Benchmark prior transactions, bonds, loans or company profiles using over 300 credit metrics.

Comparables

AI transcripts & instant analysis, making earnings season easier than ever.

Earnings

A full suite of ESG data and analysis. Built for your workflow

Spot undervalued credits and potential future restructurings with our purpose-built tools.

Distressed and Restructuring

We use AI to aggregate newsflow from 2,000 sources, and deliver it to your inbox quicker than anyone else.

News

Full Financial profiles with 3 statements, KPIs, segment splits & credit metrics. All traced to source documents.

Financials

New deal analysis and covenant comparison tools, understand key risks in seconds not days.

Covenants

We've successfully predicted more than 65 price sensitive events - before they happened.

Deal predictions

Say goodbye to CTRL + F with our powerful search. Thousands of documents text searchable for any keyword or phrase.

Search

Track high yield deals from issuance through to maturity, with integrated legal, credit and ESG analysis.

High Yield Bonds

Shine a light on private markets with 9fin's news and legal analysis of syndicated loans

Leveraged Loans

21st century tech and expert analysis to help CLO teams make informed decisions faster.

Structured Credit 

Find information others can't see in one of the fastest growing corners of finance

Private Credit 

9fin team

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.

Private equity-backed companies are defaulting at almost double the clip of non-sponsor backed companies — with a higher proportion of defaults coming from LMEs versus bankruptcies. And it’s not surprising which PE firms’ portfolio companies account for most of those defaults over that time span, according to a new report by Moody’s on defaults among rated PE portfolio companies from the period between 2022 and August of this year.

While non-PE backed firms defaulted at a rate of 7.1% during that period, companies owned by the 12 largest sponsors tracked by Moody’s defaulted at a rate of 14.3%. The rate was even worse among other PE firms tracked by the credit rating agency, at 16.7%.

Moody’s observed 31 defaults among 217 firms owned by the 12 largest sponsors, a list that includes Apollo, Blackstone, Clearlake and Platinum Equity.

The most common sort of default was a distressed exchange, because they help PE firms to ”sidestep a costly bankruptcy process” while preserving their equity, Moody’s said.

Platinum Equity had the most defaults, with 10 out of the 26 companies in its portfolio — or 38% — that were rated by Moody’s experiencing a default. Apollo had the second largest share of defaults with 22% and Clearlake placed third with 17%.

Notably, American Securities, Leonard Green and Warburg Pincus didn’t see any portfolio companies default for the period tracked during the survey.

Also, even while leverage metrics have improved, interest coverage deteriorated, and even with the speculative grade default rate declining since peaking at 6% in Q1 2024, PE-backed companies rated B3 and below “will continue to succumb to more downgrades and defaults,” the report reads. “Riskier deals owned by the top 12 PE firms on our distressed debt watch list comprise 30%, compared to 23% for other PE-backed debt issuers – and are significantly higher than 9% for higher-rated, spec-grade issuers that lack PE ownership.”

Bloomberg reported on Tuesday that text messages from March 2021 show that certain Jackson Walker employees “knew about, and discussed the potential fallout of, an undisclosed romantic relationship between a firm lawyer and [Houston Judge David R. Jones]...” Then the story goes on to name the attorneys and quote the text messages that were viewed by Bloomberg Law after their existence was revealed in a discovery dispute.

The attorneys discussed whether or not Jones’s girlfriend would remain with Jackson Walker (she did not), whether the complex panel in Houston would remain (it has); and to whether Jackson Walker would continue to work with Kirkland & Ellis, the bankruptcy powerhouse that Jackson Walker served as local counsel for frequently in Texas (not as much of late). The next day, the Wall Street Journal reported the same quotes… with some additional ones highlighting further conversations that took place between Judge Jones and a prominent Kirkland lawyer.

Judge Jones over the summer confirmed he was under criminal investigation, news originally broken by the Wall Street Journal. The Journal this week reported, “The criminal probe is now looking at whether there were secret discussions or coordination between Jones and bankruptcy professionals that influenced the administration of chapter 11 cases in his court…”

The fallout from these Jones related cases is expanding at a time when other issues that were once status quo in bankruptcy court — such as debtor counsel retentions, and releases — are being challenged. To most, it is clear there are structural problems, as there is so much riding on these corporate restructurings, fees have skyrocketed, as has the complexity, and there is ample room for power and money to incentivize unethical behavior. To the professionals who have had to battle the US Trustee on retention applications and third-party releases in a post-Purdue world, it has often felt like nuances have been lost in the UST’s pursuit of justice. The federal investigations into Judge Jones may result in similar prosecutorial zeal. Both things could be true, and at 9fin we continue to track how it will shape the outcomes of restructurings in and out-of-court.

The Default Notice is produced by 9fin’s distressed and restructuring team: Max Frumes | max.frumes@9fin.com, Rachel Butt | rachel@9fin.com, Max Reyes | max.reyes@9fin.com, Kartikeya Dar | kartik@9fin.com, Catherine Corey | catherine@9fin.com, Jane Komsky | jane.komsky@9fin.com, Teri Buhl | teri.buhl@9fin.com, Swapnil Sawant | swapnil.sawant@9fin.com, and Segun Olakoyenikan | segun.olakoyenikan@9fin.com, along with legal intern Michael Evrard-Vescio | michael.evrard-vescio@9fin.com

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

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

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.

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.

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, according to 9fin sources. The pact covers all tranches of DBS notes as well as the 11.75% bonds due in 2027 issued by DISH Network. Meanwhile, EchoStar has launched consent solicitations and exchange offers for DISH Network’s convertible notes due 2025 and 2026 to exchange into secured notes and convertible notes due 2030 as a part of the comprehensive series of contentious new money raises and debt exchanges the company announced in conjunction with the sale of its pay-TV business to DIRECTV.

Bausch Health — The company is in talks with third parties on potential new financing, as its existing creditors are locked in a massive cooperation agreement.

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.

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.

Beasley Broadcast Group — 98.4% of lenders have participated in the company’s exchange targeting $267m in debt due 2026. According to 9fin sources, Brigade Capital Management holds 73% of those bonds and fully backstopped the deal.

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.

B. Riley Financial — Further details emerged about the agreement struck between the financial services company and its term lenders. Earlier, B. Riley had disclosed that it repaid $86m of its term loan, terminated its revolver and amended its credit agreement with Nomura and others to hike (and partly PIK) interest, commit to reducing the term loan to $100m or lower by September 2025 and introduce/amend leverage, interest coverage and liquidity maintenance covenants.

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

Northvolt — A subsidiary with 2-3bn SEK of debt for the Swedish electric vehicle battery maker filed an application for bankruptcy at the District Court of Stockholm. 9fin also reported the company paid its taxes on time.

Altice France — The Patrick Drahi-owned telecom company is reported to have offered secured creditors a 10%-15% stake in the company to agree to a sizable haircut on their debt.

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.

WideOpenWest — The cable operator is reported to be close to a deal with lenders for a $200m priming loan cum debt exchange.

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.

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.

Edgio — Milbank is facing an objection from the UST to its application to be employed as debtors’ counsel. The objection arises from Milbank’s representation of the debtors’ current and former officers as defendants in litigation actions.

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.

Conn’s — The unsecured creditors committee in Conn’s has filed a motion seeking standing to challenge claims and liens on certain of the debtors’ assets. In addition, the company received approval to have Jefferson Capital Systems act as stalking horse bidder with an approximately $360m bid, supported by a $10.8m break-up fee and up to $1.25m in expense reimbursement.

Diamond Sports — 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.

Fisker — Ahead of Fisker’s confirmation hearing, which ultimately was held on several days this week (including today), first the SEC and UST and then American Lease, the purchaser of Fisker’s EV fleet under the Chapter 11 plan, objected to the proposed plan. However, a deal with American Lease (and confirmation) seems to be close.

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

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

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.

Allen Media — The media company has engaged both Latham & Watkins and Kirkland & Ellis to explore options ahead of an upcoming debt maturity, 9fin sources say. Multiple groups of lenders were earlier reported to have united under a single cooperation agreement, with secured lenders represented by Ducera Partners and Gibson Dunn, and unsecured noteholders by Paul Weiss.

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.

CareMax — The value-based healthcare provider continues to extend waivers under its credit agreement, most recently through 7 October, while it lays the groundwork for a potential bankruptcy filing.

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.

Cox Media Group — A steering committee has kickstarted negotiations with Cox Media on ways to address its upcoming debt maturity.

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.

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.

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.

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.

Lycra — The textile company is reported to be working with Houlihan Lokey as it speaks with creditors on extending its looming debt maturities. It had completed an LME in Q3 23.

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.

Medical Properties Trust — 9fin published a deep-dive report on the troubled US-based healthcare REIT embroiled in the Steward bankruptcy.

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.

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.

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.

Spirit Airlines — Bonds and equity of the troubled ultra low-cost carrier dropped after news emerged that recent talks with bondholders were centered around a bankruptcy filing and not an out-of-court restructuring.

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 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.

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.

The Container Store — Certain lenders are getting legal advice as the retailer faces a term loan maturity in 2026 and an uncertain earnings trajectory.

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.

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.

Top loan movers (link to full screener on 9fin)

Enjoyed this weekly wrap? Our customers receive this content ahead of the crowd — find out more about 9fin’s news and analysis.

🍪 Our Cookies

The Default Notice — Brought to you by PE-backed ‘sidestepping’

Top news

Read all our public content for free

Recently Published

Taking the Credit — Think bigger

Winding Up — Thames Water deal douses nationalisation fears ahead of budget

The Unicrunch — Deep dish meets French twist

CLO market adapts as LMEs show staying power

What are you waiting for?