Archive for December, 2008
SEC Moving Closer to International Financial Reporting Standards (IFRS)
By David Feldman at 9 December, 2008, 7:41 am
SEC Chairman Christopher Cox, though planning to leave before President-elect Obama is sworn in on January 20, is still pretty busy. One of his recent priorities has been moving towards allowing all US public companies to use “international financial reporting standards” (IFRS) if they choose, and possibly to mandate it by as soon as 2014. [...]
Read More >>Bankruptcies to Extend into 2010
By David Feldman at 9 December, 2008, 4:43 am
The aftershocks of the current recession are likely to be felt well into 2010, according to a study released today by Bain & Company. The study finds that bankruptcies of U.S. companies with $100 million or more in assets will approach 100 in 2010. The estimate is based on an analysis of macroeconomic trends including a projected default rate of 7-9% of corporate issuers of speculative debt (rated B or lower) and a $500 billion shift away from consumer spending to consumer savings. Large company bankruptcies currently are tracking to be in the 50-75 range in 2008, which is in line with the Bain CRG Spring 2008 outlook. The study estimates bankruptcies next year to surge into the 95-120 range, an upward forecast from the spring based on the recent economic downward forecasts for the economy.
Read More >>Which Peter and the Wolf Character are You in Today's Crisis?
By David Feldman at 6 December, 2008, 7:03 am
As we navigate through the most difficult waters most of us have ever seen (even my Mom lived through the Depression but was much too young to really remember it), I am off today to take my 6-year old to see a fabulous presentation of Sergei Prokofiev’s “Peter and the Wolf” by New York’s amazing [...]
Read More >>Tip of the Week: What Happens When Non-US Companies are Involved in a Reverse Merger?
By David Feldman at 5 December, 2008, 4:54 am
Some transactions are not structured as mergers but also achieve avoidance of shareholder approval. For example, most reverse mergers involving foreign companies, which generally cannot engage in direct mergers with U.S. entities, involve a simple exchange of shares. The shell and the private company’s shareholders agree that the private company’s shareholders will give up their shares of that company in exchange for shares of the shell. The shell, if it has sufficient shares available, approves that issuance through its board. Again, no shell shareholder approval is required.
Read More >>What Will December Look Like for the Travel Industry?
By David Feldman at 5 December, 2008, 4:53 am
Many companies will be hit hard this Holiday season due to the economy, however the travel industry could potentially affected most dramatically. Airlines and hotel chains rely on strong December revenues to augment their end-of-year financials. However with the current market environment and increased investor uncertainty, travel and transportation usage appears to be down compared to prior years.
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