Do the new SPAC regulations mean the end of SPAC IPOs? It sure seems that way. Earlier this year, the United States Securities and Exchange Commission (“SEC”) adopted new regulations to enhance disclosures and provide additional investor protections in initial public offerings (“IPO”) by Special Purpose Acquisition Companies (“SPAC”) and in subsequent business combination transactions between SPACs and target companies (“de-SPAC transactions”). (SEC; U.S. National Archives and Records Administration: Federal Register). The new SPAC regulations, which will go into effect on July 1, 2024, are designed to close many of the loopholes that allowed companies to “go public” through SPAC and de-SPAC transactions without the time, cost, and reporting requirements of traditional IPOs. (SEC; Brian Breheny et al., Skadden, Arps, Slate, Meagher & Flom LLP). This article provides a high-level overview of what led to the SPAC craze from 2019-2022, why the SEC adopted new SPAC regulations, and a prediction on the future of SPACs.
Read MoreThe Federal Aviation Administration (“FAA”) recently proposed a rule change that, if passed, would likely put airlines like JSX out of business. (Regulations.GOV; Alison Sider, The Wall Street Journal). JSX is a Dallas-based airline founded in 2016, which operates regularly-scheduled flights using a fleet of 30-seat aircraft that provides a premium flying experience to the general public. (JSX). JSX does this by operating “semi-private” flights out of private terminals that provide flyers with easy access parking, no lines, no-hassle security, and a flexible pet policy. (JSX; Gary Leff, View From The Wing). Additionally, because JSX operates from private terminals, it can fly to destinations that other airlines cannot, such as Taos, New Mexico. Id.
Read MoreSan Francisco’s Anchor Brewing Company (“Anchor”, “Anchor Brewing”), the oldest craft brewer in the United States, has withstood many hardships, and until now, has been a survivor. (Ansari and Otis, The Wall Street Journal). Over the past 127 years, the brewery has survived catastrophic earthquakes, the national prohibition of alcohol, two world wars, and competition from mass-produced beers. (Albeck-Ripka, The New York Times; Anchor Brewing). Despite a history of resilience, Anchor Brewing recently announced ‘last call’ on July 12, 2023. Due to its inability to recover from the consequences of the pandemic and the failure on its parent company, Japan’s Sapporo, to profitably run the craft brewer, Anchor Brewing Company has been forced to close its doors. (Albeck-Ripka, The New York Times).
Read MoreOn Friday, March 10, 2023, Signature Bank lost 20% of its deposits. (Vivian Giang & Mike Dang, The New York Times; Max Reyes, Bloomberg). Two days later, on Sunday, March 12, 2023, Signature Bank failed and went into receivership. (Vivian Giang & Mike Dang, The New York Times). Signature Bank’s failure was unexpected, so much so that it’s only the second time in over a decade that the Federal Deposit Insurance Corporation (“FDIC”) created a bridge bank in response to a bank failure. (Federal Deposit Insurance Corporation). How and why did Signature Bank fail so quickly? Are more U.S. Banks next? These answers and more, but first, it’s helpful to understand what happens immediately after a bank fails.
Read More