The Default Notice — Unmanageable liabilities
- 9fin team
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Top news
Familiar names of issuers that recently completed liability management exercises which presumably had addressed the companies’ pressing liquidity or capital structure problems — i.e. they managed their liabilities, at least in the near-term — are starting to either show renewed (continued) distress, or are being snapped up in the secondary by distressed investors for other reasons.
With LMEs, it’s usually a case of, “You only get one bite of the apple,” as many LME specialists put it — meaning lenders who negotiate these deals with the companies and their sponsors take all of the loopholes and the wiggle room out of the credit docs so what they’re about to do to other lenders cannot be done to them. In some ways this makes the paper of a post-LME company more desirable to buy into since there’s less likelihood of getting primed or seeing assets being stripped out via restricted payments and investments capacity. In some of those situations, the LME was already a sort of last resort transaction, so seeing a company come back in need of another restructuring — likely a bankruptcy unless advisors get really creative — is not uncommon.
In addition to Wheel Pros (Hoonigan), the first “double dip” bankruptcy, the following post-LME companies are in the mix of renewed secondary trading and/or financing discussions: GoTo Group, the software publisher formerly known as LogMeIn, completed a distressed exchange with nearly unanimous consents from bondholders and lenders in March 2024; initially creditors in the non ad hoc group organized to potentially challenge it, but ultimately signed on. The company’s debt has come under pressure this week in the secondary market, with its new $420m second out notes due 2028 trading last at 31 on 2 October, down 9 points compared with the previous round lot trades in August, according to TRACE data. Workout clothing company Lycra completed a “pari-plus” transaction in early 2023, then eventually unwound it later that year, only to return to negotiations with creditors this week. Trinseo is another post-LME candidate for a sequel: The double dip financing deal last year did not fully resolve the capital structure, with KKR stepping in with a receivables financing facility and creditors organizing as reported last monthagain on liquidity concerns last. Cumulus Media bonds — the poster child for a successful co-op pushing back on creditor-on-creditor violence — are trading in the 40s. Similarly, Lifescan on May 2023 executed a series of exchanges and the resulting first lien term loans are in the 40s, with second liens in single digits.
Then more on the positive side, Loparex was famously a cross-border non-pro rata exchange from the first quarter of 2024 which introduced European CLOs to the rough and tumble world of LMEs. Debt in this capital structure has actually been quoted up, with the holdout debt trading into the 60s (while the priority debt is quoted in the 90s, up from the 70s in April). The term loan debt of Eyecare Partners’ $1.45bn second-out PIK is being traded in the low-70s, up four points compared with quotes a month ago, but still debt that has been in distressed territory since the completion of an LME in May. Sources tell 9fin this could be CLOs who participated in the transaction taking advantage of increased trading prices to get out of the name and distressed funds getting a better piece of paper.
Whatever the case may be — the “M” in LME isn’t always a permanent descriptor.
People Moves
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Paul Weiss brought on Joseph Glatt as a partner in the corporate department. Glatt was formerly partner and general counsel for the credit arm of Apollo Global Management.
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, Ayden Crosby | ayden.crosby@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
EchoStar/DISH Network — EchoStar announced the sale of its pay-TV business to DIRECTV, and a comprehensive series of contentious new money raises and debt exchanges at DISH Network and DISH DBS. 9fin reported the details of the deal here, the DISH crossholder group’s initial reactions here and potential regulatory approval issues here and here, and topped it off with a Cloud 9fin episode.
New Fortress Energy — The energy company, facing a wall of debt coming due in the next two years, has struck a deal with secured noteholders to push out maturities until 2029 and issue $1.2bn of new 12% senior secured notes (press release here). Holders of its $1bn revolver have also tapped Lazard as an advisor as that facility comes due in 2026, 9fin sources say. The company also delayed the payment of its previously declared dividend.
STG Logistics — 9fin reported the details of the Magenta Buyer-style LME deal that STG has struck with a lender group. The deal involves a drop-down of a key business line into an unrestricted subsidiary, new debt and equity capital and exchange debt issued out of an unrestricted subsidiary. 9fin had earlier reported on lenders having signed a cooperation agreement.
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.
Allen Media — The media company has engaged both Latham & Watkins and Kirkland & Ellis to explore options ahead of an upcoming debt maturity, 9fin sources say. Multiple groups of lenders were earlier reported to have united under a single cooperation agreement, with secured lenders represented by Ducera Partners and Gibson Dunn, and unsecured noteholders by Paul Weiss.
MultiPlan — MultiPlan’s secured lender group advised by Gibson Dunn has selected financial advisor Houlihan Lokey after recent pitches as the group looks to engage the company in potential liability management discussions.
Empire Today — The Charlesbank Capital Partners-backed flooring company has hired Greenhill to explore ways to increase financial breathing room as it deals with weaker revenue and a free cash flow deficit. 9fin had earlier reported on lenders having organizing with Paul Hastings.
Altice France — Elliott has joined a group of secured creditors extending the co-op agreement to February 2026, after previously holding out on the extension.
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.
SI Group — Following an LME with a majority of its existing creditors on board and its sponsor providing $100m of capital, the company’s public exchange offer for the remaining debt has seen meaningful participation.
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.
Spirit Airlines — Bonds and equity of the troubled ultra low-cost carrier dropped after news emerged that recent talks with bondholders were centered around a bankruptcy filing and not an out-of-court restructuring.
Trinseo — The chemical company announced an organizational restructuring to save costs and improve profitability by rationalizing management, reducing the workforce and exiting some operations. 9fin had earlier reported that lenders had again banded together with Gibson Dunn and Evercore in the midst of continuing underperformance, cash burn and high leverage.
ModivCare — The medical transportation provider obtained covenant relief from bank lenders while it negotiates a long-term deal. It had recently revised its 2024 adjusted EBITDA guidance downwards, filed an S-3 looking to raise $200m of capital, and amended financials to include a going concern warning in the midst of difficulties collecting on receivables.
CareMax — The value-based healthcare provider continues to extend waivers under its credit agreement, most recently through 7 October, while it lays the groundwork for a potential bankruptcy filing.
Lycra — The textile company is reported to be working with Houlihan Lokey as it speaks with creditors on extending its looming debt maturities. It had completed an LME in Q3 23.
Beasley Broadcast Group — The multi-platform media company’s recently launched exchange and tender offer for debt maturing in 2026 has seen significant participation, but the company extended the withdrawal deadline and expiration date of the exchange to 4 October at the request of key holders.
Marathon Asset Management — The investment advisor entered into a $1.5m settlement with the SEC on charges for “failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information relating to its participation on ad hoc creditors’ committees.”
Bankruptcy
Delaware/Third-party releases — Delaware became the latest bankruptcy court to issue a ruling on third-party releases since the Supreme Court decision in Harrington v. Purdue Pharma.
Incora — Counsel for Incora and its creditors provided Judge Marvin Isgur with an update on ongoing mediation talks supervised by Judge Brendan Shannon. Judge Isgur also heard arguments related to claims brought by King Street affiliate Langur Maize.
Steward Health Care — The healthcare operator closed on its Massachusetts hospital sales after a fight over the sale proceeds between Apollo and its FILO lenders was resolved by the Commonwealth contributing more money to close the deal. Government contractor Brighton Marine got the court to terminate its contract which Steward had been trying to use as an asset in hospital sales. Steward received approval to sell three hospitals (Mountain Vista Medical Center, Florence Hospital and Tempe St. Luke’s Hospital) located in Arizona at a hearing held on 3 October. Approval for the sale of two more hospitals is pending next week.
Diamond Sports Group — An amended plan and disclosure was filed this week, setting up a confirmation schedule that will lead to a 14 November confirmation hearing. Diamond is planning on assuming only one MLB contract with the Atlanta Braves, and intends to reject the remaining agreements.
Big Lots — Big Lots received approval to terminate, or assume, assign, and sell certain non-residential real property.
Red River Talc (J&J) — The UST has filed a motion seeking to transfer the venue of the Red River Talc Chapter 11 case from SDTX to New Jersey, the second such request sine Red River opened its case. A hearing on the motion is scheduled for 10 October.
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.
Robertshaw — The appliance parts manufacturer exited bankruptcy this week. Even before it filed, Robertshaw was subject to two distinct LMEs which led to a legal fight between its various creditors.
Audacy — Audacy emerged from bankruptcy, having equitized around $1.6bn of debt and reduced its total leverage to $350m, with a George Soros-backed investment fund becoming the largest shareholder. The company also received an approval from the FCC to transfer its licenses to a Soros-backed nonprofit as part of the restructuring process which
Other active distressed and restructuring coverage (from articles prior to the last seven days)
Distressed Pitch List — In an update to our Distressed Pitch List, we added Goodyear, Melco Resorts & Entertainment, Optiv, PENN Entertainment and Chemours and removed New Fortress Energy, which is now a part of our regular coverage.
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.
Altice International — After the company sold its first asset since announcing its strategic review and since Altice France’s ultimatum, listeners on the Q2 24 earnings call were keen to hear how the telco would apply the Teads sale proceeds. It’s fair to say management was slightly ambiguous. 9fin’s earnings review is available here.
Altice USA — 9fin explores the different options available to Altice USA and its creditors in our LME Breakdown.
AMC Entertainment — The 1L noteholders who were left out of the AMC’s recent LME have filed a complaint in New York State Court alleging AMC and its junior creditors violated the intercreditor agreement in effecting this transaction. We summarize the complaint here.
American Rock Salt — The salt company has lined up a $115m new loan provided by its existing first lien lenders and support from its family owners, just as its extended grace period on a missed interest payment came to an end.
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. The creditor group has been seeking advice from Milbank and there has not been any engagement between the parties so far.
Bausch Health/Bausch + Lomb — Advisors to Bausch Health and its creditor groups are discussing ways to delever and take advantage of the potential sale of its 88% stake in Bausch + Lomb. Jefferies is understood to be working with the company on financing which, together with proceeds from the stake sale, could help address near-term maturities.
Better Health (fka Physician Partners) — The healthcare provider and lenders hired advisors ahead of potential negotiations with the company and sponsor Kinderhook Industries.
Beyond Meat — The producer of plant-based meat substitutes is reported to have engaged with a group of convertible noteholders on a restructuring.
B. Riley Financial — The financial services company disclosed that it had repaid $86m of its term loan, terminated its revolver and amended its credit agreement with Nomura and others to hike (and part PIK) interest, commit to reducing the term loan to $100m or lower by September 2025 and introduce/amend leverage, interest coverage and liquidity maintenance covenants. Also, Kenny Young, company president and B. Riley Principal Investments CEO, resigned and was re-hired as a consultant. Earlier, the company was reported to be in talks to sell its wealth management business to Stifel for over $100m.
Carestream Dental – The Atlanta-based healthcare company raised more than $525m of new money in a transaction that would help push out its debt wall and support its growth plans. The new financing includes a first lien term loan due 2030 led by the credit arm of General Atlantic. GA and Canyon Partners were among investors that took the bulk of the reorganized equity.
CommScope — 9fin published an LME Breakdown to answer questions around how CommScope could use sale proceeds to address almost $6bn in 2025 and 2026 maturities, after the announcement of the $2.1bn sale of assets to Amphenol.
Cox Media Group — A steering committee has kickstarted negotiations with Cox Media on ways to address its upcoming debt maturity.
Del Monte — The canned food company closed its deal to raise new money and exchange existing term loan debt into second and third out debt.
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.
Emergent BioSolutions — The pharma company disclosed that it had raised a $250m first lien loan from Oak Hill to refinance debt due May 2025. The financing package gives Oak Hill $10m of common stock and warrants to purchase an additional 2.5m shares. The company’s stock declined 11% on the day.
EmployBridge — Certain lenders have organized as the company reported weaker performance with debt trading poorly and rumors of the company’s sponsor Apollo buying back debt in the secondary market.
EW Scripps — The CEO of the broadcasting company penned a note to staff stating that the company will cut jobs as its news operation moves to digital-only coverage in mid-November. This comes as the company faces $1.26bn in upcoming debt maturities. Scripps’ shares and longer-dated bonds bid up on the news, and stock rallied.
Fossil Group — Following quarters of dismal results and with an operational restructuring ongoing, Fossil announced the resignation of its CFO and the appointment of Andy Skobe of Ankura to provide interim CFO services.
FreshDirect — The grocery delivery company is set to get some rescue financing from its parent company, Getir, to help support its operational needs.
GPS Hospitality — The privately owned quick service restaurant franchisee disclosed poor quarterly numbers, and senior secured notes dropped 11 cents.
GrafTech International — Certain creditors have signed a cooperation agreement to bind their acts together in potential negotiations with the company.
Hawaiian Electric — The utility company raised nearly $500m (and potentially another $75m) through an equity offering aimed at raising cash to fund its contribution to the Maui wildfire litigation settlement. Earlier, Central Pacific was reported to be discussing raising $1bn from Warburg Pincus, Centerbridge Partners, and Atlas Merchant Capital to buy American Savings Bank from 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 — The third circuit court of appeals issued a decision overturning the bankruptcy court to provide the unsecured noteholders post-petition interest at the contract rate, including a make whole.
iHeartMedia — iHeartMedia has yet to strike a deal with its largest creditor group.
Leslie’s — The swimming pool maintenance and supply company shared a bleak preview of the quarter and full year, sending its stock and term loan tumbling.
LifeScan — The Platinum Equity-backed medical device company reported year-over-year declines in revenue and EBITDA for the second quarter ending 30 June, but not by as much as the company had projected.
Lumen Technologies — The company’s early tender deadline for its most recent debt exchange closed with participation rates already approaching amounts required to reach its cap on new issues.
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. The negotiations come after Mavenir entered into a brief grace period, which expired since, after skipping a coupon payment due in late August. Subsequently, some lenders were reported to have provided the company $35m in what appears to be stopgap financing to fund interest payments and fund working capital needs.
Medical Properties Trust — 9fin published a deep-dive report on the troubled US-based healthcare REIT embroiled in the Steward bankruptcy. The report explores MPT’s aggressive nine-year expansion strategy that has seen it amass substantial balance sheet assets, which are now under scrutiny as a result of questionable financings or transactions and the financial distress of some key tenants.
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.
OnTrac — Certain lenders of the package delivery company, formerly known as Lasership, are organizing with Gibson Dunn after it reported volume and earnings losses for Q2 2024, 9fin sources say.
Office Properties Income Trust — The company announced that it concluded a series of private exchange agreements, issuing common shares to retire $6.8m of its senior notes due 2025, chipping away at near term maturities remaining after a debt exchange concluded in June.
P&L Development — This private label drug maker is discussing potential refinancing options with lenders as its $465m in secured notes and ABL facility come due in 2025, 9fin sources say.
Petrofac — The energy services company has defaulted on its senior secured notes after failing to convince lenders to extend the grace period on a missed interest payment.
Porter Airlines — The Canadian airline has gauged interest from private credit lenders in raising CA$250m in preferred equity to boost liquidity.
Radiate Holdco (aka Astound Broadband) — The company has received a new $50m loan from its private equity backer Stonepeak. It has been exploring restructuring options with a group of lenders, but the talks fell apart over certain terms of the proposed debt swap and new money offer.
Salem Media — Certain debt holders have banded together to negotiate a possible debt restructuring with the conservative Christian media company.
Sandvine — The company announced that it has been acquired by a group of lenders to the company, who have agreed to a significant writeoff of their debt and to provide new capital.
Screenvision — Certain lenders of the Abry Partners-backed company have organized with Gibson Dunn to negotiate ahead of its $201.5m in loans that are set to mature in 2025.
Sinclair Broadcast Group — The company announced that it is increasing its advertising guidance for the third quarter 2024 to account for stronger-than-expected political revenues. Recent retransmission agreement renewal activity has been in-line with expectations and the company reiterated its earlier forecast for net trans growth rate from 2023 through 2025.
Sotheby’s — The Patrick Drahi-owned auction house, with its own non-Altice troubles, is reportedly set to use around $700m of $1bn contributed by Drahi and the Abu Dhabi Developmental Holding Company to pay down its debt.
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. One creditor group holds a majority of the company’s term loan debt, while the other holds upwards of 40% of the term loan debt plus over two-thirds of the company’s bonds, according to sources.
Sunnova Energy — The 2026 and 2028 bonds of the residential and commercial solar company rose after executives outlined a plan to raise cash through securitizations and asset sales to pay off existing debt. 9fin had reported in May on the company hiring advisors and agreeing to several funding deals.
TeamHealth — The healthcare staffing firm has completed its latest refinancing with the help of new money provided by firms including Ares, King Street, and its sponsor Blackstone.
Telegram — Convertible bonds issued by the messaging app company traded down around 11 points to the 85-87 cent range after founder and CEO, Pavel Durov, was arrested in France.
Telesat Canada — The Canadian satellite company posted expected declines in revenue, EBITDA and margins in Q2 24. Certain creditors were earlier reported to have hired advisors.
TGI Friday’s — The management of the restaurant chain is reported to have been replaced by FTI in relation to many day-to-day functions after the company failed to share certain documents with bondholders on time.
The Container Store — Certain lenders are getting legal advice as the retailer faces a term loan maturity in 2026 and an uncertain earnings trajectory.
Thrive Pet Care — The company hired a financial advisor to examine options for its debt stack, 9fin reported. Meanwhile, a group of first lien lenders has retained counsel as they brace for potential negotiations with the TSG Consumer Partners-backed company, sources said.
Tosca Services — The plastic crate maker got 100% of lenders to participate in a private exchange deal by the 22 August deadline. Previously, 9fin reported that Tosca launched a deal to raise $100m and to extend debt maturities via an uptier LME-style transaction.
Tropicana — The beverage company’s loan slipped several points after its management projected flat full-year 2024 EBITDA on a 16 September call.
United Site Services — The Platinum Equity-backed portable toilet rental company announced that it had closed the LME it unveiled in August. The LME included $300m in new money with an apparent double dip structure, USS capturing over $200m of discount, and an issuance of $447m of first lien first-out debt, $1.779bn of second-out term loans and $194m of third-out notes, and an extension of the vast majority of the debt to 2030.
Viasat — The satellite operator closed an upsized offering of $1.975bn in 9% senior secured notes due 2029 by its Inmarsat subsidiaries, as competitor Starlink continues to sign up major airlines for its in-flight connectivity offering.
VeriFone — Lenders to the payment and commerce solutions company have organized as they prepare for negotiations ahead of the maturity of the company’s $250m revolver and over $2bn of term loans in 2025.
Veritas Technologies — 9fin reports on the Carlyle-backed data management firm and its creditor group attempting to revive restructuring talks, and on where the discussions stood when they stalled.
VistaJet — The private jet subscription company released Q4 23 results, with the company’s founder penning a letter announcing legal action against a “group of individuals” that has “disseminated half-truths, false rumors and lies”.
Volcan Compañía Minera — The Peruvian mining company completed its August announced exchange offer with 81% participation from lenders. The deal’s closure rounds out its greater restructuring efforts — including a refinancing of its bank debt — that will kick out debt maturities until 2029.
Wellness Pet Company — Certain lenders to the Clearlake Capital-backed company organized as the quotes on the company’s loans are veering deeper into distressed territory.
Wellpath — The HIG-backed prison healthcare company is working with Lazard to explore options ahead of a revolver maturing and a first lien term loan becoming current in October. A group of lenders is said to have tapped counsel and have taken pitches from bankers.
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.
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
Avon International — Avon received approval of its DIP facility and bidding procedures, pending modifications to the orders requested by the judge. The company’s hearing on its 9019 motion for its settlement with Natura was pushed after the UCC filed a motion seeking the adjournment of same. Separately, at CDS auction on 24 September, protection holders of Avon Products CDSs secured a payout of 66 cents on the dollar after a second-half surge.
Conn’s Inc — Final DIP approval was granted after the company was able to resolve numerous objections and reservation of rights, along with informal comments.
Digital Media Solutions — The company is Kirkland & Ellis’ first Chapter 11 case commenced in SDTX since 2023. The Chapter 11 is backed by a DIP facility and credit bid from certain of its prepetition lenders.
Express — The company’s disclosure statement hearing has been pushed to 29 October after the UCC objected to approval of the document and filed a cross-motion to terminate the debtors’ exclusivity.
Fisker — The defunct electric car maker received interim bankruptcy court approval of its disclosure statement and a global settlement for its Chapter 11 plan of liquidation.
Gol Airlines — Gol’s Abra bondholder group disclosed updated members and holders including distressed investors. The bankrupt airline has said it will evaluate all recapitalization or other transactions, including to raise capital while in bankruptcy. The UCC has objected to the debtors attempts to allow aircraft lessors to sell a participation interest in their unsecured claims, while retaining their voting rights on any potential Chapter 11 plan.
Hoonigan (Wheel Pros) — The aftermarket wheel and vehicle product manufacturer and distributor filed for bankruptcy with an RSA in place, after having completed a double-dip financing last September. The debtors received all first day relief, have begun solicitation for their prepackaged plan, and are targeting confirmation mid-October.
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 — Purdue secured an additional 35-day extension to its mediation process and preliminary injunction despite objections from certain creditors to the request.
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. However, all is not resolved — MedImpact, Elixir’s purchaser, has appealed the Elixir ruling, and others have appealed confirmation.
Rubio’s Restaurants — Rubio’s filed Chapter 11 bankruptcy in order to sell itself.
SunPower — SunPower received interim approval of its disclosure statement, as well as approval of its bid procedures and a stalking horse APA at a relatively easy hearing. However, future issues relating to the scope of releases that will be addressed at a confirmation hearing, were previewed.
Tupperware Brands — Tupperware secured short-term consensual use of cash collateral after agreeing to the terms of a bridge order with an ad hoc group of lenders. A hearing has been scheduled for 11 October that will address the ad hoc group’s motion to dismiss the case.
Vertex Energy - Vertex commenced its Chapter 11 case with a restructuring support agreement signed by 100% of its term loan lenders and a $80m DIP facility and its first-day relief granted at an uncontested hearing. The company intends to move forward with a dual track plan — either via a recapitalization or a sale of all of the company’s assets.
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 court overseeing Yellow’s Chapter 11 case addressed dueling summary judgment motions from the company and the PBGC with respect to withdrawal liability, siding primarily with the PBGC and dealing a blow to Yellow.
Weekly declines
Top bond movers (link to full screener on 9fin)
Top loan movers (link to full screener on 9fin)
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