President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Payless ShoeSource is the latest retailer to file for Chapter 11 bankruptcy protection, adding its name to a growing list of chains that have struggled to compete against online and off-price retailers.
As part of the filing, Payless will close nearly 400 stores as it attempts to
Speculation had been building that Payless would soon file Chapter 11 due to its crushing debt load and weak sales. In February, Moody's Investors Services downgraded its outlook on the company to "negative," citing a $520 million term loan that would come due in 2021. The
It's the 10th retailer to file this year, continuing the industry on its pace for the highest number of such filings since 2009, according to a recent study by AlixPartners. That year, 18 retailers resorted to the action.
Like several of the other retail chains that have succumbed to Chapter 11 filings this year, Payless' parent company was purchased by private equity firms in 2012 for $2 billion. That left the company saddled with debt.
The retailer listed liabilities between $1 billion and $10 billion, according to the filing. It had roughly $500 million to $1 billion in assets.
As part of its restructuring, Payless has entered into an agreement with certain parties to reduce its debt load by almost 50 percent. That agreement is also designed to "materially lower" its annual interest costs and provide access to "significant additional capital."
Additionally, the retailer has negotiated agreements with some existing lenders to obtain up to $385 million of debtor-in-possession financing. That includes $305 million of asset-based financing and an $80 million new term loan.
In total, the debtor-in-possession financing will give Payless up to $120 million in incremental liquidity during the Chapter 11 process, the company said. It will be used to pay suppliers and other vendors, and to make sure the retailer can exit Chapter 11 "well positioned for future growth and profitability post-restructuring."
"We are confident that this process will also enable us to leverage Payless's existing strengths to succeed," Jones said. "These strengths include our ability to produce significant free cash flow and, even last year, flat [earnings before interest, taxes,
Kirkland & Ellis will serve as Payless' legal advisor. Guggenheim Securities will act as its investment banker and financial advisor. Alvarez & Marsal will be its restructuring adviser.