(Reuters) Bankrupt crypto exchange FTX sued crypto lender Voyager Digital on Monday, seeking to claw back $445.8 million in loan repayments that FTX made before collapsing into bankruptcy in November 2022.
FTX and Voyager both filed for bankruptcy amid a 2022 collapse in cryptocurrency markets, but Voyager’s bankruptcy preceded FTX’s filing by four months.
After Voyager filed in July, it demanded repayment of all outstanding loans to FTX and its affiliate hedge fund Alameda Research.
FTX said in a court filing that on Alameda’s behalf, it paid Voyager $248.8 million in September and $193.9 million in October.
FTX also made a $3.2 million interest payment in August, according to its court filings.
Because those loan payments were made so close to FTX’s own bankruptcy filing, they are eligible to be clawed back and potentially used to repay other FTX creditors, according to FTX’s complaint.
FTX, once among the world’s top crypto exchanges, shook the sector in November by filing for bankruptcy, leaving an estimated 9 million customers and other investors facing losses in the billions of dollars.
Its founder Sam Bankman-Fried has been indicted on fraud charges, and several top executives, including Alameda Research CEO Caroline Ellison, have pleaded guilty to fraud.
Bankman-Fried has denied wrongdoing and is scheduled for trial in October.
FTX initially appeared to weather the storm that brought down Voyager and other crypto firms in summer 2022, presenting itself as a “white knight” that could stabilize reeling crypto markets.
FTX offered to buy Voyager’s platform in a bankruptcy auction, but the proposed acquisition fell apart when FTX imploded in November.
In its Monday court filing, FTX acknowledged the allegations that Alameda raided FTX customer assets to cover its risky borrowing and lending.
But it said Voyager and other crypto lenders were complicit in Alameda’s conduct, “knowingly or recklessly” pushing their clients’ assets toward Alameda.
“Voyager’s business model was that of a feeder fund,” FTX said. “It solicited retail investors and invested their money with little or no due diligence in cryptocurrency investment funds like Alameda and Three Arrows Capital.”
AMC Entertainment CEO Adam Aron announced the possibility of a 1-for-10 reverse stock split.
Shareholders are wondering what this would mean for their investment.
The idea is to give shareholders the illusion of a higher share price by reducing the number of shares they hold.
The value of an individual’s portfolio would remain the same amount.
However, if an investor holds 10 shares of AMC, they will convert to 1 share.
If an investor holds 100 shares of AMC, after a 1-for-10 reverse split they will hold 10 shares.
All for the sake of making the value of AMC shares appear much higher.
With AMC currently trading around $4.90, a 1-for-10 reverse stock split would mean the stock will then trade at $49 per share.
This in turn makes AMC Entertainment less affordable for new retail investors to pick up, yet more attractive now while share prices are this low.
Buying 10 shares of AMC today for $49 will still be worth $49 during the completion of the reverse stock split, except you’ll only own 1 share instead of 10 shares.
CEO Says Shareholders May Convert APE into AMC
Adam Aron said on Twitter that there will be a shareholder vote to convert APE preferred shares into AMC common shares.
“Also, APEs worked exactly as intended to let us raise needed cash, buy back debt, explore M&A. But a huge discount in APE market price vs common stock must be addressed. We’ll hold a shareholder vote. It’s time to convert APE preferred into AMC common to eliminate that discount.”
This will essentially combine APE’s and AMC’s value together.
Is this a smart strategy?
Well, it definitely buys AMC Entertainment time.
Short sellers now have to short AMC from a higher price point and if investors chose to sell their stock, it wouldn’t take AMC to pennies like it could at current levels.
Opinion: Adam Aron is a master at pivoting.
There are no official dates yet to when shareholders will be able to vote on this proposal.
Leave your thoughts below
If you’re a shareholder, leave your thoughts below on these proposals.
Are you for them?
Do you think the CEO is making the best decisions for the company and its shareholders?
Leave a comment for the community to hear your thoughts.
Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.
AMC is no longer the same endangered company it once was during the pandemic.
The company has improved every quarter since 2021 and has managed to get rid of most of its debt.
The world’s largest movie theatre continues to innovate and adapt to the changing world.
While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.
Experts say positive news in the coming days to weeks is all Mullen Automotive (MULN) stock needs to trigger a short squeeze.
“Mullen Automotive is set up for a short squeeze that may not begin if the company cannot issue some favorable news in the next few weeks,” said MarketBeat analysts.
Experts are saying Mullen Automotive’s high trading volume and current price action all point to a short squeeze.
The company was able to finish 2022 strong with news after partnering with Loop Global to deploy EV charging solutions, including a public DC fast charging network and residential offerings.
Mullen Automotive is also preparing for 3 commercial product launches in 2023 after signing with their first U.S dealer partner, RMA Group.
In early December, the company announced Former General Motors Government Sales Leader Ronald Dixon will be leading Mullen’s EV charge for U.S government fleet sales.
Mullen Automotive has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Monday, February 13th, 2023 based off prior year’s report dates, according to MarketBeat.
Here is the latest MULN stock news.
MULN Short Squeeze Price Prediction
CNN Money is predicting MULN stock to make gains upwards of +7,000% this year from its $0.32 previous major level.
Stock analysts are giving Mullen Automotive a low of $23.23, a mid of $23.46, and a high of $24.15 per share.
The current analyst consensus is a strong buy.
Now more analysts are saying all Mullen Automotive needs to trigger a short squeeze is favorable news in its next earnings report.
Entrepreneur says a flop could cause shares to slide, but retail investors are bullish on the automotive company.
In the past week, call options have dominated put options on Webull.
Today, we’re seeing MULN stock price consolidate as we get closer to earnings.
Where the company stock price goes from here will depend highly on news catalysts.
If the company is able to demonstrate results and progress going into the new year, institutions might favor buying in heavily, squeezing short sellers in the process.
MULN Short Interest Today
MULN’s short interest sits between 10%-44% according to a few data analytic websites.
Much of the bearish action and suppression in MULN stock today is being done by dark pools and off exchange action, per MarketBeat.
All the company needs to trigger a short squeeze is to give these bears a reason to run.
Will MULN Stock Go Up Soon?
Analysts say Mullen Automotive stock has formed a clear bottom in the $0.25-$0.36 that may easily turn into a reversal with good news from the company.
A bounce here could send the price to retest $0.60 in a few days or less.
Bullish continuation above $0.60 could take MULN stock to the $1 level.
But it’s all going to depend on the company’s annual report and earnings according to Entrepreneur.
Experts are still giving MULN stock a year-term projection of $23 per share.
Today, out of 173 financial institutions investing in Mullen Automotive, only 1 is short with 172 being long, per Fintel.
In December alone, 18 financial institutions purchased shares of Mullen Automotive.
Two of the biggest financial institutions that have recently bulked up on MULN stock have been Vanguard and BlackRock.
Other major institutional buyers include Fidelity, the Russel 2000 index, Nationwide Mutal Funds, Schwab, Morningstar, and Blackstone.
What are your thoughts on Mullen Automotive Stock?
Are you holding for a MULN short squeeze or is Mullen Automotive stock merely on your stock watchlist?
Leave a comment down below.
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(Reuters)FTX has objected to a U.S. Department of Justice request for an independent investigation into the once-prominent crypto exchange’s collapse, saying it is already conducting a wide-ranging probe that includes family members of FTX founder Sam Bankman-Fried.
FTX said in a court filing in Wilmington, Delaware, late on Wednesday that the DOJ’s proposed review would only add cost and delay to its bankruptcy case.
FTX acknowledged “fraud, dishonesty, incompetence, misconduct, mismanagement, and irregularity” in its past conduct, but said that its previous wrongdoing is already being probed by the company’s new management, its creditors and law enforcement agencies.
As part of its own investigation, FTX asked U.S. Bankruptcy Judge John Dorsey, who is overseeing its Chapter 11 proceedings, to help it secure documents from Bankman-Fried, members of his family and other insiders with information about FTX transactions that used “misappropriated and stolen” funds.
These transactions, it said, include a $16.7 million Bahamian real estate purchase under the name of Bankman-Fried’s parents, Joseph Bankman and Barbara Fried.
FTX is also seeking information about political donations connected to Bankman-Fried, asking wide-ranging questions about Mind the Gap, a political action committee founded by Barbara Fried, and Guarding Against Pandemics, an advocacy organization founded by Sam Bankman-Fried and his brother, Gabriel Bankman-Fried.
FTX said Guarding Against Pandemics’ multimillion-dollar Washington, D.C., headquarters was purchased with misappropriated funds.
A spokesperson for Mind the Gap said it did not receive direct contributions from Sam Bankman-Fried, although Bankman-Fried made donations to some political causes it recommended to its donor network.
FTX, once among the world’s top crypto exchanges, shook the sector in November by filing for bankruptcy, leaving an estimated 9 million customers and other investors facing total losses in the billions of dollars.
The U.S. Department of Justice’s bankruptcy watchdog has called for an independent investigation into its collapse, a request that received backing from a bipartisan group of U.S. senators.
FTX’s new CEO, John Ray, who worked with court-appointed examiners while leading Enron Corp and Residential Capital through bankruptcy, is prepared to testify that examiners in those two cases cost a combined $150 million and provided “minimal” benefits to creditors, FTX said.
FTX’s official committee of creditors joined the company in opposing the appointment of an examiner.
FTX also on Wednesday night filed a new list of creditors in bankruptcy court, which included financial watchdogs and government agencies from the United States, Japan and Switzerland, as well as companies including Airbnb Inc and crypto giant Binance.
Sam Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is scheduled to face trial in October.
(Bloomberg) Bed Bath & Beyond Inc. edged closer to a bankruptcy filing on Thursday after the retailer said it had received a default notice from JPMorgan Chase & Co., its loan agent, and warned it didn’t have enough funds to make payments.
Creditors are demanding immediate repayment of the company’s debt after it breached the terms of a credit line, according to a regulatory filing Thursday.
Bed Bath & Beyond listed around $2.1 billion of obligations it owed as of November.
Bed Bath & Beyond stock rose 8.3% at 9:45 a.m. in New York trading on Friday. The shares plunged 22% on Thursday.
Will Bed Bath & Beyond go bankrupt?
Retail investors certainly don’t think so.
Here’s what sources are saying about the company.
How Likely is it Bed Bath & Beyond Defaults?
“Generally, in situations like this where a company defaults on their loan agreement our experience is, if they don’t come to an agreement with their lenders, the likelihood of a bankruptcy filing within the next 30 days is relatively high,” said Dennis Cantalupo, chief executive officer of Pulse Ratings, a credit-rating and consulting firm.
Bed Bath & Beyond had said earlier this year that it was considering all options to fix its strained finances, including the possibility of filing for bankruptcy.
“At this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the US Bankruptcy Code,” the company said in the filing.
In an emailed statement, a Bed Bath & Beyond spokeswoman said the company is continuing to “work with our advisers and implement actions to manage our business as efficiently as possible.” She added: “We will update all stakeholders on our plans as they develop and finalize.”
The notice is the latest sign that one of the largest sellers of home goods in the US is likely to seek bankruptcy protection in short order after years of falling revenue.
The company has begun speaking with potential lenders that would fund the firm during bankruptcy proceedings, Bloomberg reported earlier.
Shareholders aren’t convinced BBBY stock will get delisted through bankruptcy.
The BBBY community say on social media they are buying more of the company stock.
Others are speculating the company will see a merger very soon, eliminating all possibilities of bankruptcy.
Regardless of where retail investors stand, it’s important to stay informed and have a plan in place to prevent severe or total losses.
“I’m expecting a filing any day,” said Cristina Fernández, a Telsey Advisory Group analyst. “I’m not sure what other avenues there are for them at the moment.”
Fernández said she had visited a Bed Bath & Beyond store in Paramus, New Jersey, in recent days and noticed that many shelves were bare — echoing the observations of many shoppers in recent months as the retailer struggles to convince suppliers to supply merchandise.
Bed Bath & Beyond’s revolving credit line, administered by JPMorgan, is secured by a claim on its inventory, the fluctuating value of which determines the amount of credit available at any given point.
The company must provide regular updates to the bank regarding the value of inventory it has on hand, calculated at an agreed discount.
The filing indicates that the value of Bed Bath & Beyond inventory during the most recent update to JPMorgan had fallen below the amount the company had already borrowed from its revolver.
The mismatch breaches the terms of the loan and must be remedied by a cash payment in order to avoid a default.
Recent BBBY Stock News
Bed Bath & Beyond said it had appointed Carol Flaton to its board.
Flaton specialized in restructuring and turnarounds at consultancy AlixPartners and also at the bank Lazard.
The retailer said she will be paid $30,000 per month.
Will Flaton be able to turn Bed Bath & Beyond around?
I’d love to hear your thoughts in the comment section below.
About Bed Bath & Beyond 2023
The ubiquitous US brand, founded in 1971 in Union, New Jersey, Bed Bath & Beyond was once a staple of going-to-college shopping lists and wedding registries.
The firm’s decline has been years in the making and has accelerated in recent months as suppliers become increasingly concerned about the retailer’s future and demand to receive payments in advance.
Other manufacturers have lowered their credit limits with the retailer in order to reduce the risk of not getting paid.
That limited the retailer’s merchandise during the pivotal holiday season, exacerbating a vicious cycle of falling inventory levels, declining foot traffic and declining revenue — making it harder, in turn, to pay suppliers.
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[Bloomberg] The Justice Department will recommend as much as a 75% reduction in fines for companies that voluntarily report wrongdoing to the government and fully cooperate with investigations.
Even companies that don’t voluntarily disclose wrongdoing but still fully cooperate with investigations could still get a 50% reduction off the low end of the guidelines for fines, the head of the department’s criminal division said Tuesday.
“The policy is sending an undeniable message: come forward, cooperate, and remediate,” Assistant Attorney General Kenneth Polite said in a speech at Georgetown University Law Center.
Polite made it clear that cooperators seeking declination will be held to a higher standard than your average or even gold-standard cooperator — the cooperation must be “truly extraordinary.”
The Justice Department will distinguish extraordinary cooperation by assessing the immediacy, consistency, degree, and impact of the cooperation.
Prosecutors will expect companies to cooperate immediately, consistently tell the truth, and hand over evidence that the DOJ otherwise would not be likely to obtain, such as quick access to electronic device images, audio/video recordings, trial testimony, and other kinds of cooperation that “produces results.”
The policy also covers corporations conducting business internationally, as the changes will apply to all corporate matters handled by the Criminal Division, including all Foreign Corrupt Practices Act (FCPA) cases nationwide.
Notably, the new policy is the third in a trilogy of Department of Justice memoranda addressing the prosecution of corporate misconduct and setting forth revised policies concerning the effect of cooperation by companies that have engaged in wrongdoing.
Years of Ongoing Investigations
The new policy was announced to further Deputy Attorney General Lisa Monaco’s October 2021 memorandum directing the creation of a Corporate Crime Advisory Group within the Department to recommend guidance concerning, in part, the nature of a company’s dealings with the government required to receive cooperation credit in resolving company misconduct, and to consider revisions and reforms to the Department’s approach to corporate crime prosecution.
The new policy also follows less than five months after the issuance of a memorandum further clarifying the Department of Justice’s policy against seeking a guilty plea where a corporation has voluntarily self-disclosed, fully cooperated, and timely and properly remediated the conduct at issue in the absence of aggravating factors and directing all department components, including the 93 U.S. Attorney’s Offices across the country, to review its policies on corporate voluntary self-disclosure and ensure it has a publicly available written policy.
At the same time, the September 2022 memorandum emphasized DOJ’s commitment to “strong corporate criminal enforcement.”
Polite likely had these pronouncements in mind as he concluded his speech. He entreated corporations to “come forward, cooperate, and remediate,” and to join the Department of Justice as allies in the fight against crime.12 But he also warned: “Failing to take these steps, a company runs the risk of increasing its criminal exposure and monetary penalties.”