The Default Notice — Trump Chapter 22
- 9fin team
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Top news
If there’s one thing a second Donald Trump presidency guarantees, especially if there’s a red sweep in Congress — it’s a healthy flow of restructurings and some dramatic regulatory, and potentially legislative, change. But the immediate impact is muted, mainly because we’ve already been here before. Of course, there’s talk of tariffs, then maybe inflationary concerns in terms of labor with a stricter border policy, then it’s surely “drill baby drill” for any traditional energy companies and bad for renewables, and there is the continued expectation that rates will go lower. But so far, there are echoes of the last Trump administration that still linger and make this coming one seem not as uncertain.
On the deregulation point, one deal that could provide insight into how the Trump administration views M&A and antitrust enforcement is satellite TV provider DIRECTV’s proposed acquisition of competitor DISH Network. We’ve written about the potential antitrust pitfalls that could scuttle a deal, but many suspect that a Republican administration would be more merger-friendly than the current one. Though merger enforcement activity under the Biden administration was at a historic low, according to a report published by Westlaw Today, under Lina Khan the FTC launched ambitious antitrust cases and slowed down dealmaking, as industry professionals opined to 9fin, they expect regulatory oversight to ease under Trump.
9fin delved into speculation by credit market individuals regarding certain industries (hard to imagine private prison operators were ever distressed) noting that renewable energy companies could take a hit. Republicans are likely to aim to roll back the Inflation Reduction Act, which contained provisions that were pro-renewables. Solar company Sunnova Energy saw its debt drop as much as 10 points this week, as one company that benefitted from such IRA policies.
A Trump administration was mentioned as a potentially positive change by E.W. Scripps’s CEO Adam Simpson, who commented on the Q3 call this week, “[C]learly a Trump win would usher in greater deregulation… it depends on the outcome of the election, but we could see new opportunity for the industry for further consolidation in the broadcast industry… and we could definitely take advantage of that opportunity.” (Something echoed by Warner Bros. Discovery CEO David Zaslav)
Sinclair Broadcast Group CEO Christopher Ripley also mused on industry merger and acquisition activity during his company’s earnings call, noting that the company could be a target or participate in a deal. But he sounded more enthused about the potential for a different regulatory approach under the Trump administration, saying he was “very excited about the upcoming regulatory environment — it does feel like a cloud over the industry is lifting here.” Ripley noted laxer rules under former FCC head Ajit Pai — rules that could benefit Sinclair’s profitability if they were in place and enforced now. (You can read more about his thoughts, and Sinclair’s third quarter results, here.)
As much as a spectacle as Trump brings, however, legacy media companies appear to still have fallen short of sufficiently delevering before some alternative form of recapitalization is needed: Scripp’s bonds tanked this week after the company said that the planned sale of its Bounce network is now slated for 2025 after talks fell through last week with a potential bidder. Gray Television bonds were also down Friday after it reported that revenues are expected to be 11% lower year-over-year in Q4 due to Hurricanes Helene and Milton disrupting political ad spending as well as ABC winning the broadcast rights for certain SEC college football games over GrayTV’s CBS stations.
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)
Out-of-court
iHeartMedia — Ahead of Q3 24 results on 7 November, iHeartMedia disclosed the execution of a transaction support agreement with holders of its term loans and notes, envisaging a dual-track LME which could help push the bulk of maturities out to at least 2028, though apparently with very little discount capture and no cash interest reduction.
Ingenovis Health — Lenders to this Cornell and Trilantic Capital Partners backed healthcare staffing company are working with Gibson Dunn as post-pandemic demand for travel nurses slows.
Better Health — A group of lenders led by Blue Owl have started talks with this primary care service provider as Medicare Advantage focused providers face earnings pressures after the Centers for Medicare & Medicaid services changed how it risk scores some patients.
Empire Today — The company reached out to third-party lenders for a potential new money raise as the flooring retailer plans to shore up liquidity amid a drop in revenue and widening free cash flow deficit.
Wellpath — The privately-owned prison healthcare provider is planning on filing for Chapter 11 as part of a restructuring in which the company’s first lien lenders would take ownership of it, according to sources.
Radiate Holdco (aka Astound Broadband) — The company designated its Texas business, a material asset, as unrestricted, potentially paving the way for an LME.
Aimbridge Hospitality — The hotel manager and its lenders have kicked off discussions to potentially raise new capital and orchestrate an out-of-court debt restructuring, with an LME an option.
Medical Properties Trust — 9fin’s second deep-dive and Q3 earnings review of MPT aims to provide an outlook on MPT’s financial position and the challenges ahead in relation to its maturity wall. In our view, and the company has a runway till mid-2026 or early 2027 only. Read the deep-dive here and the earnings review here.
MultiPlan — The company has entered into private discussions with its creditors, with one proposal involving an uptier of some of its junior debt. Meanwhile, Q3 24 earnings suggested continued deterioration in MultiPlan’s underlying business.
Altice France — A steering committee of the French telco’s secured creditors has signed an NDA to negotiate the company’s latest restructuring proposal, two sources close told 9fin. Reports say the company is looking for around 20% haircut in exchange for 15% equity for secured creditors.
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.
OnTrac — The company, formerly known as LaserShip, is close to an out-of-court deal with lenders that includes an exchange offer and a $200m-$300m new money raise.
Cision — The Platinum Equity-backed PR software firm is reported to have told lenders that it had created a new holdco, and some lenders believe this step could be followed by an asset sale or collateral transfer. Its debt is trading at deeply distressed levels.
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.
Veritas Technologies — Following the announcement of the sale of its data protection business to Cohesity, the Carlyle-backed company has according to S&P executed a transaction support agreement with a creditor group, holding a majority of its debt, to help address its near-term maturities. The TSA contemplates an exchange of 2025 maturities into takeback debt and preferred equity, and a paydown with proceeds from Cohesity could follow. 9fin had earlier reported that the company was nearing a deal creditors.
CommScope — The network infrastructure company saw an uptick in sales and meaningful improvements in EBITDA and free cash flow in Q3 24 (press release; 10-Q; presentation; transcript). Along with its earnings release, the company disclosed (with details of the terms discussed) that talks with an ad hoc group of creditors on refinancings and exchanges of 2025 and 2026 maturities had failed. Common stock has fallen over 30% since.
AMC Entertainment — The cinema chain reported strong results (press release; 10-Q; transcript), with numbers suggesting a drastic recovery in the box office. The CEO and chairman announced a plan for the company to invest $1bn-$1.5bn to improve offerings over the next four to seven years, which could be concerning as cash burn continues and leverage remains elevated.
Lumen — The communication services company reported another quarter of poor numbers (press release; 10-Q; presentation; transcript) as legacy businesses continue to decline and performance in growth areas remains tepid. Management has successfully played up the various AI-related partnerships with Big Tech companies and the entire capital structure has traded up as a result. However, when the AI push will begin to meaningfully show up in Lumen’s financials remains to be seen. Thanks to recent LMEs, the company has time.
WW International — The weight management company had another disappointing quarter (press release; 10-Q; presentation; transcript), and common stock tanked. 9fin had reported earlier that the company has hired advisors to help address its debt amid an operational turnaround, and creditors too are organized under a co-op.
Trinseo — The chemical company reported neutral Q3 24 earnings and provided an update on progress on organizational restructuring initiatives aimed at saving costs and improving profitability. 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.
Hawaiian Electric — The utility company executed settlement agreements for tort litigation arising from the Maui wildfires. Under the settlements, the company is required to contribute a total of $1.99bn towards two separate funds. It also published quarterly results (press release), which note that a going concern warning in its Q2 financials has been resolved.
Spirit Airlines — As planned, the troubled airline executed an asset purchase agreement for the sale of 23 aircraft, to be delivered through February 2025, to GA Telesis for $519m. Read our deep dive on the troubled ultra low-cost airline’s robust asset base that should help allay the fears of stakeholders as the company navigates merger talks with Frontier Airlines and a potential bankruptcy filing.
CareMax — The value-based healthcare provider continues to extend waivers under its credit agreement, most recently through 11 November. 9fin earlier reported that the company is laying the groundwork for a potential bankruptcy filing.
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.
Finance of America — The retirement financing solutions provider completed an exchange of its 2025 unsecured notes, and reported Q3 24 earnings (press release; presentation; transcript).
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.
Distressed Pitch List — Many companies on our Distressed Pitch List reported quarterly earnings this week. 9fin will publish an updated report next week.
Earnings — Other companies on our radar also reported earnings: Altice USA (9fin earnings review; press release; 10-Q; transcript); Diversified Healthcare Trust (9fin earnings review; press release; 10-Q; transcript); Emergent BioSolutions (9fin earnings review; press release; 10-Q; transcript); EW Scripps (9fin earnings review; press release; 10-Q; transcript); Forward Air (9fin earnings review; press release; 10-Q; transcript); Fossil (press release; 10-Q; transcript); loanDepot (9fin earnings review; press release; transcript); ModivCare (9fin earnings review; press release; transcript); New Fortress Energy (9fin earnings review; press release; transcript); Olaplex (press release; 10-Q; transcript); Sinclair Broadcast Group (9fin earnings review; press release; 10-Q; transcript); System1 (press release; 10-Q; transcript); WideOpenWest (press release; 10-Q; transcript)
Bankruptcy
Franchise Group — The B. Riley-backed franchise business acquirer filed for Chapter 11 in Delaware, with 9fin having recently reported on plans for a possible filing. The Judge John Dorsey approved its first day motions after DIP lenders made concessions that addressed concerns about the financing raised by other creditors. The judge had adjourned the initial hearing without providing the debtor with any substantive relief.
Incora — Incora’s confirmation hearing was pushed back by a week to 20 November as negotiations continue over a “limited set of issues” that have proven more complex than expected.
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.
TGI Friday’s — After filing for bankruptcy this week to pursue a sales process, TGIF received approval for all first day motions. As part of the DIP milestones the debtors plan to file bidding procedures and hire an investment banker prior to 10 November.
Digital Media Solutions — The debtors received approval for two sales of assets this week as well as final approval of proposed DIP financing. The combination of these sales covers all of the debtors’ assets.
Gol Airlines — The Brazilian airline and Abra, its majority investor and largest secured creditor, executed a plan support agreement that envisages the equitization or extinguishment of $1.7bn of debt and $850m of other obligations. Abra has asserted $2.8bn in claims and agreed to take at least $950m in new equity, and $850m of take-back debt, $250m of which is convertible into new equity on or after the 30-month anniversary of Gol’s emergence from Chapter 11. Unsecured creditors will receive new equity valued at at least $235m. Gol anticipates raising up to $1.85bn from its exit facility. This clears the path to a Chapter 11 plan filing.
Other active distressed and restructuring coverage (from articles prior to the past seven days)
CLOs and LMEs — CLO managers are devoting more time to predicting and reacting to LMEs, given their ubiquity. Of the LMEs this year, Lumen’s debt exchanges ($3.3bn of CLO exposure), followed by Global Medical Response’s amend and extend of its roughly $4bn of loans ($1.9bn of CLO exposure) have affected CLOs the most, according to 9fin data.
LME trends — 9fin published the maiden edition of a series focusing on sharing data-driven insights and trends on LMEs. In the first article of this series, we found that the vast majority of troubled companies that have initiated LMEs this year turned to their existing lenders to raise new money. However, multiple sources say there might soon be a reversal to the trend as these existing creditors become more experienced and are now approaching the negotiation table with greater sophistication.
Clearlake and LMEs — We published the maiden edition of our LME profiles of private equity sponsors with a focus on Clearlake’s portfolio companies, which show distress is concentrated in the firm’s sixth buyout fund. At least 11 of the 50 “current investments” listed on the company’s website carry debt that trades below 85 cents on the dollar — the metric we used to define distress.
US Distressed/Restructuring Tracker Report — We published our first monthly report covering notable situations/transactions in our restructuring tracker that are on our watchlist, are expected to materialize, are in progress or were recently completed. The tracker is a work in progress and, in the coming months, 9fin will roll out many user-friendly updates to the tracker and will complete a backfill exercise. Meanwhile, we welcome any suggestions for improvements.
Out-of-court
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.
Alacrity Solutions — — 9fin reported on restructuring talks with lenders following liquidity issues and customer churn. The company currently has roughly $1.6bn in debt, around $1bn of which is in a first lien loan.
Allen Media — After the media company engaged two law firms to explore options ahead of an upcoming debt maturity, a group of term loan lenders holding $100m are also said to have organized. Multiple groups of other lenders were earlier reported to have united under a single cooperation agreement.
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.
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.
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.
Ardagh — A crossholder group of the packaging company’s bondholders has extended a co-op agreement from October to mid-December, two sources told 9fin. The group is being advised by Gibson Dunn and Perella Weinberg Partners. Management faced a tense Q&A on its Q3 24 earnings call after it cut its FY 24 EBITDA guidance.
Aventiv — Following a deal with lenders to either sell the business or equitize outstanding loans to hand control to lenders, the Platinum Equity-backed prison telephone company is said to have told investors that multiple parties have expressed interest in a buyout.
Bausch Health — The company reported meaningful Q3 24 revenue and EBITDA growth across segments, hiked its full-year guidance, and stock rallied. BHC and Bausch + Lomb management said little about rumors of an impending sale of BHC’s B+L stake.
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 continues to raise cash through divestitures. After announcing an agreement with Oaktree for an investment in Great American Group, the company disclosed the completion of a sale of certain retail brand assets for $236m and an agreement with Stifel to sell a part of its wealth management business for $27m-$35m.
Drive DeVilbiss Healthcare — The CD&R-backed company has embarked on a sale process that could involve selling its assets piecemeal or as a single entity. Drive, which makes medical equipment, previously went through an out-of-court restructuring, in which the sponsor kicked in fresh cash and existing first and second lien lenders agreed to extend the debt wall.
Del Monte Foods — Asset manager Black Diamond is suing Del Monte Foods in an attempt to force the removal of the food company’s board of directors following a liability management exercise earlier this year.
Echostar / DISH Network — DISH DBS’ bonds traded up on the announcement that parent EchoStar would increase exchange considerations for several tranches of the subsidiary’s debt as part of its merger deal with DIRECTV, but steerco creditors are expectedly not keen on the new terms. Additionally, US bank asked DBS secured bondholders for their consent to secure new money from TPG Angelo Gordon that would be secured pari passu with the secured notes.
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.
FinThrive — The company’s first lien term loan was quoted in the upper 60s, according to sources and 9fin data, amid a two-notch rating downgrade on both the healthcare revenue cycle management provider and its outstanding loan. Rating agency Moody’s says it anticipates an increased risk of default should the Clearlake-backed company fail to turnaround its finances.
Forward Air — The troubled freight transportation company is reported to have ceded to activist investor demands, hiring investment bankers to sell itself.
Fossil Group — Following quarters of dismal results and with an operational restructuring ongoing, Fossil announced the resignation of its CFO and the appointment of Andy Skobe of Ankura to provide interim CFO services.
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.
Hearthside Food Solutions — The company reported Q2 24 earnings showing widening losses and warned that its ability to continue as a going concern depended on its efforts to address a raft of near-term debt maturities.
Hertz — 9fin published its fourth LME breakdown, this time on Hertz, discussing how the car rental company could push out near-term maturities, meet the leverage covenant in its credit agreement and potentially raise cash.
Intrum — Solicitation of Intrum’s proposed Chapter 11 plan commenced on 17 October. Intrum intends to enter into Chapter 11 on or before 17 November in the US Bankruptcy Court for the Southern District of Texas. Also, the company announcing earnings that show investment and servicing income dropped and management noted that the company is adamant about moving forward with its plan to file a crossborder in-court restructuring in the US and Sweden.
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.
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 hired Houlihan Lokey to advise it ahead of an upcoming maturity wall.
Lycra — The US-based spandex maker is approaching private credit lenders and opportunistic credit funds about raising $350m, which will be used to repay its super senior debt, sources said. Price talk on the private credit deal is coming together but will likely be in the range of SOFR+800bps-850bps, sources said.
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 Solutions — Certain lenders of the travel nursing company have engaged Gibson Dunn as its performance is impacted by lower demand for temporary staffing, 9fin sources say.
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.
Northvolt — The Swedish electric battery manufacturer, which 9fin reported has hired advisors to explore in-court restructuring options in both the United States and Sweden, is said to be on track to receive $300m of rescue financing. Meanwhile, stakeholders (equityholder ATP; JV partners Hydro and Galp) continue to pare their exposure to the company.
Office Properties Income Trust — The company’s Q3 24 results exhibited continuing deterioration in performance, and $456.7m of its unsecured notes due 2025 mature in February. As a result, the REIT issued a going concern warning in its filings, after previously disclosing details of negotiations with creditors to push out the 2025 maturity.
Oriflame — The Swedish-Swiss multi-level marketing company has added Kirkland & Ellis to its advisory roster for refinancing discussions with lenders, after it set up for a potential LME and bondholders signed a co-op. The company has a €100m RCF, €250m senior secured FRNs and $550m senior secured notes maturing in the next two years.
P&L Development — The family owned OTC drug manufacturer completed its exchange offer, launched in October, issuing $368.5m in PIK-toggled notes due 2029 for $350m in 7.75% senior secured notes due 2025. Also, certain creditors committed to purchasing an additional $131.5m of new notes.
Packers Sanitation — The sanitation company was downgraded to CCC- on the increasing principal outstanding on its mezzanine facility due 2025 potentially complicating refinancing efforts.
Porter Airlines — The Canadian airline has gauged interest from private credit lenders in raising CA$250m in preferred equity to boost liquidity.
Pure Fishing — The Sycamore-backed company has raised a $750m credit facility due 2029 from investors including Monarch Alternative Capital and Silver Point Finance, with proceeds to tackle its term loan and asset-backed loans. 9fin caught 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.
Salem Media — Certain debt holders have banded together to negotiate a possible debt restructuring with the conservative Christian media company.
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 — According to a Fitch note, the public exchange component of the company’s LME, which saw meaningful participation and sponsor SK Capital Partners providing $100m of capital, closed on 23 October.
STG Logistics — According to S&P and Fitch notes, the company completed its drop-down, new money LME. 9fin reported the details of the deal in October.
Springs Window Fashions — The Clearlake-backed window treatment company retained advisors to engage with creditors who have organized into two groups, both with cooperation agreements in place.
STG Logistics — 9fin reported the details of the recent LME deal.
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.
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.
The Container Store — The storage solutions company’s Q3 24 results missed estimates, and stock fell 52% during the week.
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.
United Site Services — The Platinum Equity-backed portable toilet rental company announced that it had closed the LME it unveiled in August.
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.
Viasat — The satellite company’s debt continues to trade down, with Intelsat’s Boeing-made satellite’s recent failure and Qatar Airways’ launch of Starlink internet on an initial flight cited by sources as the latest potential catalysts.
VistaJet — The private jet subscription company released Q4 23 results, with the company’s founder penning a letter announcing legal action against a “group of individuals” that has “disseminated half-truths, false rumors and lies”.
Volcan Compañía Minera — The Peruvian mining company completed its August announced exchange offer with 81% participation from lenders. The deal’s closure rounds out its greater restructuring efforts — including a refinancing of its bank debt — that will kick out debt maturities until 2029.
Wellful — The health and wellness firm, which bought Jenny Craig out of Chapter 7 bankruptcy last year, is working with Houlihan Lokey to explore ways to resize its debt. Meanwhile, a group of lenders has organized with Gibson Dunn.
Wellness Pet Company — Certain lenders to the Clearlake Capital-backed company organized as the quotes on the company’s loans are veering deeper into distressed territory.
WideOpenWest — The cable operator launched an LME, securing a $200m new money superpriority first-out term loan from a group of existing term loan lenders and an uptier exchange of its existing term loan B into additional first-out term loans and new second-out term loans, both due 2028. Non-ad hoc group lenders can participate in the new money and the exchange on a pro rata basis. The company also offered to exchange its existing revolver into a new second-out revolver in exchange for covenant relaxations.
WOM — It’s reported that the bonds of the bankrupt Chilean telecom company have jumped as it markets its assets for sale amid potential interest from Carlos Slim’s America Movil.
WorldStrides — Lenders to the student trip company have retained a financial advisor in order to develop potential alternatives to the recently expired discounted exchange offer.
WW International — The weight management company has added PJT Partners to its advisory roster to help address its debt amid an operational turnaround, while a group of creditors previously organized with Gibson Dunn and under a cooperation agreement has added Houlihan Lokey as an advisor. 9fin had also reported earlier that the company is seeking advice from Simpson Thacher.
Xerox — The company’s stock and bonds dipped following poor Q3 24 numbers and lowered full year guidance.
Xplore — The Canadian rural internet provider announced an agreement to raise new debt and equity financing, with sponsor Stonepeak and certain existing lenders leading the investment and other lenders to get the opportunity to participate on substantially similar terms. Xplore has commenced a proceeding under the Canada Business Corporations Act to implement the deal.
Zayo — Zayo was reported to have completed the carve-out of its European assets, with the parent receiving around $1bn in consideration through an intercompany loan and cash.
Bankruptcy
American Tire Distributors — ATD entered Chapter 11, its second visit to bankruptcy court since 2018.
Avon International — Avon received approval of its DIP facility and bidding procedures, pending modifications to the orders requested by the judge.
Big Lots — The debtors lease sale order was approved which established procedures for the debtors to sell or transfer certain unexpired leases of non-residential real property and scheduled an auction and a hearing to sell certain leases.
Diamond Sports Group — The company has a 14 November confirmation hearing.
Enviva — The company entered its disclosure statement hearing with a global resolution in hand, avoiding drawn out litigation and securing a path out of Chapter 11.
Express — The company’s disclosure statement hearing has been pushed a week following an objection by the US Trustee to third-party releases contained in the proposed plan.
Hoonigan — The auto parts company’s prepackaged plan of reorganization was approved at the 15 October hearing. The company is set to eliminate around $1.2bn of debt and emerge with Strategic Value Partners and Nut Tree Capital management as majority owners.
Invitae — After hearing arguments on the UCC’s standing motion for litigation related to uptiers and arguments over makewholes, Judge Michael Kaplan decided to issue a preliminary ruling denying the standing motion and reserved his ruling on the makewhole issue.
Purdue Pharma — Judge Sean Lane extended the company’s mediation deadline until December 4th as the parties say they are getting closer to a new reorganization plan. In addition, Judge Lane indicated that he intended to approve the UCC’s request for standing to pursue litigation claims against third-parties should the mediation ultimately fail.
Red River Talc (J&J) — The debtor’s case management order was approved at a status conference, confirming that the path to confirmation and the case to dismiss will proceed in parallel.
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.
Rubio’s Restaurants — Rubio’s filed Chapter 11 bankruptcy in order to sell itself.
Steward Health Care — The company received approval to sell seven hospitals at a hearing held today.
SunPower — The residential solar power company’s Chapter 11 plan was confirmed on 18 October, despite prepetition second lien lenders (owner Sol Holding, backed by TotalEnergies and GIP) voting to reject the plan and TotalEnergies making a last-minute $14m administrative expense claim. The claim will be mediated in the coming weeks, and the plan will not be declared effective until a resolution is reached.
Tupperware — Judge Brendan Shannon approved the ad hoc lender group’s deal to purchase Tupperware’s brand and major operating assets in exchange for a credit and cash bid. Other secured lenders will be able to buy pro rata shares of new debt issued by the ad hoc group.
Vertex Energy — The debtors secured final DIP approval along with other second day relief on an uncontested basis at its second day hearing.
Vyaire Medical — Sales of the company’s ventilator business and respiratory diagnostic business were approved, with the final sale price being only $90.5m. The sale orders also amended the final DIP order, a necessary change required by the company’s DIP lenders to allow the sales to move forward despite falling short of the required $140m minimum bid for the combined business.
Yellow Corp — The trucking company and major institutional investor MFN Partners filed motions to reconsider a 12 September bankruptcy court ruling that addressed Yellow’s pension withdrawal liability.
Top weekly movers
Bonds — Link to full screener on 9fin
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Loans — Link to full screener on 9fin
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