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Enough of these creditors rights, Fifth Circuit-blockers, and an ever-expandingnumber of anti-LME provisions. Private equity sponsors — which globally manage trillions of dollars and counting, averaging annualized mid-double digit returns over decades — are looking to take back control of their portfolio companies’ capital structures by any marginalia necessary.
9fin reported exclusively this week on the attempt by global brand manager WHP Globalto sneak anti-coop language into the credit agreement of its refi loan that launched this week. The language would have prohibited any lender to WHP from being part of any form of co-operation agreement with other WHP lenders (inserted under the “Counterparts; Integration; Effectiveness” clause no less!).
WHP, itself the owner of assets bought from another Chapter 11 (Express), is owned by Ares Management, Oaktree, Solus and BlackRock — firms highly aware of what havoc lenders can wreak if they organize and lock down a majority of a loan (see Hearthside, Trimark, Audacy, and Incora, respectively). 9fin understands the WHP documents were drafted by Kirkland & Ellis itself, the law firm with the most prominent sponsor and debtor-side restructuring and LME practices. Lenders — with the aid of their own high-priced advisors and perhaps services like 9fin — ultimately pushed back on the language and it was removed in the final documentation. But it was certainly exciting for a while!
One of the other crafty items in the WHP draft that was ultimately removed was right in line with another exclusive report by 9fin earlier in the week regarding the use of disqualified lender lists.
Part of the rejected WHP credit agreement language would have allowed WHP and its sponsors to deem any creditor who was party to any co-operation agreement as a disqualified lender. This was yet another innovation in the rapid expansion of the use of so-called DQ lists, usually annexes to credit agreements listing lenders that the issuer can disqualify from purchasing its debt in the secondary market at the company’s discretion.
9fin got a hold of one of these expansive lists this week, which was being used by Carlyle-backed NEP Group.The list is roughly three dozen names long, including a range of investors from Mudrick Capital Management to Elliott Management, the latter of which publicly sparred with Carlyle over a debt deal for Veritas.
More broadly, private equity firms use the tactic to limit which investors can buy the debt of their companies, thus preventing those investors from dictating the terms of a restructuring. These DQ lists have evolved from a static list of excluded names to one that can be amended — making it a more robust tool now than it was before.
This DQ expansion parallels the proliferation of “whitelists” — a tally of lenders who are okayed to buy certain debt, rather than a list of who can’t — in Europe. In fact it was likely first in Europe where KKR — already known for its aggressive whitelist for Dutch e-bike producer Accell — tried and failed to insert a ban on co-op groups into the credit agreement of its portfolio company Stepstone.
The tension remains eternal in the back-and-forth between levered companies, their sponsors, and lenders who want a say in how troubled companies resolve their debt issues.
Upcoming events
Wharton Restructuring and Distressed Investing Conference (21 February 2025): Link to ticket registration.
Source: Wharton Restructuring and Distressed Investing Conference
Creditor Rights Coalition 2025 Restructuring Symposium at Stern (13 - 14 March 2025): Dynamically Changing Credit Markets: Opportunities & Pitfalls. See HERE for details.
Cloud 9fin — Jane’s LME Addiction — Never been in Better Health — In this episode of our new show Jane’s LME Addiction, our head of LME coverage Jane Komsky brings in Latham & Watkins partner George Klidonas and C Street founder and CEO Jon Henes, to discuss the Better Healthtransaction and its implications for future LMEs.
Defenses against co-op challenges — Do they need to work? — 9finexplores the best arguments in favor of cooperation agreements and the most likely situation in which the agreements would be challenged.
US Distressed/Restructuring Tracker Report — We published our report for February 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.
Out-of-court
NEP Group — Carlyle told a number of investors not to bother with buying the production company’s debt on the secondary market as it disclosed a list of roughly three dozen firms it could disqualify from owning the debt.
Flexsys— Lenders to One Rock-backed rubber chemicals and solutions company have retainedMoelis after having earlier tapped Gibson Dunn, while Latham& Watkins is representing the company. The company is said to be exploring LME options as it faces liquidity challenges and a revolver expiring in 2026.
Hertz — The rental car company announced it has entered into settlement discussions with former noteholders over their makewhole and postpetition interest claims. Hertz is offering the noteholders new unsecured debt that will mature in 2029 as part of the consideration, whereas the noteholders are requesting secured debt that will mature at the end of the year. The company also reported another quarter of disappointing results, and prevailed before the Delaware Chancery Court in Discovery Capital Management’s suit seeking a change of control payment on its post-Chapter 11 warrant holdings.
DigiCert — An ad hoc group of creditors to this digital encryption service provider organized with Gibson Dunn ahead of expected debt talks with its private equity sponsors, sources said, with the co-operation agreement open to all up to its deadline on 14 February.
Altice International— Certain lenders to this Patrick Drahi-owned telecom unit have organized with Gibson Dunn and are in the early days of considering a cooperation agreement.
Sunnova Energy— The company is considering how to monetize its ABS positions as it looks to refinance more than $900m of debt coming due in 2026.
Office Properties Income Trust — After having addressed its debt due 2025, the office REIT launched an exchange offer for $336m in unsecured notes due 2026, 2027 and 2031 to exchange into up to $175m in “priority guaranteed” unsecured notes due 2030. The proposed exchange employs a rolling waterfall structure like in its previous exchange — prioritizing the 2026s — but the exchange debt will not be secured. The company also delivered another quarter of disappointing results, continuing to include a going concern warning in its financials, and management did not field questions on the earnings call.
STG Logistics — The Wind Point, Oaktree and Duration Capital-backed freight and logistics company had completed a dropdown, a $191m superpriority debt raise and a discounted exchange in Q4 24. Certain non-participating lenders have since sued the company and certain participating lenders alleging they acted in bad faith and deprived them of ratable treatment through the LME, stripping the litigating lenders of covenant protections and liens on assets dropped down and rendering their holdings “essentially unsaleable”.
Oaktree Capital — The fund closed the largest opportunistic credit fund on record with roughly $16bn.
Kloeckner Pentaplast — The German plastic packager announced an agreement with 75% of noteholders to swap its €300m 6.5% September 2026 SUNs into new second lien bonds due in September 2029, although it still faces roughly €1.7bn of secured debt coming due soon.
Getty Images — The company revised language in a $1.05bn-equivalent loan deal to include a “blanket” anti-LME provision, according to marketing materials seen by 9fin.
WHP Global — Investors quashed an attempt by the global brand manager to ban lenders from forming co-operation agreements under its new loan refinancing, sources told 9fin, one of the first of such attempts to ban such agreements in US loan documentation.
Thames Water — The distressed utility company has asked UK regulator the Competition & Markets Authority (CMA) to review its regulatory settlement for the next five years, unlocking £1.5bn in uncommitted funds as part of its restructuring plan. Also, see here for 9fin’s analysis of how Justice Leech’s decision to sanction Thames Water’s first restructuring plan could pan out.
Just Eat — An ad hoc group of bondholders sent a letter affirming its interest in negotiating with the company after it sold its US subsidiary GrubHub, which the lenders are taking as a form of default.
Upstream Rehabilitation — The company is said to be exploring balance sheet options after its attempts to raise preferred equity and private loans to address 2026 maturities failed. 9fin had recently reported on the Revelstoke-backed physical therapy provider having organized, and on the preferred equity raise being explored.
Sinclair Broadcasting Group — The company disclosed that it had closed a comprehensive transaction aimed at extending debt maturities, that also tightens LME covenants and introduces in its new indenture a unique trustee provision that will allow beneficial holders to elect to consent to amendments and/or waivers or appoint and remove the trustee without having to go through the DTC as registered holder. Also see 9fin’s credit quicktake on the first-out notes issuance here, and legal quicktake here.
Allen Media — The TV network company addressed the February maturity of its revolver, using proceeds from the issuance of new senior secured notes due 2029 (which may spring to 2027) to repay and retire the revolver, according to an S&P note. However, refinancing risk for 2027 and 2028 maturities persists.
Sandvine — The once US Department of Commerce-blacklisted tech company announced that it had received court approval under the Canadian CCAA to implement its restructuring backed by 97% of its secured lenders that will hand control to lenders and will net it $45m in new money, and US Chapter 15 recognition of the CCAA approval.
Walgreens/VillageMD — The company is reported to have hired Perella Weinberg Partners and AlixPartners as it explores operational and balance sheet options for VillageMD, its health clinic business. VillageMD is said to be working with Evercore and A&M on a potential sale or restructuring.
American Tire Distributors — The sale of the company’s assets to a special purpose entity formed by the debtors’ DIP lenders and certain prepetition lenders was approved.
Franchise Group — The judge overseeing the case denied the debtors’ application to retain Willkie Farr as counsel due to conflicts that arise from Willkie’s prepetition representation of Brian Kahn and related entities. In addition, a hearing on the company’s disclosure statement has been adjourned to the week beginning 17 February at the earliest.
JoAnn Stores — The company received approval of its bidding procedures, setting up a late February sale hearing.
Party City— The company declared New Amscan, the stalking horse bidder, as the winning bidder for its non-lease assets and multiple parties as winning bidders for its lease assets.A sale hearing is also scheduled for 26 February.
Prospect Medical Holdings — The company reached a last-minute settlement with Medical Properties Trust that allowed for the company’s DIP facility to be approved on a final basis, and resolved all outstanding objections to the sale of its Rhode Island hospitals.
Spirit Airlines— The company’s confirmation order was taken under advisement for the judge to consider whether opt-out forms constitute consensual release. The company also continued to rebuffFrontier Airlines’ merger proposals, with parties disagreeing primarily on the amount and terms of the takeback debt Spirit's stakeholders would receive in the combined company.
Other active distressed and restructuring coverage (prior to last 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 in 2025.
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.
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.
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 — 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 debt was issued by Clearlake-backed Ivanti Software, Bausch Health, Medical Solutions, Altice France and Astound Broadband.
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.
Affordable Care— Lenders to tooth replacement provider worked with lawyers now at Paul Hastings as the company confronted concerns about available liquidity.
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 24 January to determine whether it will restructure in or out of court.
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.
Altice USA — The telecom company and its creditors are reported to have held talks about a deal involving a discounted debt exchange. 9fin had earlier explored the different options available to Altice USA and its creditors in our LME Breakdown.
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.
Anastasia Beverly Hills — The cosmetics company reported stronger than expected Q3 earnings, sources told9fin, and accordingly saw indications on its term loan improve.
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.
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.
Ascend Performance — Creditors to the SK Capital Partners-backed chemicals maker are reported to have hired Gibson Dunn as the company faces the maturity of over $1bn of term loans in 2026. The company is said to be working with PJT Partners and Kirkland & Ellis.
Aventiv Technologies— The Platinum Equity-backed prison telecom company is in talks with creditors on an out-of-court deal which would likely involve first lien lenders taking control. Gibson Dunn and Evercore have been advising an ad hoc lender group.
Bausch Health— The specialty pharma company has ended the sale process for its 88% B+L stake, indicating that the offer made by “a private equity firm” did not ultimately meet management’s expectations. Though Bausch Health noted that it will continue to hold the B+L stake, B+L separately stated that full separation remains the goal. 9fin recently reported Goldman Sachs was involved in the sale process and that Evercore and Proskauer Rose recently stepped in as new legal and financial advisors advising on M&A and debt restructuring options, while Jefferies was running a drop-down financing.
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 is said to be considering spinning off its securities business. It had recently announced the planned redemption of its unsecured notes due 2025 at maturity, and the suspension of cash dividends on its cumulative perpetual preferred stock.
Cabinetworks — An ad hoc group of lenders tothe Platinum Equity-backed company holding a term loan designated as co-op / non-coop is expected to take pitches for a financial advisor in short order to work alongside Paul Weiss.
Cision— The discovery deadline has been extended in Dow Jones & Company’s contract dispute against the Platinum Equity-backed media analytics and newswire company. The parties have to produce final documents by 31 March and depositions must finish by 29 July.
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.
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.
CommScope — The company closed the sale of its OWN/DAS business to Amphenol for announced a refinancing transaction that paid off all maturities through 2026 and leaves open the possibility for a future LME.
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.
E.W. Scripps — The broadcasting company has hiredPerella Weinberg Partners and Simpson Thacher to help explore options ahead of more than $1.3bn of debt maturing in the next two years.
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.
Forever 21 —The Sparc Group-owned company that operates Forever 21 stores under license from Authentic Brands Group is reported to be working with BRG to evaluate potential turnaround options including a bankruptcy filing.
Fortra (fka HelpSystems) — Certain lenders to the cybersecurity services provider are seeking advice from Gibson Dunn to assist with debt talks with the company and its sponsors. Backed by TA Associates, Harvest Partners, and Charlesbank, Fortra has $2.1bn of first lien debt due in 2026.
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.
Foundever — Certain lenders to the customer service outsourcing company have selectedLazard to prepare for potential debt talks as artificial intelligence puts pressure on earnings and its debt trades at stressed levels.
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.
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 2024, 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.
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.
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 2024 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 2024 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 US based spandex manufacturer has agreed to be taken over by a Chinese state-owned company. The proceeds from the sale will be used to pay down around $1bn of outstanding debt on closing.
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 Properties Trust — The REIT’s near-dated bonds ticked up after the company announced a bond deal aimed at paying down 2025 and 2026 maturities. The private deal includes $1.5bn and €1.0 billion in senior secured notes, both due 2032, with a blended coupon of 7.885%.
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.
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.
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. Also, the telecom services company is weighing a bankruptcy filing that would hand control of the company to its lenders as soon as this month.
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 healthcare technology and data solutions company saw over 99% participation from each tranche of the outstanding secured notes, unsecured notes, and term loans in the debt exchanges launched as part of a comprehensive refinancing announced in December 2024.
Netceed— The French telecom provider is working withRothschild to carve out units of its Belgian subsidiary Amadysas it looks to sell assets to deleverage and pay down its debts.
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.
Nikola — The electric truck maker is reported to be working with Pillsbury Winthrop to explore a sale or restructuring of the company through a bankruptcy filing, which is said to be imminent.
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.
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.
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 2024, 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.
Perella Weinberg-Ducera — The long-standing dispute between Perella Weinberg Partners and the bankers that broke away to found Ducera Partners is reported to be finally going to trial.
Petrofac — The oilfield services company posted an update on the lock-up agreement with its senior secured bondholders on its restructuring plan, which involves a debt for equity swap and new debt and equity raise, and the consent solicitations in relation to the notes. It also set out a timeline for the restructuring.
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.
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 in early 2024 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.
Tropicana—A group of lenders to the company already with Gibson Dunn has hiredEvercore as financial advisor.
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 2024.
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.
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 holding a minority of the Clearlake Capital-backed petfood company’s term loans have organized with Glenn Agre in anticipation of an LME. A majority lender group had organized earlier.
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.
WW International— The weight management company disclosed in an 8-K that it had recently fully drawn its revolver “to provide financial flexibility.” This action sets the company up to progress negotiations with creditors, with the 8-K also noting that the company is evaluating its capital structure and it “look(s) forward to engaging with our lenders and bondholders in the coming months.”
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—The communications infrastructure group priced its fiber ABS, a $1.462bn deal which will net it much-needed liquidity and provide a path to addressing its first lien debt.
Bankruptcy
Judge Garrity (SDNY) — Judge James Garrity has announced his intention to step down from the bench at the end of September 2025.
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 and closed subsequently, after the debtors previously proposed sale transaction fell through.
CareMax — CareMax’s Chapter 11 plan went effective, with first lien creditors receiving nearly all of the proceeds from the asset sales in bankruptcy.
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, and the debtors emerged from bankruptcy under the name Main Street Sports Group, and with $200m of debt and $100m on cash at emergence.
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.
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 closed in 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.
Hearthside Food Solutions— The company received approval of its disclosure statement and can begin soliciting acceptances of its plan. A confirmation hearing is set for 10 March.
Intrum — The Stockholm District Court has allowed the debt collector’s Swedish reorganization process to continue. Recently, debtors had filed an emergency motion asking the US bankruptcy 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.
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.
Jackson Walker Fees — Jackson Walker has filed motions to strike or exclude testimonies and reports of US Trustee expert witnesses Richard Davis and Jonathan Lipson. In November, Judge Rodriguez had ruled that the law firm 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.
Liberated Brands — The company filed for Chapter 11 in the District of Delaware with a $35m DIP facility, and received approval of all requested relief at its first day hearing.
Ligado Networks —The satellite and spectrum company’s received final approval for its $939m DIP facility after the scheduled second day hearing was canceled.
Northvolt — The judge overseeing the Chapter 11 case approved the divestiture of the company’s shares in Hydrovolt for $6.8m.
Purdue Pharma — The company’s mediation and preliminary injunction has been extended to 28 February after the judge found that the company had made material progress to a settlement.
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 by the bankruptcy court.
Tupperware Brands — The company has filed a liquidating plan that proposes to create a liquidating trust to monetize any assets left after the sale to the company’s ad hoc group of lenders.
Wellpath—The UCC’s motion requesting extensions of the company’s sale and relevant plan and disclosure statement deadlines will be heard at a hearing scheduled for 27 January.
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.
ZIPS Car Wash — The company filed for Chapter 11 on 5 February backed by a restructuring support agreement with it lenders that will reduce its debt obligations by approximately $279m and provide the company with $15m of new capital.
