SunEdison creditors launch lawsuit against lenders in bankruptcy battle

SunEdison creditors launch lawsuit against lenders in bankruptcy battle-

SunEdison creditors launch lawsuit against lenders in bankruptcy battle in an effort to save their investments.

A group of SunEdison Inc lenders took control of the renewable energy developer after inking a “sweetheart deal” to try to save their investment as the company approached bankruptcy, hurting other creditors, according to a lawsuit filed  in U.S. bankruptcy court.

SunEdison transferred “hundreds of millions of dollars” to the lenders, which included buyout firms Apollo Global Management LLC and Cerberus Capital Management LP and more than 15 hedge funds, before it filed for bankruptcy, hurting the company’s other creditors, according to a redacted version of the complaint. A full copy was filed under seal.

SunEdison’s unsecured creditors, including Vivint Solar Inc, filed the lawsuit. Vivint Solar had planned a $2.2 billion merger with SunEdison, but the deal collapsed earlier this year.A call to a SunEdison spokesman was not immediately returned. Cerberus and Apollo had no comment.

The unsecured creditors are asking a U.S. bankruptcy judge to limit how much the lenders can recoup on their investment.The lawsuit comes as SunEdison looks to sell its shares in its sister companies TerraForm Global Inc and TerraForm Power. A deal for these so-called “yieldcos” has yet to take shape. It could be a sale of the companies or of the renewable assets they hold, a person familiar with the matter said last week.

A less-likely option is the reorganization of SunEdison around its controlling shares in the companies, the person said. SunEdison, whose bankruptcy was the biggest of 2016 to date, has not yet filed its plan of reorganization with the court.

JPMorgan’s profit topped estimates for the second quarter

JPMorgan’s profit topped estimates for the second quarter

US investment bank JPMorgan Chase topped estimates for the second quarter with a profit of 1.55 dollars per share compared to forecasts of 1.43 dollars per share. This fired up the bank’s shares in trading before the market opening, reports CNBC.

The investment bank also reports a higher revenue than estimated for the second consecutive quarter

Consensual evaluation of 28 analysts pointed to a profit of 1.43 dollars per share, with estimates ranging between 1.34 dollars and 1.54 dollars per share. Revenues for the quarter amounted to $25.2 bln. with the expectation of analysts being around $24.16 bln. For the same period last year, the bank made a profit of 1.54 dollars per share on revenue of $24.3 billion.

In the first quarter of 2016. JPMorgan Chase also has topped expectations for revenue and its profit with respectively $24 bln. and 1.35 dollars per share.

Earlier this week the CEO of JPMorgan Chase Jamie Dimon joined other senior managers who have introduced higher payment for minimum wage employees, calling for fairer opportunities to get ahead.

Shares of JPMorgan Chase, like the shares of most banks are experiencing difficulties in 2016, having first been hit by falling prices of raw materials and then by economists, supporting expectations that central bankers in the US and around the world will raise interest rates.

After the turbulent first quarter this year, banks again made cuts amongst their staff to compensate for the decline in capital markets and trade, which hit their revenues. Then, however, the chief executive of corporate and investment banking at JPMorgan Chase Daniel Pinto suggested that the cuts on Wall Street are close to “end of the cycle of contraction.”

After the turbulent first quarter this year, banks again made cuts amongst their staff to compensate for the decline in capital markets and trade, which hit their revenues. But then the Chief Executive Officer of Corporate & Investment Bank at JPMorgan Chase Daniel Pinto suggested that the cuts on Wall Street are close to “end of the cycle of contraction.”

Blackberry Will Make One More Phone

Blackberry Will Make One More Phone-

BlackBerry is set for one final hurrah in the smartphone market after the company revealed it is planning a new device.

John Chen, the Canadian company’s CEO, confirmed that BlackBerry still has one more trick up its sleeve, with a new smartphone set to be released soon.

“We have one keyboard phone I promised people,”

-Chen told Emily Chang of Bloomberg TV. “It’s coming.” While the company stated earlier this year that it would no longer design or manufacture its own smartphones, it appears that this latest keyboard-adorned device could be the last BlackBerry built in-house.

At present, very little is known about what the keyboard phone will look like. It might adopt the Priv’s design and be a sliding phone, or it could hearken all the way back to the original Blackberry and feature a more standard 1:1 square. It doesn’t seem Chen is interested in dropping hints anytime soon.

John Chen also confirmed that his company is already in talks with two companies for the launch of BlackBerry smartphones, but he did not want to say their names. However, according to him, these companies come from China and India, and for the time being, they come neck to neck.

Yahoo can’t reach the expectations just before the “big” sale

Yahoo's CEO MayerUS Internet veteran Yahoo reported revenue for the first quarter that slightly exceeded analysts’ expectations. Anyway it announced 11.3 percent drop which shows that the web pioneer fails to generate growth in its main business of search engines and visual advertising, transmits Reuters.

Its shares rose nearly 1 percent to 36.66 dollars in the post-trading Tuesday after the announcement of the results.

For nearly four years as a CEO of Yahoo, Marissa Mayer failed to achieve great success in their efforts to win market share from Internet giants such as Facebook and Google.

The total revenue fell by 11.3 percent to 1.09 billion dollars in the first quarter, which ended on March 31. It was the first decline after four consecutive quarters of growth. Average estimate of analysts was for revenue of 1.08$ billion, according to Thomson Reuters.

After the deduction of fees paid to partner websites, Yahoo’s revenue fell to 859.4$ million from 1.04$ billion.

The net loss on Yahoo reached 99.2$ million, or 10 cents per share, last quarter, compared with a profit of 21.2$ million, or 2 cents per share just a year earlier.

On adjusted basis, it has earned 8 cents per share. Again, on that basis, analysts expected earnings of 7 cents per share.

The company’s revenues climbed to its peak in 2008, when Yahoo still possessed of the most visited websites. But in recent years it fails to beat Google and Facebook in the battle for online advertisers.

Mayer concentrates its efforts to raise revenue in the new business with mobile and video advertising. In the past quarter, they increased by 6.8 percent to 390$ million. Anyway that is significantly slower than a year ago.

Under pressure from its investors Yahoo announced in February that it was selling its main business. This happened after the company refused to separate its share of the e-commerce giant Alibaba Group Holding.

The first stage of the tender for the main business, Yahoo ended in Monday. Verizon Communications was considered the favorite who will win the bidding. The other two companies which compete for the purchase of the main business on Yahoo, are the private equity company TPG and the specialist in online advertising YP Holdings.

During the presentation of the financial results late last night Marissa Mayer said the giant acts quickly when it comes to considering the offers it has received. Meyer’s statement seeks to reassure investors who insist on a quick sale of the main business on Yahoo, writes Bloomberg.

Although Meyer declined to reveal more details, she said that the management of the Internet giant is communicating every day to the committee that aims to make strategic review of Yahoo’s main business. The Executive Director stressed that everything goes according to the pre-established strict calendar that leads to a deal.

During the presentation of the results Meyer said she will reveal more details for the tenders after she and the management team have already responded to “hundreds ” questions on the topic.

Qatar now holds part of the iconic Empire State Building

Qatar now holds part of the iconic Empire State Building-

Qatar now holds 10% of one of the most emblematic buildings in the US – Empire State Building

The sovereign fund of Gulf country has invested 622 million dollars in the Empire State Realty Trust, which owns the skyscraper in New York. For this amount, the institution receives a package of 10% of the shares in the company.

The investment fund was established in 2005 to manage the revenues of Qatar фром oil trade. It has involvement also in the luxury jewelry brand Tiffany, in the automaker Volkswagen in the financial firm Credit Suisse, writes CNN Money.

The president of the Empire State Realty Trust welcomes investment fund in its statement, describing it as confirmation of just how valuable are the company’s assets.

This is yet another foreign investment in the Empire State Building and analysts say it is a sign of the increasing interest in the property sector in New York and especially in Manhattan.

Among the other major shareholders is the Norwegian state fund along with Japanese investment company Shinko Asset Management and Australian real estate investor Resolution Capital.

The IPO of Empire State Realty Trust was in 2013. Then the company attracted а capital of $1 billion.

 

 

20% growth in PC sales expected in the third quarter of 2016

Taiwan analysts predict 20% growth in sales of PCs in the third quarter of the year, despite the poor overall state of the market in recent years.

According to sources in the supply chains of components for notebooks, the PC market will reach “it’s day” in the running second quarter of 2016 and then mark strong growth.

Unfavorable market conditions do not deter manufacturers from offering new computer models – in particular, gaming notebooks, says digitimes.com. The customers – PC producers are actively ordering new models, which must enter into sale in the second half of the year.

As a result, an increase in the supply of personal computers is expected, according to the analysis. The estimated growth in the third quarter is up to 20% .

The increased demand for high-performance notebooks brings also growth in sales of various components – such as fingerprint scanners, gesture recognition devices, solutions for USBC and others.

A number of Taiwanese companies will benefit from the increased sales of computers. Among them are component suppliers like Realtek Semiconductor, Parade Technologies, Global Mixedmode Technology and other manufacturers.

BASF considers making of counter-offer for acquisition of DuPont

BASFBASF considers making of counter-offer for acquisition of DuPont, working with consultants and investment bankers for calculation and assessment of the parameters. The German chemical concern not yet decided either to make an offer for acquisition of the DuPont, which is currently in work with acquisition transaction with Dow. BASF held talks with US company before the announcement of the deal with Dow, but these talks are not continued. The possible acquisition of DuPont will increase the portfolio of BASF with chemicals for agriculture and will become the second largest producer of seeds in the world, following Monsanto. BASF has no business with seeds, so DuPont will fill a significant gap in the agricultural activity of the German company.

Representatives of BASF and DuPont declined to comment. BASF’s market capitalization is 64 billion USD, while that of DuPont is 56 billion USD. This is considered as one of the largest acquisitions in the chemistry sector for the last years.

DuPont’s leadership is exploring potential deals with several companies before agreement with Dow, but company will have to pay 1.9 billion USD in case of transaction failure

The merger between Dow and DuPont is the largest in the chemical industry and creates a company with a total market capitalization of 111 billion USD, which will have the largest agricultural activity in the world. DowDuPont would be the second largest chemical company after BASF.

Largest private mining company bankrupted

Largest private mining company bankrupted-

Peabody EnergyThe world’s largest private mining company bankrupted due to sharp collapse in coal prices. Peabody Energy, which is the second largest coal producer in the world and largest private company in the sector, submitted Chapter 11 restructuring application and listed all its assets, which are at worth between 10 billion USD and 50 billion USD. The company failed to improve its liquidity and cash flows, despite of the strong cost reduction program started during the last year. The drop of coal prices significantly affected the balance sheet in 2015 and increased the net debts at the beginning of the current year. Peabody also revealed that a planned sale of its New Mexico and Colorado mines has fallen through. Mine operations are continuing as usual.

Already in March, the top management of Peabody Energy said that as a result of operating losses and negative cash flows, there is a significant risk of default because of the lack of liquidity may cease to function as a going concern. Only last year the shares price of Peabody fell by 95% because of cheap coal. The coal price is under pressure during the last four year and has permanent negative trend, losing 41% from its value.

The global steel oversupply and slowing growth in China have pressured US metallurgical coal producers. Closer home, the US shale boom made natural gas competitive with thermal coal, while stricter environmental regulations raised operational costs.

France, Germany and UK stopped the export credit financing for Airbus

AirbusFrance, Germany and UK stopped the export credit financing for Airbus due to potential check on corruption. During the last week, London stopped funding the group and send a signal to the Bureau of serious fraud after Airbus Group said it found serious omissions in the declarations of overseas agents of the company. Today France and Germany joined UK into financing suspension. The two leading aircraft manufacturers Airbus and Boeing, face paralysis of government funding for export after the delay of Congress in Washington stopped financing of Boeing. In Europe, Airbus remains without support for some sales from the UK, France and Germany, where there are some major factories.

Usually, individual countries give guarantees proportionate, depending on the volume of production in each of them, but they refuse to take over if one of the parties involved. Paris also stops export guarantees for Airbus Group. So far, the impact on the market is believed to be limited as the company significantly reduce its use of export credits compared to the period of financial crisis.

However, the unprecedented decision of the three countries raises doubts about the implementation of some future supply and will likely put pressure on Airbus to seek bridge financing. Airbus recently said it would revise the procedures for hiring consultants and investors warned it could lead to further trade disputes or other consequences.

Sales of Hermes rose by 6% in the first half of 2016

Sales of Hermes rose by 6% in the first half of 2016-

Sales of French luxury goods maker Hermes rose by 6% in the first half of 2016 to 2.4 billion euros, reported MarketWatch.

Growth is smaller than last year when the company reported a jump in revenue to more than 20% compared to the previous year.

Revenues only in the second quarter increased by 6.2% to 1.25 billion Euro. Analysts had forecast they will amount to 1.23 bln. Euro.

The family company explained that was affected by negative currency effects in the first half of the year. Excluding these effects, sales increased by 7% in the period to June this year.

The manufacturer of bags “Birkin” and “Kelly” reiterated that it expects revenue to grow by less than 8% at constant exchange rates this year. This is due to the weakening global economy and geopolitical tensions that limit the consumer demand for expensive handbags and other fashion goods.

The company sent 2015 with a profit growth of 13%, managing to maintain the lead in the industry margins, though revenue growth has slightly slowed in the fourth quarter. Profit rose to €973 million from €859 million in 2014 with 8.1% growth in revenues to 4.84 billion euros.