Category archive: Financial News
Colt Defense Files Bankruptcy as Turnaround Falls Short
Colt Defense LLC, the 179 year-old manufacturer of such iconic firearms as the M16 rifle, M4 Carbine and Colt 45 revolver, announced it has filed for Chapter 11 bankruptcy reorganization. The West Hartford, Connecticut-based Colt was fighting a losing financial battle over the past few years, most recently proposing in April 2015, a pre-packaged bankruptcy…
Rupert Murdoch Hands Sons Keys to 21st Century Fox
Rupert Murdoch’s announcement that he will be handing over the CEO role at 21st Century Fox to his son, James, 42, and elevating his other son, Lachlan, 43, to the position of co-executive chairman, once again brings family business succession-planning to the forefront. From published news accounts, it appears that Murdoch’s sons know the…
Detroit Bankruptcy: Prized Art Collection Can Save the City
With the Detroit municipal bankruptcy trial beginning Tuesday in Federal Bankruptcy Court, all eyes are watching the fate of the Detroit Institute of Arts Museum’s multi-billion collection. The Wall Street Journal reports that Art Capital Group has proposed exit financing to the city of Detroit in the amount of $4 billion — if it uses…
New Rule Requires Big U.S. Banks to Pony Up Billions
In order to comply with a new rule set by U.S. regulators, the eight largest banks in the United States will be forced to raise a total of roughly $68 billion in captain by 2018. The new rule is intended to limit banks’ reliance on debt, thereby preventing another financial crisis. While it has led…
Cengage Learning Emerges Out from Bankruptcy
A recent post in February discussed the financial struggles of textbook publisher Cengage Learning and its uphill climb to crawl out from Chapter 11 bankruptcy. This week it’s been announced the nine-month battle has come to an end and the company has cut down its $5.8 billion debt by more than two-thirds. In a statement…
Cengage Makes a Deal to Crawl Out of Bankruptcy
After filing for Chapter 11 bankruptcy in July 2013, Cengage Learning Inc. has announced the company has struck a new deal with its major creditors. The deal itself cuts down $4 billion in debt, but the agreement will also modify a previously filed plan of reorganization and lays the foundation for an end to the…
U.S. Stocks Gain Despite the Government Shutdown
Even amidst the political battle that sparked the first U.S. government shutdown in 17 years, investors seem to be unfazed and stocks are advancing. The Dow Jones Industrial Average gained 63 points in midday trading. The Nasdaq Composite Index also rose 39 points, while the S&P 500 witnessed a 13 point increase of its own….
JPMorgan Chase Could Be Forced to Pay Billions
United States officials are seeking $6 billion from JPMorgan Chase, the biggest U.S. bank by assets. All that money would go toward settling the claim that the company knowingly sold bad mortgages to Fannie Mae and Freddie Mac prior to the financial crisis. The settlement would go down as the single biggest penalty paid by…
BP Requests Injunction Due to Accusations of Fraud
Renewing its request to a federal judge, BP is looking for an injunction that would temporarily stop millions of dollars in claims payments until an investigation into any potential wrongdoing has been issued and completed. The company asserts that the claims program is allowing improper payments of claims to both individuals and businesses that weren’t…
Detroit’s Downward Spiral Results in Bankruptcy
Once known as “The Motor City” and hub of American manufacturing, Detroit’s continuing economic failure was finally pushed to its breaking point. In an effort to get the city out from under roughly $18 to $20 billion in liability, owed to approximately 100,000 creditors, Detroit has made the Chapter 9 filing in what is sure…