Texas insurer Hallmark files for Chapter 11

BY Fraser Tennant

Citing parent company legacy challenges, insurance firm Hallmark Financial Services has filed for Chapter 11 bankruptcy protection to effectuate a restructuring support agreement (RSA).

The RSA contemplates a restructuring transaction with Hildene Capital Management and certain of its affiliates, whose clients collectively comprise the majority holder of Hallmark’s debt obligations.

Hallmark has also filed customary ‘first-day’ motions that will allow it to maintain business operations and uphold its commitments to employees, agents, policyholders and vendors, including continued payment of employee wages and benefits.

The company has sufficient cash on hand and does not require debtor-in-possession financing.

“Over the past two years, we have taken meaningful actions to address legacy challenges at our parent company, including exiting underperforming businesses and improving liquidity,” said Chris Kenney, president and chief executive of Hallmark. “With the support of our lenders, this transaction is the right next step to strengthen our balance sheet, enhance financial flexibility and position Hallmark for long-term success.”

Hallmark’s insurance company subsidiaries are not part of the proceeding and will continue to operate in the ordinary course during the restructuring process.

“Importantly, our insurance company subsidiaries continue to perform well and are not part of this process,” continued Mr Kenney. “We remain fully committed to servicing and partnering with policyholders, agents and vendors without interruption, and we expect normal business operations to continue.”

Founded in 1987 and headquartered in Dallas, Texas, Hallmark is a diversified property and casualty insurance company offering commercial and personal insurance solutions to businesses and individuals in specialty and niche markets. The company is licensed and eligible to write admitted and non-admitted business in 47 and 44 states, respectively. 

Hallmark expects to emerge from the Chapter 11 process in less than 90 days, subject to regulatory approval.

Mr Kenney concluded: “We appreciate Hildene’s support and confidence in our business and believe this transaction positions Hallmark for a stronger future.”

News: Texas Insurer Hits Ch. 11 With $134M Debt, Prepackaged Plan

Fox agrees $22bn Roku deal

BY Richard Summerfield

Fox Corp has agreed to acquire streaming tech company Roku in a cash-and-stock deal worth approximately $22bn.

Under the terms of the deal, Roku shareholders will receive $96 in cash and about 0.97 Fox class A shares for each ​share held, valuing the offer at $160 per share. That represents a 33.7 percent premium to Roku’s close on Thursday, a day before publications reported it was exploring options including a ‌sale.

The boards of both companies have ⁠unanimously approved ​the transaction, which is expected to close in the first half of calendar year 2027 ​and will generate around $400m in annual cost savings. The deal will include roughly $14.6bn in cash, with the rest paid in stock, adding about $8.3bn in debt to Fox’s balance sheet.

Upon closing, existing Fox shareholders are expected to own approximately 73 percent of the combined company and Roku shareholders approximately 27 percent.

“This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” said Lachlan K. Murdoch, executive chair and chief executive of Fox Corporation. “In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.

“This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” he continued. “And we are executing this acquisition from a position of financial strength – maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”

“Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment,” said Anthony Wood, founder, chairman and chief executive of Roku. “I’m incredibly proud of what our team has built, and the combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.

“That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company,” he added.

Roku is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices, according to research firm Park Associates. The company was something of trailblazer when it came to offering streaming services to mass audiences, with its operating system offering users access to apps to a multitude of streaming services such as Netflix and Amazon Prime, as well as its own channel. Globally, more than 100 million households stream with Roku.

News: Fox strikes $22 billion deal for Roku to fuel streaming push

GSK agrees $10.6bn Nuvalent deal

BY Richard Summerfield

GSK has agreed to buy US cancer biotech Nuvalent for $10.6bn, in the UK pharmaceutical group’s biggest acquisition for more than a decade.

The all-cash deal values Nuvalent at around $124 per share, a 40 percent premium to its last closing price before the deal was announced and a 26 percent premium to the company’s 30 calendar day volume-weighted average price.

According to a statement announcing the deal, the transaction will be funded primarily from new and existing debt facilities plus cash, with no impact expected to GSK’s credit rating. GSK will maintain a strong investment grade credit profile and retain balance sheet capacity for further accretive business development.

The deal, which is expected to close in Q3 2026, is indicative of the strategic shift the company has undertaken since the appointment of Luke Miels, its new chief executive. The company previously prioritised bolt-on acquisitions, but under Mr Miels appears to be moving away from this tactic.

GSK is also making a concerted push into on oncology treatments under its new leadership. Since taking control of the company, Mr Miels has pledged to accelerate development of new medicines ​and target new assets to strengthen GSK’s late-stage pipeline and manage the 2028 patent expiry of its key HIV medicine dolutegravir. The company reported a 43 percent rise ‌in sales ⁠across its oncology portfolio last year to just under £2bn, which accounted for around 6 percent of the group's total.

“Today’s acquisition is a multi-product deal, consistent with our approach to acquire assets that have clinically proven targets and meaningfully address an efficacy and/or tolerability gap,” said Mr Miels. “The two lead products are potential best-in-class assets that could launch this year if approved by the FDA and offer significant new treatment options to patients with two forms of non-small cell lung cancer.

“The acquisition provides GSK with immediate new sales growth opportunities, improving profit contributions from 2027, and a platform in lung cancer for rapid expansion with Ris-Rez, our B7-H3 targeted ADC in phase III clinical development,” he added.

“Since our founding, we have leveraged our deep expertise in chemistry and structure-based drug design to develop a portfolio of novel, potentially best-in-class kinase inhibitors,” said James Porter, chief executive of Nuvalent. “Our close collaboration with leading physician-scientists and patient advocates has driven remarkable enrolment, accelerating development and building confidence in the clinical profile of these drugs.

“We’re excited that GSK has recognised the significant value these programmes can offer patients and shares our vision for practice-changing innovation,” he continued. “GSK’s proven track record, infrastructure, and expertise will support the successful commercialisation of zidesamtinib and neladalkib, as well as accelerate advancement of our broader discovery pipeline.”

News: GSK boosts cancer portfolio with $10.6 billion Nuvalent takeover

Saks Global gains approval for Chapter 11 exit plan

BY Fraser Tennant

At the final stage of its restructuring process, luxury retail company Saks Global has received bankruptcy court approval of its Chapter 11 exit plan – confirmation which paves the way for its emergence with a strengthened financial foundation.

The luxury retailer, which owns Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in mid-January 2026, having struggled with the heavy debt burden incurred from its $2.7bn acquisition of Neiman Marcus in late 2024, alongside a general slowdown in luxury spending

The restructuring plan – approved by the US Bankruptcy Court for the Southern District of Texas – gained support across the capital structure from participating creditors, the overwhelming majority of which voted in favour.

The plan is expected to significantly reduce the company’s funded debt from $3.4bn to about $1.2bn, wiping out existing equity and handing control to senior lenders, who have provided $1bn in new funding through the bankruptcy and pledged an additional $500m ​after the company ​exits Chapter 11.

“With significantly reduced debt on the company’s balance sheet at emergence and having already achieved substantial cost savings through the optimisation of our footprint, operations and organisation, our business is well positioned for future success,” said Brandy Richardson, chief financial officer at Saks Global. “We look forward to driving profitable growth as a stronger Saks Global, leveraging our distinct and differentiated assets.”

The plan also establishes the foundation for the company to accelerate sales growth, with a focus on strong full-price selling, and to generate $9bn in total gross merchandise value and double-digit adjusted earnings before interest, taxes, depreciation and amortisation by 2030.

Upon completion of the restructuring process, the company will emerge with 49 luxury retail locations, including 33 Neiman Marcus stores, 15 Saks Fifth Avenue ​stores, and Bergdorf Goodman. Saks Global entered bankruptcy with 33 Saks Fifth Avenue ​locations.

Geoffroy van Raemdonck, chief executive of Saks Global, said: “With our capital partners’ commitment and the dedication of our talented team, we are on track to emerge as a stronger, more focused company, poised for profitable and sustainable growth.”

News: Saks Global wins court approval for bankruptcy restructuring

Alba acquires Aluminium Dunkerque in $2.2bn deal

BY Fraser Tennant

A pivotal step in its strategy to build a global low-carbon aluminium platform, Aluminium Bahrain (Alba) is to acquire Aluminium Dunkerque in a transaction valued at approximately $2.2bn.

Upon closing of the transaction, Alba will acquire 100 percent of Aluminium Dunkerque – the largest aluminium smelter in the European Union – to be fully financed by a consortium of Alba’s banking partners.

Alongside Alba, French state-backed investment bank Bpifrance is to take a 6 percent ​stake for $116.5m under a memorandum of understanding. Bpifrance will ⁠also have a seat on the board of Aluminium Dunkerque’s holding ​company.

The entry of Bpifrance, as a key minority shareholder and member of the board of directors, aims to strengthen Aluminium Dunkerque’s presence in the region and demonstrates the strategic significance of the company within the French aluminium sector.

“Bpifrance’s investment in Aluminium Dunkerque underscores our commitment to securing and reinforcing the long-term future of this strategic industrial site,” said Nicolas Dufourcq, chief executive of Bpifrance. “By joining forces, we are not only supporting the growth of a key player in the European aluminium sector but also ensuring that Aluminium Dunkerque remains a cornerstone of France’s industrial resilience and innovation.”

Located in Loon-Plage in the Dunkerque region, Aluminium Dunkerque’s smelter produces approximately 300,000 tonnes of aluminium annually. With advanced automation, integrated production capabilities and a highly skilled workforce, the company is well-positioned to capitalise on the growing European demand for sustainably produced aluminium.

Previously owned by US private equity firm American Industrial Partners, the deal to acquire Aluminium Dunkerque was described by Nicolas Forissier, France’s minister for Foreign Trade and Economic Attractiveness, as “good news” in supporting investment, jobs, competitiveness and decarbonisation.

“We are pleased to mark an important step in the transition of Aluminium Dunkerque’s ownership to Alba,” said Dino Cusumano, general partner at AIP Industrial Partners. “Over the past four months, the process has advanced smoothly as expected thanks to the constructive work among all parties and a shared commitment to responsible execution.”

The transaction is subject to the completion of customary approvals.

Mr Cusumano added: “We remain confident that Alba is the right long-term owner for Aluminium Dunkerque and will be a strong partner for France in supporting the company’s continued development and strategic role in Europe.”

News: Alba to buy French aluminium smelter in $2.2 billion deal