1 in 6 Insolvencies Involve Student Debt

1 in 6 Insolvencies Involve Student Debt

Canada NewsWire

It’s time to change the rules around student debt relief

KITCHENER, ON, Aug. 12, 2019 /CNW/ – Student debt contributes to 1 in 6 (17.6%) insolvencies, a record rate according to a study conducted by Licensed Insolvency Trustees Hoyes, Michalos & Associates Inc.

“Nine years ago, student debt insolvencies were just under 13% of all insolvencies we filed,” says Ted Michalos. “Today, 18% of the clients we see are struggling with student debt. It’s an epidemic.”

The average insolvent debtor with student loans still owes $14,729 in student loans representing 32% of their unsecured debt, years after getting out of school. In Canada, government-guaranteed student loan debt is automatically discharged in a bankruptcy or consumer proposal if the debtor has been out of school for a minimum of seven years. Private student loan debt has no waiting period.

“The people we see coming into our offices struggling with student loans are getting younger each year,” adds Doug Hoyes. “Today, 31% of student debt insolvencies are filed by young people under the age of 29. This rate was just 21% in 2011.”

There are a lot of reasons for the increase – tuition and residence costs have risen pressuring students to borrow more. After completing their studies, graduates are often working in part-time positions and minimum-wage or low paying jobs. Many are not finding employment in their field of study that pays enough to repay their student loans.

“We believe it’s time to eliminate the waiting period to have government student debt discharged through a bankruptcy or consumer proposal,” says Doug Hoyes. “There is no such waiting period for private student loans, and there is no difference in how students use either government borrowing or private borrowing. It is inequitable to penalize a student just because they used government student loans when another student using private debt can get relief immediately.”

About Hoyes, Michalos & Associates, Inc.
Hoyes, Michalos & Associates Inc., a Licensed Insolvency Trustee firm co-founded by Doug Hoyes and Ted Michalos in 1999, has established itself as the leading voice on personal debt issues in Ontario. Hoyes Michalos provides real debt management solutions to help Ontarians climb out of debt, including consumer proposals and personal bankruptcy, with offices throughout Ontario. Further information is available at www.hoyes.com

SOURCE Hoyes, Michalos & Associates Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2019/12/c3570.html

Loot Crate Agrees to be Acquired

Loot Crate Agrees to be Acquired

Will Complete Sale through Voluntary Chapter 11 Case

Company Receives Commitment for New Financing

Looters Can Expect Crates to Ship

PR Newswire

PASADENA, Calif., Aug. 12, 2019 /PRNewswire/ – Loot Crate, the worldwide leader in fan subscription boxes, announced today that it has reached a definitive agreement for the sale of substantially all of its assets to Loot Crate Acquisition LLC. To facilitate the transaction, Loot Crate and its affiliates today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Delaware. The terms of the agreement will be formalized and submitted to the Court later this week.

In accordance with Section 363 of the U.S. Bankruptcy Code, other companies will have an opportunity to submit competing offers for the assets. The Company expects the sale to be completed within 45 days.

Loot Crate has taken significant steps toward financial health by reducing costs, capital expenditures and working capital needs, and looks forward to the benefits of new ownership.

“We have worked diligently to overcome challenges with our capital structure, along with legacy issues the Company has been struggling with for the past 18 months. We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues,” said Loot Crate’s Chief Executive Officer Chris Davis.

“After careful review of a wide range of available options, management determined that a sale of the Company is in the best interests of all parties, including our valued Looters (customers) and employees.”

Loot Crate received a commitment for up to $10 million in new financing from Money Chest LLC, an investor in the company. These funds coupled with ongoing revenue from subscriptions will be used to maintain normal operations. “During the sale process we will have the financial resources to purchase the goods and services necessary to fulfill our Looters’ needs and continue the high-quality service and support they have come to expect from the Loot Crate team,” Mr. Davis said.

Mr. Davis also emphasized that employees and customers should not notice any difference in operations as a result of the filing or during the sale process except for the better. “Daily operations will continue as usual, unique and exciting fan items will be purchased, crates will be shipped, and all aspects of the business will go on as before the Chapter 11 filing.  Our employees will continue to be paid as usual during this transaction,” he said.

“This transaction represents good news for our employees, our customers, and our other constituents.  It will provide Loot Crate with greater access to the financial resources necessary to continue to prosper and grow.  By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly transition,” Mr. Davis concluded.

Loot Crate filed its voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.

About Loot Crate

Founded in 2012, Loot Crate™, Inc. is the worldwide leader in fan subscription boxes. Loot Crate partners with industry leaders in entertainment, gaming, sports, and pop culture to deliver monthly themed crates, produce interactive experiences and digital content, and films original video productions. Since 2012, Loot Crate has delivered more than 32 million crates to fans in 35 territories across the globe.

Cision View original content:http://www.prnewswire.com/news-releases/loot-crate-agrees-to-be-acquired-300899791.html

SOURCE Loot Crate

FTD Companies, Inc. Receives Court Approval for the Sale of the FTD North America and Latin America Consumer and Florist Businesses and the Sale of Shari’s Berries

FTD Companies, Inc. Receives Court Approval for the Sale of the FTD North America and Latin America Consumer and Florist Businesses and the Sale of Shari’s Berries

PR Newswire

DOWNERS GROVE, Ill., Aug. 9, 2019 /PRNewswire/ — FTD Companies, Inc. (the “Company”) today announced that the U.S. Bankruptcy Court for the District of Delaware (the “Court”) has approved the sale of the FTD North America and Latin America Consumer and Florist businesses, including ProFlowers, to an affiliate of Nexus Capital Management LP for approximately $110.9 million, and the sale of Shari’s Berries to an affiliate of 1-800-Flowers.com, Inc. for $20.5 million.

“We undertook a robust and competitive court-supervised sale process, and with the Court’s approval, we are now moving forward with transactions that reflect the highest and best value for our businesses. Importantly for florists, Nexus brings resources, experience and stability that we believe will enable the member network to continue to grow into the future. We are continuing to support our florists and business partners and serve customers as we work to complete the transactions,” said Scott Levin, FTD’s President and Chief Executive Officer. “We also thank all of our employees for their continued hard work and dedication throughout this process.”

The Company anticipates completing the transactions in the coming weeks.

Additional Information
Additional information about the court-supervised restructuring process is available on the Company’s restructuring website, www.FTDrestructuring.com. In addition, Bankruptcy Court filings and other information related to the court proceedings are available on a separate website administered by the Company’s claims agent, Omni Management Group, at www.omnimgt.com/FTD, or by calling Omni representatives toll-free at 1-866-205-3144 or 1-818-906-8300 for calls originating outside of the U.S.

Jones Day is serving as legal advisor to the Company, Moelis & Company LLC and Piper Jaffray & Co. are serving as its investment bankers and financial advisors, and AP Services, LLC, an affiliate of AlixPartners, is providing Chief Restructuring Officer services.

About FTD Companies, Inc. 
Through our diversified family of brands, FTD Companies, Inc. and its affiliates historically have provided floral, specialty foods, gifts, and related products to consumers primarily in North America, as well as floral products and services to retail florists and other retail locations throughout these same geographies. FTD has been delivering flowers since 1910, and the highly-recognized FTD® brand is supported by the iconic Mercury Man® logo, which is displayed in over 30,000 floral shops in more than 125 countries. In addition to FTD, our diversified portfolio of brands historically has included the following trademarks: ProFlowers®, Shari’s Berries®, Personal Creations®, Gifts.com™, and ProPlants®. FTD Companies, Inc. is headquartered in Downers Grove, Ill. For more information, please visit www.ftdcompanies.com.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations, estimates and projections about our operations, industry, financial condition, performance, results of operations, and liquidity. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” “estimate,” or similar expressions constitute forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding expectations about the timing and execution of the Company’s strategic transactions (including the contemplated sales of substantially all of the Debtors’ assets), the Company’s future financial condition and future business plans and expectations, including statements related to the effect of, and our expectations with respect to, the operation of our business, adequacy of financial resources and commitments, and the operating expectations during the pendency of the Chapter 11 cases and impacts to its business related thereto. Potential factors that could affect such forward-looking statements include, among others, risks and uncertainties relating to the Chapter 11 cases, including, but not limited to, the Company’s ability to obtain Bankruptcy Court approval of motions filed in the Chapter 11 cases , the effects of the Chapter 11 cases on the Company and on the interests of various constituents, Bankruptcy Court rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases in general, the length of time the Company will operate under the Chapter 11 cases, risks associated with third-party motions in the Chapter 11 cases, the potential adverse effects of the Chapter 11 cases on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the Company’s restructuring strategy; the conditions to which the Company’s DIP financing is subject and the risk that these conditions may not be satisfied for various reasons, including for reasons outside of the Company’s control; the Company’s and the Debtors’ ability to consummate sales of substantially all of the Debtors’ assets consistent with the milestones set forth in the DIP financing order entered by the Bankruptcy Court and the terms and conditions of any such sales; the consequences of the acceleration of our debt obligations; the risks related to the Company’s delisting from Nasdaq and trading on the OTC Pink Market and the other factors disclosed in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”), as updated from time to time in our subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. Such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that may cause actual performance and results to differ materially from those predicted. Reported results should not be considered an indication of future performance. Except as required by law, we undertake no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Michael Freitag / Aaron Palash / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher 

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SOURCE FTD Companies, Inc.