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9finbroke the news yesterday that PE-backed primary care service provider Better Health closed the initial phase of its liability management exercise. The story included exclusive detail on what represents the first innovation in a post-Serta world, and noted it sends the message that the decision might be less a speed bump than a divot even.
The Better Health credit agreement has, according to sources, fairly standard weaknesses and language as other credit agreements of the era, including an “open markets purchase” exception to its pro-rata sharing provisions — the exception that was used in the 2020 Serta Simmons transaction to exchange the debt of one group of term loan holders into a priority facility to the exclusion of another group holding the same debt. According to sources, Better Health’s advisors were going to use that exception in Better Health as part its planned LME that was on the verge of closing the last week of 2024.
We all know what came next: The Fifth Circuit appellate court decision made it clear that “open market purchase” could absolutely not be interpreted to include a privately negotiated exchange resulting in the disparate treatment of the same lenders. Better Health and its advisors hit the pause button — a brief pause.
LME practitioners, faced with the existential dilemma that they could no longer turn to “open market purchases” as a catch-all for “do whatever you want on a non-pro rata basis”, promptly pored over the rest of the credit agreement and probably came up with a dozen other ways to do the same thing.
9fin looked at the 2016 Serta credit agreement and, in aiming to reverse engineer the thought process on Better Health, found this a relatively fresh way to accomplish a non-pro rata outcome without using the “open market purchase” exception.
First, if there’s nothing preventing required lenders (usually a majority) from eliminating the covenant and payment subordination provisions (what ultimately became known as the "Serta Blocker"), then let’s just do that.
Then, in Serta’s credit agreement, in the “Extensions of Loans and Additional Revolving Commitments” section, it specifies that, “…the Borrowers are hereby permitted to consummate a transaction with any individual Lender who accepts the terms contained in the relevant Extension Offer to extend the Maturity Date of all or a portion of such Lender’s Loans and/or Commitments of such Class…”, which is followed by the detail, “…it being understood that any Extended Term Loans shall constitute a separate Class of Loans from the Class of Loans…” (emphasis 9fin’s).
Ok, so let's extend the participating lenders' maturities by like one day. There, they're a different class.
Then looking at the pro rata sharing provision in section 2.18 which stated: “[E]ach Borrowing, each payment or prepayment of principal of any Borrowing, each payment of interest in respect of the Loans of a given Class and each conversion of any Borrowing . . . shall be allocated pro rata among the Lenders in accordance with their respective Applicable Percentages of the applicable Class.” (emphasis 9fin’s).
Ah, ok, so now, they’re in a different class they can do what they want, and now they just exchange into a priority facility.
Ok, no negotiating sweeter terms for non ad hoc lenders, take it or leave it.
We’re not saying this is the actual thought process, but the result does make one ask: What Serta decision?
Upcoming events
NYU Stern’s 2025 Restructuring Symposium (13 - 14 March 2025): Dynamically Changing Credit Markets: Opportunities & Pitfalls. See HERE for details.
9fin’s Serta Webinar (28 January 2025 at 11am): Serta Webinar (28 January 2025 at 11am): 9fin has resolved that it will produce more Serta content in 2025 than any three media outlets combined, so please sign up for our upcoming webinar (register HERE).
9fin’s Private Credit event in partnership with Benefit Street Partners (28 January 2025 at 4.30pm ET): Registration HERE.
Wharton Restructuring and Distressed Investing Conference (21 February 2025):Link to ticket registration.
Source: Wharton Restructuring and Distressed Investing Conference
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.
Paul Goldschmid, who spent over 18 years at King Street Capital Management, launchedHarvey Capital Partners, a long/short credit fund aimed at opportunistic investments across asset classes.
This week’s news (from articles published in the last seven days)
LMEs vulnerable to Serta fallout — We published a data-driven analysis of non-consensual LMEs potentially vulnerable to the Serta fallout, following the Fifth Circuit appellate court’s decision to overturn an earlier interpretation of the “open market purchase” language.
BWIC co-op tracker — Another Clearlake’s portfolio company featured in the latest BWIC showing tranches of debt with designation meaning creditors are governed by existing cooperation agreements. The debts were issued by Clearlake-backed Ivanti Software, Bausch Health, Medical Solutions, Altice France and Astound Broadband.
Oregon Tool— A group of minority lenders to Platinum Equity-backed Oregon Toolhave retained Glenn Agre to advise them with LME talks between the company and lenders appearing imminent, according to 9fin sources.
City Brewing — Following an LME in April 2024 and recent stopgap funding from existing creditors, City Brewing is assessing restructuring options which could entail handing control to a group of existing lenders on a non-pro rata basis, according to 9fin sources. Talks are ongoing and it is unclear whether a deal will take place in or out-of-court, sources said.
Anthology — The EdTech company in December missed a coupon payment tied to its $500m second lien loan, less than a year after it completed an LME.
Aimbridge Hospitality— The Advent-backed hotel manager entered into a restructuring support agreement with its first and second lien lenders, and sponsor where the company will reduce its outstanding debt by over $1.1.bn and hand the company over to its first lien lenders. The company has until next Friday to determine whether it will restructure in-or-out of court.
EW Scripps — Certain holders of EW Scripps’ bonds due 2029 and 2031 are in talks to organize with Akin Gump as a defensive measure, as the broadcasting company works with Morgan Stanley to explore refinancing options, including potential securitization and amend and extend deals.
Ivanti Software — The Clearlake-backed company has hiredKirkland & Ellis to assess balance sheet options as it grapples with weak performance and cash flow concerns. Meanwhile, Davis Polk corralled a lender group with a majority of first lien term loan holdings and Glenn Agre has a minority group of lenders.
Altice France— The French telco companyis engaging in discussions with its secured creditors over the structural terms of its debt restructuring, according to 9fin sources. These include method of implementation, governance and shareholder rights, the sources said. After the two parties agree on the structure, the company will resume talks on the economic terms.
Ardagh— Some of Irish packaging solutions company’s bondholders have gone restricted to review a restructuring plan put forward by the packaging company over the holiday period, according to 9fin sources. Recent board changes at the start of the month involved the company bringing on some experts in restructuring.
Thames Water— The convening hearing for an alternative restructuring proposal put forward by the UK water utility’s junior creditors, which was expected to take place on Monday (20 January) has been delayed.
Sinclair Broadcast Group— The broadcaster disclosed the execution of a transaction support agreement with a group of its secured creditors for a deal involving new money, debt repurchases and uptier exchanges aimed at pushing out the bulk of Sinclair’s debt maturities to 2029 and beyond
Trinseo — Trinseo disclosed the completion of each prong of the LME it had announced in December.
B. Riley Financial — The troubled financial services company published much delayed financials for the quarter ended 30 June 2024. The 10-Q notes the SEC continues to investigate the company’s transactions with chairman Bryant Riley and now bankrupt Franchise Group.
Zips Car Wash — The Atlantic Street Capital-backed car wash operator is reported to be seeking rent concessions as it negotiates with lenders and explores options which could include a bankruptcy.
Medical Properties Trust— The troubled healthcare facility REIT is reported to have tapped its $1.28bn revolver and used cash on hand to repay around $700m outstanding under GBP term loans due January 2025. Also, its press release on tenant Prospect Medical Group’s bankruptcy noted that its priority is to “protect [its] investment in Prospect’s California hospitals” and it expects to support Prospect’s efforts to sell its Connecticut facilities through Chapter 11.
Michaels Stores — The Apollo-backed crafts retailer’s board has established an interim office of the CEO following the former CEO’s departure on 14 January.
Cision — The distressed Platinum Equity-backed PR software firm has appointed a new CEO. Cision was in November reported to have told lenders that it had created a new holdco and was earlier said to be getting advice from Houlihan Lokey and Milbank.
AMC Entertainment — The theater chain disclosed that it had fully utilized the ATM program recently established with Goldman Sachs, having sold 50m shares of common stock for $184m of gross proceeds.
Bankruptcy
Digital Media Solutions — Digital Media secured confirmation of its liquidating plan after overcoming objections to the use of opt-out third party releases in its plan.
Incora — The judge overseeing Incora’s Chapter 11 case issued his first report and recommendation on Langur Maize’s asserted claims in the lawsuit over the 2022 transaction. The judge recommends that the District Court find that Incora breached the indenture for the 2027 notes, but that claims for tortious interference, civil conspiracy and breach of contract by the participating noteholders and Incora’s sponsor be dismissed.
Intrum — The debtors have filed an emergency motion asking the court to enjoin the minority ad hoc group of 2025 noteholders from arguing that the company was not in financial distress in its Swedish reorganization proceeding, which the group has appealed. In addition, buyers of Intrum’s CDS protection will receive a 24% payout after dealers settled contracts in an auction.
Jo-Ann Stores — The company entered its second Chapter 11 case in less than a year after liquidity pressures resulted from unanticipated inventory challenges. All first-day relief was granted at the first-day hearing, although an ad hoc group of term loan lenders hinted at troubles brewing in the future.
Prospect Medical Holdings — Prospect Medical’s Chapter 11 case marks another of Medical Property Trust’s tenants enteringChapter 11. The company will seek to sell certain of its hospitals during its Chapter 11 case and received interim approval of its non-consensual priming DIP facility at its first-day hearing.
Purdue Pharma — The company requested another extension to its mediation and the preliminary injunction prohibiting lawsuits against third-parties. The company reports that the parties have continued to work to finalize documents reflecting a further settlement.
Spirit Airlines— The company announced that it had secured a commitment from certain of its prepetition lenders for a $300m senior secured exit revolving credit facility.
Northvolt— The company was reported to have sold its shares of battery recycler Hydrovolt to Norsk Hydro. Northvolt also secured an extension to submit its schedules and statements of financial affairs for almost an entire month.
Other active distressed and restructuring coverage (from articles prior to the past seven days)
2024 year in review— Love them or hate them, 2024 was the year of the co-op. We sat down with lawyers and investors who helped paint a picture of how creditors are using the agreements to band together and fight back against LMEs, as well as how the pacts have changed and where they could be headed this year.
2025 distressed outlook— Recent court decisions on Serta Simmons’s and Mitel’s uptiering transactions have added uncertainty to what was expected to be a straightforward year for the LME professionals and investors.
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.
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— The company hashanded control to a group of lenders, including Antares, KKR, Blue Owl and Goldman Sachs, through a restructuring which is expected to close in Q1 25.
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.
Allen Media — The TV network company released cleansing documents to private investors after having struggled to arrive at an agreement with its creditors.
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.
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.
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.
CommScope — The company announced a refinancing transaction that paid off all maturities through 2026 and leaves open the possibility for a future LME.
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.
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.
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.
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.
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 freight company announced a review by its board of strategic alternatives, the implementation of initial steps of its transformation plan, and an amendment of its credit agreement which includes an increase of leverage covenant limits and a reduction of revolver commitments and introduces certain restrictions.
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.
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.
Global Switch — Certain bondholders are informally seeking advice from restructuring advisors after the data center provider reached an agreement to sell its Australian subsidiary.
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.
Hawaiian Electric — The utility company agreed to sell a 90.1% stake in its American Savings Bank unit for $405m in order to raise funds for its Maui wildfire settlements.
Hertz— The court denied Hertz’s noteholders request for a bond to secure the makewhole and postpetition interest payments while the company seeks to appeal the decision to the US Supreme Court. Earlier, in mid-December, 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.
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 — The radio broadcaster completed its LME on earlier tweaked terms, shoehorning the Comprehensive Transaction which had earlier been impossible to consummate without the support of an objecting group holding a majority of its secured notes due 2028.
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.
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.
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.
Kohl’s— The retailer announced an operational restructuring plan which involves the closure of an e-commerce fulfilment center and 27 underperforming stores.
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.
LOGIX Fiber Networks — The fiber-based voice and data company hiredHoulihan Lokey to advise it ahead of an upcoming maturity wall.
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.
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 New York Appellate Division, First Department recently issued a decision reversing the trial court’s ruling on Mitel’s uptier, finding that an exchange can be a purchase under loan documents.
ModivCare — The non-emergency medical transportation provider announced that it had secured $105m in new money financing backed by existing lenders and its largest shareholder, Coliseum Capital Management and revealed plans to launch an uptier exchange of a portion of its unsecured notes due 2029. It also revamped its board and formed a strategic alternatives subcommittee.
Mudrick Capital Management — The investment firm’s flagship distressed opportunity fund is reported to have gained nearly 32% in 2024 on the back of investments in busted converts and companies including Shutterfly and fuboTV.
MultiPlan — The company launched a pro rata comprehensive refinancing to extend debt maturities.
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.
Office Properties Income Trust — The office REIT announced the completion of a $114.5m sale of properties and the use of proceeds to redeem its outstanding 4.5% unsecured notes due 2025.
One Call— The healthcare coordinatoris sounding out investors, including private credit firms, to refinance its existing debt.
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.
Packers Sanitation Solutions—The Blackstone-backed companyrecently closed a transaction, which involved new money and exchange, to extend its maturity wall and boost liquidity.
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.
Petrofac — The oilfield services provider announced that it has entered into a lock-up agreement with 57% of its senior secured bondholders on its restructuring plan, which involves a debt for equity swap and new debt and equity raise, and then launched consent solicitations in relation to the notes.
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.
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.
Serta Simmons — The Court of Appeals issued a decision on the legality of the company’s 2020 uptier transaction, overturning the bankruptcy court’s decision on the definition of “open market purchases” and the validity of the prevailing lenders indemnity. Now the excluded lenders can pursue the prevailing lenders for damages. 9finexplored what changes may be coming to credit agreements as a result of the decision. Cloud 9fin’s podcast episode explored market reactions and what it means for LMEs going forward.
Silver Point Capital — The SEC has accused the Silver Point of failing to failed to “prevent the misuse of material non-public information relating to its participation on creditors committees” in relation to distressed debt lawyer Chaim Fortgang’s consulting role at the investment firm.
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.
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 company received an upsized loan from its sponsor PAI Partners, 9fin sources said, bringing in a total of $175m in new first-lien debt that will mature in September 2025.
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.
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.
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.
Viasat — The satellite company announced the completion of a sale of its Energy Services Systems Integration business to MAG Capital Partners.
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.
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, while also acquiring Ancient Nutrition.
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— The company announced a deal to acquire rival printer/scanner maker Lexmark in a $1.5bn deal that will also result in a meaningful paydown of Xerox’s nearest maturity.
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—Certain lenders to Zayo have signed a cooperation agreement after the company attempted to extend the maturity on some or all of its first lien debt, sources told 9fin, and a loan BWIC listed by a Sculptor Capital Management-owned CLO noted the co-op on the secured loan.
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.
Big Lots — The company's proposed sale to Gordon Brothers was approved on 2 January and closed subsequent, after the debtors previously proposed sale transaction fell through.
CareMax — Final approval of the company’s DIP facility and other requested relief was granted at an uncontested second-day hearing.
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.
The Container Store — The company filed for bankruptcy and received all requested relief at its first day hearing on an uncontested basis.
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 was expected to close in early December.
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.
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.
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.
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.
Ligado Networks —After filing for bankruptcy, Satellite and spectrum company Ligadosecured all of the relief it sought during its first day hearing — and also set the stage for its legal fight with Viasat, another satellite service provider that is potentially its largest creditor.
Party City — The party goods seller, which emerged from bankruptcy in October 2023 with lenders including Silver Point Capital and Monarch gaining control, filed for bankruptcy and was cleared to begin a liquidation process at its first day hearing.
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.
Steward Health Care — The debtors held a status conference 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.
TGI Friday’s — The sale of nine of the company’s stores and ten of its liquor licenses was approved at a hearing on 2 January.
Wellpath — Wellpath received approval to sell its recovery solutions assets at its sale hearing.
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.
Yellow Corp — The judge overseeing the Yellow case issued several rulings on WARN Act claims, preserving a determination of damages for a future trial on the claims.
