harriman New Issue Concessions (NICs) have risen from the previous 0-5 basis points to as high as 20 basis points. How is the overall market evolving and how do yields compare with the other debt investment vehicles in the sector? The risk is heightened because a significant portion of the debtors assets are cash and digital assets such as cryptocurrencies and non-fungible tokens that are readily transferrable, the motion shows. Membership gets you: access to community features including comments and ask us anything sessions; and. Facetious title (which made me laugh) aside, some really thoughtful points on many of the practices that have developed in bankruptcy, Independent Directors, Forum Shopping & Third-Party Releases. An absolute pleasure. Comprehensive market coverage, with the day's events and major movers, all backed with plenty of market color. We also have special rates for students with .edu email addresses. Flights out of Shanghai have also been canceled. Capital markets and bank loans areunavailable to most developers. If you are using a personal email please tell us about your interest in the "Notes" box. In April, the unemployment rate reached 6.1% for the national average, and 6.7% for the 31 largest cities. It is a story about technological disruption, leverage, capital markets, Carl Icahn & pizza. Hear from market leading experts ondistressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. Perhaps whats more disconcerting for the property sector and Chinas economy at large is the brain drain. #FOMO, @Petition is a smart and hilarious newsletter that you should totally sign up for https://t.co/rTU261acwz, This!!! distressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. We accommodate group subscriptions. As some of you in the senior ranks go about your business and save jobs going into 2019, consider how you can save jobs for the junior women in your ranks while also letting them pursue a family. The two are not and should not be mutually exclusive. @IWIRC https://t.co/n273cESoeP. Leaders Panel: Finding value in private credit which strategies are most effective in the current market? That's right, pizza. Reoffer prices are well below par on many new issues. Mall owner Pennsylvania REIT and senior living operator Buckingham obtained concessions from lenders upon exit, including extended maturities, in an effort to carry the companies through the downcycle. Voyager referenced claims against TAC of more than $650 million in a first day relief presentation on July 9. In-Person & Digital l Glaziers Hall, London and Harvard Club, New York | #FTAltCredit. Some of the jobs lost, such as construction gigs for migrant workers, may never come back as development of residential buildings gets delayed indefinitely. Australias private capital industry overall grew to $89.9 billion AUM, up 11% from $81.3 billion in December 2020 and 42% higher than $63.5 billion in December 2019, Preqin also reported. The Petition is my new favorite markets newsletter. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. This allows you to stay logged in to your Reorg account when your browser session ends. Our staff member plans to return to Shanghai when it reopens. Yet, despite ample capital, caution remains a watchword as the global credit cycle turns and the pandemic continues to influence the prospects for business and finance. Its the best take on bankruptcy and disruption out there. To what extent will current low interest rates affect returns? , a great new newsletter for people interested in distressed to lien on for an Ultra fun read every Sunday night. The high-yield market had a limited reopening, with eight deals pricing across a variety of sectors including midstream and building supplies. Where are the regional hot spots for value, and has the pandemic affected the risk outlook for real estate? Long characterised by large-scale, stable returns, downside protection, and measurable risk, real estate has been considered one of the key opportunities for private debt investors focused on Asia. Over the weekend, one of our staff members scored a victorious escape from Shanghai, where over the last 2.5 months, the only times she had been out of her apartment were for mandatory Covid tests or picking up grocery deliveries. And Turnarounds & Workouts listed us among theTop Internet Bankruptcy Resources three years running. Register to attend the webinar HERE. What impact does the prospect of rising interest rates and higher inflation have on the outlook for borrowers of private credit and generally credit quality? Subsequent to that roadshow, Seazen alsopriced $100 million7.95% 364-day senior notes due June 2023 at par, in a rare instance of a Chinese real estate developer accessing offshore high-yield markets this year. Alright #bankruptcy geeks, I ponied up to buy my @petition subscription and you should too - this is the deepest and most insightful (and funniest) coverage of complex workouts and bankruptcies out there today. National economic statistics paint a similar picture to that of Shanghai. S&P noted in a May report that offshore defaults for Chinese bonds in 2021 broke the prior 2020 record by 4.2 times in terms of amount, with a 3.3% default rate driven by unprecedented failures of property firms. It filed this am in New York. Bear with me.). On May 5, the day I moderated a panel at the FTLive/Reorg conference, the Asia real estate outlook for private debt investors, out of 391 China real estate developers high-yield bonds, more than half were priced at 30 or below, according to Refinitiv data. To what extent are private debt market risks reduced by the characteristics of the market, such as floating rate loans, privately negotiated deals and shorter durations? April 2022 also saw the largest year-over-year declines since January 2021 in the median numbers of contracted sales, contracted sales areas and implied average selling price from 34 developers that had reported April operating stats, according to Reorgs May 19 analysis. https://t.co/SapT7htytk https://t.co/dfKUN1qoyi, never fails to jumpstart the morning coffee with an energetic read! - great product! The extent to which the economic slowdown could affect Chinese real estate developers and restructurings cannot be predicted. Li effectively signaled that Chinas targeted GDP growth rate of around 5.5% for 2022 might not be obtained. Please. $PLAY; Equally, though, its true that the strategy has evolved, deal volumes have risen consistently over successive years, and funds and their dry powder have expanded. What are the most effective investment opportunities in this market, from direct lending to mezzanine and distressed debt? hipc zimbabwe myanmar debt distressed alternatives countries nigeria lessons african papers policy pp73 What is the outlook for returns in direct lending, fund of funds, distressed debt, special situation funds, and mezzanine finance? But while that regulatory loosening is positive for the sector, the impact of mass lockdowns on Chinas economy is very clear, and clearly negative for the sector. Im not sure anyone had on their China real estate bingo card at the start of 2022 that the Omicron variant would lead to months-long mass lockdowns of multiple Chinese cities, a slowing of the economy to early 2020 levels, unemployment hitting 6.1%, andLi Keqiang instructing 100,000 officialsvia the Internet in May to stabilize the economy by any means necessary, as the nations Zero Covid policy would remain in effect. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. Indias slowing IPO market is creating direct lending opportunities, as companies with stalled listings face a need for growth capital. Any opinions or other views expressed in this column are the authors own and do not necessarily reflect the opinion or views of Reorg or its owners. Join below today. Can current rates of return be sustained in developed markets, against a fast changing and uncertain macro-economic and geo-political background? Whether you regard crypto currency as the future of finance or a collective hallucination that allows retail investors to gamble away large chunks of real cash on a Ponzi scheme of epic proportions, you cant ignore the sector. LP Leaders Panel: Is this the right time to expand allocations in private credit? But they do not constitute a viable financial market, and sources of capital available to most developers are limited in the extreme. Also this week, GenapSys, which has developed a novel method for DNA sequencing, filed to run a sale process after it stopped selling its DNA benchtop sequencer and offered refunds because of inherent design flaws., Celsius Network, a cryptocurrency finance platform and lender that claims over 1.7 million users worldwide, filed chapter 11 to stabilize its business and consummate a comprehensive restructuring transaction. Without an RSA in hand, the company intends to fund postpetition operations using cash on hand, which will provide ample liquidity to support certain operations during the restructuring process. The company explained in a press release that it paused customer account withdrawals on June 12 because without a pause, the acceleration of withdrawals would have allowed certain customers those who were first to act to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.. More significantly, five real estate developers Longfor Group,Country Garden Holdings,CIFI Holdings,Seazen Groupand privately ownedMidea Real Estate Holding are now widely viewed by the market as golden or chosen, after aMay 27 virtual roadshowhosted by the Shanghai Stock Exchange revealed they had been uniquely selected to issue new onshore bonds supported by credit protection instruments from underwriters, including credit default swaps and credit risk mitigation warrants. Panel: Is the Distressed Debt opportunity primed for a new dawn? makes its thousands of Members smarter about disruptive trends and distressed debt. Specifically, the July 9 motion discloses that the whereabouts of TACs founders, Zhu Su and Kyle Livingstone Davies, are currently unknown and they have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.. Talen Energys chapter 11 proceedings continued, with Talen Montana filing an adversary proceeding to avoid the transfer of certain asset sale proceeds to former parent PPL Corp. and Talen Energy obtaining the support of 71% of unsecured noteholders for its RSA. Headlines dutifully emerge to tell us that the direct lending market is taking off in Asia. pic.twitter.com/w28vtgErD1. Leaders Panel: How should investors balance opportunity and risk Asias private credit markets? https://t.co/q1A3M5OHgj. Learn more: To what extent are asset owners adapting their approach, with potential participation in co-investments and secondary markets? To receive occasional free content, you don't need to do anything other than subscribe. Every Wednesday for free , Perhaps the best tidbit to come from the Evergrande fiasco courtesty of the always-briliant. Bravo for the fab journalism, PETITION. That protection empowers investors, allowing them some control over their fate. exchanges debt climb crisis My working hypothesis was that nothing has changed. since Sept '17, I relate to every part of it. While sources argue these have bottomed out, the question now is whether they will rebound fast enough to adequately support the financial needs of high beta names. As Shanghai is reopening after a months-long Covid-19 lockdown, the Chinese government is eyeing economic recovery and picking winners and losers in the property sector by hosting a virtual road show for five privately held developers to pitch new bond offerings. Impediments to audit was just one direct impact on developers. Its important to draw a distinction here between offshore unsecured high-yield dollar bonds of Chinese real estate developers, and senior secured private loans onshore in China, funded in RMB. NSO Group; - Janice C. Probst, PHD in "Prisoner's Dilemma: The Importance of Negative Results". is an educational tool that is -- in contrast to other dry and technical resources -- actually interesting and fun for them to read. Our intelligence, reporting and analysis also includes information on distressed trading and investing written specifically for investment managers, investment bankers, legal professionals and corporate professionals. https://t.co/IGa65NyXOx, good read -'That is to say, the parties involved thought that the business was worth more -and therefore covered - the $675mm of sr secured notes. Thanks for the hard work. Do the benefits outweigh the risks of this dynamic new asset class? Bravo for the fab journalism, PETITION. Reorgs editorial leadership has selected the following list of the most compelling and topical situations and distressed activity across our global coverage universe. Market participants are closely monitoring credits such as Envision Healthcare and Incora for clues on whether legal challenges brought by lenders left out of priming recapitalizations can succeed. provides analysis, commentary and curated links about financial markets, distressed investing, restructuring and bankruptcy. sequel khokhlov oleg LOVE the coverage on @onepeloton in today's @petition mid-week. is a smart and hilarious newsletter that you should totally sign up for, Subscriptions . Any opinions or other views expressed in this column are the authors own and do not necessarily reflect the opinion or views of Reorg or its owners. debt climb exchanges crisis west distressed coronavirus 8th june Fireside Chat: Has private debt come of age in Asia? As in the Americas, companies in Europe are continuing to feel the strain from supply-chain disruptions and inflationary costs. To what extent will Asia follow a similar growth path? In Indonesia, a puzzling bondholder identification announcement for palm oil producer Sawit Sumbermas Sarana has market participants chattering, and an unusual judgment shows unpaid creditors can access recourse despite prior appointment of insolvency officer-holders in a companys place of incorporation if the company can prove sufficient connection with Hong Kong. Declarations state that TAC was reported to have over $3 billion of assets under management in April and is heavily invested in cryptocurrency, funded through borrowings. The declarations also cite various news outlets, which state that a substantial portion of TACs investment portfolio comprised Luna cryptocurrency, which lost 99% of its value in mid-May. You will be contacted by e-mail towards the end of the trial to ask if you wish to subscribe. As a #spintrovert since Sept '17, I relate to every part of it. How important is credit quality as competition for deals intensifies? service@prospectnews.com. Fuelled by strong appetite from investors, the asset class is now a widely accepted part of the strategic allocation for institutional portfolios. Demand from investors for new assets is high and the industry is seizing the opportunity to drive growth. For questions or comments, contact Stephen at saldred@reorg.com and Shasha at sdai@reorg.com. Hear from market leading experts ondistressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. These of course are pre-Covid-19 numbers. Really enjoying @petition - great product! Sector Focus Panel: Asia real-estate outlook for private debt investors. We discuss disruption, from the vantage point of the disrupted. The "Weil Bankruptcy Blog Index," CMBS and how Nine West is the Gift that Keeps on Giving https://t.co/ASXHl6tFds, If you're at all interested in restructuring / distressed investing, petition is a great newsletter. Which loan structures and strategies, from direct lending to investing via funds, are proving most effective in the current market? agf awards magazine congratulate winners celebration third annual making would africa Disruptions to industrial manufacturing may cause demises of small businesses that are vital to the supply chain. PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. involving debt How can LPs navigate this complex market with its multiple regulatory frameworks and diverse political regimes?