Thread by @pirateportfo

Bloomberg reported Sunday, "Bed Bath Begins Three-Week Countdown to Possible Bankruptcy". I'd like to celebrate our final days to April 26th w a daily discussion of various topics hinting at the latest corporate raid of @Carl_C_Icahn

Day 22: What is JP Morgan Chase Doing? #BBBY

https://twitter.com/pirateportfo/status/1630181140245143552

"On or around January 13, 2023, certain events of default were triggered under the Company’s Credit Facilities (as defined below) as a result of the Company’s failure to prepay an overadvance and satisfy a financial covenant, among other things."

Source:
bedbathandbeyond.gcs-web.com/node/16871/html

Why didn't JP Morgan seize assets right then? What kind of sophisticated investment bank issues default on a company with a 'Going Concern' and doesn't immediately collect on it's loans? Bed Bath owed JPM $550m on its Asset-Backed Loan as of Nov 26th (as reported in the default)

with another $375m due on its FILO Facility. The company didn't later secure financing until their Feb 7th securities offering.

Are we supposed to believe JP Morgan wishfully waited 25 days for Hudson Bay to come along and save their loans? I would call that improbable.

*Among Other Things*

Pitchbook also had something to say about Jan 13th, that silly Morningstar subscription database. Rumor/Speculation of a Leveraged Buyout, only 8 days after the company terminated their bond exchange offering. That almost makes a ton of sense.

"a Change of Control" is defined as an Event of Default in Article VII of its Credit Agreement with JP Morgan from August of 2021, page 123. Math is beginning to add up.

Source:
bedbathandbeyond.gcs-web.com/static-files/1…

Given the passive approach to reclaiming payment on their loans in default by JP Morgan, it's more likely the bank has non-public information of a leveraged buyout than it would of an upcoming bankruptcy, or else they might've acted much differently with Bed Bath in January #BBBY

Huge thanks again to @STOCKMASTERJAY for the insight on this one.