North America

Canadian pension fund Alberta Investment Management Corp (AIMCo) has begun a strategic review of Spanish renewable energy firm Eolia, which could lead to a possible sale, two sources familiar with the matter told Reuters. AIMCo has hired advisers to decide on strategic options for the business that operates around 860 megawatts (MW) of renewable energy generation capacity in Spain.
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Liberty Steel Group said on Wednesday that it had appointed a committee to restructure and refinance the group after Greensill Capital, its biggest lender, filed for insolvency in March, Reuters reported. The move comes after Sanjeev Gupta’s family conglomerate GFG Alliance announced that its Australian unit had agreed terms to refinance its exposure to Greensill. Liberty Steel, which is also under the GFG umbrella, said in a statement that four new board directors would form a Restructuring and Transformation Committee (RTC) to focus on fixing or selling underperforming units.
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The new management of Mexican airline Interjet has hired a restructuring firm to help overcome its $1.25 billion of inherited debt as the company looks to restart operations, Bloomberg News reported. The airline, now controlled by businessman Alejandro del Valle, has brought on Mexico City-based Argoss Partners to help resolve issues with creditors via a prepackaged bankruptcy and obtain debtor-in-possession financing. Interjet plans to submit a restructuring plan to Mexico’s bankruptcy regulator for review in the coming weeks.
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An Ontario court has placed Canadian lender Bridging Finance Inc. in receivership and the provincial securities regulator ordered that all trading cease in securities in its funds for 15 days, Reuters reported. The actions followed an investigation by the Ontario Securities Commission (OSC) that found the Toronto-based company and Chief Executive David Sharpe mismanaged and misappropriated investment funds. The OSC also suspended Sharpe’s registration as the company’s Ultimate Designated Person, responsible for its conduct and supervision, according to a statement issued late on Friday.
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Diplomatic moves to ease transatlantic air travel could unleash fierce competition to entice passengers back into near-empty cabins at a time when tottering airlines can ill afford a price war in the world’s richest aviation market, Reuters reported. Talks between Brussels and Washington, D.C., on resuming mass travel for vaccinated tourists have raised hopes of a summer rebound - further buoyed by new EU reopening proposals. Airlines are desperate for good news after a year of COVID-19 lockdowns that pushed many to the brink of collapse, or into the arms of governments.
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While the drama of Greensill’s collapse is unfolding in financial centers like London and Zurich, and has sparked a scandal at the top of British politics, blue-collar towns could face the worst consequences if GFG fails to refinance, the Wall Street Journal reported. GFG employs about 35,000 people, mainly in economically deprived parts of Europe, Australia and the U.S., with some sites at risk of closure if Sanjeev Gupta doesn’t secure new finance and governments don’t step in.
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Last September, deep in debt and with rising losses, Mountain Equipment Co-op filed for creditor protection and announced its sale to U.S.-based private investment firm Kingswood Capital Management, the Canadian Press reported. The B.C.-based retailer had been struggling with an enormous debt burden, inventory problems and steep online competition for years. Then COVID-19 hit, shuttering stores and obliterating in-person sales. Still, the decision to sell came as a surprise to members of the co-operative.
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A U.S. bankruptcy court will allow Grupo Aeromexico, which operates Mexico's largest airline, to increase the size of its fleet of planes, the company said on Friday, Reuters reported. Last week, Aeromexico agreed to purchase two dozen Boeing planes as part of a deal that should yield an estimated $2 billion in savings due to better conditions in some long-term maintenance for its existing fleet and leasing contracts.
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Insolvent beverage company DavidsTea Inc. says its net losses nearly doubled last year on surging losses in the fourth quarter, the Canadian Press reported. The Montreal-based company says it lost $55.9 million or $2.14 per diluted share for the year, compared with a loss of $31.2 million or $1.20 per share in 2019. Deeper losses came as the company's sales plunged 38 per cent to $121.7 million from $196.5 million as it felt the effects of lockdowns and it exited its entire retail network except 18 Canadian stores. In the three months ended Jan.
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