“Strategic options through which Cineworld may achieve its restructuring objectives include a possible voluntary Chapter 11 filing in the United States,” the company said.
Cineworld is approximately $5 billion in debt and has struggled to recover from the Covid-19 lockdowns which saw the chain close its doors for several months. Analysts say that, while recent films such as the Top Gun, Thor, and James Bond releases have performed well, there haven’t been enough of these big titles to lure enough customers back to the big screen.
On Friday, Cineworld shares dropped 60% amid increasing speculation that bankruptcy was likely.
Cineworld has 750 sites in the UK and employs more than 28,000 people across 10 countries.
The cinema chain has warned of what its latest plans could mean for investors.
In a Monday statement, the company said: “Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees. As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.”
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Health insurance helps people with their financial needs by paying a portion of their medical care. As we all know, we don’t know when we will get sick, but with good health insurance, you don’t have to worry about the financial aspects. That said, there are many reasons why you should get health insurance not just for yourself but also for your family. But before we get to the reasons why you should get health insurance, let’s talk about what health insurance is.
What is health insurance?
Health insurance provides you with financial support in medical costs by paying your medical bills. As we all know, medical bills are staggering, and a huge portion of the population can’t afford to pay them with their income alone.
As insurances go, there are a lot of kinds in the market. There are insurance plans that are run by the government, namely Medicare and Medicaid. Medicare is health insurance for people who are aged 65 and older or people under 65 with a medical disability. Meanwhile, Medicaid is health insurance for people who have low income.
Private insurances, on the other hand, are offered by healthcare companies. You can mostly see this type of insurance from your employer or company. Probably the biggest difference between government-run health insurance and private ones is that private ones often make you pay premiums every month. Government-run health insurances mostly don’t have monthly premiums.
So how does medical insurance work? It mostly works like car insurance. When a car gets into an accident, you’re going to have it repaired, and the repair costs are often expensive. If the damage is big, you can just go ahead and buy a new car. The car insurance itself would pay for either one of them. But unlike car insurance, health insurance covers more than the hospital bills from an accident. It also covers annual checkups, preventive health, and even vaccination. It’s like car insurance, but the provider also pays for the tire, oil change, and other maintenance costs.
So why should you get health insurance?
Save Money
According to the Peter G. Peterson Foundation, the US has some of the most expensive medical costs worldwide, and it’s still increasing. When you’re uninsured, you’re in for a world of hurt because you're paying a lot of medical costs on your own, and they’re not exactly cheap. Sure, you’ll be fine if you’re already paying annually for routine checkups and antibiotics, but when an emergency happens, like an injury or an acute medical condition, you’ll be responsible for all of the costs. Although the costs for various conditions vary from state to state, HealthCare.gov notes some of the most common medical expenses as follows:
Cancer Treatment: above $100,000
Broken Leg: $7,500
Hospital Care for Three Days: $30,000
Having Insurance Helps You Stay Healthy
It’s only a myth when people say that health insurances are only for people who have chronic illnesses. That’s far from the truth. In fact, nowadays, a lot more people are getting health insurance even if they are perfectly healthy, especially with the COVID-19 pandemic still going on. Also, health insurance inspires you to be healthy and does a successful job doing so. Under the ACA, most health insurances cover a lot of preventive healthcare services. Some of them include:
- Type 2 diabetes screening
- HIV screening
- Cholesterol screening
- Tuberculosis screening
- STI screening
- Contraceptives
- Vaccination, etc.
With all of these preventive services and more, you can say that having health insurance is convenient and beneficial for both your health and finances. And because of these free services, you’ll be as healthy as can be, and you can avoid illnesses in the long run, which will save you money.
You also have the benefit of catching an illness early to prevent it with all the screenings available for you. But again, health insurances vary from each other in terms of their services. That said, you can try to shop Assurance's health insurance if you want to find something that will suit your needs.
It Reduces The Chances of You Going Bankrupt
Sure, having health insurance won’t save you from paying all your medical costs, but those costs will be capped with health insurance. This is because most health insurance tends to have a maximum when it comes to copays, coinsurance, and even deductibles. Most plans also have a maximum when it comes to out-of-pocket costs. Once you hit that limit, your provider will be responsible for all the costs moving forward for the rest of your stay in the hospital.
Final Words
With the pandemic still going on and another variant of COVID-19 spreading, there’s no better time to get your very own health insurance than today. Sure, you’ll still pay a lot in medical costs, but in the long run, you’ll thank your past self for getting one. So with health insurance, not only are you safe medically but financially as well.
Fortunately, there were only two asbestos bankruptcy cases filed with law firms in 2019. This is the lowest number in any given year since the special asbestos bankruptcy trust and channeling injunction stature was enacted through Section 524(g) of the Bankruptcy Code.
However, there were several mass tort lawsuit instances in 2019. Due to natural disasters and road construction issues around the world, mass torts have become necessary. These types of torts have also come about due to organized sexual abuse cases, the opioid crisis in the US, and the instances of ovarian cancer due to exposure to the asbestos-contaminated talc in Johnson & Johnson baby powder.
More About Mass Torts in 2019
2019 also marked an uptick in bankruptcy filings by non-asbestos debtors seeking to address potentially crushing liability caused by other types of mass torts, such as wildfires in California and a bridge collapse in Florida.
Debtors in non-asbestos mass tort cases now seek to emerge from bankruptcy cleansed of their current liabilities and protected from future claims by an injunction that “channels” such future tort claims to a trust established to resolve and pay claims, using procedures that are based on those in § 524(g).
For some mass tort cases, a trust was established to resolve these cases and pay mass tort claims. This is one of the main reasons that people who felt they might have a case if they were injured or harmed by using a product or resource filed a mass tort.
Fortunately, there were only two asbestos bankruptcy cases filed with law firms in 2019.
The trust ensures that every plaintiff involved in the case receives a small percentage of the settlement funds that are awarded when the attorney for the plaintiff(s) wins the case. In 2019, trusts were established for the asbestos mass tort cases filed against Duro Dyne National Corp, Oakfabco, and Maremont Corp, and for a sexual abuse mass tort against the Diocese of Duluth.
This year was also the year that Magnum Construction Management, LLC received a mass tort lawsuit when a pedestrian bridge collapsed in Florida.
What You Should Know About Mass Torts
A mass tort is essentially a civil action that a group of plaintiffs takes against one or a few defendants. The case can be tried in federal or state court. A tort is filed if a business' products or services caused significant injury to several individuals. That is why city government entities, medical facilities, and prescription drug companies are often the defendants in mass tort cases.
The Phases of a Mass Tort Case
Before you can determine if you officially have a mass tort case, an attorney will review several records and statements made by other plaintiffs in your case. The lawyer will also go over the allegations about the injuries sustained by you or other individuals involved in your case.
A mass tort lawyer will also have to assess several years' worth of your medical records. This means an attorney will review your entire medical history to determine if you have enough evidence to bring your case to court.
Lawyers who are presiding over a mass tort case will also have to check to ensure that allegations and verbal/written accounts are consistent among all the plaintiffs involved in the case. If each of the people looking for compensation has similar complaints about the defendant's products and services, the judge may be more likely to rule in favor of the plaintiff.
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If you are part of a mass tort lawsuit or think you may have one, be sure to consult with a qualified attorney to find out if you have a valid case and/or are entitled to compensation.
In that case, bankruptcy serves as a last resort that will allow you to make a fresh start.
While filing for bankruptcy is a solution for many people in bad financial situations, you must be able to qualify for either a Chapter 7 or Chapter 13 bankruptcy. This guide will help you determine which option is best for your situation and what to do with your fresh financial start.
Filing Chapter 7 Requires Passing a Means Test
A Chapter 7 bankruptcy is often the most desirable form of debt relief because it involves discharging or dismissing all of your unsecured debts. Typically, any assets you own will be seized by the court and liquidated to relieve some of your creditors. Anything else will be discharged.
In recent years, federal laws have been updated to ensure only those in severe financial distress can qualify for a Chapter 7 bankruptcy, so a means test has been initiated.
In order to pass the means test, your monthly income cannot equal or exceed the average income for families in your state. If you fail the means test, the court will assume you have enough money left over each month to pay your debts off, and that will disqualify you from declaring bankruptcy.
Can You Qualify for Chapter 13?
If you believe you will fail a means test, professional bankruptcy lawyers recommend their clients file for Chapter 13 bankruptcy. This is different from Chapter 7 because your debts are not discharged. Instead, you and your attorney will have to draw up a payment plan that consolidates your debts under the court's supervision.
There are a few requirements you'll have to meet in order for the court to allow a Chapter 13 filing. First, you'll have to show that you have a regular source of income that will enable you to meet the obligations of a repayment plan. Additionally, the plan must be structured to ensure your debts will be fully repaid in three to five years.
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The court also restricts the amount you can seek in debt relief. You can owe no more than $394,725 in unsecured debt and no more than $1,184,200 in secured debt. You are also not allowed to have filed for Chapter 7 over the last four years or a Chapter 13 within the past two years.
What to Do After Filing for Bankruptcy
Even though your debts have been discharged, you may still have some work to do in rebuilding a good financial profile. This will likely include attending a court-ordered credit counseling course. You should also make a habit of checking your credit reports with the three main credit bureaus to make sure your debts have been discharged.
Any remaining debts should be paid off as quickly as possible but be sure to make all the minimally required payments on time. Just one late payment can destroy your credit rating and sabotage any progress you have made so far.
Even though a Chapter 7 stays on your credit report for 10 years and a Chapter 13 stays on your credit report for seven years, you can start rebuilding your credit score immediately. In addition to paying debts on time, getting a secured credit card can help you establish good credit sooner.
You can also help your credit score by maintaining lower balances on any credit cards you still have. All of these methods can be combined to show lenders that you're a low risk client, while also boosting your credit score over time.
Conclusion
Following this guide can help you start a new life for yourself, but, if you don't learn financial responsibility, you'll end up right back where you started. Even if a bankruptcy judge doesn't order it, taking a personal finance course can give you a more thorough understanding of the concepts related to financial responsibility. When you complete the course, you'll know how to build and maintain good credit, which is one of the keys to obtaining a better financial flexibility.
Online fashion retailer Boohoo has acquired Debenhams in a £55 million partial rescue deal that will see the closure of the UK department store chain’s remaining physical outlets.
An excess of 118 stores and the jobs attached to them remain at risk. An estimated 12,000 jobs at the 242-year-old chain are believed to be in the balance.
“The group will only be acquiring the brands and associated intellectual property rights,” Boohoo said in a statement. “The transaction does not include Debenhams’ retail stores, stock or any financial services.”
Debenhams is already in the process of closing down after administrators failed to secure a rescue deal for the business. Brand owner, Sir Philip Green’s Arcadia Group, fell into administration last year, putting 13,000 jobs at risk.
A closing-down sale across the 124-store Debenhams chain began in December. It was recently announced that six of these shops, including the brand’s flagship department store on London’s Oxford Street, would not reopen after lockdown. The remainder will be wound down once they are in a position to reopen.
Though traditional retail sales are in decline across the UK and suffered greater damage during the outbreak of the COVID-19 pandemic, eCommerce has emerged to fill some of the consumer void. Debenhams made roughly £400 million in online revenues in its most recent financial year to 31 August 2020, and Boohoo estimates that its website receives 300 million visits a year.
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Boohoo CEO John Lyttle said Debenhams will operate as a digital “shop window” for Boohoo’s brands, such as Pretty Little Thing, and third-party retailers. There will likely also be “an opportunity to launch the marketplace in international markets over time.”
High street fashion chain Bonmarché has entered administration, following on the heels of Arcadia and Debenhams on Monday and Tuesday. The chain operates 225 stores in the UK and employs around 1,500 staff.
Administrators said that the shops would continue to trade until further notice, adding that no redundancies or closures have yet been scheduled as the business looks for a buyer.
“Bonmarché remains an attractive brand with a loyal customer base,” said joint administrator Damian Webb of RSM Restructuring Advisory LLP, which was appointed on 30 November. “It is our intention to continue to trade whilst working closely with management to explore the options for the business.”
This marks the second time in a year that Bonmarché has entered administration, the first having come in October 2019. The chain was owned by retail tycoon Philip Day, whose other chains – Edinburgh Woollen Mill, Peacocks and Pondem Home stores – also collapsed into administration in early November.
Around 70,000 British retail jobs have been lost so far this year, according to the Centre for Economic and Business Research, and around 15,800 stores have closed. A good deal of this has been sparked by the COVID-19 pandemic and lockdown measures reducing customer footfall in city centres; the British Retail Consortium estimates that the month-long lockdown in England from 2 November to 2 December cost businesses around £2 billion in lost sales.
In Bonmarché’s case, however, troubles began before the global health crisis erupted. Its declining profitability has been linked to rising business rates and a general consumer shift towards online shopping.
UK high street mainstay Arcadia – owner of Topshop, Miss Selfridge, Dorothy Perkins and other major brands – entered administration on Monday.
Arcadia was the biggest concession operator in Debenhams, which is currently in administration. Shortly after the announcement of the firm’s collapse, JD Sports – the last remaining bidder for Debenhams – pulled out of talks despite having been close to securing a deal as recently as the end of last week.
Debenhams will now be wound down. It currently operates 124 UK stores and has cut 6,5000 jobs since May; the remaining 12,000 jobs are now at risk.
Both retailers have been hit hard by the COVID-19 pandemic and a loss in customer footfall in city centres.
Arcadia’s collapse had been expected after the chain failed to secure a rescue loan of £30 million. It operates 444 stores in the UK and 22 internationally, and currently has 9,294 employees on furlough. The company’s collapse puts a total of 13,000 jobs at risk.
Arcadia has hired administrators from Deloitte and announced that its stores will continue to trade as options are considered. All orders that were made over the Black Friday weekend will also be honoured.
“We will be rapidly seeking expressions of interest and expect to identify one or more buyers to ensure the future success of the businesses,” said Deloitte joint administrator Matt Smith.
FRP Advisory’s Geoff Rowley, a joint administrator to Debenhams, said that administrators “deeply regret” the decision to close the company, which was forced by current business circumstances.
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“All reasonable steps were taken to complete a transaction that would secure the future of Debenhams,” he said. “However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.”
Debenhams will continue to trade to clear current and contracted stock, then close.
Arcadia, the UK-based retail group owned by billionaire Sir Philip Green, is set to enter administration imminently, according to the BBC.
Questions over the future of the retail empire were raised on Friday as it emerged that Arcadia had failed to secure a £30 million loan from potential lenders. A spokesperson said at the time that senior leadership were “working on a number of contingency options to secure the future of the group’s brands”.
Rival retail company Frasers Group, owned by billionaire Mike Ashley, said that it had offered Arcadia a £50 million loan to save it from collapsing and was “awaiting a substantive response”. Sources among Arcadia’s senior staff told the BBC they do not expect a last-minute rescue deal.
Arcadia owns several major high street retailers and brands including Topshop, Miss Selfridge, Dorothy Perkins, Wallis and Evans. It has struggled in recent years with a shift in consumer activity from city-centre businesses to online retail, and has acknowledged that the COVID-19 pandemic in 2020 had “a material impact on trading” across its brands.
The retail group operates over 500 stores across the UK and employs around 14,500 people, whose jobs will be at risk should the company enter administration.
Shares in some of Arcadia’s rivals rose on Monday in response to news of the company’s probable insolvency. Next gained 2.8% on forecasts of weakened competition on the high street, and JD Sports rose 6.5% on predictions that it may choose to drop its proposed purchase of Debenhans.
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Online fashion retailer Boohoo, which may be interested in buying Arcadia-owned brands such as Topshop, gained 5.5%.
Frasers Group on Monday also said it “would be interested in participating in any sale process” of Arcadia’s brands should they be sold off.
Last week, news broke that EY auditors refused to sign off on Wirecard’s accounts for 2019, citing a missing sum of €1.9 billion that documents purported to be held in two bank accounts in the Philippines. CEO Markus Braun claimed that the company was the victim of “the victim in a substantial case of fraud,” and COO Jan Marsalek was suspended, later to be terminated. Braun then resigned from the company on Friday.
Braun turned himself over to Munich police on Monday evening after a warrant for his arrest was issued. He is suspected of recording false transactions to artificially inflate Wirecard’s sales, increasing its value in the eyes of customers and investors. Philippine authorities are also investigating the whereabouts of Marsalek as part of a broader probe into the company.
On Thursday, the company said in a statement that it would apply to the Munich district court to open insolvency proceedings as a result of its “impending insolvency and over-indebtedness.”
The company’s shares were suspended from the Frankfurt Stock Exchange before the announcement was released.
Wirecard was long regarded as a star in the German fintech scene – a DAX 30 company which was once valued at €24 billion. That value has plummeted through the floor as the week of revelations continued, though it saw a brief 27% uptick on Tuesday following the news of Braun’s arrest.
Trading on Thursday saw Wirecard’s value drop by a further 76% once news of its insolvency broke.
The COVID-19 pandemic now dominates every aspect of business and personal life, creating enormous public health and economic challenges across the world. In addition to the large-scale loss of life, we are facing unprecedented disruption to work and business activity. Even if some sectors are bailed out, a glut of insolvencies and bankruptcies seems inevitable. But where will the axe fall? Chris Robinson, a specialist corporate lawyer at Excello Law, explains.
Global supply chains in Europe, the current centre of the pandemic, face protracted disruption as the COVID-19 crisis highlights their fragility: the failure of one link can cause extensive disruption throughout the chain. Supply chains and labour markets are often complex and unstructured, even in ordinary circumstances. But COVID-19 is extraordinary: the myriad effects of losses created by it will be diverse, disparate and on a scale never previously seen.
Ideally, supply chains are configured with back-to-back contracts and pay-when-paid clauses that allocate the loss appropriately and proportionately across the supply chain, or to parties who are insured. But this is the exception rather than the rule. The reality is that the loss will often fall on the weakest link in the chain, the small business who has not been able to negotiate let-outs, either with their customers or suppliers. You can be liable for breach of contract, including damages for loss of profits or wasted costs, even if the failure was beyond your control.
This raises many questions, not least concerning remedies provided by the law when the performance of a contract becomes impracticable. For example, is a party liable for breach of contract if they simply cannot comply? If the contract terms provide no let-out, then (under English law) the only legal escape is the legal concept of frustration.
You can be liable for breach of contract, including damages for loss of profits or wasted costs, even if the failure was beyond your control.
A contract is frustrated if something happens after the date of the contract that is not the fault of either party that makes further performance impossible or illegal, or is so fundamental that it strikes at the root of the contract, and is beyond what was contemplated by the parties when they entered into it. Frustration ends the contract entirely, with basic rights for advance payments to be refunded and parties to be reimbursed for expenses incurred.
Circumstances arising from COVID-19 are certainly capable of amounting to frustration, but difficulties in performing, extra costs or delays would not be enough. Long-term contracts, or employment contracts, are unlikely to be frustrated.
Many contracts contain force majeure clauses, allowing the parties to suspend performance for a period of time and/or terminate the contract without liability on either side. Whether a public health emergency amounts to force majeure will depend on the wording of the clause: the situation must be beyond the control of the affected party. If compliance with Government advice is voluntary, that might not help to bring the situation within the force majeure clause. Similarly, the presence of a force majeure clause may mean that the contract is not frustrated: if the agreed terms deal with a situation, that situation will not frustrate the contract. Force majeure clauses often require formalities, such a giving notice to the other party.
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Even though the economic havoc created by COVID-19 pales into insignificance compared to the scale of human tragedy it continues to cause, the health of the economy also has a very significant impact in keeping people alive and well. As damage continues to spread throughout the economy, the losses will be uneven, affecting some a great deal more harshly than others. Much of the cost will be felt through business failures, leading to many thousands of people losing their jobs. Employees, business owners, shareholders and pension fund members will bear the cost, but not in an equitable way.
After Flybe’s Wednesday talks with the government failed to secure a deal for a rescue package, the company has declared that it will cease trading with immediate effect. The Civil Aviation Authority has announced that all Flybe flights and those operated by its franchise partners Stobart Air, Eastern Airways and Blue Islands, have been cancelled, and advised customers to make their own alternative travel arrangements.
Flybe’s collapse follows several months of financial troubles related to rising fuel costs and competition from larger airlines, compounded by a downturn in demand for flights due to the ongoing spread of novel coronavirus.
Flybe chief executive Mark Anderson said in a statement that the company had been “unable to overcome significant funding challenges”.
“The UK has lost one of its greatest regional assets,” he added, thanking Flybe employees for “their incredible commitment and dedication.”
Transport Secretary Grant Shapps tweeted his disappointment in seeing Flybe go out of business after four decades of service. He assured his followers that the government is "urgently working with industry to identify how key routes can be re-established by other airlines as soon as possible", and will also be working to help Flybe staff find new jobs.
Flybe is the second major British airline to face bankruptcy in six months, following the collapse of Thomas Cook last September that saw the loss of around 11,000 jobs.
Bankruptcy is a legal process that relieves you off your debt for some time, but in the long run, declaring bankruptcy can have a very serious effect on your credit report and remains for almost 7-10 years on your report affecting your ability to get loans in the future. So, I am going to present you with four alternatives that can save you from bankruptcy. Going for one or all of these options is definitely better than going bankrupt.
1. Enter an IVA Program
An IVA is an individual voluntary agreement that is a legal binding contract between you and those you owe money. After you have signed an IVA, you get a period of time, usually 5 years, during which you can pay off the debt you owe. It prevents all the creditors from taking any action against you. The best thing about an IVA is that you get to keep your home and personal items. Over the past few years, IVA’s have become a lot more popular. If you want IVA help and information, head over the link and learn more about it.
2. Sell Some Assets
Paying off debt should be your foremost priority. Sell whatever you have in excess and whatever you can live without. If you notice that you can’t keep up with your payments, immediately take action. Many people think that they can’t live without luxurious things, but in the long run, you will understand that it is only temporary and things will get better.
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3. Talk With Your Credits
Now I know this sounds crazy, but hear me out. Most creditors would rather get some money from you than getting none at all. Bankruptcy affects your creditors as much as it affects you. If you talk with your creditors before filing for bankruptcy and let them know that you are having financial difficulties they might listen. Most creditors have special hardship programs to assists you in your time of need. Ask them if they can lower the amount of monthly payments or lower your interest rate. Believe it or not, you can sweet talk you way out of bankruptcy.
4. Get Help from Friend and Friendly
Borrowing money from friends and family is a very bad idea, and it should be your last resort. Money has the power to create misunderstanding between lifelong friends, so you should be very careful. Calculate how much money you need and how much money can you pay off on your own. Never take more than what you need and pay up as soon as you can. Most importantly, before asking them for money, you should have a clear plan on how you are going to pay them back. Your family and friends will happily help you but don’t take advantage of their kindness and earn their trust for the future by paying them what you owe without them asking for it.
