The Default Notice — The Swedish District of Texas

9fin team

19 October 2024•24 min read

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9fin has been continuously breaking news on two major global restructurings, both of which happen to be for companies based in Sweden, and both likely in the short-term to avail themselves of a Chapter 11 process in the US.

9fin was the first to report this week that Swedish electric vehicle battery maker Northvolt hired Kirkland & Ellis to explore in-court restructuring options in both the United States and Sweden, to facilitate a plan to refinance its debt.

Meanwhile, Swedish debt collector Intrum has begun a solicitation process to ballot its creditors on a prepackaged Chapter 11 filing in the SDTX, which also will be done in conjunction with a Swedish reorganization, a development 9fin had reported was in the works prior to the announcement.

Swedish-domiciled companies have two in-court options, which are effectively reorganizations or liquidations. Both Intrum and Northvolt are planning to use the voluntary reconstruction process in Sweden, where an administrator to be recommended by the companies will be in charge of getting approvals from a Swedish judge.

Following the completion of the Chapter 11 process, Intrum said it would then file for a Swedish company reorganization process by Q1 25 to ensure the Chapter 11 filing is also effective in Sweden.

In Intrum’s solicitation materials, it includes an interesting description of the Swedish company reorganization “företagsrekonstruktion,” and its recent history: it intends to implement the reorg in Sweden through a Swedish Reorganisation of Debtor Intrum AB, “which may give rise to certain risks.”

Namely, that regime is governed by the Swedish Company Reorganisation Act, enacted by the Swedish Parliament in 2022, and per the solicitation version of Intrum’s disclosure statement “a new legislation with limited precedents and case law. A Swedish Reorganisation is, to some extent, the Swedish equivalent to Chapter 11 of the Bankruptcy Code. However, the provisions of the Swedish Company Reorganisation Act are not fully compatible with the provisions of Chapter 11 of the Bankruptcy Code; meaning it is not certain that the same result will be achieved in a Swedish Reorganisation. For example, the Swedish rules on class composition and voting thresholds and the rules on cross class cramdown and conditions for confirmation are not entirely consistent with the corresponding rules under the Bankruptcy Code. Accordingly, fully implementing the Plan in Sweden by way of a Swedish Reorganisation proceeding may pose challenges if these thresholds or rules are not met or complied with to the extent required. The consequences for the Debtors’ creditors in such a scenario may be that the distributions to creditors provided for in the Plan may not be realized in the manner envisaged and, in the event of a failure to obtain confirmation of a Swedish Reorganisation Plan, that the Plan cannot be consummated at all, which may lead to the effects described above in connection with a possible Chapter 7 conversion. Furthermore, there are differences in what is considered an Allowed Claim under Chapter 11 of the Bankruptcy Code compared to the Swedish Company Reorganisation Act (e.g. if the Swedish Reorganisation is initiated significantly after the Petition Date, which may have the effect that the distributions to creditors provided for in the Plan may not be realized in the manner set forth therein).” (emphasis added)

The disclosure statement concludes: “[T]here is no guarantee that implementation of the Plan in Sweden would be successful as a measure to effectuate the Plan for enforcement purposes, and there may be a need for additional implementation measures in Sweden or elsewhere, which will likely further complicate and delay the process to implement the Plan.”

Say what you will about Chapter 11, but these Swedish companies are turning to it for the foundational elements of complex restructurings.

This week’s news (from articles published in the last seven days)

Clearlake and LMEs — The maiden edition of LME profiles of private equity sponsors was published this week with a focus on Clearlake’s portfolio companies, which show distress is concentrated in the firm’s sixth buyout fund. At least 11 of the 50 “current investments” listed on the company’s website carry debt that trades below 85 cents on the dollar — the metric we used to define distress.

US Distressed/Restructuring Tracker Report — We published our first monthly report covering notable situations/transactions in our restructuring tracker that are on our watchlist, are expected to materialize, are in progress or were recently completed. The tracker is a work in progress and, in the coming months, 9fin will roll out many user-friendly updates to the tracker and will complete a backfill exercise. Meanwhile, we welcome any suggestions for improvements.

Out-of-court

Northvolt — — 9fin broke news on how Swedish electric battery manufacturer has hired Kirkland & Ellis to explore in-court restructuring options in both the United States and Sweden. Subsequently, the company was reported to be close to a deal for $300m in stopgap financing from shareholders, lenders and customers.

Intrum — The Swedish debt purchaser kicked off a prepackaged Chapter 11 solicitation on 18 October. This follows an earlier 9fin report where sources familiar said that Intrum was in “advanced” preparations to file for Chapter 11. Creditors have until 13 November to submit their votes on the bankruptcy filing.

Altice France — 9fin explored XpFibre’s recent refinancing and dividend recap, tallying up the portion of the €5.8bn of credit facilities raised at Altice France’s unrestricted joint venture used to refinance existing debt versus adding to Drahi’s war chest in negotiations with lenders.

LOGIX Fiber Networks — The fiber-based voice and data company hired Houlihan Lokey to advise it ahead of an upcoming maturity wall.

WideOpenWest — The cable operator launched an LME, securing a $200m new money superpriority first-out term loan from a group of existing term loan lenders and an uptier exchange of its existing term loan B into additional first-out term loans and new second-out term loans, both due 2028. Non-ad hoc group lenders can participate in the new money and the exchange on a pro rata basis. The company also offered to exchange its existing revolver into a new second-out revolver in exchange for covenant relaxations.

Cox Media — The Apollo-backed media company unveiled exchange offers for its term loan, unsecured notes and revolver, backed by a transaction support agreement with holders of around 88% of the aggregate principal amount of the notes. The company aims to push out the loan and note maturities to 2029.

Lycra — The textile manufacturer is back in talks with creditors about extending over $1bn in debt maturities due next year with the chances of a refinancing looking slim. The company is being aided by Linklaters and Houlihan Lokey in its efforts.

Oriflame — The Swedish-Swiss multi-level marketing company has added Kirkland & Ellis to its advisory roster for refinancing discussions with lenders, after it set up for a potential LME and bondholders signed a co-op. The company has a €100m RCF, €250m senior secured FRNs and $550m senior secured notes maturing in the next two years.

Bausch Health — The company is reported to have rejected a proposal for debt reduction by its creditors and continues to pursue debt restructuring avenues that includes a sale of its Bausch & Lomb unit.

Spirit Airlines — The ultra low-cost carrier announced that it has borrowed the entire available amount of $300m under its revolver, and has agreed with its credit card processing agreement counterparty to a further extension, to 23 December, for the airline to refinance or extend a chunk of its secured notes due 2025. The early maturity date of the credit card arrangement was also extended to March 2025. The company still expects to end the year with $1bn of liquidity if it is able to close on its current initiatives.

B. Riley Financial — To raise cash, the troubled financial services company has an agreement with Oaktree for a $203m investment in Great American Group, a company holding its appraisal and valuation services, retail, wholesale and industrial solutions and real estate businesses. It remains obligated to its credit agreement lenders for reducing the term loan to $100m or lower by September 2025 and complying with new leverage, interest coverage and liquidity maintenance covenants, among other restrictions.

Medical Properties Trust — The independent members of MPT’s board cleared the company and its management of Viceroy Research’s allegations of wrongdoing, including in relation to MPT’s dealings with bankrupt tenant Steward Health Care. 9fin had earlier published a deep-dive report on the troubled US-based healthcare REIT.

Wellpath — An S&P report notes that the HIG-backed prison healthcare company entered into forbearance agreements through 31 October with lenders of its $475m first lien term loan due 2025 and $110m second lien term loan due 2026, and skipped principal and interest payments on the loans and the repayment of its $65m revolver at maturity.

Allen Media — After the media company engaged two law firms to explore options ahead of an upcoming debt maturity, a group of term loan lenders holding $100m are also said to have organized. Multiple groups of other lenders were earlier reported to have united under a single cooperation agreement.

CareMax — The value-based healthcare provider continues to extend waivers under its credit agreement, most recently through 28 October, while it lays the groundwork for a potential bankruptcy filing.

Forward Air — The troubled freight transportation company is reported to have ceded to activist investor demands, hiring investment bankers to sell itself.

Aventiv — Following a deal with lenders to either sell the business or equitize outstanding loans to hand control to lenders, the Platinum Equity-backed prison telephone company is said to have told investors that multiple parties have expressed interest in a buyout.

The Container Store — The storage solutions company announced an agreement for a $40m investment from Beyond, Inc (fka Overstock). 9fin had reported in June that certain TCS lenders are getting legal advice as the retailer faces a term loan maturity in 2026 and an uncertain earnings trajectory.

Packers Sanitation — The sanitation company was downgraded to CCC- on the increasing principal outstanding on its mezzanine facility due 2025 potentially complicating refinancing efforts.

Bankruptcy

SunPower — The residential solar power company’s Chapter 11 plan was confirmed on 18 October, despite prepetition second lien lenders (owner Sol Holding, backed by TotalEnergies and Global Infrastructure Partners ) voting to reject the plan and TotalEnergies making a last-minute $14m administrative expense claim. The claim will be mediated in the coming weeks, and the plan will not be declared effective until a resolution is reached.

Hoonigan — The auto parts company’s prepackaged plan of reorganization was approved at the 15 October hearing. The company is set to eliminate around $1.2bn of debt and emerge with Strategic Value Partners and Nut Tree Capital management as majority owners.

Conn’s — The debtors designated Jefferson Capital Systems’ $360m stalking horse bid as the winning bid. A sale approval hearing is scheduled for October 24.

Fisker — Judge Horan confirmed the bankrupt EV maker’s Chapter 11 plan of liquidation after the company resolved an issue with American Lease — the purchaser of its fleet — that prevented it from gaining control of the vehicles. The company then declared the plan effective on 17 October.

Tupperware — Decisions on the company’s cash collateral and bid procedures motions, in addition to the ad hoc lender group’s dismissal bid, were initially expected in a hearing on 17 October, but after a long two days of hearing from witnesses, the parties agreed Friday to reconvene on 22 October.

Incora — Mediation aimed at creating a global resolution has thus far not been successful.

Yellow Corp — The trucking company and major institutional investor MFN Partners filed motions to reconsider a 12 September bankruptcy court ruling that addressed Yellow’s pension withdrawal liability.

Edgio — Milbank resolved an objection from the UST to the application for its appointment as debtors’ counsel. The law firm will cease to represent the debtors’ current and former officers as defendants in litigation actions.

Other active distressed and restructuring coverage (from articles prior to the past seven days)

Distressed Pitch List — In an update to our Distressed Pitch List, we added Plug Power and Sunrun.

Out-of-court

24 Hour Fitness — The fitness chain is working with Piper Sandler to explore strategic and refinancing options ahead of $300m in debt coming due 2025.

Altice International — After the company sold its first asset since announcing its strategic review and since Altice France’s ultimatum, listeners on the Q2 24 earnings call were keen to hear how the telco would apply the Teads sale proceeds. It’s fair to say management was slightly ambiguous. 9fin’s earnings review is available here.

Altice USA — 9fin explores the different options available to Altice USA and its creditors in our LME Breakdown.

Alkegen — The insulation products manufacturer closed an Oak Hill-led refinancing of its revolver and term loans due 2025 and a private exchange for its notes with a subset of holders, and launched a public exchange for the remaining notes.

AMC Entertainment — The 1L noteholders who were left out of the AMC’s recent LME have filed a complaint in New York State Court alleging AMC and its junior creditors violated the intercreditor agreement in effecting this transaction. We summarize the complaint here.

Anastasia Beverly Hills — Crossholders are in talks to renew a cooperation agreement set to expire in the near-term, following weaker than expected second quarter earnings.

Better Health (fka Physician Partners) — The healthcare provider and lenders hired advisors ahead of potential negotiations with the company and sponsor Kinderhook Industries.

Beyond Meat — The producer of plant-based meat substitutes is reported to have engaged with a group of convertible noteholders on a restructuring.

CommScope — 9fin published an LME Breakdown to answer questions around how CommScope could use sale proceeds to address almost $6bn in 2025 and 2026 maturities, after the announcement of the $2.1bn sale of assets to Amphenol.

Drive DeVilbiss Healthcare — The CD&R-backed company has embarked on a sale process that could involve selling its assets piecemeal or as a single entity. Drive, which makes medical equipment, previously went through an out-of-court restructuring, in which the sponsor kicked in fresh cash and existing first and second lien lenders agreed to extend the debt wall.

Del Monte Foods — Asset manager Black Diamond is suing Del Monte Foods in an attempt to force the removal of the food company’s board of directors following a liability management exercise earlier this year.

EchoStar/DISH Network — A majority of DISH DBS bondholders have agreed to extend a cooperation agreement to March 2026.

Empire Today — The Charlesbank Capital Partners-backed flooring company has hired advisors after lenders organized.

EmployBridge — Certain lenders have organized as the company reported weaker performance with debt trading poorly and rumors of the company’s sponsor Apollo buying back debt in the secondary market.

EW Scripps — The CEO of the broadcasting company penned a note to staff stating that the company will cut jobs as its news operation moves to digital-only coverage in mid-November. This comes as the company faces $1.26bn in upcoming debt maturities. Scripps’ shares and longer-dated bonds bid up on the news, and stock rallied.

Fossil Group — Following quarters of dismal results and with an operational restructuring ongoing, Fossil announced the resignation of its CFO and the appointment of Andy Skobe of Ankura to provide interim CFO services.

FreshDirect — The grocery delivery company is set to get some rescue financing from its parent company, Getir, to help support its operational needs.

GPS Hospitality — The privately owned quick service restaurant franchisee disclosed poor quarterly numbers, and senior secured notes dropped 11 cents.

GrafTech International — Certain creditors have signed a cooperation agreement to bind their acts together in potential negotiations with the company.

Hawaiian Electric — The utility company raised nearly $500m (and potentially another $75m) through an equity offering aimed at raising cash to fund its contribution to the Maui wildfire litigation settlement.

Hearthside Food Solutions — The company reported Q2 24 earnings showing widening losses and warned that its ability to continue as a going concern depended on its efforts to address a raft of near-term debt maturities.

Hertz — 9fin published its fourth LME breakdown, this time on Hertz, discussing how the car rental company could push out near-term maturities, meet the leverage covenant in its credit agreement and potentially raise cash.

iHeartMedia — iHeartMedia has yet to strike a deal with its largest creditor group.

KIK Consumer Products — The company’s bonds plunged after news of a fire broke out at its facility in Atlanta. In a message to private lenders, KIK said the fire and resulting damage was limited to an insured warehouse and its production areas can restart once the area is safe to re-enter.

Leslie’s — The swimming pool maintenance and supply company shared a bleak preview of the quarter and full year, sending its stock and term loan tumbling.

LifeScan — Per an S&P note, the Platinum Equity-backed medical device company skipped principal and interest payments on its third lien term loan and entered into a forbearance agreement through 29 October with its first and second lien lenders.

Lumen Technologies — The company’s early tender deadline for its most recent debt exchange closed with participation rates already approaching amounts required to reach its cap on new issues.

Mavenir Systems — Lenders are in confidential negotiations with the Texas-based software company as they try to find ways to increase its financial breathing room.

Michaels Stores — The Apollo-owned arts and craft retailer reported a more than 20% decline in Q2 EBITDA due to weaker sales and margin pressure, sparking its bonds to edge down.

ModivCare — The medical transportation provider obtained covenant relief from bank lenders while it negotiates a long-term deal. It had recently revised its 2024 adjusted EBITDA guidance downwards, filed an S-3 looking to raise $200m of capital, and amended financials to include a going concern warning in the midst of difficulties collecting on receivables.

MultiPlan — The company successfully defended against an antitrust complaint filed in the Verity Health System Chapter 11 case by the liquidating trustee.

New Fortress Energy — The energy company, facing a wall of debt coming due in the next two years, has struck a deal with secured noteholders to push out maturities until 2029 and issue $1.2bn of new 12% senior secured notes (press release here). Holders of its $1bn revolver have also tapped Lazard as an advisor as that facility comes due in 2026, 9fin sources say. The company also delayed the payment of its previously declared dividend.

OnTrac — The company, formerly known as LaserShip, has been considering raising new money through a potential drop-down deal with third-party lenders, according to 9fin sources. The proposed out-of-court restructuring comes after last month’s hard-fought negotiations with a creditor group that organized with Gibson Dunn.

Office Properties Income Trust — The company continues to chip away at unsecured notes remaining after the debt exchange concluded in June, most recently through a private exchange of unsecured notes into $43m of secured notes due 2029.

P&L Development — The family owned over-the-counter drug manufacturer launched an exchange offer to swap its 7.75% senior secured notes due 2025 into PIK-toggled notes due 2029, just a month after 9fin reported it was holding informal talks with lenders. An ad-hoc group holding 63% of the notes has already agreed to the deal.

Porter Airlines — The Canadian airline has gauged interest from private credit lenders in raising CA$250m in preferred equity to boost liquidity.

Quest Software — Trading desks have begun publishing quotes on the Clearlake-backed software company’s debt distinguished between co-op and non-co-op paper, with its term loans in distressed territory.

Radiate Holdco (aka Astound Broadband) — The company has received a new $50m loan from its private equity backer Stonepeak. It has been exploring restructuring options with a group of lenders, but the talks fell apart over certain terms of the proposed debt swap and new money offer.

Salem Media — Certain debt holders have banded together to negotiate a possible debt restructuring with the conservative Christian media company.

Sandvine — The company announced that it has been acquired by a group of lenders to the company, who have agreed to a significant writeoff of their debt and to provide new capital.

Screenvision — Certain lenders of the Abry Partners-backed company have organized with Gibson Dunn to negotiate ahead of its $201.5m in loans that are set to mature in 2025.

SI Group — Following an LME with a majority of its existing creditors on board and its sponsor providing $100m of capital, the company’s public exchange offer for the remaining debt has seen meaningful participation.

Sinclair Broadcast Group — The company announced that it is increasing its advertising guidance for the third quarter 2024 to account for stronger-than-expected political revenues. Recent retransmission agreement renewal activity has been in-line with expectations and the company reiterated its earlier forecast for net trans growth rate from 2023 through 2025.

Sotheby’s — The Patrick Drahi-owned auction house, with its own non-Altice troubles, is reportedly set to use around $700m of $1bn contributed by Drahi and the Abu Dhabi Developmental Holding Company to pay down its debt.

Springs Window Fashions — The Clearlake-backed window treatment company retained advisors to engage with creditors who have organized into two groups, both with cooperation agreements in place.

STG Logistics — 9fin reported the details of the recent LME deal.

Sunnova Energy — The 2026 and 2028 bonds of the residential and commercial solar company rose after executives outlined a plan to raise cash through securitizations and asset sales to pay off existing debt. 9fin had reported in May on the company hiring advisors and agreeing to several funding deals.

System1 — We delve into the asset stripping LME the marketing company completed earlier this year in conjunction with a merger under section 251 of the Delaware General Corporation Law.

TeamHealth — The healthcare staffing firm has completed its latest refinancing with the help of new money provided by firms including Ares, King Street, and its sponsor Blackstone.

Telegram — Convertible bonds issued by the messaging app company traded down around 11 points to the 85-87 cent range after founder and CEO, Pavel Durov, was arrested in France.

Telesat Canada — The Canadian satellite company posted expected declines in revenue, EBITDA and margins in Q2 24. Certain creditors were earlier reported to have hired advisors.

TGI Friday’s — The management of the restaurant chain is reported to have been replaced by FTI in relation to many day-to-day functions after the company failed to share certain documents with bondholders on time.

Thrive Pet Care — The company hired a financial advisor to examine options for its debt stack, 9fin reported. Meanwhile, a group of first lien lenders has retained counsel as they brace for potential negotiations with the TSG Consumer Partners-backed company, sources said.

Tosca Services — The plastic crate maker got 100% of lenders to participate in a private exchange deal by the 22 August deadline. Previously, 9fin reported that Tosca launched a deal to raise $100m and to extend debt maturities via an uptier LME-style transaction.

Tropicana — The beverage company’s loan slipped several points after its management projected flat full-year 2024 EBITDA on a 16 September call.

Trinseo — The chemical company announced an organizational restructuring to save costs and improve profitability by rationalizing management, reducing the workforce and exiting some operations. 9fin had earlier reported that lenders had again banded together with Gibson Dunn and Evercore in the midst of continuing underperformance, cash burn and high leverage.

United Site Services — The Platinum Equity-backed portable toilet rental company announced that it had closed the LME it unveiled in August. The LME included $300m in new money with an apparent double dip structure, USS capturing over $200m of discount, and an issuance of $447m of first lien first-out debt, $1.779bn of second-out term loans and $194m of third-out notes, and an extension of the vast majority of the debt to 2030.

Viasat — The satellite operator closed an upsized offering of $1.975bn in 9% senior secured notes due 2029 by its Inmarsat subsidiaries, as competitor Starlink continues to sign up major airlines for its in-flight connectivity offering.

VeriFone — Lenders to the payment and commerce solutions company have organized as they prepare for negotiations ahead of the maturity of the company’s $250m revolver and over $2bn of term loans in 2025.

Veritas Technologies — 9fin reports on the Carlyle-backed data management firm and its creditor group attempting to revive restructuring talks, and on where the discussions stood when they stalled.

VistaJet — The private jet subscription company released Q4 23 results, with the company’s founder penning a letter announcing legal action against a “group of individuals” that has “disseminated half-truths, false rumors and lies”.

Volcan Compañía Minera — The Peruvian mining company completed its August announced exchange offer with 81% participation from lenders. The deal’s closure rounds out its greater restructuring efforts — including a refinancing of its bank debt — that will kick out debt maturities until 2029.

Wellful — The health and wellness firm, which bought Jenny Craig out of Chapter 7 bankruptcy last year, is working with Houlihan Lokey to explore ways to resize its debt. Meanwhile, a group of lenders has organized with Gibson Dunn.

Wellness Pet Company — Certain lenders to the Clearlake Capital-backed company organized as the quotes on the company’s loans are veering deeper into distressed territory.

WOM — It’s reported that the bonds of the bankrupt Chilean telecom company have jumped as it markets its assets for sale amid potential interest from Carlos Slim’s America Movil.

WorldStrides — Lenders to the student trip company have retained a financial advisor in order to develop potential alternatives to the recently expired discounted exchange offer.

WW International — The weight management company has added PJT Partners to its advisory roster to help address its debt amid an operational turnaround, while a group of creditors previously organized with Gibson Dunn and under a cooperation agreement has added Houlihan Lokey as an advisor. 9fin had also reported earlier that the company is seeking advice from Simpson Thacher.

Xplore — The Canadian rural internet provider announced an agreement to raise new debt and equity financing, with sponsor Stonepeak and certain existing lenders leading the investment and other lenders to get the opportunity to participate on substantially similar terms. Xplore has commenced a proceeding under the Canada Business Corporations Act to implement the deal.

Zayo — Zayo was reported to have completed the carve-out of its European assets, with the parent receiving around $1bn in consideration through an intercompany loan and cash.

Bankruptcy

Avon International — Avon received approval of its DIP facility and bidding procedures, pending modifications to the orders requested by the judge. The company’s hearing on its 9019 motion for its settlement with Natura was pushed after the UCC filed a motion seeking the adjournment of same. Separately, at CDS auction on 24 September, protection holders of Avon Products CDSs secured a payout of 66 cents on the dollar after a second-half surge.

Big Lots — The debtors received approval of a number of matters at its second-day hearing, with several other pending motions being adjourned until 21 October to allow the debtors to work with the unsecured creditors committee.

Diamond Sports Group — The company received conditional approval of its disclosure statement, paving the way for a 14 November confirmation hearing. To be at issue at confirmation will be the scope of the third-party releases contained in the plan.

Digital Media Solutions — The company is Kirkland & Ellis’ first Chapter 11 case commenced in SDTX since 2023. The Chapter 11 is backed by a DIP facility and credit bid from certain of its prepetition lenders.

Enviva — The company entered its disclosure statement hearing with a global resolution in hand, avoiding drawn out litigation and securing a path out of Chapter 11.

Express — The company’s disclosure statement hearing has been pushed to 29 October after the UCC objected to approval of the document and filed a cross-motion to terminate the debtors’ exclusivity.

Gol Airlines — Gol’s Abra bondholder group disclosed updated members and holders including distressed investors. The bankrupt airline has said it will evaluate all recapitalization or other transactions, including to raise capital while in bankruptcy. The UCC has objected to the debtors attempts to allow aircraft lessors to sell a participation interest in their unsecured claims, while retaining their voting rights on any potential Chapter 11 plan.

Invitae — After hearing arguments on the UCC’s standing motion for litigation related to uptiers and arguments over makewholes, Judge Michael Kaplan decided to issue a preliminary ruling denying the standing motion and reserved his ruling on the makewhole issue.

Purdue Pharma — Purdue secured an additional 35-day extension to its mediation process and preliminary injunction despite objections from certain creditors to the request.

Rite Aid — Rite Aid notched a win when the judge overseeing the case ruled in favor of Rite Aid on a working capital dispute in the Elixir APA — an approximately $200m dispute, and then agreed to confirm the Chapter 11 plan. Rite Aid also received approval to sell $435m of a term loan issued by Elixir structured as a seller note held by Rite Aid. However, all is not resolved — MedImpact, Elixir’s purchaser, has appealed the Elixir ruling, and others have appealed confirmation.

Red River Talc (J&J) — Judge Christopher Lopez has decided to deny the Creditor Coalition of Counsel for Justice for Talc Claimants’ motion to transfer the Red River Talc case to the District of New Jersey and instead keep the debtor’s third attempt at bankruptcy in the US Bankruptcy Court’s Southern District of Texas.

Robertshaw — The appliance parts manufacturer exited bankruptcy this week. Even before it filed, Robertshaw was subject to two distinct LMEs which led to a legal fight between its various creditors.

Rubio’s Restaurants — Rubio’s filed Chapter 11 bankruptcy in order to sell itself.

Steward Health — The company received approval to sell Texas hospitals Odessa Regional Medical Center and Scenic Mountain Medical Center to Quorum Health.

Vertex Energy - Vertex commenced its Chapter 11 case with a restructuring support agreement signed by 100% of its term loan lenders and a $80m DIP facility and its first-day relief granted at an uncontested hearing. The company intends to move forward with a dual track plan — either via a recapitalization or a sale of all of the company’s assets.

Vyaire Medical — Sales of the company’s ventilator business and respiratory diagnostic business were approved, with the final sale price being only $90.5m. The sale orders also amended the final DIP order, a necessary change required by the company’s DIP lenders to allow the sales to move forward despite falling short of the required $140m minimum bid for the combined business.