💥Bankruptcy for Bird Scooters?💥
But first Quanergy Systems Inc., other SPAC-related news, Clovis Oncology & Sears Hometown.
Before we discuss a recent SPAC that appears headed for bankruptcy, let’s first set the stage by discussing a recent SPAC that is already in bankruptcy…
🚙 New Chapter 11 Bankruptcy Filing - Quanergy Systems Inc. (Short Mexican Border Walls) 🚙
“[A]ccess to capital has been significantly limited…” — Geoffrey Richards, Senior Managing Director at Raymond James & Associates, Quanergy Systems Inc’s proposed investment banker.
This ⬆️ is a theme you’re likely to see over and over again in coming months as the Fed raises rates, the era of cheap money comes to an end, and all of the SPAC (and other) craziness that unfolded in ‘21 and early ‘22 shakes out here at the end of ‘22 and into ‘23.
Another theme you’re likely to see in ‘23 is that the law firms and investment banks that brought these dogsh*t SPACs to market are — if they have their sh*t together — going to end up transitioning the accounts over from their corporate legal team or healthy M&A/SPAC banking team to their restructuring teams. In other words…
How it started: celebrating fees generated via SPAC!
How it’s going: celebrating fees generated via ex-SPAC chapter 11 bankruptcies filed after less than a year!
Case and point, Cooley LLP and Raymond James & Associates Inc. served as advisors to CA-based Quanergy Systems Inc. ($QNGY) — a designer and developer of Light Detection and Ranging (“LiDAR”) sensors and 3D perception software solutions — in connection with QNGY’s early ‘22-vintage de-SPAC merger with a special purpose acquisition company called CITIC Capital Acquisition Corporation ($CCAC). They now serve as advisors to Quanergy as it seeks an expedited sale via chapter 11 bankruptcy, lol: the company filed on December 13, 2022 in the District of Delaware (Judge Goldblatt).
Take the pipeline wherever you can get it, y’all.