CLOs

Dollar Tree Inc.'s board of directors formally appointed Michael Creedon as the company’s new CEO following both an internal and external candidate search, reports Retail Dive (19 December, Delesline III). Creedon has been leading the company as interim chief executive since early last month, having joined the retailer in 2022 as COO. He succeeds Rick Dreiling, who resigned the top post in November.

From "Dollar Tree Names Michael Creedon Permanent CEO"
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The Bank of Japan (BOJ) maintained its short-term policy rate at 0.25 percent, reports Reuters (19 December, Kihara, Sugiyama). BOJ Governor Kazuo Ueda reiterated the central bank’s resolve to keep raising rates from their current very low levels if the economy and prices move in line with its forecasts.

From "Bank of Japan Keeps Rates Unchanged With Few Clues on Next Move"
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FedEx has decided to spin off its freight trucking division, reports the Wall Street Journal (20 December, Fung, Hart). FedEx Freight is the largest less-than-truckload operator in the country, with more than 30,000 vehicles and 350 facilities in North America that move cargo for retailers, manufacturers, and other shippers. The division had more than US$9 billion in revenue in the last fiscal year, and some analysts have estimated the unit could be worth much more as a stand-alone public company. FedEx said its board had decided to spin off the business as a separate public company with a goal of completing the separation within 18 months. Freight is the smallest of FedEx’s major services by revenue and doesn’t share its cargo with the other services, Express and Ground. FedEx is in the process of combining those operations in a multiyear restructuring. The company and rival United Parcel Service have been under pressure to boost results after the pandemic-era boom in packages waned.

From "FedEx Plans to Spin Off Freight Trucking Division"
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The US Food and Drug Administration (FDA) on Thursday updated the definitions of the term “healthy” for labeling on foods, reports the New York Times (19 December, Jewett). The rule sets forth highly specific guidelines around what food manufacturers can label “healthy” or other terms, like “healthful” or “healthiest.” The new definition would include some processed and packaged food and several items previously excluded from the definition of “healthy,” like nuts, seeds, salmon, some oils, and water. It would also strip the label from other foods, including yogurts, fruit cups, and whole wheat bread products that are considered too high in sugar or sodium.

From "FDA Updates Labeling Terms for ‘Healthy’ Foods"
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BT has successfully defended a £1.3 billion class action over allegations it “disproportionately overcharged” its landline customers, reports the UK’s Independent (19 December, Clarke). In a judgment released on Thursday, the Competition Appeal Tribunal (CAT) found the claim against BT failed after deeming that “overall” prices it charged “were not unfair, and therefore there was no abuse of dominant position.” Collective Action on Land Lines founder Justin Le Patourel had sought between £300 and £400 in compensation for more than three million customers, depending on the length of their contract. In 2017, watchdog Ofcom said that BT had unfairly charged millions of landline customers from 2015 after an investigation. At the time, BT agreed to reduce the price of its landlines. However, Le Patourel took the issue to CAT as he believed the telecoms provider owed compensation payments, arguing that many customers were vulnerable and were owed refunds.

From "Competition Tribunal Dismisses £1.3 Billion Class Action Claim Against BT"
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Malawi’s government is demanding US$309 billion in unpaid taxes and royalties from US-based gemstone company Columbia Gem House for rubies exported from the country over the last decade, reports BBC News (19 December, Gitonga, Lombard). The government is also demanding US$4 billion from French gas giant TotalEnergies in unpaid revenue from an oil storage deal and US$9.5 million from Turkish tobacco firm Star Agritech, said Attorney General Thabo Chakaka Nyirenda. Columbia Gem House said it does not operate in Malawi, but buys its gemstones from Nyala Mines, a Malawian-owned company in which the government has a 10 percent stake. Malawi joins a host African countries that are seeking money they say multinational companies owe them. Last week Mali’s government issued an international arrest warrant for Canadian mining firm Barrick Gold’s chief executive officer, alleging the company owes the West African state US$500 million. In November, the government released the head and two employees of an Australian mining company, Resolute Mining, after a US$160 million tax dispute was settled.

From "Malawi Seeks Billions of Dollars from US Firm over Ruby Sales"
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Workers who deliver packages from seven Amazon facilities across the United States went on strike Thursday morning, reports the New York Times (10 December, Scheiber). The International Brotherhood of Teamsters, the union that represents them, said thousands of workers had struck. The drivers are employees of companies that Amazon uses to deliver packages to customers. Amazon has said it has no obligation to bargain with the drivers, because they are not its employees. But the union and the workers said that Amazon ultimately controls their working conditions and was therefore obligated to bargain with them. The National Labor Relations Board has investigated some of the cases and issued at least one complaint finding the drivers to be Amazon employees and accusing the company of breaking the law by failing to bargain with them. The Teamsters said in a statement that workers at other Amazon warehouses were prepared to join the strike.

From "Amazon Delivery Drivers at Seven Hubs Walk Out"
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Intelligent power management company Eaton announced that Lucy Clark Dougherty has been named general counsel, effective January 27, according to a release published by Business Wire (19 December). Dougherty will succeed Taras “Terry” Szmagala Jr. as executive vice president and chief legal officer upon his retirement, effective April 4, 2025. In this role, Dougherty will serve as counsel to Eaton’s executive management team and its Board of Directors, and will lead the company’s global Legal organization, including the Corporate Governance and Compliance functions. Dougherty will report to Paulo Ruiz, president and chief operating officer, Eaton, and will join the company’s executive leadership team upon her appointment to executive vice president and chief legal officer, effective April 5. Dougherty joins Eaton from Polaris, a US global powersports manufacturer, where she served as senior vice president, general counsel, and secretary. Prior, she held various deputy general counsel and leadership roles with General Motors.

From "Eaton Names New General Counsel"
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Lamb Weston on Thursday named insider Michael Smith to replace its CEO following pressure from activist Jana Partners to revamp its top management or sell itself, reports Reuters (19 December, Tabassum). The frozen potato snacks maker also trimmed its annual profit and sales forecasts. Smith, currently the operating chief, will take over from Thomas Werner on January 3, the company said. Jana Partners revealed a roughly five percent stake two months ago. On Thursday, it reiterated its call for a significant board change or sale.

From "Lamb Weston Replaces CEO amid Push from Jana"
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The UK Financial Conduct Authority (FCA) said on Thursday it wanted to replace current investor information with a simpler and more flexible system tailored to Britain and give firms more choice about how, what and when they communicate, reports Reuters (19 December, Ridley). Under current rules introduced across Europe when Britain was an EU member, people buying investments, such as funds and structured products receive standardized documents covering prescribed information, which could put them off or lead to less informed decision making, the FCA said. The consultation, which ends next March, follows a government plan to replace disclosure requirements in the EU’s Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation and the Undertakings for Collective Investment in Transferable Securities (UCITS) with a more flexible approach that benefits consumers.

From "UK Watchdog Plans to Simplify Investment Information, in Shift from EU"
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Global aerospace company AAR Corp agreed to resolve US charges in connection with schemes to bribe Nepalese and South African officials, reports Reuters (19 December, Singh, Ward). The US Justice Department and Securities and Exchange Commission said on Thursday that AAR agreed to pay more than US$55 million to resolve investigations into violations of the Foreign Corrupt Practices Act. Deepak Sharma, a former AAR subsidiary executive, pleaded guilty in August for his role in the Nepal scheme, and Julian Aires, a third-party agent of AAR, pleaded guilty in July for his role in the South Africa scheme. AAR entered into an 18-month non-prosecution agreement with the Justice Department. Between 2015 and 2020, AAR conspired to pay bribes to government officials to obtain and retain business with state-owned airlines in Nepal and South Africa, the Justice Department said, citing the company’s admissions in connection with the resolution. AAR obtained profits of nearly US$24 million as a result of the scheme. In Nepal, AAR corruptly obtained business with Nepal Airlines Corporation, the state-owned airline of Nepal, related to the sale of two Airbus A330-200 aircraft by bribing Nepalese officials through various intermediary companies. In South Africa, AAR obtained the award of an aircraft component support contract with South African Airways Technical, a wholly owned subsidiary of South African Airways, a state-owned airline, by paying bribes to South African officials through a third-party agent.

From "Aerospace Firm AAR Settles US Charges over Bribing Foreign Officials"
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The French Competition Authority fined a dozen home-appliance manufacturers and distributors a total of about 611 million euros (US$632.7 million) over concerns they fixed prices on retail products to weather competition from e-commerce platforms, reports the Wall Street Journal (19 December, Hancock, Chopping). The watchdog said Thursday that manufacturers including LG, Miele, Smeg, Electrolux, SEB, and Whirlpool, as well as distributors such as Fnac Darty, breached the country’s competition rules between 2009 and 2014. Groupe SEB was hit with the highest penalty at 189.5 million euros, followed by Fnac Darty with a 109 million fine. SEB said it will appeal the regulator’s decision, while Fnac Darty said it won’t contest the fine. The watchdog said ten manufacturers forged individual agreements with their retail distributors to artificially keep sales prices high in a bid to stave off competition from the fast-evolving e-commerce sector.

From "French Regulator Fines Appliance Groups US$633 Million over Alleged Price Fixing"
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Poland is selling up to 1,000 metric tons of its frozen butter reserves to bring down surging prices, reports CNN (18 December, Ziady). The government’s strategic reserves agency announced the butter auction Tuesday, citing significant increases in butter prices worldwide that it blamed on a shortage of milk. It’s not unheard of for governments to tap into emergency reserves in order to boost supply and bring down prices. In Poland, the skyrocketing price of butter has become symbolic of wider cost-of-living pressures. Rafal Trzaskowski, the presidential candidate of the ruling party of Prime Minister Donald Tusk, recently accused Poland’s central bank of mismanaging inflation and offered to send the governor some butter as proof. Meanwhile, Jaroslaw Kaczynski, leader of the right-wing opposition Law and Justice Party, posted a picture on X earlier this month of butter being kept in a safe to highlight how expensive the spread has become amid an overall rise in living costs. Year-on-year inflation in Poland came in at 3.9 percent in November, considerably above the equivalent rate across the European Union, official statistics showed Wednesday. On the national measure of inflation, prices rose even more last month, by 4.7 percent. That’s still well below the 18.4 percent peak reached in February last year but is an issue that surveys show is weighing on household spending. According to the European Commission, butter prices in the EU have jumped some 44 percent this year as dairy prices have surged around the world. Last month, the Dairy Price Index published by the United Nations’ Food and Agriculture Organization stood 20 percent above its level a year ago. Worldwide butter prices increased for the 14th consecutive month to a record high, due to strong demand and “tight inventories,” the UN body said in a statement. Also in November, its broader Food Price Index, which tracks international prices of a range of food, reached its highest level since April 2023. However, the index still remains more than 20 percent below the peak recorded in March 2022.

From "Poland Is Selling Its Frozen Butter Reserves to Curb Soaring Prices"
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The Lion Electric Co. applied to the Superior Court of Quebec for protection from creditors under the Companies’ Creditors Arrangement Act (CCAA), reports the Toronto Globe and Mail (18 December). The electric school bus maker also says it plans to seek recognition of the CCAA proceedings in the United States under Chapter 15 of the Bankruptcy Code. In its application to the Quebec court for an initial order, the company is seeking approval of a formal sale and investment solicitation process. The filing for credit protection comes after the company said Monday that it had defaulted on its debt. The company temporarily laid off 400 employees and shut down production at its Illinois plant earlier this month after getting a two-week reprieve from its lenders to explore its alternatives.

From "Lion Electric Applies to Quebec Court for Protection from Creditors Under CCAA"
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ANZ’s chief executive has given up over A$3 million of a long-term bonus after shareholders indicated their displeasure with regulatory issues at the bank, according to a report published by the Australian Broadcasting Corporation (19 December). The CEO of one of Australia’s big four banks withdrew a vote on the performance bonus worth A$3.2 million, which needed shareholder approval to be executed, after a preliminary review showed it would be approved on the narrowest of margins. Shayne Elliott, due to exit as CEO in mid-2025 after nine years in the role, was awarded the long-term bonus previously just as the bank faced an Australian Securities and Investments Commission (ASIC) probe into suspected misconduct in a 2023 government bond issue. Shareholder adviser groups indicated they would support the bonus by a narrow margin of 50.1 percent, according to a tally of proxy votes published by the bank ahead of its annual meeting on Thursday, but the bank withdrew the resolution at Elliott’s request, ANZ Chairman Paul O’Sullivan said.

From "ANZ CEO Withdraws Vote on A$3.2m Performance Bonus"
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Brazil’s real has fallen almost two percent this week alone, touching a record low of 6.21 against the US dollar on Tuesday, reports the Financial Times (18 December, Clarfelt, Pooler), despite a barrage of foreign exchange interventions by the country’s central bank. The Banco Central do Brasil (BCB) sold more than US$3 billion in back-to-back operations on Tuesday, its third consecutive day of wading into currency markets as policymakers seek to prop up the embattled real. The central bank has sold nearly US$6 billion this week, according to calculations based on BCB disclosures. Investors have argued that stronger actions were needed to ease anxieties about the public finances of Latin America’s largest economy. The sell-off is compounding a delicate moment for current government, which is attempting to push through cost savings after its tax-and-spend policies provoked mounting resistance in the business world.

From "Brazil Currency Sell-off Piles Fiscal Reform Pressure on Lula"
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The US Department of Justice unsealed a civil complaint alleging CVS Pharmacy Inc. and various subsidiaries filled unlawful prescriptions in violation of the federal Controlled Substances Act, according to a report published by MarketWatch (18 December). Additionally, the complaint says CVS sought reimbursement from federal health care programs for such prescriptions, a violation of the False Claims Act.

From "US Accuses CVS of Facilitating Unlawful Sale of Prescription Opioids"
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China’s coal inventories have been boosted by surging domestic production, which hit a record high last month, and rising imports, reports Bloomberg (19 December), as authorities prioritize energy security over cutting emissions. Efforts to mine more coal locally dates to 2022, when Russia’s invasion of Ukraine pushed up energy prices and led to electricity shortages in China. China accounts for more than half of global coal consumption. Worldwide coal demand will hit fresh record highs every year through at least 2027, the International Energy Agency predicted in a report this week, overturning a previous estimate that it peaked last year. China's stockpiles of coal grew 12 percent in the two months through October, according to the latest available data. China's National Energy Administration set a target to mine a record 4.8 billion tons of coal in 2025, which would be just ahead of the forecast for this year.

From "A Glut of Coal in China Is Set to Push Falling Prices Even Lower"
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The Dutch Data Protection Authority (DPA) fined Netflix 4.57 million euros (US$4.8 million), reports the Wall Street Journal (19 December, Hancock), accusing the streaming platform of failing to give users adequate information on how it processes their personal data. The Authority said Wednesday that the US company didn’t give customers enough information about how their data is handled between 2018 and 2020 in its privacy statements and in responses to requests for further information on how that data is used. The DPA said the company broke the European Union’s General Data Protection Regulation. The regulator said Netflix gave too little and unclear information on a number of points such as why it collects personal data, how long it holds onto it, and what data it shares with third parties. The Dutch DPA started investigating Netflix after a complaint from Austrian privacy campaign group None of Your Business.

From "Netflix Fined US$4.8 Million by Dutch Watchdog Over Data-handling Disclosures"
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Germany effectively called on UniCredit SpA to sell its stake in Commerzbank AG, reports BNN Bloomberg (18 December, Nienaber), hours after the Italian bank said it had increased its share. “UniCredit itself emphasizes that the participation in Commerzbank has so far been a pure investment, which could also be dissolved at any time,” deputy government spokesman Wolfgang Buechner said at a press conference in Berlin on Wednesday. “The German government expects UniCredit to make use of this option.” Earlier on Wednesday the Milan-based bank under Chief Executive Officer Andrea Orcel announced that it had used derivatives to increase its effective stake in the German bank to 28 percent from 21 percent. That pushes it close to the just-under 30 percent threshold that would trigger a full takeover bid. The Italian’s pursuit of Commerzbank since September has riled German unions and politicians. Amid strong German pushback, Orcel has also launched a simultaneous bid for Banco BPM SpA, a rival Italian lender, again in the face of resistance.

From "German Government Tells UniCredit to Exit Commerzbank Stake"
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