More than 500 of America’s large companies filed for bankruptcy, the highest level in a decade.
On October 12th global market intelligence said 504 larger U.S. companies had filed for bankruptcy this year as a result of the new coronavirus outbreak. The number of bankruptcy filings in any comparable period since 2010 is at a 10-year high.
Among them, consumer, industrial, and energy companies account for the majority. In addition, as of the end of August, 46 of the companies with assets of more than US$1 billion declared bankruptcy this year.
Prior to this, Neiman Marcus and Century 21, a luxury department store in the United States, filed for bankruptcy protection in May and September this year. In July, Ascena, the parent company of Ann Taylor and Lane Bryant, the largest US womenswear brand, also declared bankruptcy. On October 6, the veteran American restaurant Ruby Tuesday, which was born in 1972, filed for bankruptcy, becoming the latest company to fall under the impact of the epidemic.
Edward Altman, an emeritus professor at the Stern School of Business at New York University, said that if such a high rate of bankruptcy continues to be maintained. By the end of this year, the number of US$1 billion-plus enterprises that have gone bankrupt may reach 65. The previous high of 49 during the economic crisis in 2009 will break this record this year.
According to Bloomberg statistics, in the first nine months of this year, a total of 193 companies with debts of more than $50 million applied for approval. If the number of applications continues to accelerate into the autumn and winter, then this year may catch up with the high point of 271 set in 2009.
The situation for small and medium-sized enterprises is even worse.
More than 100,000 small businesses in the U.S. have been permanently shut down because of financial hardship since the outbreak began, the Washington Post reported.
At the end of March, Congress approved a $2.2 trillion stimulus package. Trump said the bill would provide much-needed relief to small and medium-sized businesses and individuals. The bill would also allocate $350 billion to lend to small businesses.
But according to U.S. media reports, more than $1 billion of the small business aid program has gone to companies that have already received multiple loans. Nearly $200 million went to government contractors that had previously been labeled “with significant performance and integrity issues.”
In addition, several members of Congress and senior government officials were found to have benefited from companies that received loans. Trump’s own law firm is also one of the companies that have been assisted.
The hotel industry in Greece is experiencing a cold winter, and the total hotel business last year fell 78% year-on-year
Affected by the new crown pneumonia epidemic, the Greek hotel industry suffered heavy losses. The reporter recently visited several hotels randomly on the streets of Athens, most of which were closed. Some hotels that are still reluctantly operating are sluggish.
According to a recent report issued by the Greek Tourism Forecast and Research Institute, the total business volume of hotels in Greece in 2020 will be 1.831 billion euros, which is a 78% drop compared with 8.357 billion euros in 2019. Of the 3,965 hotels operating throughout the year, only 59% (2328) chose to reopen after Greece’s first total blockade in 2020, and 63% of the reopened hotels were forced to reopen before the end of 2020. As of the end of 2020, only 863 hotels in Greece remain in operation throughout the year, accounting for 22% of the total.
Although the Greek government has introduced financial incentives and subsidies to support the hotel industry, Alexandros Vasilikos, chairman of the Hellenic Hotel Association, pointed out that the Greek hotel industry will face many uncertainties and risks in 2021. He emphasized that continuing to strengthen liquidity is what the hotel industry urgently needs to do at present. This is not only related to the interests of the industry itself and employees, but also related to the interests of the Greek national economy and related supporting industries.
Iron ore giant Vale has started divesting its coal business after announcing the carbon-neutral plan
On January 20, the global iron ore giant Vale of Brazil announced that the company and Mitsui & Co., Ltd. (hereinafter referred to as “Mitsui”) signed an agreement of intent on the same day. According to the agreement, the two parties will orderly promote Mitsui’s Moatize coal mine and the Nacala logistics corridor withdrew.
It is worth noting that this is also the first step Vale has taken to spin off its coal business.
The agreement determined the main terms for Vale to acquire Mitsui’s 15% stake in Moatize Coal Mine, 50% of its stake in the Nacala Logistics Corridor, and all other minority credit bonds. According to the intentional agreement, Vale will acquire Mitsui’s shares in the Moatize Coal Mine and the Nacala Logistics Corridor at a price of US$1.00 per share.
In the past 15 years, Vale has cooperated with the governments of Mozambique and Malawi to mine the Moatize coal mine and develop the 912-kilometer-long Nacala logistics corridor to serve coal transportation.
The goal of both parties is to complete the acquisition in 2021, and the specific completion time depends on the determination of the final agreement and the realization of the prerequisites for the acquisition. After the transaction is completed, Vale will merge the Nacala logistics corridor entity and all its assets and liabilities, including the Nacala financing project, which has an outstanding balance of approximately US$2.5 billion.
Vale said that after acquiring Mitsui’s shares and simplifying the governance structure and asset management process, Vale will start the divestiture of its coal business. By then, Vale will maintain the operations of the Moatize Coal Mine and the Nacala logistics corridor. , Looking for third parties interested in these assets.
Vale stated that it will continue to support the project to reach production capacity while it is diligently looking for investors in the coal business. It said that the two ongoing initiatives at the Moatize Coal Mine will bring sustainable results, including a new mining plan and a new operating strategy for the coal processing plant. The new mining plan calls for prioritizing the mining of ore bodies with better quality and higher stripping ratios in order to improve the quality of the product portfolio while reducing costs.
According to reports, the two existing concentrators at Moatize Coal Mine will restart operations and adopt a new process that has been implemented since November 2020. After the full implementation of the new process, Vale expects that the concentrator will continue to reach production, and its production and operation rates in the second half of 2021 and 2022 are expected to reach 15 million tons/year and 18 million tons/year respectively.
Vale emphasized that as the first step for Vale to divest its coal business, the signing of this intentional agreement is in line with the company’s capital allocation principles and the goal of simplifying its product portfolio while strengthening its commitment to the Paris Agreement.
It is worth mentioning that previously, on May 12, 2020, Vale announced that it would invest at least US$2 billion to achieve a direct and indirect absolute emission reduction of 33% by the end of 2030. Vale also plans to achieve carbon neutrality by 2050 through this plan.
Headquartered in Rio de Janeiro, Brazil, Vale has operations on five continents and is the world’s largest producer of iron ore and pellets and the largest producer of nickel metal. Vale operates a large-scale logistics system in Brazil and other parts of the world, including railways, shipping terminals, and ports, and also has a logistics center to support the global distribution of iron ore.
California Disney refunds annual card users, and Paris Disney’s re-opening date is delayed by 48 days
Recently, according to information released by the Disney Company, Ken Potrock, President of Disneyland Resort (California Disney Resort), said in a statement that due to the ongoing uncertainty of the new coronavirus epidemic and the false news of the reopening of the California Disney Resort, Appropriate refunds will be made for eligible California Disney Resort annual card users, and the current (annual card) plan will be canceled.
It can be seen that due to the impact of the US epidemic, the California Disney Resort has been unable to reopen for a long time. Prior to this, California Disneyland has been “working hard” for the reopening.
On October 21st last year, Disneyland in California announced through the Disney Company: “We have proven that we can responsibly reopen under the science-based health and safety measures that are strictly enforced in theme parks around the world. However. , California continues to ignore this fact and instead requires the state government to know the guidelines that do not work. This makes the standards we meet very different from those of other reopened businesses and state-run facilities. We hope that, together with the union, Let people return to work, but these state government guidelines will keep us closed for the foreseeable future, forcing thousands of people to lose their jobs, cause small family businesses to inevitably close down, and cause damage to Southern California communities Irreparable destruction.”
But in the comments on the news on Twitter, most people believed that under the current conditions, the park should not be reopened.
Up to now, of the six Disney parks in the world, only Shanghai Disneyland, Tokyo Disneyland, and Orlando Disneyland in the United States are open. In addition to Disneyland in California, Hong Kong Disneyland and Disneyland Paris are also closed.
On December 1, 2020, Hong Kong Disneyland Resort announced that in response to the government’s request and in line with the current epidemic prevention measures taken by Hong Kong, Hong Kong Disneyland will be temporarily closed from December 2. Hong Kong Disneyland Resort will maintain close contact with the Hong Kong government and health authorities and will announce the reopening date depending on the situation. This is the third time Hong Kong Disneyland has closed the park since the outbreak of the new coronavirus in 2020.
In addition, Disneyland Paris has also been closed twice.
On October 29, 2020, Disneyland Paris has closed again after reopening on July 15. According to news from the official website of Disneyland Paris, in order to celebrate the Christmas holiday, Disneyland Paris will accept reservations from December 19, 2020, to January 3, 2021, and hopes to open it according to the prevailing situation and government guidance. From January 4th to February 12th, Disneyland Paris will be closed.
But for now, Disney Paris may not be able to reopen as scheduled on February 13.
On January 18th, local time in France, the updated message of Disneyland Paris said: “If conditions permit, we will reopen Disneyland Paris on April 2, 2021, and accept reservations from that date.”