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Despite weak evidence for a prepackaged bankruptcy filing on Tuesday, the press coverage may ultimately expedite the Clifton, N.J.-based retailer's fall. A slew of follow-up stories appeared throughout the week. The press reports may have prompted the ratings agencies to take a closer look at the retailer's debt because by Wednesday Fitch Ratings downgraded Linens 'n Things. By Friday, as more media outlets reported that the retailer was on the precipice of bankruptcy, the company, owned by Apollo Management LLP, reportedly hired restructuring firm Conway Del Genio Gries & Co., which is also working on a turnaround for another bankrupt retailer, the Sharper Image Inc. Reuters reported that Linens 'n Things retained Conway to guide it through its options as the retailer scrambled to avoid a Chapter 11 filing. The situation continues to worsen for Linens 'n Things, and The Wall Street Journal added that a bankruptcy filing could come Tuesday after a meeting with lenders -- a week after the New York Post set the story, if not Linens' greater woes, in motion. After the jump, we unabashedly revel in the best of the week's other rumors, speculation and manias. - Matthew Wurtzel
The current crisis: Soros and Blankfein search for the beginning
Merrill Lynch's overseas expansion: New guy, old movie
Continue reading "Merrill Lynch's overseas expansion: New guy, old movie" » Bank of Nova Scotia interested in National City auction Bank of Nova Scotia appears to be in the midst of a major change in strategy. According to The Wall Street Journal, the third-largest Canadian bank reportedly is in the hunt for National City Corp., the No. 12 U.S. bank, which is under pressure from regulators to boost its capital due to rising problem loans.
Delphi may make Appaloosa pay for buyer's remorse
Newsday: Zuckerman in, Cablevision out
Skybus founder says bankrupt airline will fly again
Rowan receives strong interest in LeTourneau Oil executives have flocked to New Orleans this week for the famed Howard Weil Energy Conference, and there's lots of deal talk going on in between trips to Bourbon Street. One executive who is likely too busy for Bourbon Street, however, is Danny McNease, CEO of oil equipment and services provider Rowan Cos.First Marblehead and the media blame gameBut, alas, we've found a case where the media might be to blame for once. Consider the following inaccurate April 8 Reuters headline: "The First Marblehead Corp. Files For Bankruptcy." The two-line story goes on to say that First Marblehead filed for bankruptcy "after its shares plunge [sic] low," and attributed the falling share price to the Education Resources Institute Inc.'s bankruptcy filing on Monday (which was real). First Marblehead is the exclusive loan processing agent to Education Resources, which is known as TERI, so it's not unthinkable that the company could be affected by TERI's Chapter 11 filing. But such an immediate bankruptcy from a company the size of First Marblehead is unlikely. Washington Mutual spurned J.P. Morgan buyout offer If Washington Mutual Inc. shareholders are annoyed by the coming dilution of their equity as a result of the $7 billion investment by a TPG-led consortium, then they should take comfort that it might have been worse had management accepted J.P. Morgan Chase & Co.'s low-ball buyout offer. Circuit City's stock jumps on fourth-quarter profit as sale possibility looms Circuit City Stores Inc.'s fourth-quarter profit may have pleased some shareholders, as its stock skyrocketed about 4.6% in early trading to hover just above $4.72 per share. The question is: Will the bottom line improvement satisfy activist and 6.5% stakeholder Wattles Capital Management's Mark Wattles, who awaits a promised meeting with the retailer following his recent nomination of a slate of five directors to the board, push to ouster chairman and chief executive Philip Schoonover and request that the retailer hire an investment bank to evaluate potential buyer interest? Citigroup set to sell $12B in loans to PE firmsCitigroup Inc. is showing just how committed it is to shrinking its balance sheet, as its stands poised to sell $12 billion in leveraged debt at what will likely be a steep loss to a group of private equity firms. Categories![]() Deal Video
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