Red Lobster faces its 'most challenging time,' as big loan payment looms amid pandemic
Red Lobster is facing the “most challenging time” in its history during the coronavirus pandemic, CEO Kim Lopdrup says, at the same time that outside analysts worry about a looming $355 million loan the company has due next summer.The privately held seafood chain of more than 700 restaurants has a $380 million term loan, with more than $355 million outstanding, reaching maturity next July, according to a June report from Moody’s, which earlier in the year cut the company’s credit rating to Caa1, defined as “poor.”Upcoming financial events mean it is “critical to repair the balance sheet,” said...
Royal Caribbean floats testing passengers for COVID-19 when cruising resumes
For likely the first time in Royal Caribbean Group’s 52-year history, the company has gone nearly four months without a passenger cruise. It’s no surprise then, that the company’s second quarter earnings were the worst on record as the COVID-19 pandemic keeps the industry largely paralyzed.In a financial filing Monday, Royal Caribbean Group reported an adjusted net loss of $1.3 billion, or $6.13 per share, for the second quarter, compared to an adjusted net income of $532.7 million, or $2.54 per share, in the prior year. The company estimates its monthly cash burn to be between $250 million an...
Former Tribune Publishing CEO to take helm of McClatchy when newspaper chain emerges from bankruptcy
Former Tribune Publishing CEO Tony Hunter will become CEO of McClatchy Co. when the newspaper chain emerges from Chapter 11 bankruptcy next month, its new hedge fund owner announced Friday.A longtime Chicago Tribune executive who helped guide Tribune Publishing out of bankruptcy as CEO from 2011 to 2014, Hunter will inherit a similar situation at McClatchy under Chatham Asset Management.The New Jersey hedge fund acquired McClatchy, which publishes the Miami Herald and other major newspapers, for about $312 million at a bankruptcy auction in July. The sale, which was approved by a New York bank...
5 business owners charged in COVID-19 relief fraud scheme
ATLANTA — Five small-business owners are facing federal charges after prosecutors said they defrauded the Paycheck Protection Program out of a collective $4.1 million in loan funding.Darrell Thomas, 34, Andre Lee Gaines, 66, Khalil Gibran Green, 46, and Bern Benoit, 44, are all facing several charges including conspiracy to commit bank and wire fraud, U.S. Attorney BJay Pak said. The fifth business owner, 52-year-old Carla Jackson, is charged with money laundering, he said.Investigators said Thomas, Gaines, Green and Benoit submitted loan applications on behalf of five businesses and sought ab...
The Atlanta Journal-Constitution
The Week Ahead: Confusing, but rational record market runs
The investment markets run on fear and greed, hope and worry. Emotions often drive short-term market moves. Long-term investors steadfastly believe markets ultimately reflect an economy’s (or company’s) prospects.In either view, signals from different corners of the investment markets combine to create a confounding economic outlook. Yet, individually, each of these record runs is a logical reaction to the pandemic-fed uncertainty.Investors will be watching market milestones for the S&P 500, gold and the U.S. Treasury 10-year note in the week ahead.The S&P 500 stock index has recovered almost ...
Norwegian Cruise Line optimistic about future despite $666 million second quarter loss
Norwegian Cruise Line Holdings reported $16.93 million in revenue for the second quarter, mostly from passenger ticket sales. The results marked a sharp fall from the $1.67 billion in revenue reported during the same period last year.In a financial filing Thursday, the Miami-based company reported an adjusted net income loss of $666.4 million, or $2.78 per share, for the second quarter. Cruising was halted in the U.S. in mid-March and will remain so at least through October while COVID-19 cases continue to climb.Though grim, the update was more optimistic than the company’s previous filing. In...
Rocket Companies' IPO raises $1.8 billion, launches trading on Wall Street
Detroit billionaire Dan Gilbert celebrated his $1.8 billion Rocket Companies IPO Thursday by talking up the possibility of acquiring more financial-technology companies down the road.“We want to use our stock as currency and potentially acquire more fin-tech organizations and put them in the vault,” Gilbert said on CNBC. “We’re excited about it.”Rocket stock began trading on the New York Stock Exchange Thursday around 11 a.m. opening at the IPO price of $18 a share. The stock was gaining ground and trading around $18.65 a share shortly after 11:30 a.m. In early trading, the stock swung from a ...
Detroit Free Press
Rocket Companies IPO could be priced a billion less than estimates
DETROIT — The IPO for Rocket Companies, the parent of Detroit-based Quicken Loans, appeared Wednesday to lose some power before liftoff, according to IPO experts.The stock is expected to begin trading on the New York Stock Exchange Thursday morning. But experts say some reports indicate the deal involving the initial public offering, expected to be priced later Wednesday, could bring about a billion dollars less to the table for the mortgage giant than first forecast.Rocket is now seeking to raise $2 billion in an initial public offering, down from an estimated $3.3 billion, according to a Blo...
Detroit Free Press
Bumper corn crop on tap as prices founder
Corn farmers across the United States are preparing for a near-record harvest thanks to a smooth, fast spring planting and favorable summer weather.Problem is, corn prices are horrible.Minnesota’s corn crop was 97% silking on Monday, according to the U.S. Department of Agriculture. That’s well ahead of the five-year average for this stage of the growing season and far better than last year, when only 75% of the corn crop was silking.“I just drove two and a half hours this morning and saw the best crop I’ve ever seen in early August,” Dennis Inman, vice president of grain for CFS Cooperative, s...
Star Tribune (Minneapolis)
Patients fled primary care during coronavirus pandemic
WASHINGTON — If Dr. Erica Swegler, a solo primary care doctor in Austin, Texas, hadn’t gotten her bank to delay payments on one of the loans she had taken out to open her practice five years ago, she said, “I would have been out of business in April.”Likewise, she’s sure she would have had to close if she hadn’t also received a $36,000 federal Payment Protection Program coronavirus loan to carry her over a couple of months while her patients stayed away in droves. Ditto if Medicare and Medicaid hadn’t relaxed rules to allow for compensation and better reimbursement rates for telehealth visits ...