Bankruptcy

Utilities to pay price of Westinghouse bankruptcy

28 Mar 2017

A Chapter 11 filing would jolt the company’s key clients, Scana and Southern. Continuing with their nuclear plants could leave the utilities exposed to further cost overruns, while pulling the plug won’t end liabilities. Either way, the firms’ earning power will be cut.

White House friends not much help to gun industry

13 Mar 2017

Trump's victory vanquished the prospect of new firearms rules. In the upside-down world of ironmongery, that's bad for business. Gander Mountain just filed for bankruptcy, Cabela's merger with Bass Pro is imperiled and gun shares have been crushed. The bust will continue.

Seoul’s wavering on shipping bodes ill for reform

10 Feb 2017

A court will declare Hanjin Shipping bankrupt next week. The container line sunk amid an industry slump. But while Seoul was merciless here, it kept Hanjin's closest rival afloat. The flip-flop shows policymakers are struggling to take tough but economically rational decisions.

Duped students teach a costly moral-hazard lesson

30 Jan 2017

Obama's crackdown on for-profit colleges raised standards and shut down bad actors. A $7.3 bln lawsuit filed by ex-students of bankrupt ITT seeks federal debt forgiveness too. It underscores the high price of doling out loans without first ensuring schools can make the grade.

Guest view: Trump giving bankruptcy a bad rap

17 Oct 2016

Amid other nastiness, the presidential campaign has led to a broad brush falsely equating bankruptcy with failure, argue two Morrison Foerster restructuring partners. In fact, the process often allows companies that fall on hard times to regroup, rise up and keep fighting.