crack political analyst Amnon Abramovich, while Benjamin Netanyahu is gearing up for the third election he has inflicted on Israel within a year, he is already strategizing how to go on to the fourth, if the need arises.

Netanyahus game plan is simple: (His) immunity or (Israels) bust. His first preference is to win the election with a 61-member, Avigdor Lieberman-less majority that would commit to exempting him from criminal prosecution. His second preference is to keep Israel in limbo or keep it hostage until he can achieve his first preference. He will release his country from captivity, Netanyahu is telling Israelis, only in exchange for a get-out-of-jail-free card.

Netanyahus gambit is based on a ruse. Ever since it became clear that Attorney General Avichai Mendelblit intends to charge him with three counts of corruption, Netanyahu and his minions have highlighted the clause in Israels Basic Law: The Government that compels a prime minister to resign from his post only after he has been tried, convicted and fully exhausted his right to appeal the verdict.

What they have failed to point out is that the Basic Law refers to a duly elected prime minister who is serving out his term. It does not refer to a prime minister, like Netanyahu, who is heading a caretaker government between elections. And it certainly says nothing about the propriety of an indicted politician running for office or setting up a new government after election. Given that in the previous two elections held this year, in April and September, Netanyahu had yet to be formally charged, it is only now that Israel is entering uncharted watersconstitutionally, politically and morally.

Some of Netanyahus opponents are urging Mendelblit to rule on the issue in the hope that he will nix Netanyahus candidacy on legal grounds. The attorney general, for his part, is doing his best to skirt the legal landmine for fear of inflaming vociferous and potentially dangerous right-wing protests against what Netanyahu has described as a legal putsch. The High Court of Justice, however, has ordered Mendelblit to clarify his position, and if he fails to do so, could decide in his stead.

Lost in the complex debate, however, is the appalling fact that Israels ruling party and outgoing right-wing coalition are rallying behind a politician who has been formally indicted for corruption. The working assumption is that Netanyahu will beat challenger Gideon Sa'ar in the December 26 Likud primary election and would thus be reanointed as the rights candidate for prime minister, despite his indictments. Such a decision may or may not be valid from a legal point of view, but it certainly marks an unprecedented new low in Israeli history: A morally bankrupt challenge to the spirit, if not the letter, of the law.

There are numerous explanations as opposed to justifications for Netanyahus enduring hold on Likud and the right. After 10 straight years in power, Netanyahu casts a giant shadow over any potential rival. His omnipresence makes him seem indispensable and irreplaceable in the eyes of his supporters. Without him, they have come to believe, all is lost.

Likudniks, in any case, are loathe to abandon their party leaders, no matter what: In Israels 71-year-long history, Netanyahu is only the fourth politician to serve as leader of the party. Many of them have been brainwashed by Netanyahu to believe that he is the victim of a nefarious, plot inspired by the left wing. Replacing him, many right-wingers believe, would achieve his enemies goals. Worse, it would make them jump for joy.

Most significantly, the right wings continued backing for Netanyahu is a direct challenge to the rule of law. His supporters are not contesting the facts outlined in the attorney generals charge sheet; they are simply ignoring them. And they are well aware that if Netanyahu emerges victorious from the March 2 election, he will use his Knesset majority to thwart his prosecution and thus undermine Israels legal foundations.

So while Israeli politicians and pundits are bemoaning the March 2 ballot as the third in a series of potentially never-ending elections, the upcoming ballot is fundamentally different. In the previous two, Netanyahu supporters could delude themselves that he would not be charged in the end, but now the die is cast and the masks have come off. The right wing can no longer escape the fact that it is lining up behind a leader who has been formally charged with corruption and whose main goal in life is to extricate himself from a criminal trial. Nor can the Israeli electorate.

Which is why one should be wary of resigned predictions that nothing will change, that the third ballot will yield the same political tie that has stalemated Israel for the past year. The polls are already showing a gradual drift away from Netanyahu and increasing chances that Benny Gantzs Kahol Lavan might be able to muster their own 61-member majority, which would mean that Netanyahus career is over.

If the trend holds, Netanyahu will unleash his entire arsenal of divisive incitement and conspiracy theories. He hasnt spent the past year subverting Israeli politics and paralyzing its government only to be tossed out by voters. His counter offensives will be desperate, dangerous and possibly decisive.

Israelis have understandably grown tired of being told that the elections are critical, pivotal or the most dramatic in Israeli history, only to find out after the votes are counted that nothing has changed. Many more of them might be tempted to sit this one out. That would be a shame, because the indictments have rendered the election as much more than a personal referendum on Netanyahuit is a vote on the future character of Israel itself.

So take nothing for granted. Anything can happen. If not on March 2, then certainly in the fourth election that will ensue.

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Netanyahu's post-indictment candidacy reflects moral bankruptcy of Likud and the Israeli right - Haaretz

What Is Bankruptcy?

Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts.The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.

Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while offering creditors a chance to obtain some measure of repayment based on the individual's or business's assets available for liquidation. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses a second chance to gain access to consumer credit and by providing creditors with a measure of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.

All bankruptcy cases in the United States are handled through federal courts. Any decisions over federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file or whether he should be discharged of his debts. Administration over bankruptcy cases is often handled by a trustee, an officer appointed by the United States Trustee Program of the Department of Justice, to represent the debtor's estate in the proceeding. There is usually very little direct contact between the debtor and the judge unless there is some objection made in the case by a creditor.

Bankruptcy filings in the United States fall under one of several chapters of the Bankruptcy Code: Chapter 7, which involves liquidation of assets; Chapter 11, which deals with company or individual reorganizations, and Chapter 13, which is debt repayment with lowered debt covenants or specific payment plans. Bankruptcy filing specifications vary among states, leading to higher or lower filing fees depending on how easily a person or company can complete the process.

Chapter 7 Bankruptcy

Individuals or businesses with few or no assets file Chapter 7 bankruptcy. The chapter allows individuals to dispose of their unsecured debts, such as credit cards and medical bills. Individuals with nonexempt assets, such as family heirlooms (collections with high valuations, such as coin or stamp collections),second homes, cash, stocks, or bonds, must liquidate the property to repay some or all of their unsecured debts. So, a person filing Chapter 7 bankruptcy is basically selling off his or her assets to clear debt.Consumers who have no valuable assets and only exempt property, such as household goods, clothing, tools for their trades, and a personal vehicle up to a certain value, repay no part of their unsecured debt.

Chapter 11 Bankruptcy

Businesses often file Chapter 11 bankruptcy, the goal of which is to reorganize and once again become profitable. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and find new ways to increase revenue. Preferred stockholders may still receive payments, though common stockholders will not.

For example, a housekeeping business filing Chapter 11 bankruptcy might increase its rates slightly and offer more services to become profitable. Chapter 11 bankruptcy allows a business to continue conducting its business activities without interruption while working on a debt repayment plan under the court's supervision. In rare cases, individuals can file Chapter 11 bankruptcy.

Chapter 13 Bankruptcy

Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13, also known as a wage earner's plan. The chapter allows individuals and businesses with consistent income to create workable debt repayment plans. The repayment plans are commonly in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property including nonexempt property.

Other Bankruptcy Filings

Financially distressed municipalities, including cities, towns, villages, counties, and school districts, may file for bankruptcy under Chapter 9. Under Chapter 9, there is no liquidation of assets to repay the municipality's debts. Chapter 12 bankruptcy provides relief to "family farmers" or "family fishermen" with regular annual income. Both Chapters 9 and 12 make use of an extended debt repayment plan. Chapter 15 was added in 2005 to deal with cross-border cases which involve debtors, assets, creditors and other parties who may be in more than one country. This type of petition is usually filed in the debtor's home country.

When a debtor receives a discharge order, he is no longer legally required to pay any of the debts on that order. So, any creditor listed on that discharge cannot legally undertake any type of collection activity (making phone calls, sending letters)against the debtor once the discharge order is enforced. Therefore, the discharge absolves the debtor of any personal liability for the debts specified in the order.

But not all debts qualify to be discharged. Some of these include tax claims, anything that was not listed by the debtor, child support or alimony payments, personal injury debts, debts to the government, etc. In addition, any secured creditor can still enforce a lien against property owned by the debtor, provided that lien is still valid.

Debtors do not necessarily have the right to a discharge. When a petition for bankruptcy has been filed in court, creditors receive a notice and can object if they choose to do so. If they do, they will need to file a complaint in the court before the deadline. This leads to the filing of an adversary proceeding to recover monies owed orenforce a lien.

The discharge fromChapter 7 is usually granted about four months after the debtor files to petition for bankruptcy. For any other type of bankruptcy, the discharge can occur when it becomes practical.

Declaring bankruptcy can help relieve you of your legal obligation to pay your debts and save your home, business, or ability to function financially, depending on what kind of bankruptcy petition you file. But it also can lower your credit rating, making it more difficult to get a loan, mortgage, low-rate credit card, or buy a home, apartment, or business in the future.

If you're trying to figure out if you should file, your credit is probably already damaged. A Chapter 7 filing will stay on your credit report for ten years, while a Chapter 13 will remain there for seven. Any creditors you solicit for debt (a loan, credit card, line of credit, or mortgage) will see the discharge on your report, which will prevent you from getting any credit.

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Bankruptcy Definition - Investopedia

CHARLOTTE, N.C., Dec. 13, 2019 /PRNewswire/ --Kaiser Gypsum Company, Inc. and Kaiser Cement Corporation (now known as Hanson Permanente Cement,Inc.) (together, the "Debtors") made certain products that contained asbestos. These products included various exterior stucco materials, joint compounds for wallboard and radiant heating components, texturizing paint and other related products (the "Products"). A full list of the Products can be found at https://cases.primeclerk.com/kaisergypsum. People using these Products (and family members and others who came into contact with these people) may have been exposed to asbestos. The Debtors are now in bankruptcy and people with claims of injury caused by exposure to asbestos in the Products have certain rights that may be affected by the bankruptcy filing.

The Debtors have filed a Joint Plan of Reorganization (the "Plan") and a Disclosure Statement, a document that provides important information about the Plan. The Disclosure Statement has been approved and will be sent to individuals with asbestos-related personal injury claims so that they can vote whether to accept or reject the Plan. A hearing to consider confirmation of the Plan (the "Confirmation Hearing") has been scheduled for March 30, 2020 to April 4, 2020 in the U.S. Bankruptcy Court for the Western District of North Carolina, 401 W. Trade St., Charlotte, NC 28202. Information on the Confirmation Hearing and all Plan-related documents is available at https://cases.primeclerk.com/kaisergypsum.

Am I Affected by the Plan?

If you claim to have been injured by asbestos in any of the Products, you are entitled to vote to approve or reject the Plan. The full Disclosure Statement and a ballot were sent to all lawyers representing individuals with current asbestos-related personal injury claims against the Debtors or directly to those individuals. A vote to accept or reject the Plan must be received by 5:00 p.m., prevailing Eastern Time, on February 20, 2020. If you believe you have an asbestos-related personal injury claim against the Debtors and have questions, then you should contact your lawyer immediately.

What does the Plan do?

The Plan is the result of a settlement between the Debtors and court-appointed representatives of current and future asbestos claimants. The Plan preserves the Debtors' asbestos insurance coverage and permits asbestos personal injury claimants to pursue insurance recoveries in the tort system. The Plan also proposes to create a trust to pay asbestos-related personal injury claims to the extent the claims are not covered by insurance. If the Plan is approved, money can only be received from insurance and the trust; asbestos personal injury claimants will not be able to recover money from the Debtors or other protected parties listed in the Plan. If you have a pending lawsuit against the Debtors, you should talk to your lawyer about how the Plan may affect you.

How to Obtain Documents.

Copies of the Disclosure Statement, which includes the Plan, the voting materials and the notice of the Confirmation Hearing may be obtained by visiting this website: https://cases.primeclerk.com/kaisergypsum. You may also obtain copies of these documents by sending a request, in writing, to Prime Clerk, LLC, Kaiser Gypsum Company, Inc. Ballot Processing, c/o Prime Clerk, One Grand Central Place, 60 East 42nd Street, Suite 1440, New York, New York 10165 or by calling (855) 855-7644.

What if I want to Object to the Plan?

If you have a lawyer, you should talk to him or her about any concerns you may have about the Plan. You may object to the Plan if you do not like all or part of it. The deadline for filing and serving objections to the confirmation of the Plan is 5:00 p.m., prevailing Eastern Time, on February 20, 2020. All objections must comply with the requirements set forth in paragraph 12 of the notice of the Confirmation Hearing, which is posted at https://cases.primeclerk.com/kaisergypsum.

For more information, visit https://cases.primeclerk.com/kaisergypsum or call toll-free (855) 855-7644.

SOURCE U.S. Bankruptcy Court for the Western District of North Carolina

https://cases.primeclerk.com/kaisergypsum

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Bankruptcy Filing by Kaiser Gypsum Company, Inc. and Kaiser Cement Corporation May Affect the Rights of Asbestos Personal Injury Claimants -...

Fox Business Briefs: California state regulators find PG&E neglected power lines for years, including the one that sparked the deadly Camp Fire; the dramatic rise and fall of WeWork and its former CEO Adam Neumann will be brought the big screen.

California utilityPacific Gas and Electricis spending thousands of dollars or more on weather stations and cameras to monitor wildfire conditions, the company said on Wednesday shortly after reachinga$13.5 billion settlementfor wildfire-related claims.

The company added more than 600 weather stations and 130 high-definition cameras and it plans to have1,300 stations and 600 cameras installed to saturate high-risk areasby 2022.

PG&E HAD SYSTEMIC PROBLEMS WITH POWER LINE MAINTENANCE, CALIFORNIA PROBE FINDS

"The station observations allow our meteorologists to analyze critical fire weather elements like extreme wind, temperature and low humidity," Ashley Helmetag, a PG&E senior meteorologist, said in a statement. "The stations and cameras are a part of our real-time situational awareness tools that assist us as we make decisions on Public Safety Power Shutoffs to protect our communities."

PG&E did not respond to a request for comment from FOX Business.

Both the weather stations and cameras can cost thousands or even tens of thousands of dollars.

PG&E'ssettlement, which the utility says was reached Friday, still requires court approval. PG&E says it is a key step in leading it out of Chapter 11 bankruptcy.

It adds that the settlement will resolve all claims arising from the 2017 Northern California wildfires, the 2018 Camp Fire, the 2015 Butte Fire and the 2016 Ghost Ship Fire in Oakland.

CLICK HERE TO READ MORE ON FOX BUSINESS

However, one of PG&E's main creditors, ElliottManagement Corp., is pressuring California Gov. Gavin Newsom to reject the company's restructuring plan, Bloomberg reported this week. They want an alternative plan that would include the same amount of money for wildfire victims.

Elliott Management said in a statement Tuesday that PG&E's plan "benefits only a small group of its current shareholders at the expense of the utility's other key stakeholders."

Search and rescue workers search for human remains at a trailer park burned by the Camp Fire, Tuesday, Nov. 13, 2018, in Paradise, Calif. (AP Photo/John Locher)

Elliott Managementsaid PG&E's plan would increase the company's debt by $10 billion to $34 billion compared to its January bankruptcy filing. Elliott Management wants to see total debt limited to a more "moderate level."

Controversy over the utility company also comes after PG&E shut off power for hundreds of thousands of customers this year in order to prevent wildfires. PG&E initiated shutoffs so that any power lines damaged by the winds would not contribute to the spread of wildfires. Such decisions were widely seen as a play to limit liability.

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The Associated Press contributed to this report.

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PG&E invests in weather stations, cameras to monitor wildfires amid bankruptcy turmoil - Fox Business

IRVING, Texas, Dec. 12, 2019 /PRNewswire/ --On December 7, 2019, the business operations of Think Finance, LLC and its subsidiaries emerged from Chapter 11 bankruptcy proceedings as reorganized entities following approval of their joint Chapter 11 plan by the United States Bankruptcy Court for the Northern District of Texas. As part of the ruling, the Think Finance entities resolved all governmental and private lawsuits and claims against them. The reorganized business will operate as new subsidiaries of TF Holdings, Inc.

Think Finance was founded in 2001 and quickly became a software and financial services innovator by making one of the first online loans. The company provided online lenders with loan origination, underwriting, and loan management products. In 2014, the company split into two independent companies as part of a larger growth strategy.

"It's been a long two years waiting to finalize our exit from bankruptcy proceedings," said Martin Wong, CEO of TF Holdings. "The restructuring was complicated and involved the settlement of multiple class action and regulatory claims that we vigorously fought. Throughout the ordeal, we have steadfastly maintained that we have conducted our business in compliance with law. I am pleased that we were able to work our way through it and exit bankruptcy with core assets including our technology and personnel intact. We will emerge a materially stronger and more competitive company with this behind us."

With this milestone, TF Holdings and its subsidiaries will be able to grow their offerings with cutting edge credit and financial wellness tools.

"TF Holdings will continue the legacy started by Think Finance 18+ years ago, and this will be reflected in our best-in-class product offerings and commitment to being a market leader," Martin noted. "We look forward to furthering our mission to serve consumers and lenders with the best technology solutions."

About TF Holdings, Inc.

TF Holdings, Inc., through its subsidiary companies provides credit and financial wellness tools to consumers, and licenses loan origination, risk underwritingand loan management software to lenders. The company's businesses serve consumers and lenders with a portfolio of innovative products, including Jora Credit, Echo Credit, iQ Decision Engine and the Cortex loan management platform. TF Holdings, Inc. is based in Irving, Texas, and backed by prominent venture capital firms Sequoia and Technology Crossover Ventures.

SOURCE TF Holdings, Inc.

https://tfholdingsinc.com/

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Think Finance Reorganizes and Exits Bankruptcy Protection - PRNewswire

Tuesday marks the five-year anniversary ofDetroit's exitfrom thelargest city bankruptcyin the nation's history.

Now billionslighter in debt and running $100 million-plusannualsurpluses, Detroit isin phenomenally better financial shape than when itentered the bankruptcy, which lasted 17 months.

But the process didnot eliminateall futureobstacles,and whether the citycankeepits budget act together and avoid a do-over bankruptcy is a question that may find ananswer over the next five to seven years.

The first big challenge comes in mid-2023, when Detroit's "pension holiday"ends and it must startmaking fullyearly contributionsabout $163 million a year and every yeartoward two city retirees'pension funds. The city was given avacation from pension payments as part of its post-bankruptcy restructuring plan.

Detroit Mayor Mike Duggan, left, accepts a check from Michigan Governor Rick Snyder, as outgoing Detroit emergency manager Kevyn Orr, back right, watches during Press conference to announce the City of Detroit's exit from bankruptcy at the Public Safety Headquarters in Detroit on Wednesday, December 10, 2014.(Photo: Detroit Free Press)

The next obstacle arrives in about 2026, when expenditures in Detroit's annualbudget are projected to begin exceeding revenues.

And yet another hits in the mid-2030swith the expiration of the so-called "Grand Bargain" money that saved city pensioners during the bankruptcy fromdeeper benefits cuts.

"We still have a lot of challenges ahead," said Gerald Rosen, a retiredfederal judge who was the mediator in Detroit's bankruptcy case. "But I dont think anyone could have predicted on July 18 of 2013 that in six years, we'dbe where we are.The city has rebounded; its fiscal health is terrific now compared to where it was."

When Detroit filed for bankruptcy in thatsummer of2013,it was beyond broke and face down in $18 billion ofdebt, unable to payfor many basic city services and at risk of seeing an artwork firesale attheDetroit Institute of Arts to pay offcreditors.

More: Even 5 years later, retirees feel the effects of Detroit's bankruptcy

More: How Detroit went broke: The answers may surprise you and don't blame Coleman Young

It was the culmination of many bad things,including a giantexodus of residents, plummeting tax revenues, a billion-dollar borrowing binge and a failure by leadersto cut expenses when they needed to.

The bankruptcyeradicated$7 billion in debt, eliminatedbillions morein future payments and health-care obligationsforretired city workersand savedDIA artwork from a forced sale.

When Detroit exitedbankruptcy onDec. 10, 2014, the future wasn't supposed to be one of endless austerity.Detroit was givenarestructuring path, called thePlan of Adjustment, that envisioned the cityspending $1.7 billion over 10 years to financenew investments andimprovements toservices.

YetDetroitdidn't emerge with an entirely cleanslate. The city still had debt and future obligations on its books andthe problemof a predominately poor and still-shrinking population within a 139-square-mile city oncehome to 1.2million in 1980.The latest population estimate is 673,100 as of last year.

To prepare forthe coming spikein required pension payments,Detroit City Council and Mayor Mike Duggan created aRetiree Protection Fund to squirrel away some of the budget surplus moneyto later ease the shock of thebigpension payments that startin the 2024 budget year,whichactually begins July 1 of2023.

The protection fundwasn't in the original restructuring plan, but became necessary whenit emergedthat pension consultants during the bankruptcy had used outdated mortality tables whichlowballed the city's estimated pension payments.

TheRetiree Protection Fundis expected to have $335 millionin it by the time the "pension cliff" arrives next decade.

In another move,Detroitrecently doubled the size of its rainy day fund to better prepare for any economic downturn. The rainy day fund is now about 10% of the general fund, up from 5%.

Financial expertshadwarned that two ofDetroit's three largest annual revenue sources income taxes and gaming taxesfrom thethree casinosare atrisk if and when the next recession happens.

There wasnt a single dissenting voice on (city)council, because they all understand the importance of that,"Detroit Chief Financial OfficerDavid Massaron saidabout the rainy day fund increase.I think well be able to manage any economic headwind and the pension cliff in2024."

Council President Brenda Jones, who is also a member ofthe Detroit Financial Review Commission, declined through a representativeaninterview for this story.

The city's other big revenue source, its roughly $200-million-per-yeartake ofstate revenue-sharing funds, is projected to drop by a modest degreeasalikely resultof Detroit havinga smallerpopulation inthe 2020 U.S. Census than in2010.

"The mayor's office has been mobilizing to make sure everyone is counted, but the effect could still be negative for Detroit," financial analysts at S&P Global Ratings said in a report this year.

Mayor Duggan cited theRetiree Protection Fund when asked last weekwhether the city would be ready to makeitslarge pension payments.

"Thats a big reason why weve had so many credit upgrades," he told the Free Press."So I feel very good about where we are.

Wall Street credit rating agencies have praisedDetroit since the bankruptcy for its stabilizedfinances, revitalizeddowntownand success in attracting newhigh-profile development projectssuch as the Flex-N-Gate automotive supplier plant, Ford's train station redevelopmentand this year's announcement of a largeFiat Chrysler plant expansion.

The city's income tax receiptshave grownmore than$70 million since leaving bankruptcy.

But despite giving Detroit some creditupgrades, the rating agenciesstill deem the city's debt assomewhat risky and below investment grade, what is commonly known as "junk."

Financial analysts notehow most of theeye-catching growth hashappened in and around downtownnot throughoutthe city and how Detroit city schools, now known as theDetroit Public Schools Community District,are still struggling and "could also become a major drag on revitalization beyond downtown."

In addition, Detroit did a citywide parcel-by-parcel reappraisal several years agothat resulted in some lower property tax assessments.

"Detroit is left with a combustible brew: a reliance on volatile revenue sources and growing fixed costs," Moody's Investors Service said in reportlast year. "Detroit's combined debt and pension burden compared to the property tax base is extremely high compared with other major cities."

Even so, Detroit hit a milestonelast December when itsold about $135 million in general obligation bonds for capital improvements,at a surprisingly low4.8% interest rate for a junk-rated city not long out of bankruptcy.

The bond sale was not only the city's first sincebankruptcy, butalso itsfirst bond sale inmore than 20 years that didn't require "credit enhancements," such as buying bond insurance, to reassure investors and get abetter rate, according to Massaron. The city even upped the size of the sale by over $20 millionin response tostrong investor demand.

"We were a number of times oversubscribed, which means we had more investors than we had debt to sell,"Massaron said, "which shows that people believe in the continued resurgence and financial stability of the city.

One of itsbiggest achievements was theGrand Bargain, anunprecedented dealthat pooled about $820 million over 20 years inphilanthropicfoundation money and state funds toshore up city retirees' pension fundsandsafeguard the DIAcollection.

Steven Rhodes, the federal judge who presided over the bankruptcy, memorably warned representatives for thecity's retirees to not dismiss the Grand Bargain, even though the deal called forcuts to pensions and health care benefits.

From left, Chrysler executive Reid Bigland, General Motors Mark Reuss, Ford Motor Co.s Joe Hinrichs, Detroit Institute of Arts Director Graham Beal, Detroit emergency manager Kevyn Orr, Chief U.S. District Judge Gerald Rosen and DIA Arts Chairman of the Board Eugene Gargaro Jr. listen during a news conference announcing pledges to the DIAs grand bargain commitment in June. (Photo: Romain Blanquart/Detroit Free Press)

Detroit's bankruptcywas officially classified as a Chapter 9 municipal bankruptcy.

"Now is not the time for defiant swagger or for dismissive pound-the-table, take-it-or-leave-it proposals that are nothing but a one-way ticket to Chapter 18," he said. "This is bankruptcy jargon for a second Chapter 9."

In the end, the city's two older pension plans were frozen and retirees saw their benefits cut. Still, the cuts were smaller than they likely would have been without the Grand Bargain. Twonew pension plans were createdfor current and future workers. About 32,000 active or retired workers were impacted.

The police and firefighter pensioners didn'tface upfront cuts to their pension checks, but saw their2.25% annual cost-of-living increases reduced to about 1%. They also took cuts related to health care.

The city's general retirees took a 4.5% base cut in pensions and the elimination of annual cost-of-living increases.

To implement the Grand Bargain funding, a new nonprofit affiliate of the Community Foundation for Southeast Michigan was set up called the Foundation for Detroit's Future.

"The idea in the Grand Bargain was there were going to be financial controls and oversight to make sure the city did not fall into the same bad habits that got them there,"said DougBernstein, a bankruptcy attorney at Plunkett Cooney in Bloomfield Hills who is counsel for the new foundation.

Collage of former Detroit Emergency Manager Kevyn Orr (left), Michigan Gov. Rick Snyder (center) and Judge Bernard Rosen (right), who negotiated the Grand Bargain as Detroit moved to exit bankruptcy.(Photo: DFP)

Upon exiting bankruptcy, the city was placed under oversight of anine-member Detroit Financial Review Commission, chaired by the state treasurer, that initially oversawall city budgets, borrowing andlarge city-issued contracts.

After the city delivered three consecutive years of balanced budgets, the commission released Detroit in April 2018 from direct oversight. The commission continues to monitor Detroit's financial situation and can comeback if the budget falls out of balance.

On the budget front,startingabout2026, the city'sexpenditures areforecast to begin exceeding revenues. Avoiding that problem will require"more economic growth and development," according to the forecast.

Detroit did a debt restructuring last yearto preventa $25-million debt spike in themid-2020s. That maneuver ultimately saved some money, but pushed forward some higher debt paymentsinto the following decade.

"It is incumbent upon the mayor and city council to work together through upcoming budgets to ensure we continue on a fiscally sustainable path,"Massaron, the city's CFO, said in an email about the forecasted budget imbalance.

Yet another big challenge arrivesin 2034-2035 budget year, whenthe Grand Bargain expires. The city's pension payments from its general fund will then jumpto about $181 million per year.

Massaron said Detroit remains on pace to achieve its $1.7 billion spending goal forcity servicesby the 10-year anniversary of exiting bankruptcy. Some of the investments so far include:

An estimated 40% of Detroit's streetlights weren't working at the time of the bankruptcy. In 2016, Detroit became the largest U.S. city to haveall light-emitting diode (LED) streetlights. That three-year, $185-million projectwas financed througha public authority separate from city governmentand wasset in motion by former Mayor Dave Bing.

Massaron said he doesn't considerthe city in anydanger of a secondbankruptcy.

Right now, I would say the answer is no," he said. "And I would say the answer is no in large part because we have alignment among policymakers around making fiscally responsible decisions."

Rosen, the former bankruptcy mediator, said he gives city officials "an A+" for their management of Detroitsince leaving bankruptcy.

"I think the measure of the success is the rebound the city is experiencing now," he said.

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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5 years out of bankruptcy, can Detroit avoid another one? - Detroit Free Press