A U.S. Bankruptcy Court judge declared Wednesday he was considering referral of an alleged $2.4 million federal Paycheck Protection Program fraud to the U.S. attorney's office, during a blistering ruling on a preliminary injunction motion aimed at the original sponsors of Eagle Hospitality.
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Eleven companies with more than $50 million of liabilities have filed for bankruptcy so far this year, a relative slowdown compared with the 20 filed each month on average last year, according to data compiled by Bloomberg.
Alpha Media, which operates more than 200 radio stations across the country, filed for bankruptcy this week after Covid-19 crushed its customers’ advertising budgets. It marked the second communications sector bankruptcy of the year, following yearbook maker American Achievement.
There could be a pickup in restructurings in February as companies evaluate their next steps, said Jeffrey Cohen, chairman of the bankruptcy department at law firm Lowenstein Sandler. It’s not unusual to see a lull in January filings, especially in retail, as companies evaluate holiday performance, he said.
Bloomberg
Hotels operators across the country are filing for bankruptcy at a faster pace amid a resurgence of Covid-19 infections that clouds the outlook for sustained recovery. More bankruptcies might be on the horizon as lenders lose patience with defaulting property owners.
A unit of Eagle Hospitality Real Estate Investment Trust, which owns a portfolio of corporate, leisure and airport hotels across the country, filed for bankruptcy protection Monday in Delaware amid a collapse in travel due to the pandemic. It followed Marriott Wardman Park in Washington, which filed for court protection from creditors last week, joining the bankruptcies of two hotels in Brooklyn in December and Manhattan’s Martinique New York in September.
More hotel bankruptcy filings might be on the horizon as lenders lose patience dealing with defaults. Bloomberg | Jan 19, 2021
(Bloomberg) Hotels operators are filing for bankruptcy at a faster pace in the U.S. amid a resurgence of Covid-19 infections that clouds the outlook for sustained recovery. More may be on the horizon as lenders lose patience with defaulting property owners.
A unit of Eagle Hospitality Real Estate Investment Trust, which owns a portfolio of corporate, leisure and airport hotels across the U.S., filed for bankruptcy protection in Delaware on Monday amid a collapse in travel due to the pandemic. It followed Marriott Wardman Park in Washington, which filed for court protection from creditors last week, joining the bankruptcies of two hotels in Brooklyn in December and Manhattan’s Martinique New York in September.