North America

Cineworld Group Plc, the owner of Regal Cinemas, is preparing to file for bankruptcy within weeks after struggling to rebuild attendance from pandemic lows, WSJ Pro Bankruptcy reported. The British cinema company has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process, these people said. Cineworld is expected to file a chapter 11 petition in the U.S. and is considering filing an insolvency proceeding in the U.K., they said.
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Endo International Plc filed for bankruptcy yesterday after reaching a $6 billion deal with some of its creditors, as the U.S. drugmaker seeks to settle thousands of lawsuits over its alleged role in the country's opioid epidemic, Reuters reported. The pharmaceutical company is the latest to file for chapter 11 to address opioid claims. Purdue Pharma, the maker of OxyContin, filed in September 2019, while Mallinckrodt Plc, a generic opioid manufacturer, recently emerged from bankruptcy.
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The Bank of Canada has more work to do in taming stubborn price pressures despite signs headline inflation may have peaked, Governor Tiff Macklem said, Bloomberg News reported. Macklem delivered the hawkish message in a newspaper opinion piece Tuesday afternoon, hours after Statistics Canada reported that consumer price gains slowed to a 7.6% yearly pace in July on a steep drop in gasoline prices.
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Canada's second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) is exploring legal options over bankrupt crypto lending firm Celsius and will no longer invest in crypto firms, it said on Wednesday, Reuters reported. CDPQ's statement came as the fund recovers from its failed investment in New Jersey-based Celsius, which filed for bankruptcy in July less than a year after it received an investment of $150 million from the fund.
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Canadian mortgage investment corporations (MICs), alternative lenders that offer riskier home loans and small construction financing, are struggling to attract investors, firms and analysts said, which could increase pressure on them and spur consolidation in the sector, Reuters reported. These alternative lenders, which make up about 1.5% of Canada's mortgage market, drew investors looking for high returns as interest rates hit rock bottom in recent years. But with rates rising rapidly under a Bank of Canada tightening cycle this year, investors have sought higher-yielding, safer assets.
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Consumer price inflation cooled as gasoline prices fell by the most since the start of the pandemic, though underlying price pressures will likely push the Bank of Canada to continue delivering aggressive rate hikes, Bloomberg News reported. The consumer price index rose 7.6% in July from a year earlier, Statistics Canada reported Tuesday in Ottawa. The inflation gauge increased 0.1% from a month earlier, the seventh straight increase. Both numbers matched the median estimates in a Bloomberg survey of economists.
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UK-based Altera Infrastructure has entered a Chapter 11 bankruptcy process in the U.S. to address its debt of over $1.5 billion, Offshore-Energy.biz reported. Formerly a part of Teekay, Altera Infrastructure is based in Westhill, Scotland and it is a supplier of infrastructure assets to the offshore energy industry. In a statement on Monday, the company said that it has executed a restructuring support agreement (the RSA) with approximately 71 percent of its funded debt obligations, which includes an investment management company Brookfield and a super-majority of its bank lenders.
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A B.C. couple who manipulated stock at the expense of people’s retirement savings will still need to repay the defrauded investors, regardless of any possible future bankruptcy proceedings, the B.C. Court of Appeal has ruled, BIV.com reported. Thalbinder Singh Poonian and Shailu Poonian are permanently barred from working in the capital markets after a British Columbia Securities Commission (BCSC) panel ruled in 2014 they misappropriated roughly $7 million from investors for their own gain.
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Scandinavian airline SAS said on Saturday it entered into an agreement with Apollo Global Management to raise $700 million of fresh financing it needs to see it through bankruptcy, Reuters reported. The airline filed for bankruptcy protection in the United States in early July to help cut debt after the collapse of wage talks between the airline and its pilots, triggering a 15-day strike that added to travel chaos across Europe. SAS said in a statement it expects to complete the Chapter 11 restructuring process in nine to 12 months.
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At the same time the cost of living is creeping ever higher, so too are the number of insolvency filings from Canadian consumers, the Toronto Star reported. Data released by the Office of the Superintendent of Bankruptcy Canada shows that the number of Canadians filing for personal bankruptcy may be returning to pre-pandemic levels. During the height of the COVID-19 pandemic, government subsidies have kept consumer debt at bay resulting in fewer bankruptcies or consumer proposals, a process where a person in debt pays a smaller percentage of owed money to their creditors.

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