ATM manufacturer Diebold Nixdorf filed for Chapter 11 bankruptcy protection after reaching an agreement with key financial stakeholders on a comprehensive debt restructuring plan, the company stated.
The Ohio firm filed the necessary paperwork with a bankruptcy court in Texas on June 2, 2023, and said a similar restructuring scheme would be filed by its Dutch subsidiary, Diebold Nixdorf Holdings B.V. in accordance with Dutch law. While the arrangement is expected to have no impact on the day-to-day operations of the hardware manufacturer, or its vendors, common stockholders will take a big hit.
The company's outstanding common shares are to be canceled under the restructuring plan.
Under terms of the plan, agreed to by nearly 80 percent of creditors, most of the company's $2.7 billion debt load will be discharged in lieu of a $1.25 billion debtor-in-possession facility that will be used to support restructuring costs, pay vendors and support ongoing company operations.
The fintech sector is well-positioned for continued growth, according to The Fintech State of the Union, published June 6, 2023.
The survey of 5,004 consumers, 852 fintech vendors and 83 venture capitalists was commissioned by Discover Global Network and conducted in the first two quarters of 2023 by 451 Research, part of S&P Global Market Intelligence. Respondents were based in Brazil, Canada, China/Hong Kong, Germany, India, Mexico, Singapore, the UK and United States, stated Matt Sloan, Discover's head of business development.
"As a payments network, it's exciting to see both fintechs and venture capitalists lean into partnerships with networks as a way to provide new and seamless payments experiences for their audiences," he said.
"By partnering together, we can work to find solutions and enhance the payments ecosystem."
Momentum is building in Washington for legislation that would dismantle what some call the Mastercard-Visa "duopoly" on credit card processing. The Credit Card Competition Act of 2023 is a rehash of legislation introduced in the last Congress by Senator Richard Durbin, D-Ill., who authored the Durbin Amendment, which paved the way for debit interchange caps.
This time around, Sen. Durbin has support from both sides of the political aisle. First-term Senator J.D. Vance, R-Ohio; Senator Roger Marshall, M.D., R-Kan.; and Senator Peter Welsch, D-Vt., all signed on as co-sponsors of the legislation. And identical legislation was introduced in the House by Representative Zoe Lofgren, D-Calif., and Lance Gooden, R-Texas. In a summary of the bill, lawmakers argued that "Visa and Mastercard have structured their networks to avoid competitive market pressures on their fees…It's a take-it-or-leave-it system, and it is difficult for any merchant to stay in business without accepting cards from the Visa-Mastercard duopoly."
Senator Sherrod Brown, D-Ohio, is troubled by reports of widespread fraud and scams on Venmo and Cash App. And he's not alone. The Senate Banking Committee chairman, along with committee members Senators Jack Reed, D-R.I., Bob Menendez, D-N.J., and Elizabeth Warren, D-Mass., wants the companies behind the two person-to-person payment apps to do more to protect users from scams and other types of fraud.
"Americans deserve a payments system that provides them with speed and convenience, but above all, that keeps their money safe," the senators wrote in June 15 letters to Dan Shulman, president and CEO of PayPal, which owns Venmo, and Brian Grassadonia, the CEO at Cash App.
The letters came a day after Rohit Chopra, director of the Consumer Financial Protection Bureau, appeared before the committee to update members on the bureau's activities. "We are focusing more heavily on supervision of nonbank financial firms, which have not always been subjected to similar oversight as chartered banks and credit unions," Chopra said in prepared remarks. 
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