Codash http://codash.org/ Sat, 15 Jan 2022 14:50:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://codash.org/wp-content/uploads/2021/06/icon-150x150.png Codash http://codash.org/ 32 32 Heading to bankruptcy court? https://codash.org/heading-to-bankruptcy-court/ Sat, 15 Jan 2022 11:43:00 +0000 https://codash.org/heading-to-bankruptcy-court/

When is good news not necessarily good news? The number of bankruptcy filings has dropped significantly in the United States. This seems like good news. But is it?

According to a recent CNBC report, there were 434,540 bankruptcy filings in the United States in 2021, for the year ending 9/30/21. This compares to 776,674 filings in 2019, just before the onset of the COVID pandemic, a decrease of 45%. Total bankruptcy filings in 2021 were actually the lowest since 1985.

Sounds like good news, doesn’t it? Although there was a decrease in corporate filings, the dramatic decrease was recorded in bankruptcy filings by individuals. So your average American must have been wiser and more careful with their finances than in the past. In 2021, they must have been better able to live on their income and avoid unpaid debts that would lead to bankruptcy.

So, despite COVID, bankruptcy filings in the United States have declined by almost fifty percent over the past two years. Instead of, despite COVID, perhaps the dramatic decrease is due to COVID, or, more specifically, the government’s response to the pandemic. CNBC’s report gave three ways the government has helped keep the number of bankruptcies low. These were lender forbearance, low interest rates and, probably most importantly, direct government payments.

Forbearance of the lender. Several government programs have been enacted during the pandemic to delay payments to creditors. There was a moratorium on tenant evictions. Landlords could not evict tenants solely for non-payment of rent, or charge interest or late payment penalties. Rent is still due, but there are also rental assistance programs.

There was also forbearance in the pause in student loan repayments. This includes a suspension of loan repayments, payment of interest at 0% and a halt in the collection of delinquent loans. The average student now owes about $30,000 in student loans when they graduate from college. It does not eliminate the debt, it only suspends it, which has been extended until May 1, 2022.

Low interest rates. Persistently low interest rates orchestrated by the Federal Reserve have limited payments to borrowers. Lower payments kept borrowers from taking on more debt. But with prices soaring, the Fed has signaled interest rates will rise this year in hopes of curbing inflation.

Direct government payments. The most obvious were the stimulus checks most Americans received in April 2020, January 2021, and March 2021. These checks put thousands more dollars in the pockets of American families. Then there were changes to the child tax credit that increased it by $1,000 per child and issued payments during the year. There was also the Paycheck Protection Program which sent nearly a trillion dollars to businesses during the pandemic.

All the money sent to taxpayers and businesses due to the pandemic has likely helped many people avoid bankruptcy over the past couple of years. But the money provided was money the US government didn’t have, while running a deficit of more than $2 trillion over the two years and a total US debt of nearly $30 trillion. .

But there is also another problem. It seems like a lot of people have gotten used to getting extra money from the government. But what if that extra money no longer comes

in? Interest rates are rising, so the cost of borrowing will go up. Rent will be due, house payments will need to be paid, and these student loans are still outstanding, although many hope these loans will be forgiven.

But, among many in Washington, there is no desire for more COVID financial assistance. Economists know that all the money pumped into the economy has helped cause the inflation we face today, and more will only make it worse. So where will that leave anyone who has grown accustomed to these extra government freebies? Hopefully it’s not on the way to bankruptcy court.

Mac McPhail, raised in Sampson County, lives in Clinton. McPhail’s new book, “Wandering Thoughts from a Wondering Mind,” a collection of his favorite chronicles, is available for purchase at the Sampson Independent office, online at Amazon, or by contacting McPhail at [email protected]

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A return of GDP growth to previous levels would eliminate the deficit in five years, the budget watchdog says https://codash.org/a-return-of-gdp-growth-to-previous-levels-would-eliminate-the-deficit-in-five-years-the-budget-watchdog-says/ Sat, 15 Jan 2022 06:00:00 +0000 https://codash.org/a-return-of-gdp-growth-to-previous-levels-would-eliminate-the-deficit-in-five-years-the-budget-watchdog-says/

The return of economic growth to its previous long-term trend would allow the government to almost completely eliminate the deficit within five years, Britain’s budget watchdog said.

With GDP growth currently forecast at 1.6 per cent per annum, the Treasury will still be borrowing £44bn annually through 2026/27. But Richard Hughes, chairman of the Office for Budget Responsibility, said boosting growth to 3 per cent would cut the deficit by £38.7bn thanks to higher tax revenues.

The numbers were revealed in a letter to Labour’s shadow chancellor Rachel Reeves, who claims Rishi Sunak is wrong in focusing on balancing the books in the short term before the economy grows.

she said I: “The UK economy has suffered the worst economic downturn of any major economy and these figures confirm that without urgent action the UK risks being mired in a cycle of low growth and high taxes.

“We need a stronger economy to achieve prosperity across the country and to give the NHS and our other major public services the resources they need in the years to come.

“Work would create a safer economy by spending wisely, taxing fairly and fueling the economy. Instead, Conservatives are trapping the UK in a pattern of low prosperity, with working people paying the price in higher taxes.”

Mr Hughes warned that the outlook for public finances could turn less positive if higher economic growth were to fuel inflation. He also hinted that in reality “downside surprises” in the form of lower growth than currently forecast are also possible.

British economic growth has been significantly weaker than its long-term trend since the global financial crisis. Mark Littlewood of the Free-Market Institute of Economic Affairs complained that GDP has been treated by politicians as “an act of God, something that happens to us like the weather, not something we can control”.

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Social inequality hinders the preservation of biodiversity in urban areas https://codash.org/social-inequality-hinders-the-preservation-of-biodiversity-in-urban-areas/ Fri, 14 Jan 2022 20:11:00 +0000 https://codash.org/social-inequality-hinders-the-preservation-of-biodiversity-in-urban-areas/

Humans are part of nature, but the changes we make to the landscape can have a significant impact on the species around us. Max Lambert, a research biologist at the Washington Department of Fish & Wildlife, primarily studies amphibians and reptiles and their ability to survive in urban areas. Lambert’s research also examines how social inequality affects urban biodiversity.

“I interpret urban very broadly, meaning any type of urban development, it could be big cities, it could be low-density neighborhoods that are away from metropolitan areas,” Lambert said.

Urbanization is not one thing, but a variable mixture of industrial, commercial, residential and park areas. Some animals are able to navigate these areas, while other species disappear as human development encroaches on their habitat. While “greenspace” has been shown to benefit human mental health, Lambert argued that not all greenspace is created equal.

“What is green? This could just be a bunch of soccer fields, or it could be the recreation of a city forest. You know, both are good, they give you a chance to relax and see green things, but it’s the number of species that are in that green environment that plays a big role in improving human well-being.” said Lambert.

A lack of suitable habitat for animals can also reflect the injustice in dealing with human urban populations.

“I think we’ve, we’ve realized that a lot of the places that we think aren’t good for nature are also places that have downsized communities that are severely impacted by air pollution, water pollution, a shortage of green space, a lack of access to their own food, they are what we call food deserts where there are very few grocery stores and they are heavily littered with police areas. So unless you take care of equity and justice in a city, you will never be able to see conservation in a city reach its full potential, because these landscapes will always be places that are detrimental to the community of people who live there and need to thrive there as well,” Lambert said.

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No plans to scrap free COVID-19 vaccinations in Russia — Kremlin – Society & Culture https://codash.org/no-plans-to-scrap-free-covid-19-vaccinations-in-russia-kremlin-society-culture/ Fri, 14 Jan 2022 14:15:56 +0000 https://codash.org/no-plans-to-scrap-free-covid-19-vaccinations-in-russia-kremlin-society-culture/

MOSCOW, January 14. /TASS/. There are no plans to make COVID-19 vaccinations a commercial service in Russia, Kremlin spokesman Dmitry Peskov told TASS on Friday.

Earlier, United Russia State Duma Deputy Maxim Ivanov wrote on his Facebook page that the government allegedly intends to put a cost on COVID-19 vaccinations.

“No,” he replied to a question about whether the government plans to scrap free COVID-19 vaccinations.

Mass vaccination of the adult population began in Russia on January 18, 2021. Five coronavirus vaccines were registered in Russia today, namely Sputnik V and Sputnik Light, developed by the Gamaleya Center of the Ministry of Health of Russia, EpiVacCorona and EpiVacCorona-N, developed by the Vector Center of the Health Inspectorate and CoviVac developed by the Chumakov Center of the Russian Academy of Sciences.

COVID-19 vaccination in Russia remains voluntary. Vaccination is only mandatory in some regions and for certain categories of citizens, including service workers. Russian President Vladimir Putin has repeatedly spoken out against the introduction of compulsory vaccination. According to the head of state, it is necessary to get vaccinated because “COVID-19 is not going anywhere”.

According to Russian Deputy Prime Minister Tatyana Golikova, the level of herd immunity to coronavirus infection in Russia as of January 12 is 63.2%. Its level dropped in 12 regions during the New Year holidays.

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Defense removing waste from Sydney Harbour https://codash.org/defense-removing-waste-from-sydney-harbour/ Fri, 14 Jan 2022 03:08:46 +0000 https://codash.org/defense-removing-waste-from-sydney-harbour/

New Australian technology is helping clean up Sydney Harbor and shows how we can remove more plastic and other pollution from our waterways.

Trials of Seabin’s new Smart technology at Sydney Harbor Defense sites have removed 6,000 pounds of plastic, fuel and cleaning supplies from Sydney Harbor over the past 12 months, and there are plans to expand the technology.

Environment Minister Sussan Ley yesterday visited Garden Island with Wentworth member David Sharma, where the Seabin trial was removing 140 kilograms of litter a week, including a piece of plastic every 40 seconds.

Secretary of Defense Industry and Science and Technology Melissa Price said the defense process had exceeded all expectations and three permanent units would be maintained on Garden Island.

“Over a two-week period, the Seabins captured 6,198 debris from Sydney Harbour, including 3,500 microfibers and microplastics and 2,000 unidentified plastic debris,” Minister Price said.

“This is Australian technology that costs as little as $1 a day to run and can have huge environmental benefits.”

Environment Secretary Sussan Ley said the year-long trial, involving the MoD and its industrial partner Veolia Environmental Services, is an example of the government’s commitment to tackling waste and recycling.

“We cannot keep throwing plastic into our oceans and it starts with getting our waste into the recycling bin where it belongs,” Minister Ley said.

“The industry is certainly strengthening at the same time, and innovative technologies like the Seabin are a key example.”

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Navient settlement cancels student loan debt for thousands https://codash.org/navient-settlement-cancels-student-loan-debt-for-thousands/ Thu, 13 Jan 2022 21:09:52 +0000 https://codash.org/navient-settlement-cancels-student-loan-debt-for-thousands/

Californians will receive hundreds of millions of dollars in student loan relief in a multi-state settlement against one of the nation’s largest private lenders.

California and dozens of other states have settled with Navient over allegations of improper lending and collection practices. Navient will offer $95 million in restitution to borrowers and cancel $1.7 billion in private debt for borrowers across the country.

About $11.5 million of direct restitution and $261 million of private debt forgiveness will go to Californians, according to the California attorney general’s office.

Navient will also have to follow strict lending and collections guidelines, including requiring appeals officers to outline how borrowers can reduce or stop payments, training specialists to work with at-risk borrowers, and limiting certain late fees.

In announcing the settlement, California Attorney General Rob Bonta called on the federal government to act on student loan debt.

“There is a $1.7 trillion student debt crisis in our country,” Bonta said at a settlement news conference on Thursday. “We need the companies responsible for servicing federal loans to do better. And we need decisive action from Congress and the Department of Education to tackle the full extent of this problem.

Several states filed suit against the lender in 2017; California joined in 2018.

Bonta’s office said Navient, which was formed when lender Sallie Mae split into two entities in 2014, violated California law by pushing borrowers into expensive long-term payment plans that increased costs. interests. Navient also misled consumers by withholding information about income-based reimbursement programs, among other things, attorneys general said.

Navient has denied the allegations, with its chief legal officer saying the company “focuses and has continually focused on helping student borrowers understand and select the right payment options to meet their needs.”

“The company’s decision to resolve these matters, which were based on unsubstantiated claims, allows us to avoid the additional burden, expense, time and distraction that prevails in court,” the director said Thursday. Navient Legal, Mark Heleen.

“In fact, we’ve increased enrollment in income-contingent repayment plans and reduced default rates, and every year hundreds of thousands of borrowers we support successfully repay their student loans,” Heleen added.

About 357,000 borrowers will receive $260 in restitution, including 43,000 Californians. About 66,000 borrowers will have their private loan debt erased, including more than 7,400 Californians.

Navient will notify people whose debt is canceled and refund money for payments made after June 30, 2021, Bonta’s office said, direct consumers to a website dedicated to the payment. Those eligible for the restitution payment will receive a postcard from the Attorney General’s Settlement Administrator this spring. Eligible borrowers will receive a check, Bonta said, and need not take action.

Most borrowers would have taken private student loans from the company when it was still Sallie Mae between 2002 and 2010, according to Navient.

Among other administrative changes to strengthen payment assistance information, Navient is to notify borrowers of loan forgiveness through programs in the Cancellation of civil service loans program, which offers assistance to public servants in the non-profit or government sectors.

Many of those affected by Navient’s lawsuit took out loans to attend for-profit schools, another target of several lawsuits Bonta has filed.

“Many of us have worked hard to achieve our college dreams,” Bonta said. “But for too many people, those dreams have become horrible nightmares trapped by crushing student debt.”

Bonta and other state attorneys general have sued the United States Department of Education for defaulting on student loans who attended for-profit and defunct colleges, relaxing regulations for these institutions, and changes to borrower regulations.

Attorneys general from the following 38 states plus the District of Columbia were part of the lawsuit against Navient: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Iowa, Illinois, Indiana, Kansas, Kentucky , Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Washington, West Virginia and Wisconsin.

This story was originally published January 13, 2022 9:59 a.m.

Related Sacramento Bee Stories

]]> China’s growth will slow to 5.2% in 2022, moderate monetary policy easing expected https://codash.org/chinas-growth-will-slow-to-5-2-in-2022-moderate-monetary-policy-easing-expected/ Thu, 13 Jan 2022 10:18:00 +0000 https://codash.org/chinas-growth-will-slow-to-5-2-in-2022-moderate-monetary-policy-easing-expected/

A cargo ship with containers is seen near the Yantian Port in Shenzhen, Guangdong Province, China, May 17, 2020. REUTERS / Martin Pollard / File Photo

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  • China’s GDP growth of 5.2% in 2022, 5.2% in 2023
  • Inflation rate of 2.2% in 2022, 2.1% in 2023
  • C.bank saw RRR drop 50 basis points in the first quarter of 2022
  • C.bank saw LPR decrease 5 bps in Q1, 5 bps in Q2

BEIJING, Jan 13 (Reuters) – China’s economic growth is likely to slow to 5.2% in 2022 before stabilizing in 2023, as a Reuters poll found the central bank steadily tightened monetary policy easing to stave off a more severe downturn.

Expected growth for 2022 would come in lower than the 5.5% analysts forecast in a Reuters poll in October, underscoring several headwinds facing the world’s second-largest economy from a housing decline, a debt crackdown, tougher pollution measures and more strictly exposed to COVID-19 is curbs that have hit consumption.

According to the median forecasts of 62 economists polled by Reuters, gross domestic product (GDP) is likely to grow 8.0% in 2021, slower than 8.2% in October’s forecast, but still the highest annual growth in a decade.

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Analysts attribute the solid expansion in 2021 in part to the low base in 2020 when the economy was shaken by COVID-19, which first hit China. The subsequent government lockdowns paralyzed activities in large parts of the country.

In the course of the past year, however, the momentum slowed down significantly. GDP grew likely 3.6% year-over-year in the fourth quarter, which would be the slowest pace since the second quarter of 2020, and slowed from 4.9% in July through September, the survey found.

On a quarterly basis, growth in the fourth quarter is expected to increase from 0.2% in July-September to 1.1%, according to the survey.

The government is expected to release 2021 and Q4 GDP data and December activity data on January 17th (0200 GMT).

The Chinese leadership has pledged more support to the slowing economy, which is facing a new challenge with the recent local spread of the highly contagious variant of Omicron.

“To support economic activity, we expect that sufficient political support will be provided, especially in the first half of the year, to ensure that this year’s economic growth does not fall below the comfort level of Beijing,” said Tommy Wu of Oxford Economics in a press release.

China’s heads of state and government are aiming for economic growth of at least 5% in 2022 to curb unemployment, political circles said.

MODEST INCREASE EXPECTED

With the New Year expected to start off weakly, the People’s Bank of China (PBOC) is set to announce further easing measures, although it will likely inject more money into the economy instead of cutting rates too aggressively, political insiders and economists said. Continue reading

Over the past year, policy makers have focused on containing real estate and debt risks that exacerbated the economic slowdown. But they have tried to stave off a greater slowdown that could fuel job losses ahead of a major Communist Party congress later this year.

According to the survey, the PBOC is likely to lower banks’ minimum reserve ratios (RRR) by 50 basis points (bps) in the first quarter of 2022.

Analysts expect the PBOC to cut the prime rate on annual loans (LPR), the benchmark interest rate on loans, by 5 basis points in the first quarter, followed by an additional 5 basis points in the second quarter.

The PBOC last cut the RRR – the amount of cash banks must hold in reserve – by 50 basis points on December 15, its second step last year. This was followed on December 20 by lowering the key interest rate for one-year loans (LPR), the reference interest rate, by 5 basis points.

Policy makers have also pledged to step up fiscal support to the economy, accelerate local government issuance of special bonds to stimulate infrastructure investment, and plan further tax cuts.

Consumer inflation is likely to rise from 0.9% in 2021 to 2.2% in 2022 before falling slightly to 2.1% in 2023, the survey found.

(For other stories from Reuters Global Economic Survey: Read More)

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Survey by Vivek Mishra and Devayani Sathyan in Bengaluru, Jing Wang in Shanghai; Reporting by Kevin Yao; Adaptation by Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

]]> New study shows the toll of industrial agriculture t https://codash.org/new-study-shows-the-toll-of-industrial-agriculture-t/ Thu, 13 Jan 2022 02:01:56 +0000 https://codash.org/new-study-shows-the-toll-of-industrial-agriculture-t/

A new UBC-led study examining the impact of large-scale farming on biodiversity found that larger farm sizes lead to a decline in bird diversity.

“Wildlife is a good indicator of a healthy agro-ecosystem, and we wanted to understand the relationship between farm size and biodiversity in the surrounding areas,” says Frederik Noack, Assistant Professor in the Food and Resource Economics Group, part of the UBC Faculty of Land and food systems.

To understand this relationship, the researchers examined how various management indicators affect the diversity of native birds on the farmland on the border of the former Iron Curtain in Germany.

Researchers found that the growing farm size led to a 15 percent decline in bird diversity.

Although the former inner-German border lost its political implications after German reunification, the holdings on the east side of the border are still five times larger than a legacy of former peasant collectivization in east Germany compared to the west side.

The companies in East Germany have been privatized for 30 years, but the large differences in company size persist along the former border. This provides an ideal setup to study the effects of farm size on biodiversity in an otherwise ecologically and politically similar environment.

A diverse bird population ensures natural pest control and the maintenance of an overall healthy ecosystem.

“Surprisingly, we found that larger farms do not harm themselves, but their typical characteristics tend to affect bird diversity,” explains Noack. “Larger farms typically have larger fields and create more homogeneous landscapes with less diverse bird habitats.”

These results suggest that maintaining diverse habitats within the agricultural landscape plays a crucial role in maintaining bird diversity.

“Providing a mix of different plant species and other land uses such as forests and grassland within the agricultural landscape is critical to maintaining biodiversity and can mitigate the negative effects of agricultural industrialization,” he said.

Noack says her results underscore the importance of analyzing agricultural changes in the landscape context.

The study used a biodiversity database along with citizen science observations and overlaid them over satellite images of farms to establish correlations between farm size, plant cover, land cover diversity and land use intensity.

The combination of geolocalized bird diversity data from systematic bird studies and opportunistic citizen science data with high-resolution satellite imagery enabled researchers to examine the mechanisms that relate farm size to biodiversity.

“The high-resolution land cover data enabled us to characterize the bird habitat for any bird diversity observation, including field size, plant species and land use intensity. Based on our results, we can then provide the information for political measures to mitigate the negative effects of agricultural industrialization on biodiversity. “

Noack says agri-environmental policy plays an important role in harmonizing agricultural intensification with the goals of protecting biodiversity.

“Our results show that the negative effects of a larger farm size can be mitigated by maintaining the diversity of land cover in the agricultural landscape. In practice, this could mean creating incentives for bank buffer strips, wooded areas, hedges or agroforestry. “

Other researchers involved are Ashley Larsen, Bren School of Environmental Science & Management, University of California, Santa Barbara; Johannes Kamp, Institute for Conservation Biology, University of Göttingen, Germany; and Christian Levers, Institute for Environmental Geography, Vrije Universiteit Amsterdam, The Netherlands.

Click here to read the American Journal of Economics Study of company size and biodiversity from a bird’s eye view: The ecological legacy of the Iron Curtain.


Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of press releases sent to EurekAlert! by contributing institutions or for the use of information via the EurekAlert system.

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Letters to the Editor Wednesday January 12 – The Daily Gazette https://codash.org/letters-to-the-editor-wednesday-january-12-the-daily-gazette/ Wed, 12 Jan 2022 09:24:33 +0000 https://codash.org/letters-to-the-editor-wednesday-january-12-the-daily-gazette/

Diversity bodes well in Schenectady

At last, Schenectady public life is permeated with diversity, justice and inclusion.
The Schenectady City Council and Education Committee are no longer wholly or almost entirely white. The seven-member city council has a colored majority, three blacks and one Guyanese. For the first time, its President is a Black woman who succeeds her Guyanese colleague. In addition, the seven-member school council, which is unprecedentedly made up of women, has a non-white majority, four blacks. One of them, a Latina, is ready to become its next president, another for the first time.
From the founding of the Schenectady public schools in 1854 to that school year, there were 25 principals, all white men. The new superintendent, a Latino, has moved quickly to fill top positions in his administration alongside whites with men and women of color.
The Schenectady School District, with more than 9,300 students, 80% of whom are colored, has 803 teachers, 91% of whom are white. The district worked with Schenectady SUNY, Cazenovia College and Clarkson University to develop the Grow Your Own program, which is aimed at promoting diversity, equity and inclusion. This initiative promises important results: Schenectady high school students can acquire two-, four-year and master’s degrees and have the opportunity to become teachers in the district. The partnership is also designed to help increase the high school graduation rate.
Taken together, the above considerations indicate the likelihood that Schenectady’s public life will become increasingly diverse, fairer and more inclusive across the board.
Alvin Magid, Ph.D.
Niskayuna
The author is Professor Emeritus of Political Science at the University at Albany SUNY and the founder and director of the volunteer Reading Is Fun Program in Schenectady.

Stop putting paper in thin plastic bags

I’m sorry to beat that drum again, and I thank my Gazette carrier who delivers whatever the weather, every day. But can The Gazette’s management please advise your transport companies to avoid those single-use plastic bags that are useless for anything else? Regardless of what those bags say (return them for recycling), most end up in landfills and in the ocean and in the stomachs of dead sea turtles.
They disintegrate into microplastics that last forever. Their production uses a lot of chemicals and energy and contributes to global warming.
The mantra we learned as kids was “reduce, reuse, recycle” in that order. Thin-film plastic bags made from newsprint are not reused and most of them are not recycled. The first and best option remains: “Reduce” your stake.
We can no longer use them to carry our purchases. Why do we need them to cover your newspaper? We are not. Like many subscribers, I have a hard plastic newspaper delivery tube. For the most part, it already keeps rain and snow off. That is its purpose. So my newspaper can be damp from time to time. Moisture is better than more plastic dumped into our oceans.
Gazette, please instruct your transport company to reduce the use of thin-film plastic bags or, even better, to discontinue them altogether. Put the newspaper in the plastic tube and consider your job well done.
And I will thank you even more heartily than usual.
David Gibson
Ballston Lake

Optimistic for the future of democracy

I remember being surprised by the January 6th events in Washington, DC last year. The Capitol had just been overrun by an angry mob determined to stop confirming a presidential election. It was a sight that I could never have imagined in my lifetime.
A year later, I am still sad that such a tragic event took place in our country. I am also a little embarrassed because I see our country as a role model for other nations around the world who are committed to democracy and freedom.
That being said, I remain confident that our nation can heal.
I am confident that the majority of Americans will continue to stand up for our democracy.
Like me, I believe that most Americans are grateful to live in the United States.
You are proud to live in a country that offers freedom of speech, freedom of religion and guarantees the right to vote.
Most importantly, I am sure that they will never again want to see an act of domestic terrorism against our government.
I hope 2022 is the year we start working together to make our country the best it can be.
Raymond LeBel
Charlton

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LIQUIDIA CORP: Entering into a Material Definitive Agreement, Creation of a Direct Financial Obligation or Obligation under a Registrant’s Off-Balance Sheet Arrangement, Financial Statements and Supporting Documentation (Form 8-K) https://codash.org/liquidia-corp-entering-into-a-material-definitive-agreement-creation-of-a-direct-financial-obligation-or-obligation-under-a-registrants-off-balance-sheet-arrangement-financial-statements-and-suppo/ Tue, 11 Jan 2022 21:19:11 +0000 https://codash.org/liquidia-corp-entering-into-a-material-definitive-agreement-creation-of-a-direct-financial-obligation-or-obligation-under-a-registrants-off-balance-sheet-arrangement-financial-statements-and-suppo/

Article 1.01 Entry into an important final agreement.

Effective January 7, 2021 (the “Effective Date”) Liquidia Corporation, a
Delaware company (the “Company”) has entered into an amended and updated loan and guarantee agreement (the “Loan Agreement”) by and between the Company, Silicon Valley Bank, a California company (“SVB”), in its capacity as administrative agent and guarantee agent, Silicon Valley Bank, a California company, as a lender and SVB Innovation Credit Fund VIII, LP, a Delaware limited partnership (“Innovation”), as a lender (SVB and Innovation collectively the “Lenders” and each individually a “Lender”). The loan agreement amended and reaffirmed that certain loan and guarantee agreements dated February 26, 2021, as amended, by and between the Company and SVB (the “Prior Agreement”).

The Loan Agreement grants the Company up to $ 40.0 million in term loans, the first of which $ 20.0 million was funded on the effective date. The prior agreement provided for up to $ 20.5 million in term loans including $ 10.5 million
had been funded on the effective date.

Under the New Loan Facility, the Lender will grant loans in three tranches. The proceeds of the first tranche of $ 20.0 million were used to repay outstanding loans under the prior agreement and adds $ 9.5 million cash flow on the Company’s balance sheet. The first tranche also offers the possibility of drawing an additional amount $ 5.0 million at the discretion of the Company by December 31, 2022. A second installment of $ 7.5 million is available for funding upon receipt of final and unconditional approval of YUTREPIA ™ Inhalation Powder (Treprostinil) by December 31, 2022. The third installment of $ 7.5 million will be available via August 31, 2023, after having generated net sales of products over the last six months of YUTREPIA of $ 27.5 million through June 30, 2023. The loan facility will mature on December 1, 2025 and will consist of interest payments only by December 31, 2023, unless the milestone of the third tranche is reached, in which case the interest-only payments will continue until
December 31, 2024. The principal amount outstanding on term loans will bear interest at an annual variable rate equal to the greater of (1) seven and a quarter one percent (7.25%) and (2) the annual interest rate from time to time published in the monetary rates section of The Wall Street Journal plus four percent (4.0%).

Under the terms of the loan agreement, the Company has granted to the agent, for the proportional benefit of the lenders, to guarantee the payment and the full performance of all the obligations set out in the loan agreement, a continuing security pledged to the agent, for the benefit of the lenders, the collateral (as defined below), wherever it is located, whether currently held or acquired or resulting, and all products and products thereof.

For the purposes of the Loan Agreement, “guarantee” means all of the Company’s rights, title and interest in the following personal property: (i) all property, accounts (including health care receivables), ” equipment, inventory, contractual rights or rights to payment of money, leases, license agreements, franchise agreements, general intangibles (except as provided below), commercial tort claims, documents, instruments ( including promissory notes), movable effects (physical or electronic), cash, deposit accounts, certificates of deposit, arrangements, rights to letters of credit (whether or not the letter of credit is embodied in writing), securities, securities accounts, rights to securities and all other investment property, supporting obligations and financial assets, whether they are currently held or acquired below, wherever they are located; and (ii) all company records relating to the foregoing, and all claims, rights and interests in any of the above and all substitutions, additions, attachments, accessories, acquisitions and improvements and replacements , products, products and insurance products of all or part of the foregoing. All defined terms used in this paragraph have the definitions assigned to that term in the Uniform Commercial Code.

As with the previous Agreement, the Loan Agreement contains customary covenants, positive and negative, including, but not limited to, certain financial covenants, the protection of intellectual property rights and the disposition of certain assets.

As an incentive to enter into the Loan Agreement, from the Effective Date, the Company issued to each of SVB, Innovation and VIII-A LP Innovation Credit Fund (“Innovation Credit”). certain warrants to purchase ordinary shares of the Company in accordance with the share subscription agreements entered into by and between the Company and each beneficiary (collectively, the “Warrants”). The granting of warrants under the respective warrants conferred (i) on SVB the initial right to obtain 125,000 shares of the Company at an exercise price of $ 5.14 one share, and there is an opportunity for SVB to obtain up to 50,000 additional warrants on the basis of certain loans that may be granted under the loan agreement, (ii) Innovation with the initial right to obtain 62,500 Company shares at an exercise price of $ 5.14 one share, and there is an opportunity for Innovation to obtain up to 25,000 additional warrants based on certain loans that may be granted under the Loan Agreement, and (iii) Innovation Credit with the right initial purchase of 62,500 Company shares at an exercise price of
$ 5.14 one share, and Innovation Credit has the option of obtaining up to 25,000 additional warrants based on certain loans that may be made under the loan agreement. The warrants provide an option for a cashless exercise.

The description of the terms of the Loan Agreement and the Warrants is qualified in its entirety by the full text of each agreement filed attached as Exhibit 1.1, Exhibit 1.2, Exhibit 1.3 and Exhibit 1.4 and incorporated herein by reference. .



Item 2.03    Creation of a Direct Financial Obligation or an Obligation under an
             Off-Balance Sheet Arrangement of a Registrant.



The information to be reported under this Item 2.03 is incorporated by reference from Item 1.01 of this current report on Form 8-K.

Item 9.01 Financial statements and supporting documents.

(d) The exhibits listed in the exhibits index below are filed as part of this current report on Form 8-K.



Exhibit
No.                                        Exhibit
  4.1        Warrant to Purchase Stock, dated as of January 7, 2022, by and
           between the Company and Silicon Valley Bank.
  4.2        Warrant to Purchase Stock, dated as of January 7, 2022, by and
           between the Company and SVB Innovation Credit Fund VIII, L.P.
  4.3        Warrant to Purchase Stock, dated as of January 7, 2022, by and
           between the Company and Innovation Credit Fund VIII-A L.P.
  10.1       Amended and Restated Loan and Security Agreement, dated as of
           January 7, 2022, by and among the Company, Silicon Valley Bank and SVB
           Innovation Credit Fund VIII, L.P.
  99.1       Press Release of Liquidia Corporation, dated January 7, 2022.
104        Cover Page Interactive Data File (embedded within the Inline XBRL
           document).

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