Streetbeat News

Bankruptcy

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Rising delinquencies in the commercial real estate sector are causing concerns for major banks like JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley, as bad loans begin to exceed loss reserves. The Financial Times reports a significant drop in average reserves against delinquent debt, with a nearly tripled delinquent debt reaching $9.3 billion. The banking sector's scrutiny by regulators increases as delinquent loans tied to commercial properties more than double to $24.3 billion. The Financials SPDR Select Sector Fund and the SPDR S&P 500 Regional Banking ETF saw declines, with New York Community Bancorp, ServisFirst Bancshares, and Valley National Bancorp experiencing notable stock drops.

Portfolio Pulse from Piero Cingari

February 20, 2024 | 4:53 pm

GBTC

Genesis Global, a bankrupt crypto lending firm, received court approval to liquidate approximately $1.6 billion in Grayscale cryptocurrency trust shares, including Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust, to settle debts with creditors. The sale is crucial for reimbursing clients and avoiding monthly fees. Despite objections from its parent company, Digital Currency Group (DCG), the court dismissed concerns about proceeding without a comprehensive bankruptcy strategy. Genesis aims to wind down operations and repay clients in cash or cryptocurrency. Settlements with the SEC and NY Attorney General prioritize customer repayment, with the SEC to receive a $21 million penalty from any residual funds.

Portfolio Pulse from Murtuza Merchant

February 15, 2024 | 1:26 pm

DBD

Diebold Nixdorf Incorporated (NYSE:DBD) shares rose after reporting a Q4 adjusted net income of $113.5 million, or $3.02 per share, and emerging from Chapter 11. Revenue was $1.036 billion, up 7% YOY, with an adjusted gross profit of $276.1 million, up 23.2% YOY. The company also paid down $200 million of its higher-cost term loan and secured a new revolving credit facility. FY24 revenue growth is expected to be in the low single digits, with adjusted EBITDA of $410 million-$435 million. Shares are up 4.57% to $33.40.

Portfolio Pulse from Nabaparna Bhattacharya

February 14, 2024 | 5:53 pm

EVA

Enviva Inc (NYSE:EVA), the largest U.S. wood pellet exporter, is reportedly preparing to file for bankruptcy due to significant losses from speculative commodity pricing. The company missed a $24 million interest payment and is in a 30-day grace period expiring soon. Bondholders may extend this period or finance the Chapter 11 process. Enviva's shares have dropped 99% over the past year after a failed strategy led to substantial losses. The company, which operates ten plants and six marine terminals, is facing doubts about its ongoing viability.

Portfolio Pulse from Vandana Singh

February 14, 2024 | 5:37 pm

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Nasdaq gained over 100 points with U.S. stocks trading higher. Kraft Heinz reported weaker-than-expected sales for its fourth quarter, missing sales expectations but beating earnings estimates. Datasea, Earlyworks, and Brera Holdings saw significant stock price increases, while Azitra, Enviva, and Ohmyhome experienced substantial declines. Enviva is reportedly preparing to file for bankruptcy.

Portfolio Pulse from Avi Kapoor

February 14, 2024 | 2:52 pm

EVA

Enviva, a leading wood pellet manufacturer, is reportedly preparing to file for bankruptcy in the coming days, according to sources cited by the Wall Street Journal. This development could have significant implications for the company's financial stability and stock price.

Portfolio Pulse from Benzinga Newsdesk

February 13, 2024 | 8:48 pm

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U.S. stocks traded lower with the Dow Jones, NASDAQ, and S&P 500 all experiencing declines. Marriott International reported mixed Q4 results and provided FY24 earnings guidance below estimates. Beamr Imaging, Whole Earth Brands, and Digital Brands Group saw significant stock price increases, while Sunshine Biopharma, BIOLASE, and Sientra experienced major drops. The energy sector saw a minor decline, and real estate shares dipped more significantly.

Portfolio Pulse from Avi Kapoor

February 13, 2024 | 7:26 pm

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IPG Photonics Corporation's shares fell by 11% after reporting mixed Q4 financial results and soft Q1 guidance. Other stocks showed significant movements, with notable gainers including Ohmyhome Limited, BioNexus Gene Lab Corp, and Digital Brands Group, Inc., among others. Losers included BIOLASE, Inc., Sunshine Biopharma, Inc., and Sientra, Inc., with significant drops after various announcements.

Portfolio Pulse from Avi Kapoor

February 13, 2024 | 6:13 pm

KRE

NYCB

Rising office vacancy rates and the Federal Reserve's rapid interest rate hikes pose a threat to regional banks due to their significant exposure to commercial real estate (CRE) loans. Data indicates that smaller banks hold nearly 70% of CRE loans, with some banks' CRE loans averaging nearly 35% of their total assets. This situation has led to concerns about a potential systemic credit event, with 16% of investors surveyed by Bank of America considering it the biggest tail risk for 2024. New York Community Bancorp (NYCB) experienced a 60% stock drop after reporting a quarterly loss and cutting its dividend, highlighting the sector's vulnerability. However, there may be some relief as interest rates are expected to decrease, and corporate bosses are recalling staff to offices, potentially reducing vacancy rates.

Portfolio Pulse from Neil Dennis

February 13, 2024 | 5:51 pm

SIEN

Sientra shares are trading lower following the company's announcement that it has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court.

Portfolio Pulse from Benzinga Newsdesk

February 13, 2024 | 5:12 pm