Facebook founder Mark Zuckerberg says the internet needs new rules. He's calling on the government to step in and institute additional regulations. FCC Commissioner Brendan Carr tells us why it's not a good idea for the government to get involved.
Facebook founder Mark Zuckerberg says the internet needs new rules. He's calling on the government to step in and institute additional regulations. FCC Commissioner Brendan Carr tells us why it's not a good idea for the government to get involved.
Individual investors have never been more worried about a U.S. stock market crash. This counterintuitive reaction is because investor sentiment is a contrarian indicator. Historical data on investor beliefs about crash probabilities comes from Yale University finance professor (and Nobel laureate) Robert Shiller.
(Bloomberg) -- Technology stocks are in an “enormous” bubble, Greenlight Capital’s David Einhorn said in a letter to investors.“Our working hypothesis, which might be disproven, is that September 2, 2020 was the top and the bubble has already popped,” he wrote in the Oct. 27 note, seen by Bloomberg.Tech stocks have driven the market’s gain this year. The Nasdaq 100 Index is up 33% since Jan. 1, led by gains in Zoom Video Communications Inc. and Tesla Inc. By contrast, the S&P 500 has risen 5.3%.Einhorn points to “an IPO mania,” huge market concentration in a small group of stocks or a single sector, extraordinary valuations and “incredible” trading volumes in speculative instruments as signs of a bubble.As a result, Greenlight has adjusted its short book including adding a fresh bubble basket of mostly “second-tier companies and recent IPOs trading at remarkable valuations,” he wrote.A spokesman for the firm declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The new Supreme Court justice could help kill the health care law. What if you rely on it?
Individual retirement accounts and 401(k) plans often impose penalties if you take money out of a retirement account too soon or too late. There's usually an early withdrawal penalty if you make a withdrawal before age 59 1/2 and a penalty for failing to take annual distributions after age 72. Here's a look at the 401(k) and IRA penalties you won't have to pay this year.
There's still time to benefit from 2020's IRA contribution limits. And odds are that you haven't put in the maximum allowed yet.
Apple has been an American success story several times over with the Mac, iPod, iPhone and other inventions. But is Apple stock a buy now? Here's what its stock chart and earnings show.
It’s down to the wire. The U.S. Presidential elections are only a week away, and with the polls showing Biden has an edge over President Trump, investors are preparing.Oppenheimer’s Chief Investment Strategist John Stoltzfus points out that last week, stocks churned as investors rebalanced their portfolios, rotating and adding additional exposure to value stocks “while others took profits in growth names that had previously run-up substantially ahead of what could be higher capital gains and other taxes next year,” in the event that the Democrats come out on top.Highlighting that the expectation of an effective COVID-19 vaccine is behind the broadening of investor appetite for equities, Stoltzfus argues this renewed appetite " improves the attractiveness of value stocks.”Going forward, the strategist notes the Federal Reserve’s efforts “underscore the case for the economy’s recovery and the equity markets’ resilience and potential from here.” Although a “blue wave” is seen as a potential risk, Stoltzfus thinks this outcome is very unlikely, and that continued split control should alleviate market worries.Taking Stoltzfus’ outlook into consideration, our attention turned to three stocks Oppenheimer analysts believe can surge by at least 70% in the year ahead. Running the tickers through TipRanks’ database, we found out that each boasts a “Strong Buy” consensus rating from the broader analyst community.Chromadex (CDXC)Focused on improving the way people age, Chromadex operates as a science-based integrated nutraceutical company. Following a recent data readout, Oppenheimer thinks that now is the time to get on board.On October 6, CDXC published the results from the Phase 2 study evaluating a nutritional protocol that includes its Nicotinamide Riboside (NR) product along with the current standard-of-care in mild to moderate COVID-19 patients. It should be noted that the study included roughly 100 patients and was conducted in partnership with ScandiBio Therapeutics, at a research hospital in Istanbul, Turkey.Based on the data, patients dosed with the NR plus standard-of-care combination saw a 29% reduction in recovery time (6.6 days compared to 9.3 days). These results are on top of existing NR-related research, including 11 published clinical studies and others that are ongoing. According to management, a Phase 3 study is set to kick off soon.Weighing in for Oppenheimer, 5-star analyst Brian Nagel commented, “For a while, we have recommended CDXC as a decidedly compelling, albeit speculative investment play within specialty consumer. We interpret [the] news as further indication that ChromaDex continues its extensive and admirable push to understand well the science behind NR and its namesake product TruNiagen.”Going forward, Nagel believes that the consumer audience is poised to expand. “We are increasingly optimistic that a swell of NR-focused research from ChromaDex and its partners continues to build and management works to strengthen an effective marketing message that mass-market demand for NR and TruNiagen will expand, unlocking significant financial and operational levels of CDXC,” he explained.To this end, Nagel rates CDXC an Outperform (i.e. Buy) along with a $9 price target. Should the target be met, a twelve-month gain in the shape of a 90% could be in store. (To watch Nagel’s track record, click here)It’s not often that the analysts all agree on a stock, so when it does happen, take note. CDXC’s Strong Buy consensus rating is based on a unanimous 3 Buys. The stock’s $7.67 average price target suggests a 61% upside from the current share price of $4.70. (See CDXC stock analysis on TipRanks)Apellis Pharmaceuticals (APLS)Next up we have Apellis Pharmaceuticals, which develops innovative therapies that target complement mediated diseases. With a solid set up emerging for 2021, Oppenheimer is pounding the table on this healthcare name.Recently, APLS provided an update on its pipeline, including its systemic C3 inhibitor, pegcetacoplan, which will target C3G/IC-MPGN and ALS. 5-star analyst Justin Kim, who covers APLS for Oppenheimer, points out that C3G and IC-MPGN reflect a significant opportunity for systemic C3 inhibition, based on data that supports the role of complement activation and deposition.Even with the “sub-optimal response” from a leading Factor D inhibitor, the analyst is optimistic about the C3 approach, “which could demonstrate a more potent and broader inhibition of the cascade.” It should be noted that a Phase 2 open-label study enrolling up to 12 patients was recently initiated.On top of this, given that Alexion's C5-approach is being explored in an ongoing Phase 3 ALS program, Kim has high hopes for this indication. “With APLS' Phase 2 study enrolling ~200 patients, the company believes the study could be registration-enabling. At a potential case rate of ~5/100,000 in the U.S., ALS (and neurology) could reflect the largest longer-term opportunity for the systemic C3 pipeline, consistent with Alexion's neurology focus,” he mentioned.If that wasn’t enough, pegcetacoplan is currently in Phase 3 development for paroxysmal nocturnal hemoglobinuria (PNH) and geographic atrophy (GA). Although APLS faces hefty competition, Kim sees “a best-in-class product profile in pegcetacoplan, based on the available data.” The analyst added, “With a potential PDUFA expected in the middle of 2021 for PNH, we believe investors remain focused on potential commercial considerations for pegcetacoplan's lead indication.”As for the GA opportunity, Kim stated, “We highlighted in our launch our appreciation for GA, which continues to be a potentially transformative catalyst for shares at study readout (Q3 2021). With the DERBY and OAKS studies completing enrollment, we remain bullish on pegcetacoplan's positioning in GA, the clinical meaningfulness of currently available data, and market opportunity.”“As the long-term fundamentals remain robust and favorable, we continue to view APLS as an underappreciated biotech tracking well for a potential first approval in a well-understood commercial rare disease market, significant optionality in blockbuster indication geographic atrophy, and intriguing earlier-stage opportunities and assets (C3G, COVID-19, gene therapy). We expect management to continue to execute on these objectives, effecting re-rating of the shares,” Kim summarized.Everything that APLS has going for it convinced Kim to maintain his Outperform (i.e. Buy) rating. In addition to the call, he left the price target at $62, suggesting 71% upside potential. (To watch Kim’s track record, click here)What does the rest of the Street have to say? 4 Buys and 1 Hold have been issued in the last three months. Therefore, APLS gets a Strong Buy consensus rating. Based on the $50.67 average price target, shares could rise 47% in the next year. (See APLS stock analysis on TipRanks)Boingo Wireless (WIFI)As for Boingo Wireless, it provides connectivity to mobile devices over small-cell systems that encompass LTE as well as Wi-Fi spectrum and networks. According to Oppenheimer, this company’s future looks bright.Representing the firm, 5-star analyst Timothy Horan tells clients that uncertainties related to the pandemic and valuation prompted him to downgrade the rating back in April, but now, he sees an attractive entry point.Given that WIFI has solid assets across growing end-markets (Military and DAS), and the stock is trading at 13x Horan’s 2021 cash EBITDA, which is a 35% discount to a 20x purchase price and reflects a 25% discount to tower companies trading at approximately 25x 2021E EBITDA, the analyst believes an acquisition is likely.“We believe there's a high probability Boingo sells part or all of its business to towers or an infrastructure-focused private equity firm in the next year. A strategic buyer could improve EBITDA by $15 million on unnecessary overhead expenses alone. Plus, there's a strong appetite for wireless infrastructure, shown by multiple recent transactions,” Horan explained.Most likely, the business will be broken up into three different companies, with it worth roughly $800 million on a SoTP basis compared to its current $500 million enterprise value, according to Horan. He also argues that the Military/Multifamily segment has a $600 million enterprise value business based on a 18x EBITDA multiple and his $34 million EBITDA estimate, with DAS and Wholesale making up another $200 million in firm value.Expounding on the Military and DAS opportunity, Horan commented, “Positively, more 4G/5G spectrum will be deployed and Boingo expects to go live with a carrier for the LIRR's first phase by the end of 2020. The Military business has shown resiliency through the pandemic. Boingo saw a large traffic uptick in Q2 2020 on Military bases and it's expanding higher ARPU 100Mbps service to more bases.”Additionally, Horan expects WIFI’s Q3 results to be weak due to lower airport and venue traffic, but believes that revenue and cash EBITDA have most likely bottomed, with management making significant efforts to trim expenses.“We believe Boingo's wireless assets are unique and the pandemic has highlighted the need for its critical neutral infrastructure to support connectivity. Recent acquisitions point to a strong interest for wireless infrastructure and Boingo's valuation is attractive at current levels. Military and DAS have been resilient and are well-positioned long-term,” Horan concluded.In line with his optimistic approach, Horan joined the bulls, upgrading the rating from Perform to Outperform and attaching a $15 price target. Investors could be pocketing a gain of 63%, should this target be met in the twelve months ahead. (To watch Horan’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 7 to be exact, have been issued in the last three months. So, the message is clear: WIFI is a Strong Buy. Given the $19.86 average price target, shares could surge 116% in the next year. (See WIFI stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The relentless beatdown of all those who've bet against Elon Musk and Tesla's stock has been well-chronicled. But what about the big wins for short-sellers this year?
Las Vegas Sands aims to sell its hotel-casinos on the Las Vegas Strip with its properties largely empty amid the coronavirus pandemic.
A collapse in crude oil prices has forced most oil and gas producers to drastically cut costs by laying off thousands of employees and cutting down on drilling. The job cuts, which are on top of Chevron's plan to reduce 10%-15% of its own workforce, come after the company promised to lower its operating expenses by $1 billion this year to cope with the downturn. Chevron's 10%-15% cuts would imply a reduction of between 4,500 and 6,750 jobs, while job cuts at Noble will reduce the total workforce by roughly another 570 positions.
At least a half dozen analysts picked up coverage of the stock on Monday following Palantir’s direct stock listing on the New York Stock Exchange in late September.
If you have followed me for very long at all, you probably already know that I have long (for years) labeled Lisa Su "The Best CEO" in the semiconductor industry. If one is aware of how highly I think of Nvidia's Jensen Huang (Lisa Su's cousin), one understands the level of admiration that the statement reveals. Advanced Micro Devices has entered into a definitive agreement to acquire Xilinx in an all-stock deal valued at $35 billion, or about $143 per share.
Digital financial services giant Ant Group is on the cusp of pulling off the world's biggest initial public offering and could be worth over US$500 billion in the near future, riding on the digitisation of financial services in the world's second-largest economy.Hangzhou-headquartered Ant's coming out parade illustrates China's lead in digital finance. Its super-slick mobile payment app, Alipay, has over 1 billion users, making it the world's most popular app outside social-media networks.Ant's payments network is just the gateway, funnelling small businesses and consumers into a broad financial ecosystem spanning lending, investment and insurance services.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The world's most valuable privately owned company is also developing services to make daily life easier. Consumers can click on the Alipay app for services ranging from food deliveries to garbage collection.The system's cogs are oiled by a trove of data gathered in China, the world's most populous country, which makes pricing more accurate and efficient than at traditional banks.Ant plans to plough the US$34.5 billion it is raising from dual listings in Hong Kong and Shanghai into future revenue drivers, such as blockchain, growth outside China and merchant services.In this explainer, we take a look at the growth potential of Ant's key businesses and why the company could soon be worth more than the world's largest bank, JPMorgan Chase."We believe that if we can enable ordinary people to enjoy the same financial services as the bank CEO and help mom and pop shops to obtain growth financing as easily as big firms, then we will be a company that belongs to the future," Eric Jing, Ant's executive chairman, said in the company's prospectus.What is Ant?Ant traces its origins back to 2004, when Chinese e-commerce giant Alibaba Group Holding created Alipay to bridge a lack of trust between buyers and sellers in the early days of online shopping in mainland China.In 2011, Alibaba, the owner of the Post, spun off Alipay, so that it could apply for a payment business licence in mainland China. That company, then known as Zhejiang Alibaba E-Commerce Company, changed its name to Ant Financial and eventually morphed into Ant Group.Ant reported revenue of 118.19 billion yuan (US$17.7 billion) in the nine months ended September, a 43 per cent increase over the same period in 2019.It dwarfs Palo Alto-based PayPal's user base of PayPal, which had 346 million active accounts as of June 30 and is the largest digital payments platform outside China. PayPal generated revenue of US$12.8 billion in the first nine months of 2019 and US$9.88 billion in the first half of this year.Ant sees further room for growth as China's digital payments transaction volume is expected to increase to 412 trillion yuan by 2025, from 201 trillion yuan last year, according to consultancy iResearch. The compound annual growth rate in Ant's annual active users was 15 per cent between 2017 and 2019.Alibaba co-founder Jack Ma is a controlling shareholder of Ant Group and will retain his voting rights after the company's IPO. Photo: AP alt=Alibaba co-founder Jack Ma is a controlling shareholder of Ant Group and will retain his voting rights after the company's IPO. Photo: APWhat are Ant's key businesses?Ant is cross-selling and upselling higher-value financial products to users of its payments network and sees engagement with its customers growing tenfold in the coming five years.Ant acts as a lending, investment and insurance products platform for individuals and underserved small businesses. Its revenue per user is just 121 yuan, still small compared with traditional financial institutions.Digital financial services contributed more than half of Ant's overall revenues in the six months ended June 30.Its largest business is now what it has dubbed CreditTech, providing credit to consumers and small businesses, surpassing payments and generating 39.4 per cent of its revenue in the six months ended June 30.Ant is the largest online provider of microfinance services in China in terms of total outstanding credit balance originated through its platform, according to consultancy Oliver Wyman.Management likens China's banks to the arteries of the economy, financing growth. They see Ant as the capillaries that transmit funds to the extremities of the economy, small businesses and individuals.Ant originates loans, 98 per cent of which are then underwritten by financial institutions or securitised. As of June 30, it was working with about 100 banks, including all policy banks, large national state-owned banks, all national joint-stock banks, leading city and rural commercial banks, international banks that operate in China, as well as trust companies.Its platform takes just three minutes to process a loan and 1 second to disburse the loan, with zero human intervention.The consumer credit and small business credit balance in China could swell to 50 trillion yuan by 2025, and Ant has only tapped about 4 per cent of this huge market so far.In investment services, Ant has partnered with 170 asset managers, as well as banks and insurers, to provide wealth management products to its customers. As of June 30, the so-called InvestmentTech segment had 4.1 trillion yuan in assets under management sold through Ant's platform.The insurance business also is a growing segment, accounting for 8.4 per cent of its revenue in the six months ended June 30.Ant is the largest online insurance services platform in China in terms of premiums generated, according to Oliver Wyman. It has relationships with about 90 insurers in the mainland, representing about 52 billion yuan in premiums generated and contributions through its online mutual-aid platform Xiang Hu Bao in the twelve months ended June 30.China's online insurance premiums will hit 1.9 trillion yuan by 2025 at a CAGR of 38.1 per cent, said Oliver Wyman. Ant's premiums are still under 1 per cent of this fast-growing pie.QR codes for WeChat Pay (left) and Alipay, whcih dominate the mobile payments market in China. Photo: Reuters alt=QR codes for WeChat Pay (left) and Alipay, whcih dominate the mobile payments market in China. Photo: ReutersHow does Ant compare with Tencent Holdings?Alipay and Tencent's WeChat Pay command a virtual duopoly in China's mobile payments, which accounted for US$15.9 trillion in transactions in the second quarter, according to the most recent data from the People's Bank of China.There were 30.1 billion mobile transactions alone in the mainland in the second quarter, a 26.9 per cent increase over the year-earlier period.The two players had an aggregate market share of 90 per cent of third-party mobile payments in China at the end of last year, according to Mizuho Securities.It is difficult to directly compare Alipay to Tencent's WeChat Pay as Hong Kong-listed Tencent does not break them out separately but WeChat Pay is included in its fintech and business services division.In 2019, Alipay generated a higher average transaction size - 483 yuan versus 183 yuan at Tencent's payment affiliate Caifutong, according to Morningstar analysts. Ant also generated a gross margin nearly double that of Tencent's fintech business last year.Other differences also remain between their payments businesses. Not least, WeChat Pay is integrated into WeChat while Alipay is a stand-alone app, linked to consumers' bank accounts.A figurine of Ant's mascot sits on a desk at the company's headquarters in Hangzhou. Photo: Bloomberg alt=A figurine of Ant's mascot sits on a desk at the company's headquarters in Hangzhou. Photo: BloombergWhat are Ant's emerging growth drivers?Future revenue drivers include Ant's blockchain business, dubbed Antchain, as well as international expansion and merchant services.Ant started to explore blockchain's potential around six years ago and has been investing in the technology ever since. It has taken the lead globally in terms of technical capability and developed around 50 commercial applications.In March, Simon Hu, Ant's chief executive, released a three-year plan to open up Alipay as an online gateway for businesses ranging from retailers to hotels, working with 50,000 independent software vendors to digitally upgrade 40 million merchants.Ant's management predicts that the 80 million small businesses it serves today will swell to 163 million by 2025.Analysts sent research to investors on Wednesday pegging Ant's near-term valuation roughly between US$350 billion and US$450 billion on a like-for-like basis, including the money it is raising in the IPO, according to people familiar with the matter.On a different time frame, JPMorgan analysts are particularly bullish on future growth potential and estimated Ant's market capitalisation would swell to north of US$500 billion post-money.Credit Suisse analysts peg Ant's valuation between US$380 billion and US$461 billion, with a price/earnings to growth ratio between 1.2 times and 1.4 times. They forecast Ant's net profit will hit 56 billion yuan (US$8.4 billion) in 2021 and 75 billion yuan in 2022.Ant Bank is a virtual banking arm of Ant in Hong Kong. Photo: Handout alt=Ant Bank is a virtual banking arm of Ant in Hong Kong. Photo: HandoutHow big is Ant outside mainland China?Mainland China accounted for 95.6 per cent of Ant's revenue for the six months ended June 30, and most of its revenue from outside China was from cross-border payment services.But, Ant and other payment providers are seeking to expand internationally and diversify domestically as the third-party mobile payment industry has become saturated in China in terms of the number of users."Future opportunities would lie in cross-border payment, inbound tourism and overseas markets," said Ben Huang, an analyst at Mizuho Securities.Ant has been expanding overseas for the past decade and is now present across the Asia-Pacific region and in Chinese tourist hotspots globally.It had forged partnerships with local partners in Bangladesh, Hong Kong, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines and Thailand as of March 31.Ant also won a virtual bank license in Hong Kong and is applying for one in Singapore.Alipay's in-store payment service is in more than 50 markets globally. Alipay supports 27 currencies and works with over 250 overseas financial institutions and payment solution providers to enable cross-border payments for Chinese travelling overseas, and overseas customers who purchase products from Chinese e-commerce sites.Ant is seeking to expand into products beyond payments as part of its growth strategy. Photo: Reuters alt=Ant is seeking to expand into products beyond payments as part of its growth strategy. Photo: ReutersDo rising US-China tensions present a risk to Ant's business?Ant's business in the US is "negligible", but the company warned the worsening relationship between the world's biggest economies had raised concerns the US may impose "increased regulatory challenges or enhanced restrictions" on Chinese companies.Two years ago, Ant's US$1.2 billion deal to acquire money transfer firm Moneygram International fell apart after a US government panel rejected the transaction over national security concerns.Bloomberg reported this month that the US was considering potential actions against Tencent and Ant over their payment apps. Reuters also reported the US State Department submitted a proposal to blacklist Ant by adding it to the so-called entity list, which restricts the sale of certain technology.Citing potential risks to its outlook, Ant said that restricted items compromise an "immaterial" portion of its technology and software, but any such restrictions could "materially and adversely" affect its ability to acquire technologies that may be critical to its business and impede its ability to access US-based cloud services or operate in the US."In addition, these policies and measures directed at China and Chinese companies could have the effect of discouraging US persons and organizations to work for, provide services to or cooperate with Chinese companies, which could hinder our ability to hire or retain qualified personnel and find suitable partners for our business," Ant said in its prospectus.What is the relationship between Alibaba and Ant today?Alibaba, which owns the Post, and Ant remain closely intertwined despite Alipay being spun off in 2011, a huge competitive advantage for the digital financial services group.Billionaire Jack Ma holds a controlling shareholder of Ant and the co-founder and former executive chairman of Alibaba. Ma controls 50.52 per cent of Ant's shares.Within Alibaba's so-called walled garden, about 70 per cent of the gross merchandise volume generated by its marketplaces in China was settled through Alipay in the twelve months to March 31.Alibaba also pays Alipay a fee, on favourable terms to Alibaba, for payment services to its consumers and merchants. In the financial year 2020, those service fees were 8.7 billion yuan.In February 2018, Alibaba, through its subsidiaries, took a 33 per cent equity stake in Ant, which it still holds. Alibaba has subscribed to Ant shares to prevent the IPO from diluting its stake.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
When looking for the best artificial intelligence stocks to buy, identify companies using AI technology to improve products or gain a strategic edge, such as Microsoft, Netflix and Nvidia.
AMD and Las Vegas Sands are also in play Tuesday morning as the stock market tries to recover from Monday’s selloff.
Hasso Plattner, chairman and co-founder of SAP, bought shares worth nearly $300 million in the German software company on Monday after a once-in-a-generation price slide triggered when management dumped its profit targets. The 76-year-old billionaire bought shares worth 248.5 million euros ($294 million) at an average price of 101 euros, according to a regulatory filing published on Tuesday. SAP shares slumped by 20% after CEO Christian Klein ditched his "ambition" for profit margins to expand steadily through 2023 and lowered the outlook for this year due to the impact of the coronavirus pandemic.
(Bloomberg) -- Tensions flared in bankruptcy court Monday over J.C. Penney Co.’s proposed sale to its lenders and landlords, with one lawyer alleging a dissenting creditor group is waging “economic terrorism” in search of a payout.Those creditors, led by Aurelius Capital Management, hold J.C. Penney term loans and other debt. They’ve submitted a competing proposal to buy the retailer’s real estate while still allowing mall owners Simon Property Group Inc. and Brookfield Property Partners take over the company’s operations. But the proposal isn’t feasible and is instead an attempt by those lenders to “extract a premium,” Andrew Leblanc of Milbank said in a bankruptcy hearing Monday.The sale agreement “is not plug-and-play -- you can’t swap out one piece of it,” said Leblanc, who represents the other lender group. “What stands in our way are people who appear to be looking for some kind of payout.”The Aurelius group has argued that the current sale proposal would deliver an unfair windfall to J.C. Penney’s bankruptcy lenders, which include H/2 Capital Partners.Lender Violence “It’s lender-on-lender violence, for the most part, is what we have here,” Phil Dublin of Akin Gump Strauss Hauer & Feld said on behalf of the the Aurelius group. “It’s greed.”Under the sale agreement that J.C. Penney has been rushing to close in recent weeks, bankruptcy lenders would forgive a large slice of debt in exchange for the retailer’s assets. The company would then sell its operations to Simon and Brookfield.But the dissenting creditor group has argued that the lenders’ so-called credit bid isn’t nearly high enough, alleging the deal would deliver bankruptcy lenders a 162.4% recovery.The disagreement boils down to a fight between creditors that can ultimately be settled, Josh Sussberg of Kirkland & Ellis said on behalf of J.C. Penney in the hearing. He said a competing bid would need to top $2.47 billion in cash in order to best the current proposal, something the Aurelius bid doesn’t do.The case is J.C. Penney Company Inc., 20-20182, U.S. Bankruptcy Court for the Southern District of Texas (Corpus Christi). To view the docket on Bloomberg Law, click here.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The chip industry consolidation dance continued this morning as AMD has entered into an agreement to buy Xilinx for $35 billion, giving the company access to a broad set of specialized workloads. CEO Lisa Su believes the acquisition will help make her company the high performance chip leader.
The Internal Revenue Service announced new changes to eligibility for traditional IRA deductions in 2021.
The September quarter will be the final one without any contribution from sales of the new iPhone 12 lineup, but the results could still bring surprises.