[AAL] American Airlines’ risk of bankruptcy.
U..S. AIRLINES AT RISK OF BANKRUPTCY IF FORCED TO REFUND NON-REFUNDABLE TICKETS OR THOSE CANCELED BY PASSENGERS -A4A TESTIMONY
— *Walter Bloomberg (@DeItaOne) May 5, 2020
- Norwegian Cruise Line said there is “substantial doubt” about its ability to continue as a “going concern” as the coronavirus pandemic wreaks havoc on the industry.
- The company also announced it expects to report a loss for the quarter ended March 31 and on the year.
- Separately, the company announced Tuesday morning that L Catterton, a private equity fund, invested $400 million in NCL Corporation, a subsidiary of Norwegian.
J. Crew Group Inc. filed for bankruptcy with plans to hand control to its lenders, unable to revive its preppy clothing line amid the pandemic and crushed by debt rooted in a long-ago leveraged buyout.
While J. Crew’s struggles pre-dated the coronavirus outbreak, it’s the first major retailer to go bankrupt during the ensuing economic shutdown, which has pushed dozens of chains to the brink of failure. Neiman Marcus Group Inc. and J.C. Penney Co. are among merchants that could be days away from default.
A second wave could hit this year as companies labor under the weight of new debt, advisers say
“Those immediate triggers to file for bankruptcy have been put on hold for a period of time, leading to a short-term decline in bankruptcy filings,” said Iverson. He thinks the lull could end in two to three months. “Eventually, lenders will start to require payment and that should lead to a wave of bankruptcies at that time.”
The COVID-19 pandemic looks likely to cause the biggest surge in bankruptcies that the United States’ court system has ever experienced. Without an immediate increase in judicial capacity to manage the coming flood of cases, an even larger economic disaster awaits.