This website uses cookies, pixel tags, and similar technologies (“Cookies”) for the purpose of enabling site operations and for performance, personalisation, and marketing purposes. We use our own Cookies and some from third parties. Only essential Cookies are used by default. By clicking “Accept All” you consent to the use of non-essential Cookies (i.e., functional, analytics, and marketing Cookies) and the related processing of personal data. You can manage your consent preferences by clicking Manage Preferences. You may withdraw a consent at any time by using the link “Cookie Preferences” in the footer of our website.
Our Privacy Notice is accessible here. To learn more about the use of Cookies on our website, please view our Cookie Notice.
Welcome to 9fin’s weekly newsletter dedicated to US distressed debt, restructuring and special situations news and developments. Check out what else we do for distressed and restructuring here.
The Default Notice will be off for the next two weeks for the holiday break and the next instalment will come on 10 January. We’re wishing you all a joyful holiday and much success in the coming 2025.
Top news
It has been an incredible 2024 for 9fin and particularly for 9fin’s US distressed and restructuring team, which before October 2023 did not even exist.
And there was no better way to cap off our weekly newsletter feature for this year than to admire the CommScoperefinancing transaction (here) that somehow found a way to skirt around a co-op agreement and avoid adding any strict LME blockers — essentially leaving the door open to an infinite LME loop. The company wanted to preserve the possibility of a J. Crew-like dropdown in the future to capture discount and deleverage. CommScope could have potentially found a cheaper transaction that deleveraged the company further, but those would have come with stricter covenants.
CommScope’s ode to LMEs was undoubtedly reassuring to distressed companies — and of course their bankers and counsel — still hoping lenders will fear the potential for dropdowns in the coming year. The beginning of December cast doubt on this notion as two notable refinancing transactions, Hertz and Trinseo, both included comprehensive LME blockers in their new debt — including a blocker literally titled in the term sheet as an “Anti-Liability Management Provision.” It seemed as though the holiday spirit took hold and lenders were growing tired of the violence. The Hertz and Trinseo transactions left no doubt that these companies would not be able to pit creditors against their fellow creditors or move collateral in any creative and surprising ways in the years to come. The future menu of options will instead be limited to straight refinancing or bankruptcy — a scary thought to companies looking for a quick fix while hoping the market changes in their favor but hoping to maintain flexibility if it doesn't.
It feels only right that what is potentially the final notable refinancing of the year is signaling to the market that LMEs will be back.
This transaction also highlighted that cooperation agreements, perhaps the biggest trend of 2024, may not be enough to keep the lions (read: largest lenders) at bay. As 9fin reported, Apollo and Monarch, even after signing a cooperation agreement, retained counsel outside of the group and negotiated with the company directly. Only after reaching a deal did the funds bring the deal to the group and include all members. Although, in essence, the co-op worked — all lenders of the group were able to participate — this situation certainly raises questions about the specific restrictions and voting thresholds required to dissolve co-ops included in these agreements, and whether we may see some violence directed at exploiting co-op language in the year to come... but this all seems like a problem for next year.
With that, we’re wishing all of our readers happy holidays and the absence of any visits from the ghosts of LMEs past, present and future.
People moves
If you have any recent moves to announce, please send to one of our team’s emails below to include in our People Moves section.
Willkie Farrhired restructuring partner Robin Spigel from A&O Sherman in New York. Wachtell's restructuring and finance Richard Masonannounced he would be stepping down as of the end of 2024 to remain of-counsel only to wind up current matters. Gibson Dunnelected 35 lawyers to its partnership, effective 1 January 2025, including Stephen Silverman in the restructuring group.
MultiPlan — LME Breakdown — we predict how the company may approach an LME and dive into what is allowed under the credit documents and what returns lenders may expect.
BWIC co-op tracker— The latest BWIC revealed that six tranches of debt are being traded as co-op papers. The debts were issued by Astound Broadband, WeightWatchers, Cision, Altice France and Altice USA.
Out-of-court
Allen Media — The TV network company released cleansing documents to private investors earlier this week after struggling to arrive at an agreement with its creditors.
CommScope — The company announced a refinancing transaction that paid off all maturities through 2026 and leaves open the possibility for a future LME.
Foundever — Certain lenders are considering joining a co-op draft presented by Gibson Dunn on 13 December, amid concerns around a possible future liability management exercise.
Global Switch — Certain bondholders are informally seeking advice from restructuring advisors after the data center provider reached an agreement to sell its Australian subsidiary.
Just Eat Takeaway — An ad hoc group of bondholders is considering signing a cooperation agreement, following the food delivery company’s recent announcement of selling US subsidiary Grubhub.
One Call— The healthcare coordinatoris sounding out investors, including private credit firms, to refinance its existing debt.
Oregon Tool — Lenders to the Platinum Equity-backed company hiredPerella Weinberg as the company’s loan has been quoted down into the 60s this week following poor earnings.
Springs Window Fashions — The Clearlake-backed window covering maker companyraised a $350m super-priority first out term loan as part of a liability management exercise it completed 19 December.
Empire Today — The Charlesbank-backed company’s LME with existing lenders completed in November involved a new money raise, maturity extending discounted debt exchanges and a dropdown of IP, according to credit rating agencies.
Wellful— The Kainos Capital-backed health and wellness firm raised new money via a superpriority loan and completed an exchange of its existing debt, according to a Moody’s note.
Michaels Stores — Debt of the Apollo-backed craft retailer has rallied after the company bought back around $73m of unsecured notes in recent weeks, and reported Q3 24 earnings.
Ardagh— Two groups of bondholders of the Irish packaging company have elected to extend their cooperation agreements into the new year, but have excluded certain securities by recutting their agreements.
Thames Water — In its final determination, UK water regulator Ofwat upheld a previously threatened fine of £141m and levied a further £18.2m fine against the water company over two dividend payments. Meanwhile, in the courts, a Class B noteholder group announced the launch of a parallel restructuring plan to challenge the Class A‘s rescue loan proposal.
Veritas Technologies — According to an S&P note, the Carlyle-backed company on 10 December completed a $4.2bn debt exchange and raised a $140m superpriority revolver. 9fin had reported the near-final details of the deal in October.
Aimbridge Hospitality— The Advent-backed hotel manager is reported to be in talks with a lender group including KKR and CapitalRe for a debt restructuring. The company had earlier obtained a waiver from lenders that allows the company to file its Q3 24 financials after the original November-end deadline. It remains in talks with its lenders on a potential LME.
Trinseo — The company launched an exchange offer for its 2029 notes and took other actions, in accordance with the transaction support agreement it had recently entered into. The TSA envisages an LME will help the company deleverage slightly and extend maturities out to 2028, while improving creditor recoveries and creating the tightest covenants protecting creditors to date.
Party City — The party goods retailer, which emerged from bankruptcy in October 2023 with lenders including Silver Point Capital and Monarch gaining control, is reported to be planning to file again in December in order to wind down operations.
Lumen — After having completing a series of debt exchanges, the company is now reported to have launched a sale of its consumer fiber business, with Goldman Sachs’ support, to raise funds to pay down debt.
Medical Properties Trust— The troubled healthcare facility REIT announced a settlement with Viceroy Research for a defamation case it had filed against the investigative research group. Read 9fin’s deep-dive on the REIT here and a Q3 earnings review here.
Viasat — The satellite company announced the completion of a sale of its Energy Services Systems Integration business to MAG Capital Partners.
Bankruptcy
Big Lots — The proposed sale to Nexus Capital fell through, and the company has only limited access to use of cash collateral following a default on the terms of its DIP financing. The parties will reconvene on 30 December to provide an update on next steps to the court.
CareMax — Final approval of the company’s DIP facility and other requested relief was granted at an uncontested second-day hearing.
Franchise Group — The judge overseeing Franchise Group’s Chapter 11 case denied a motion by certain lenders of the company to terminate the exclusivity period for the debtors to file a plan.
Hearthside Food Solutions— After removing the roll-up feature of the DIP loan, the debtors were able to secure all second day approval requested without a hearing.
Incora — The company intended to move forward with a two-part confirmation and received approval of third-party releases contained in their current proposed plan at the first day of the confirmation hearing. The second day did not occur, and instead it received an ultimatum from the judge that if the company cannot get its plan confirmed at a 27 December hearing, the debtors will have to move forward with a plan C.
Intrum Justitia — A confirmation hearing scheduled for 16 December was adjourned after the debtors indicated that they had settled with the objecting ad hoc group. That settlement disappeared after the majority ad hoc group refused to consent to the settlement, leading to a two-day contested confirmation hearing and a hearing on the minority ad hoc group’s motion to dismiss.
Northvolt— The company received approval of all requested relief at an uncontested second-day hearing.
Purdue Pharma— The mediation process and preliminary injunction barring suits against non-debtor third parties was extended through 24 January.
Spirit Airlines — The debtors received approval for their DIP and scheduling motion which will allow the debtors to proceed with a combined plan and disclosure statement over.
Steward Health Care — The debtors held a status conference today where they announced they will be seeking an extension of the DIP facility through 31 January 2025, seeking an extension for the exclusivity period to file a plan, closing their operations at Sharon Hospital in Pennsylvania, and reviewing and reconciling their administrative claims. The debtors also requested another court hearing on 30 December, a day prior to their DIP facility maturing.
WOM— The company received approval of its plan sponsor agreement and backstop commitment agreement with an ad hoc group of WOM noteholders. The company will appear for approval of its disclosure statement on 23 January.
Wellpath — Senator Elizabeth Warren has urged the HIG Capital-backed prison healthcare provider to not abuse its Chapter 11 process by shortchanging incarcerated patients “harmed by medical malpractice,” according to Bloomberg. 9fin had earlierreported on the automatic stay’s impact on a large number of pending medical malpractice lawsuits against the company.
Other active distressed and restructuring coverage (from articles prior to the past seven days)
LME Trends — We continued our series on LMEs by publishing a follow-up piece on the trend toward friendlier or gentler deals in the restructuring world. This era, which practitioners call the “LM 2.0”, succeeds the “LM 1.0” version of non-pro-rata priming and asset-stripping transactions.
US Distressed/Restructuring Tracker Report — We published our 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.
Platinum and LMEs — We published another edition in our series of LME profiles of private equity companies, focusing on Platinum Equity and its investments. A review of the sponsor's portfolio found eight of its 57 current investments carry debt trading at distressed levels.
LME legal challenge evolution— LMEs have become a game of calculated and often times unequal inclusivity, making justifying the costs and risks of challenging one in court more difficult.
BWIC co-op tracker — A recent BWIC listed by an Oaktree CLO identifies as co-op paper certain debt issued by Hearthside Food Solutions, Sinclair Broadcast Group, WorldStrides, Anastasia Beverly Hills, Altice France, Altice USA and Cision. Other BWIC data that we tracked shows nine CLO-owned credit facilities of at least eight companies are either governed by a cooperation agreement or restructuring support agreement.
Out-of-court
24 Hour Fitness — The fitness chain is working withPiper Sandler to explore strategic and refinancing options ahead of $300m in debt coming due 2025.
Alacrity Solutions — — 9finreported on restructuring talks with lenders following liquidity issues and customer churn. The company currently has roughly $1.6bn in debt, around $1bn of which is in a first lien loan.
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.
Altice France—The French telco’s latest round of negotiations with the ad hoc group weighted in the secured debt advised by Gibson Dunn and Rothschild is reported to have again failed. See 9fin’s analysis of Altice France’s cleansing materials from November and the unconsolidation of Altice’s XpFibre stake here.
Altice International— The company remains in asset disposal mode. After selling its AdTech business, Teads earlier in 2024, the company announced an agreed disposal of the €15m Geodesia construction business to a related party, and a sale of assets in Portugal is on the cards. The company reported revenue and EBITDA declines in Q3 24 with Altice Portugal primarily responsible with the underperformance.
Altice USA — 9fin explores the different options available to Altice USA and its creditors in our LME Breakdown.
AMC Entertainment — The theater chain disclosed an agreement with Goldman Sachs for an ATM program for 50m shares of common stock, causing its stock to tank.
Anastasia Beverly Hills — The cosmetics company reported stronger than expected Q3 earnings, sources told9fin, and accordingly saw indications on its term loan improve.
Bausch Health— The Blackstone-TPG joint bid for B+L is reported to be on the verge of failing, with Blackstone balking at the price demanded by Bausch Health. Both Bausch Health and B+L have subsequently issued statements which note that a sale process is ongoing but do not provide further details.
Better Health (fka Physician Partners) — A minority group of Better Health creditors has organized with White & Case to challenge any non-pro rata deal the company could be negotiating with a separate majority lender group. 9fin had earlier reported on the Kinderhook Industries-backed company having kicked off talks with a Blue Owl-led lender group.
Beyond Meat — The producer of plant-based meat substitutes is reported to have engaged with a group of convertible noteholders on a restructuring.
Brightspeed — Some bank lenders are reported to have begun trying to unload the long hung debt (presumably the debt recently exchanged into) of the Apollo-backed internet provider.
B. Riley Financial — The troubled financial services company amended its credit agreement to extend the springing maturity date of its term loans to February 2026 and to permit $10m in telecommunications financing if certain conditions are met. It continues to delay filing its 10-Q for Q3 24.
Cision — The Platinum Equity-backed PR software firm, which in November was reported to have told lenders that it had created a new holdco, is said to be getting advice from Houlihan Lokey and Milbank.
City Brewing— Following an LME in April, the beverage production and packaging company is again in talks with lenders to provide capital. The new money could be in the form of a $50m bridge financing with a more holistic transaction to follow.
Club Car— Unsecured debt of the Platinum Equity-backed golf cart manufacturer plunged into stressed territory after it privately reported sharp sales and EBITDA declines in Q3 24.
Congruex— According to an S&P note, the company completed a restructuring involving its revolver and first lien term loan which gives it temporary liquidity relief in the form of part PIK interest and an amortization holiday for seven quarters and some covenant relief through Q2 25.
The Container Store — The Container Store is reported to be preparing a bankruptcy filing with the help of Houlihan Lokey and FTI Consulting, as talks with lenders continue. Recently, the company disclosed that it does not expect a $40m funding from BeyondInc to close.
Cox Media— According to an S&P note, The Apollo-backed media company’s maturity-extending exchanges of its term loan, unsecured notes and revolver have been partly completed.
DISH/EchoStar — The ad hoc group of DISH DBS bondholders, advised by Milbank and Lazard, has engagedElsberg Baker & Maruri for potential litigation involving recent financing transactions and the company stripping value away from bondholders.
Dodge Construction Network — The Clearlake-backed company was advised by Kirkland & Ellis and Moelis, and an ad hoc group of lenders advised by Davis Polk, on the recently concluded priming new money and distressed uptier exchange deal.
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.
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 broadcasting company is working with Morgan Stanley to explore refinancing options, including potential securitization and amend and extend deals. Term loan lenders and unsecured creditors have organized separately.
FinThrive — The healthcare software provider raised $155m in fresh capital and extended the maturity on its revolving credit facility in an LME supported by “substantial majority” of holders of its existing first lien term loans due 2028 and second lien term loan maturing in 2029. The new funds will be used to delever its balance sheet and improve liquidity.
Forward Air — The troubled freight transportation company is reported to have ceded to activist investor demands, hiring investment bankers to sell itself.
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.
Foundever — The customer service firm has seen a rebound in its loans after calling in an EBITDA bump on last quarter in its Q3 24 results, according to sources, although numbers still lag 2023.
FreshDirect— The grocery delivery company is set to get some rescue financing from its parent company, Getir, to help support its operational needs.
Frontier Communications — 9fin takes a deep dive into the company’s turnaround from bankruptcy, the fate of its pre-bankruptcy creditors, and why — despite being considered a win — the deal nevertheless faced pushback from some shareholders here
GoHealth— The health insurance marketplace company disclosed in its 10-Q for Q3 24 and the earnings call that it had completed a refinancing using $510m in expensive credit facilities from Blue Torch, PSP Investments and Redwood with terms akin to rescue financing.
GPS Hospitality — The privately owned quick service restaurant franchisee disclosed poor quarterly numbers, and senior secured notes dropped.
GrafTech — GrafTech launched its previously announced exchanges.
Hawaiian Electric — The utility company executed settlement agreements for tort litigation arising from the Maui wildfires. Under the settlements, the company is required to contribute a total of $1.99bn towards two separate funds. It also published quarterly results (press release), which note that a going concern warning in its Q2 financials has been resolved.
Hertz — To no one’s surprise, Hertz got the requisite consents under its previously announced consent solicitations to amend the indentures for its 12.625% first lien notes and 8% exchangeable second lien PIK notes due 2029. The amendments, which 9fin detailed here, will Hertz to an incremental $500m of secured debt (in addition to the $500m new first lien notes it raised under the deal), but will give key creditor Canso the sole ability to allow or block Hertz’s issuance of incremental pari passu notes under the first lien notes indenture.
Hunkemoller — A group of funds has filed a lawsuit in New York against the Dutch lingerie maker and US fund Redwood for an uptiering transaction that occurred in June, according to a complaint filed on 26 November.
iHeartMedia — A group of majority noteholders left out of iHeart’s dual-track LME were planning to challenge the Alternative Transaction option, and had taken the first step in commencing litigation by initiating the replacement of the indenture trustee. Then, the company tweaked terms to shoehorn the other option — the Comprehensive Transaction — which was earlier impossible to consummate without the objecting group’s support.
IngenovisHealth — Lenders to the Cornell and Trilantic Capital Partners backed healthcare staffing company are working with Gibson Dunn as post-pandemic demand for travel nurses slows.
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.
KLDiscovery — The data management software company’s debt restructuring in August saw lender MGG and shareholder Ontario Teacher’s Pension Plan take control of most of the company.
Lifepoint Health — The Apollo backed hospital operator shaved off 50bps of spread from its $499m term loan B due May 2031, repricing it to 350bps from 400bps as it continues its turnaround following above-expectation Q3 24 results.
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.
Ligado Networks — The satellite company and its creditors are reported to be discussing a debt restructuring after the company received the go-ahead from a federal court to proceed with its $39bn lawsuit against the US government for its “unlawful taking of Ligado’s constitutionally protected, exclusively licensed spectrum without compensation”.
LOGIX Fiber Networks — The fiber-based voice and data company hiredHoulihan Lokey to advise it ahead of an upcoming maturity wall.
Lycra — The spandex maker’s creditors have said they would extend their debt in exchange for a majority stake in the company, sources close told 9fin. The bondholders are offering the shareholders a minority stake if they sign up to the deal by 30 November.
Mavenir Systems — The Texas-based software company is reported to be in talks for Saudi Aramco to invest $1bn for a “significant minority stake” in the company.9fin had earlier reported that lenders were in confidential negotiations with the company to try to find ways to increase its financial breathing room.
Medical Solutions— Certain lenders of the travel nursing company have engagedGibson Dunn as its performance is impacted by lower demand for temporary staffing, 9fin sources say.
Mitel Networks — The Searchlight Capital-backed Canadian telecom company is reported to be working with PJT Partners and FTI Consulting as it considers a restructuring.
MultiPlan — The company has entered into private discussions with its creditors, with one proposal involving an uptier of some of its junior debt. Meanwhile, Q3 24 earnings suggested continued deterioration in MultiPlan’s underlying business.
Newfold Digital — The Clearlake and Siris Capital-backed IT services company, which has been on 9fin’s Distressed Pitch List, reported poor Q3 earnings. A crossholder creditor group including Pimco and GoldenTreeorganized in response, and other groups are also potentially forming.
New Fortress Energy— The company is nearing the completion of its dropdown, new money and debt exchange LME, with the new secured notes having been issued and the financing in Brazil now fully-drawn. Earlier, NFE was reported to have hiredLazard and Intrepid Financial Partners to explore potential asset sales.
OnTrac (LaserShip) — Incremental details provided by S&P on OnTrac’s recently concluded LME include that the initial exchange was with holders of 86% of its first lien term loan, 97% of the incremental first lien term loan and 83% of the second lien term loans, but ultimately nearly all lenders participated, and that new lenders provided $312m in the form of a new money first lien, first-out superpriority term loan.
Oriflame — The Swedish-Swiss multi-level marketing company has addedKirkland & 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.
P&L Development— The family owned OTC drug manufacturer completed its exchange offer, launched in October, issuing $368.5m in PIK-toggled notes due 2029 for $350m in 7.75% senior secured notes due 2025. Also, certain creditors committed to purchasing an additional $131.5m of new notes.
Packers Sanitation — The sanitation company was downgraded to CCC- on the increasing principal outstanding on its mezzanine facility due 2025 potentially complicating refinancing efforts.
Porter Airlines — The Canadian airline has gauged interest from private credit lenders in raising CA$250m in preferred equity to boost liquidity.
Pure Fishing — The Sycamore-backed company has raised a $750m credit facility due 2029 from investors including Monarch Alternative Capital and Silver Point Finance, with proceeds to tackle its term loan and asset-backed loans. 9fincaught wind of the financing raise prior to the company’s announcement.
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 privately released Q3 24 results. 9fin had earlier reported that Astound designated its Texas business, a material asset, as unrestricted, potentially paving the way for an LME.
Salem Media— Certaindebt holders have banded together to negotiate a possible debt restructuring with the conservative Christian media company.
Sandvine — Following its announced acquisition by a group of lenders, the company has announced the commencement of a restructuring under the Canadian CCAA to implement the restructuring that will hand control to lenders and will net it new money.
Screenvision— Certain lenders of the Abry Partners-backed company have organized with Gibson Dunnto negotiate ahead of its $201.5m in loans that are set to mature in 2025.
Sinclair Broadcast Group— The broadcaster is reported to be in talks with its lenders for $1bn in new money to help refinance its $1.2bn term loan due 2026, and extend the maturities of other loans.
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.
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 juice company is working withPJT Partners and Latham, while its lenders have begun informal discussions with Gibson Dunn in anticipation of negotiations around a financing that will bridge the company towards a holistic deal. Tropicana recently received a $56.5m short-term loan from sponsor PAI Partners.
Upstream Rehabilitation — Certain lenders to the Revelstoke-backed physical therapy provider have organized, while the company explores a preferred equity raise ahead of 2026 maturities on its credit facilities.
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.
Vialto Partners — The companyagreed to a deal with its sponsor Clayton, Dubilier & Rice (CD&R) and existing lenders including HPS Investment Partners that will reduce debt by approximately $700m and raise $225m in new money in the form of an equity investment, according to an 11 November statement.
VistaJet — VistaJet’s Q3 24 earnings showed solid growth as the company continues to work with Jefferies on a potential up to $1bn hybrid capital raise, as 9fin earlier reported.
WW International— Following another disappointing quarter, the weight management company announced the replacement of its CFO. 9fin had reported earlier that the company has hired advisors to help address its debt amid an operational turnaround, and creditors are organized under a co-op.
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.
Wolfspeed— The chipmaker recently terminated its CEO Gregg Lowe and appointed Thomas H Werner as the new Executive Chair following the collapse in the company’s stock price. The company also recently laid off 20% of its headcount following below expectation Q3 24 results.
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.
Xerox— According to a complaint filed in the US District Court for the Southern District of New York, Xerox and two top executives misguided investors about the company’s turnaround plans and did not reveal the exact impact of workforce reduction on the company’s performance. The company also announced that it has completed the acquisition of ITsavvy Holdings as of 20 November.
Xplore — The Canadian rural internet provider closed a comprehensive recapitalization, bringing in more than C$1.6bn of new funding from private investors and government programs.
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
Jackson Walker Fees — Jackson Walker must provide correspondences with PR and communication firms related to their attorney’s relationship with Judge Jones and the firms Attorney Sourcebook to the US Trustee even if confidentiality concerns are valid. The Judge also ruled that the US Trustee must provide the testimony subpoenaed by Jackson Walker related to the US Trustee’s potential knowledge of the relationship.
Judge Garrity (SDNY) — Judge James Garrity has announced his intention to step down from the bench at the end of September 2025.
American Tire Distributors— ATD has secured a stalking horse bid from its ad hoc lender group, comprised of Guggenheim Partners Investment Management, KKR, Monarch Alternative Capital, Sculptor Capital Management, and Silver Point Capital. The bid contemplates a credit bid, as well as additional consideration including the assumption of certain liabilities.
Avon International Operations — A global settlement between the debtor, Natura and the UCC was approved. The settlement resolved the UCC’s motion to dismiss the case and allowed for the court to approve the debtors’ sale motion and prepetition settlement with Natura.
Conn’s— A judge signed off on the bankrupt retailer’s roughly $360m sale to Jefferson Capital Systems, a debt collector, a transaction which the company’s lawyers touted as the best way to monetize its remaining receivables.
Diamond Sports— The company’s Chapter 11 plan, which provides for a going-concern reorganization of DSG, was confirmed.
Edgio — The company received court approval of the sale of certain of its assets, mainly certain customer contracts, along with nonexclusive license rights, to Akamai Technologies. The transaction is expected to close in early December.
Gol Airlines— The Brazilian airline filed its Chapter 11 plan and disclosure statement along the lines of a plan support agreement it recently executed with Abra, its majority investor and largest secured creditor. The plan envisages the equitization or extinguishment of $1.7bn of debt and $850m of other obligations.
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.
Red River Talc (J&J)—The debtor filed its second amended plan. Changes include the incorporation of a memorandum of understanding signed with the talc claimants committee that provides a number of added protections for the group including making the common benefit fund a pre-condition to the effective date, and setting up the agreed upon trust to fund the talc claims on the effective date. The common benefit fund master settlement requires J&J to contribute an incremental $650m.
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.
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.
