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The Default Notice — Uptiering your client alert game in 2025
9fin team
•31 min read
Top news
2024’s last gasp left a mark with Serta and then Mitel.
9finweighed in (arguably) first and best on New Year’s Eve with a full analysis of the Fifth Circuit Court of Appeals decision in Serta and its impact on LMEs, leading with the potential hit to uptier transactions, while also detailing the important decisions rejecting the application of equitable mootness and excising indemnity provisions in Serta’s bankruptcy that benefited the participating lenders.
We followed up with the full breakdown of the Mitel decision, an analysis by 9fin’s covenant team theorizing “Fifth Circuit blockers”, a companion piece in Europe, a podcast, then topped off this week with the potential mechanics of the pursuit of damages by the excluded lenders from the participating lenders.
Alas we were not the only ones to write about Serta this year.
Ropes & Gray published a similar take on 1 January. By 2 January, Proskauer and Sullivan Cromwell added thoughts on both decisions. On 3 January, things really started to flow, with client alerts from Lowenstein Sandler, Troutman, and Clifford Chance. Around this time, a few opted for the “Tale of Two…” headline or writeup on both Serta and Mitel, such as Holland & Knight(“...Rulings”), Simpson Thacher (“...NYE LME Decisions”), Morrison Foerster, as well as Wachtell, which discussed both rulings on the Columbia Law School blog. Then on 6 January Cleary joined the fray; 7 January Schulte Roth went for the “Bedtime for Serta” headline; and on 9 January, Akin.
There haven’t been public statements by some of the most prominent practitioners involved in these types of LME transactions, notably Kirkland & Ellis, Davis Polk and Gibson Dunn — as would be expected as any new tactics they employ will likely be coming out in proximate transactions. There was silence from Weil Gotshal (many of whose lead attorneys for the debtor in this case have since left for Latham or elsewhere), though they did put out an alert in June 2023 when they won in the bankruptcy court.
But several law firms involved absolutely were happy to spike the football and tout the victory: Paul Weiss, which has represented Apollo and excluded lenders throughout this fight, crowed how it “won a significant appeal on behalf of a group of Serta Simmons lenders excluded from a 2020 debt restructuring deal…” Holwell Shuster, repping the long-suffering fund manager LCM, an original excluded lender that was party to neither the successful uptier nor the unsuccessful drop-down effort, proudly exclaimed the decision was “...vindicating [for] HSG’s clients, issuers of collateralized loan obligations managed by LCM, who were appellants and had been challenging the transaction since June 2020.”
Then blessFaegre Drinker, counsel for Citadel, along with Dechert repping Citadel in the appeal, for leading with the rejection of the equitable mootness argument, noting first that the “landmark decision” states “that if the doctrine rendered the bankruptcy court’s decision not reviewable, it would allow debtors and creditors to shield even obviously unlawful acts from appellate review.” As a late purchaser of what amounted to post-reorg equity, Citadel didn’t want Serta to be on the hook for the transaction, and thus wanted the liability to fall to the participating lenders.
Upcoming events
Serta Webinar (28 January 2025 at 11am): 9fin has resolved that it will absolutely not be outdone when it comes to Serta content in 2025, so please sign up for our upcoming webinar (register HERE) where we will unpack all of these aforementioned client alerts and break new ground with insights from our all-star panelists.
9fin’s Private Credit event in partnership with Benefit Street Partners (28 January 2025 at 4.30pm ET): Registration HERE.
Wharton Restructuring and Distressed Investing Conference (21 February 2025):Link to ticket registration.
Source: https://2025.wrdic.org
People moves
If you have any recent moves to announce, please send to one of our team’s emails below to include in our People Moves section.
Paul Goldschmid has leftKing Street to start his own firm. Dentonsannounced that Van Durrer has joined the firm as a partner in its Restructuring, Insolvency and Bankruptcy (RIB) practice. Rob Duggerjoined AGL as a managing director, head of restructuring, from Vibrant Capital.
Recent news (from articles published in the last three weeks)
2024 year in review— Love them or hate them, 2024 was the year of the co-op. We sat down with lawyers and investors who helped paint a picture of how creditors are using the agreements to band together and fight back against LMEs, as well as how the pacts have changed and where they could be headed this year.
2025 distressed outlook— Recent court decisions on Serta Simmons’s and Mitel’s uptiering transactions have added uncertainty to what was expected to be a straightforward year for the LME professionals and investors.
BWIC co-op tracker — The latest BWIC revealed that certain tranches of debt are being traded with designation meaning creditors are governed by an existing cooperation agreement. The debts were issued by the holding company of Clearlake-backed RSA Security, Altice USA’s CSC Holdings, Sinclair Broadcast Group and Zayo.
Out-of-court
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.
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.
Zayo—Certain lenders to Zayo have signed a cooperation agreement after the company attempted to extend the maturity on some or all of its first lien debt, sources told 9fin, and a loan BWIC listed by a Sculptor Capital Management-owned CLO noted the co-op on the secured loan.
Packers Sanitation Solutions—The Blackstone-backed companyrecently closed a transaction, which involved new money and exchange, to extend its maturity wall and boost liquidity.
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.
City Brewing— Existing lenders to the beverage and packaging company have backstopped a new priming bridge loan, which will require the firm to propose a restructuring support agreement by early February.
Tropicana—The company received an upsized loan from its sponsor PAI Partners, 9fin sources said, bringing in a total of $175m in new first-lien debt that will mature in September 2025.
Hertz— The court denied Hertz’s noteholders request for a bond to secure the makewhole and postpetition interest payments while the company seeks to appeal the decision to the US Supreme Court. Earlier, in mid-December, to no one’s surprise, Hertz got the requisite consents under its previously announced consent solicitations to amend the indentures for its 12.625% first lien notes and 8% exchangeable second lien PIK notes due 2029.
MultiPlan — The company launched a pro rata comprehensive refinancing to extend debt maturities.
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.
Petrofac — The oilfield services provider announced that it has entered into a lock-up agreement with 57% of its senior secured bondholders on its restructuring plan, which involves a debt for equity swap and new debt and equity raise, and then launched consent solicitations in relation to the notes.
Thames Water— A group of the distressed UK water company’s Class B WBS noteholders formally launched their parallel restructuring plan on Tuesday, in opposition to Thames Water’s current restructuring proposals. The parallel restructuring was neither “approved or authorised by [Thames Water]”, the company said in a statement shortly after the plan was launched. The English High Court is due to hear the Class B plan on 20 January.
Ardagh — Some of Ardagh’s bondholders have gone restricted to review a restructuring plan put forward by the packaging company over the holiday period.
Cision — The Platinum Equity-backed PR software firm, which in November was reported to have told lenders that it had created a new holdco, was downgraded by S&P in light of liquidity concerns, potential covenant breaches and an upcoming revolver maturity. Cision was earlier said to be getting advice from Houlihan Lokey and Milbank.
Prospect Medical — Another major Medical Properties Trust tenant is reported to be working with advisors on a potential restructuring.
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.
Goodyear— The tire company agreed to sell its Dunlop brand to Sumitomo Rubber Industries for around $701m as it continues to work on its transformation plan which involves leverage reduction.
Kohl’s— The retailer announced an operational restructuring plan which involves the closure of an e-commerce fulfilment center and 27 underperforming stores.
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.
Office Properties Income Trust — The office REIT announced the completion of a $114.5m sale of properties and the use of proceeds to redeem its outstanding 4.5% unsecured notes due 2025.
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.
Salem Media— The conservative Christian media company announced the repurchase of all its debt (save for a revolver) using proceeds from a convertible preferred stock issuance to a strategic investor and the sale of certain radio stations.
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.
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.
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.
Bankruptcy
Ligado Networks —After filing for bankruptcy, Satellite and spectrum company Ligadosecured all of the relief it sought during its first day hearing — and also set the stage for its legal fight with Viasat, another satellite service provider that is potentially its largest creditor.
Wellpath — Wellpath received approval to sell its recovery solutions assets at its sale hearing.
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.
Big Lots — The company's proposed sale to Gordon Brothers was approved on 2 January and closed subsequent, after the debtors previously proposed sale transaction fell through.
The Container Store — The company filed for bankruptcy and received all requested relief at its first day hearing on an uncontested basis.
Incora — Incora achieved confirmation of its proposed plan after its battling creditors were able to reach a consensus on terms that preserved the creditors’ rights to appeal the LME ruling in the case.
Intrum Justitia — The court denied an ad hoc group’s motion to dismiss the Intrum Chapter 11 case and also granted confirmation of the company’s proposed plan.
Party City — The party goods seller, which emerged from bankruptcy in October 2023 with lenders including Silver Point Capital and Monarch gaining control, filed for bankruptcy and was cleared to begin a liquidation process at its first day hearing.
TGI Friday’s — The sale of nine of the company’s stores and ten of its liquor licenses was approved at a hearing on 2 January.
Diamond Sports— The company’s Chapter 11 plan, which provides for a going-concern reorganization of DSG, was confirmed.
Other active distressed and restructuring coverage (from articles prior to the past three weeks)
LME Trends — We continued our series on LMEs by publishing a follow-up piece on the trend toward friendlier or gentler deals in the restructuring world. This era, which practitioners call the “LM 2.0”, succeeds the “LM 1.0” version of non-pro-rata priming and asset-stripping transactions.
US Distressed/Restructuring Tracker Report — We published our monthly report covering notable situations/transactions in our restructuring tracker that are on our watchlist, are expected to materialize, are in progress or were recently completed. The tracker is a work in progress and, in the coming months, 9fin will roll out many user-friendly updates to the tracker and will complete a backfill exercise. Meanwhile, we welcome any suggestions for improvements.
Platinum and LMEs — We published another edition in our series of LME profiles of private equity companies, focusing on Platinum Equity and its investments. A review of the sponsor's portfolio found eight of its 57 current investments carry debt trading at distressed levels.
LME legal challenge evolution— LMEs have become a game of calculated and often times unequal inclusivity, making justifying the costs and risks of challenging one in court more difficult.
BWIC co-op tracker — A recent BWIC listed by an Oaktree CLO identifies as co-op paper certain debt issued by Hearthside Food Solutions, Sinclair Broadcast Group, WorldStrides, Anastasia Beverly Hills, Altice France, Altice USA and Cision. Other BWIC data that we tracked shows nine CLO-owned credit facilities of at least eight companies are either governed by a cooperation agreement or restructuring support agreement. Another BWIC revealed that six tranches of debt are being traded as co-op papers. The debt was issued by Astound Broadband, WeightWatchers, Cision, Altice France and Altice USA.
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.
Aimbridge Hospitality— The Advent-backed hotel manager is reported to be in talks with a lender group including KKR and CapitalRe for a debt restructuring. The company had earlier obtained a waiver from lenders that allows the company to file its Q3 24 financials after the original November-end deadline. It remains in talks with its lenders on a potential LME.
Alkegen — The insulation products manufacturer closed an Oak Hill-led refinancing of its revolver and term loans due 2025 and a private exchange for its notes with a subset of holders, and launched a public exchange for the remaining notes.
Allen Media — The TV network company released cleansing documents to private investors after having struggled to arrive at an agreement with its creditors.
Altice France—The French telco’s latest round of negotiations with the ad hoc group weighted in the secured debt advised by Gibson Dunn and Rothschild is reported to have again failed. See 9fin’s analysis of Altice France’s cleansing materials from November and the unconsolidation of Altice’s XpFibre stake here.
Altice International— The company remains in asset disposal mode. After selling its AdTech business, Teads earlier in 2024, the company announced an agreed disposal of the €15m Geodesia construction business to a related party, and a sale of assets in Portugal is on the cards. The company reported revenue and EBITDA declines in Q3 24 with Altice Portugal primarily responsible with the underperformance.
Altice USA — 9fin explores the different options available to Altice USA and its creditors in our LME Breakdown.
AMC Entertainment — The theater chain disclosed an agreement with Goldman Sachs for an ATM program for 50m shares of common stock, causing its stock to tank.
Anastasia Beverly Hills — The cosmetics company reported stronger than expected Q3 earnings, sources told9fin, and accordingly saw indications on its term loan improve.
Bausch Health— The Blackstone-TPG joint bid for B+L is reported to be on the verge of failing, with Blackstone balking at the price demanded by Bausch Health. Both Bausch Health and B+L have subsequently issued statements which note that a sale process is ongoing but do not provide further details.
Beyond Meat — The producer of plant-based meat substitutes is reported to have engaged with a group of convertible noteholders on a restructuring.
Brightspeed — Some bank lenders are reported to have begun trying to unload the long hung debt (presumably the debt recently exchanged into) of the Apollo-backed internet provider.
CommScope — The company announced a refinancing transaction that paid off all maturities through 2026 and leaves open the possibility for a future LME.
City Brewing— Following an LME in April, the beverage production and packaging company is again in talks with lenders to provide capital. The new money could be in the form of a $50m bridge financing with a more holistic transaction to follow.
Club Car— Unsecured debt of the Platinum Equity-backed golf cart manufacturer plunged into stressed territory after it privately reported sharp sales and EBITDA declines in Q3 24.
Congruex— According to an S&P note, the company completed a restructuring involving its revolver and first lien term loan which gives it temporary liquidity relief in the form of part PIK interest and an amortization holiday for seven quarters and some covenant relief through Q2 25.
Cox Media— According to an S&P note, The Apollo-backed media company’s maturity-extending exchanges of its term loan, unsecured notes and revolver have been partly completed.
DISH/EchoStar — The ad hoc group of DISH DBS bondholders, advised by Milbank and Lazard, has engagedElsberg Baker & Maruri for potential litigation involving recent financing transactions and the company stripping value away from bondholders.
Dodge Construction Network — The Clearlake-backed company was advised by Kirkland & Ellis and Moelis, and an ad hoc group of lenders advised by Davis Polk, on the recently concluded priming new money and distressed uptier exchange deal.
Drive DeVilbiss Healthcare — The CD&R-backed company has embarked on a sale process that could involve selling its assets piecemeal or as a single entity. Drive, which makes medical equipment, previously went through an out-of-court restructuring, in which the sponsor kicked in fresh cash and existing first and second lien lenders agreed to extend the debt wall.
Empire Today — The Charlesbank-backed company’s LME with existing lenders completed in November involved a new money raise, maturity extending discounted debt exchanges and a dropdown of IP, according to credit rating agencies.
EmployBridge— Certain lenders have organized as the company reported weaker performance with debt trading poorly and rumors of the company’s sponsor Apollo buying back debt in the secondary market.
EW Scripps — The broadcasting company is working with Morgan Stanley to explore refinancing options, including potential securitization and amend and extend deals. Term loan lenders and unsecured creditors have organized separately.
FinThrive — The healthcare software provider raised $155m in fresh capital and extended the maturity on its revolving credit facility in an LME supported by “substantial majority” of holders of its existing first lien term loans due 2028 and second lien term loan maturing in 2029. The new funds will be used to delever its balance sheet and improve liquidity.
Forward Air — The 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.
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.
Hunkemoller — A group of funds has filed a lawsuit in New York against the Dutch lingerie maker and US fund Redwood for an uptiering transaction that occurred in June, according to a complaint filed on 26 November.
IngenovisHealth — Lenders to the Cornell and Trilantic Capital Partners backed healthcare staffing company are working with Gibson Dunn as post-pandemic demand for travel nurses slows.
Just Eat Takeaway — An ad hoc group of bondholders is considering signing a cooperation agreement, following the food delivery company’s recent announcement of selling US subsidiary Grubhub.
KIK Consumer Products — The company’s bonds plunged after news of a fire broke out at its facility in Atlanta. In a message to private lenders, KIK said the fire and resulting damage was limited to an insured warehouse and its production areas can restart once the area is safe to re-enter.
KLDiscovery — The data management software company’s debt restructuring in August saw lender MGG and shareholder Ontario Teacher’s Pension Plan take control of most of the company.
Lifepoint Health — The Apollo backed hospital operator shaved off 50bps of spread from its $499m term loan B due May 2031, repricing it to 350bps from 400bps as it continues its turnaround following above-expectation Q3 24 results.
LifeScan — Per an S&P note, the Platinum Equity-backed medical device company skipped principal and interest payments on its third lien term loan and entered into a forbearance agreement through 29 October with its first and second lien lenders.
LOGIX Fiber Networks — The fiber-based voice and data company hiredHoulihan Lokey to advise it ahead of an upcoming maturity wall.
Lumen — After having completing a series of debt exchanges, the company is now reported to have launched a sale of its consumer fiber business, with Goldman Sachs’ support, to raise funds to pay down debt.
Lycra — The spandex maker’s creditors have said they would extend their debt in exchange for a majority stake in the company, sources close told 9fin. The bondholders are offering the shareholders a minority stake if they sign up to the deal by 30 November.
Mavenir Systems — The Texas-based software company is reported to be in talks for Saudi Aramco to invest $1bn for a “significant minority stake” in the company.9fin had earlier reported that lenders were in confidential negotiations with the company to try to find ways to increase its financial breathing room.
Medical Properties Trust— The troubled healthcare facility REIT announced a settlement with Viceroy Research for a defamation case it had filed against the investigative research group. Read 9fin’s deep-dive on the REIT here and a Q3 earnings review here.
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 — Debt of the Apollo-backed craft retailer rallied after the company bought back around $73m of unsecured notes and reported Q3 24 earnings.
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.
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 — Lenders to the Platinum Equity-backed company hiredPerella Weinberg as quotes on the company’s loan fell into the 60s following poor earnings.
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, 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.
Porter Airlines — The Canadian airline has gauged interest from private credit lenders in raising CA$250m in preferred equity to boost liquidity.
Pure Fishing — The Sycamore-backed company has raised a $750m credit facility due 2029 from investors including Monarch Alternative Capital and Silver Point Finance, with proceeds to tackle its term loan and asset-backed loans. 9fincaught wind of the financing raise prior to the company’s announcement.
Quest Software — Trading desks have begun publishing quotes on the Clearlake-backed software company’s debt distinguished between co-op and non-co-op paper, with its term loans in distressed territory.
Radiate Holdco(aka Astound Broadband) — The company privately released Q3 24 results. 9fin had earlier reported that Astound designated its Texas business, a material asset, as unrestricted, potentially paving the way for an LME.
Sandvine — Following its announced acquisition by a group of lenders, the company has announced the commencement of a restructuring under the Canadian CCAA to implement the restructuring that will hand control to lenders and will net it new money.
Screenvision— Certain lenders of the Abry Partners-backed company have organized with Gibson Dunnto negotiate ahead of its $201.5m in loans that are set to mature in 2025.
Sinclair Broadcast Group— The broadcaster is reported to be in talks with its lenders for $1bn in new money to help refinance its $1.2bn term loan due 2026, and extend the maturities of other loans.
Springs Window Fashions — The Clearlake-backed window covering maker companyraised a $350m super-priority first out term loan as part of a liability management exercise it completed 19 December.
System1 — We delve into the asset stripping LME the marketing company completed earlier this year in conjunction with a merger under section 251 of the Delaware General Corporation Law.
TeamHealth —The healthcare staffing firm has completed its latest refinancing with the help of new money provided by firms including Ares, King Street,and its sponsor Blackstone.
Thrive Pet Care— The company hired a financial advisor to examine options for its debt stack, 9fin reported. Meanwhile, a group of first lien lenders has retained counsel as they brace for potential negotiations with the TSG Consumer Partners-backed company, sources said.
Tosca Services— The plastic crate maker got 100% of lenders to participate in a private exchange deal by the 22 August deadline. Previously, 9fin reported that Tosca launched a deal to raise $100m and to extend debt maturities via an uptier LME-style transaction.
Trinseo — The company launched an exchange offer for its 2029 notes and took other actions, in accordance with the transaction support agreement it had recently entered into. The TSA envisages an LME will help the company deleverage slightly and extend maturities out to 2028, while improving creditor recoveries and creating the tightest covenants protecting creditors to date.
Upstream Rehabilitation — Certain lenders to the Revelstoke-backed physical therapy provider have organized, while the company explores a preferred equity raise ahead of 2026 maturities on its credit facilities.
VeriFone — Lenders to the payment and commerce solutions company have organized as they prepare for negotiations ahead of the maturity of the company’s $250m revolver and over $2bn of term loans in 2025.
Veritas Technologies — According to an S&P note, the Carlyle-backed company on 10 December completed a $4.2bn debt exchange and raised a $140m superpriority revolver. 9fin had reported the near-final details of the deal in October.
Vialto Partners — The companyagreed to a deal with its sponsor Clayton, Dubilier & Rice (CD&R) and existing lenders including HPS Investment Partners that will reduce debt by approximately $700m and raise $225m in new money in the form of an equity investment, according to an 11 November statement.
Viasat — The satellite company announced the completion of a sale of its Energy Services Systems Integration business to MAG Capital Partners.
VistaJet — VistaJet’s Q3 24 earnings showed solid growth as the company continues to work with Jefferies on a potential up to $1bn hybrid capital raise, as 9fin earlier reported.
WW International— Following another disappointing quarter, the weight management company announced the replacement of its CFO. 9fin had reported earlier that the company has hired advisors to help address its debt amid an operational turnaround, and creditors are organized under a co-op.
Wellful— The Kainos Capital-backed health and wellness firm raised new money via a superpriority loan and completed an exchange of its existing debt, according to a Moody’s note, while also acquiring Ancient Nutrition.
Wellness Pet Company — Certain lenders to the Clearlake Capital-backed company organized as the quotes on the company’s loans are veering deeper into distressed territory.
Wolfspeed— The chipmaker recently terminated its CEO Gregg Lowe and appointed Thomas H Werner as the new Executive Chair following the collapse in the company’s stock price. The company also recently laid off 20% of its headcount following below expectation Q3 24 results.
WOM— It’s reported that the bonds of the bankrupt Chilean telecom company have jumped as it markets its assets for sale amid potential interest from Carlos Slim’s America Movil.
WorldStrides— Lenders to the student trip company have retained a financial advisor in order to develop potential alternatives to the recently expired discounted exchange offer.
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.
Bankruptcy
Jackson Walker Fees — Jackson Walker must provide correspondences with PR and communication firms related to their attorney’s relationship with Judge Jones and the firms Attorney Sourcebook to the US Trustee even if confidentiality concerns are valid. The Judge also ruled that the US Trustee must provide the testimony subpoenaed by Jackson Walker related to the US Trustee’s potential knowledge of the relationship.
Judge Garrity (SDNY) — Judge James Garrity has announced his intention to step down from the bench at the end of September 2025.
American Tire Distributors— ATD has secured a stalking horse bid from its ad hoc lender group, comprised of Guggenheim Partners Investment Management, KKR, Monarch Alternative Capital, Sculptor Capital Management, and Silver Point Capital. The bid contemplates a credit bid, as well as additional consideration including the assumption of certain liabilities.
Avon International Operations — A global settlement between the debtor, Natura and the UCC was approved. The settlement resolved the UCC’s motion to dismiss the case and allowed for the court to approve the debtors’ sale motion and prepetition settlement with Natura.
CareMax — Final approval of the company’s DIP facility and other requested relief was granted at an uncontested second-day hearing.
Conn’s— A judge signed off on the bankrupt retailer’s roughly $360m sale to Jefferson Capital Systems, a debt collector, a transaction which the company’s lawyers touted as the best way to monetize its remaining receivables.
Edgio — The company received court approval of the sale of certain of its assets, mainly certain customer contracts, along with nonexclusive license rights, to Akamai Technologies. The transaction was expected to close in early December.
Franchise Group — The judge overseeing Franchise Group’s Chapter 11 case denied a motion by certain lenders of the company to terminate the exclusivity period for the debtors to file a plan.
Gol Airlines— The Brazilian airline filed its Chapter 11 plan and disclosure statement along the lines of a plan support agreement it recently executed with Abra, its majority investor and largest secured creditor. The plan envisages the equitization or extinguishment of $1.7bn of debt and $850m of other obligations.
Hearthside Food Solutions— After removing the roll-up feature of the DIP loan, the debtors were able to secure all second day approval requested without a hearing.
Invitae — After hearing arguments on the UCC’s standing motion for litigation related to uptiers and arguments over makewholes, Judge Michael Kaplan decided to issue a preliminary ruling denying the standing motion and reserved his ruling on the makewhole issue.
Northvolt— The company received approval of all requested relief at an uncontested second-day hearing.
Purdue Pharma— The mediation process and preliminary injunction barring suits against non-debtor third parties was extended through 24 January.
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.
Spirit Airlines — The debtors received approval for their DIP and scheduling motion which will allow the debtors to proceed with a combined plan and disclosure statement over.
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.
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.
