Ambac Financial Group (ABK), once one of the largest U.S. bond insurers, is in talks with senior debtholders to file a pre-packaged bankruptcy, according to a Securities and Exchange Commission filing.
Just days after the latest two shale casualties filed for bankruptcy protection when both Linn Energy and Penn Virginia announced prepackaged Chapter 11, moments ago Sandridge announced it too was entering bankruptcy court when it filed a voluntarily petition under Chapter 11 in U.S. Bankruptcy Court for Southern District of Texas to consummate a pre-arranged reorganization.
Between lack of cash flows, insurmountable liabilities, an untenable pension funding, even insider fraud, we thought we had seen all the various reasons for filing for Chapter 11 bankruptcy protection. And then along came the Catholic Diocese of Stockton which announced that it would join its host city and seek bankruptcy protection "in the wake of the church's sexual-abuse scandal." As WSJ reported, Bishop Stephen E.
Molycorp Inc., the former superstar of rare earths mining, is on the brink of financial collapse.
The company missed a US$32.5 million interest payment on its senior secured debt that was due Monday, triggering a 30-day grace period to make the payment.
Colorado-based Molycorp is trying to restructure its debt, a move that could lead to major dilution for shareholders if it is successful. If no deal is reached, the miner could file for bankruptcy protection in a matter of weeks.
Earlier this afternoon, it was Steve Cohen's final fall from grace. Now, Bloomberg reports that Brazil's one time super billionaire, and now negativeworthaire, Eike Batista, whose sprawling petroleum empire was once valued in the tens of billions, is set to file for bankruptcy tomorrow.
When on October 1, fallen billionaire Eike Batista's OGX Petroleo & Gas, missed a $45 million bond coupon payment, some were surprised but most had seen the writing on the wall. After all, Brazil's second largest oil company after Petrobras, and the crowning jewel of Batista's EBX Group, had been under the microscope of investors and certainly creditors (and if it wasn't it certainly should have been) after oil deposits that Batista had valued at $1 trillion turned out to be commercial failures. And so the countdown to the inevitable bankruptcy filing began.