Bankruptcy Filings


Near real-time filing alerts and comprehensive case summaries for chapter 11 bankruptcy filings across the U.S. with information on unsecured creditors, DIP financings and more.

According to nearly 70 percent of leading academic economists polled by the Financial Times, the U.S. economy will tip into a recession next year. With the distressed debt warning climbing, restructuring and leveraged finance professionals should be aware of Reorg’s Restructuring Risk Index (RRRI) and how it can serve their business strategies.

The RRRI is a proprietary numerical indicator that reflects the probability of any U.S. public company filing for bankruptcy. Leveraging Machine Learning (ML) and Natural Language Processing (NLP), the RRRI classifies and extracts data from publicly available documents and press releases to identify patterns and provide a scoring mechanism to predict bankruptcy. The model is trained off of Reorg’s unique historical database of in- and out-of-court restructuring events and all public disclosures leading up to those restructuring events.

Available exclusively through Credit Cloud. Learn more.

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First Day by Reorg: 2022 Chapter 11 Filings by Month
Tue Sep 6, 2022 2:50 pm Bankruptcy Filings

Reorg’s First Day team provides timely alerts and expert analysis of new chapter 11 cases.

Each Wednesday, the First Day team publishes a weekly wrap of high-level analysis on chapter 11 filing trends. The following extract is from the weekly wrap dated September 2, 2022 —

This week is the sixth consecutive week to include a billion-dollar chapter 11 filing – this time from automotive and LED lighting manufacturer Lumileds, bringing the year-to-date count of chapter 11s involving at least $1 billion in liabilities to 15, including nine in Q3, with nearly a full month remaining in the quarter.

August concluded with 23 cases for the month, making it the second busiest month of the year behind only June, which recorded 30 cases. The counts per month are shown below, broken down by sector:

To see more of our teams work, watch the 2021 Chapter 11 Filings, A Year in Review webinar replay.

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First Day Weekly: July Has Back-to-Back Weeks of Billion-Dollar Chapter 11 Filings
Fri Jul 15, 2022 12:57 pm Bankruptcy Filings  Distressed Debt

This week’s chapter 11 cases included a filing from asphalt construction company Premier Paving Ltd., extending 2022’s spike in industrials sector filings, stemming primarily from the construction subsector. The wave of cryptocurrency cases also continued this week, with a filing from Celsius Network, following filings earlier in July of the chapter 11 case of Voyager Digital and the chapter 15 of defunct cryptocurrency hedge fund Three Arrows Capital. Also this week, GenapSys, which has developed a “novel method” for DNA sequencing, filed to run a sale process after it stopped selling its DNA benchtop sequencer and offered refunds because of “inherent design flaws.”

Celsius Network, a cryptocurrency finance platform and lender that claims over 1.7 million users worldwide, filed chapter 11 to stabilize its business and consummate a “comprehensive restructuring transaction.” Without an RSA in hand, the company intends to fund postpetition operations using cash on hand, which “will provide ample liquidity to support certain operations during the restructuring process.” The company explained in a press release that it paused customer account withdrawals on June 12 because “without a pause, the acceleration of withdrawals would have allowed certain customers – those who were first to act – to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.”

The company says its stabilization and restructuring pursuits would allow Celsius to “emerge from chapter 11 positioned for success in the cryptocurrency industry.” Celsius adds that as a result of the company’s asset-preservation strategies, it holds approximately $4.3 billion in assets and $780 million in “non-user liabilities” as of the petition date.

The debtors say that after “early success,” the “amount of digital assets on the Company’s platform grew faster than the Company was prepared to deploy,” causing the company to make “what, in hindsight, proved to be certain poor asset deployment decisions,” some of which the debtors say “took time to unwind” and “left the Company with disproportional liabilities when measured against the unprecedented market declines.” Despite the company’s efforts to unwind these asset deployments, “unfortunately, the damage was done,” the debtors say. In addition, the debtors face “other unanticipated losses,” including a private lender’s inability to return the company’s collateral when Celsius attempted to repay a loan in July 2021. According to the declaration, this resulted in the company holding an uncollateralized claim against its lender in the amount of about $509 million after setting off its own loan obligations.

Celsius is the year’s ninth chapter 11 involving more than $1 billion in liabilities and the month of July’s third. Out of the year’s nine, six have filed in the last 45 days:

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Reorg Asia Bi-Weekly<br>Crypto Night (June 28 – July 11)

From Reorg Asia’s Managing Editors
In this column, managing editors Stephen Aldred and Shasha Dai take turns writing about trends in high yield, distressed debt, restructuring and bankruptcy in major Asian markets including China, Southeast Asia, India and Australia. Any opinions or other views expressed in this column are the author’s own and do not necessarily reflect the opinion or views of Reorg or its owners. For questions or comments, contact Stephen at saldred@reorg.com and Shasha at sdai@reorg.com.

Whether you regard crypto currency as the future of finance or a collective hallucination that allows retail investors to gamble away large chunks of real cash on a Ponzi scheme of epic proportions, you can’t ignore the sector.

By many accounts – including the Bank of England – the market capitalization of crypto assets globally reached the $3 trillion mark some time in late 2021, but the sector has since shed over $2 trillion of that value.

Crypto has always been volatile, even before an extended run-up fueled by a search for returns in a low interest-rate environment and legions of get-rich-quick day traders locked in bedrooms during a global pandemic and fed on a diet of headlines touting fabulous returns.

The causes of the collapse in valuations are well documented and include exposure of vulnerabilities like liquidity mismatches leading to run dynamics and fire sales, and leveraged positions being unwound and amplifying price falls, according to the Bank of England.

The collapse in valuations inevitably generated a barrage of memes, about fry cooks who became Blockchain Investors/Web 3.0 Experts but are now fry cooks again, or buying the dip when the dip keeps dipping.

But with the $60 billion wipe-out of Terra’s stablecoin terraUSD and Bitcoin and Etherium losing 70% of value, bankruptcy proceedings have emerged along with the meme barrage.

Concern about dissipation of assets has already emerged in filings related to the high-profile case of crypto hedge fund Three Arrows Capital, or TAC, late last week.

Foreign representatives for TAC originally filed a chapter 15 petition in New York on July 1. The company was formed in 2012 under BVI law, states the declaration, and is wholly owned by Singaporean corporate parent Three Arrows Capital Pte. Ltd., declarations accompanying the chapter 15 filing show.

Declarations state that TAC was “reported” to have over $3 billion of assets under management in April and is “heavily invested in cryptocurrency, funded through borrowings.” The declarations also cite “various news outlets,” which state that a “substantial portion” of TAC’s investment portfolio comprised Luna cryptocurrency, which “lost 99% of its value” in mid-May. TAC filed its chapter 15 facing a $675 million ‘equivalent’ demand from crypto platform Voyager Digital and a potential asset freeze.

Voyager itself filed a chapter 11 petition late in the day on July 5, seeking relief to address a “short-term ‘run on the bank’ due to the downturn in the cryptocurrency industry generally and the default of a significant loan made to a third party.”

Under its plan, Voyager said that customers with crypto in their accounts will receive in exchange a combination of proceeds from the TAC recovery, common shares in a newly reorganized company and Voyager tokens. Voyager referenced claims against TAC of “more than” $650 million in a first day relief presentation on July 9.

But foreign representatives for TAC on the same day sought emergency relief in connection with the chapter 15, pointing to a lack of cooperation from TAC’s founders and warning that absent provisional relief “there is an actual and imminent risk that the Debtor’s assets may be transferred or otherwise disposed of by parties other than the court appointed Foreign Representatives to the detriment of the Debtor, its creditors, and all other interested parties.”

The risk is “heightened” because a significant portion of the debtor’s assets are cash and digital assets such as cryptocurrencies and non-fungible tokens “that are readily transferrable,” the motion shows.

Specifically, the July 9 motion discloses that the whereabouts of TAC’s founders, Zhu Su and Kyle Livingstone Davies, are currently unknown and they “have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.”

The foreign representatives argue that the provisional relief sought through the motion – which includes authority to serve discovery on the founders and others who may have information regarding the debtor’s assets or affairs – would “mitigate the risk of transfers or disposals” of the debtor’s assets by parties other than the foreign representatives “and authorize discovery narrowly targeted at obtaining fundamental information” about the debtor’s assets.

The TAC and Voyager cases will be closely watched for guidance on the process of restructuring and discovery within an asset class which, let’s be honest, gained its initial popularity among global crime syndicates because of its ability to completely avoid regulatory oversight.

To put it another way, unwinding complex derivatives contracts in the wake of the Lehman Brothers bankruptcy might ultimately lead you to an international investment bank as counterparty. The suspicion is that chasing down crypto assets might ultimately lead to an encrypted USB stick in North Korea.

–Stephen Aldred, Managing Editor – Asia

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Global Credit Highlights – (Friday, June 3, 2022)

In the Americas, stocks rose as market participants straggled back from the long holiday weekend and distressed investors focused increasingly on companies in the auto sector, which is bearing the brunt of component shortages and wage/commodity inflation. The high-yield market had a limited reopening, with eight deals pricing across a variety of sectors including midstream and building supplies. Talen Energy’s chapter 11 proceedings continued, with Talen Montana filing an adversary proceeding to avoid the transfer of certain asset sale proceeds to former parent PPL Corp. and Talen Energy obtaining the support of 71% of unsecured noteholders for its RSA. Chemical manufacturer TPC Group filed for chapter 11, and Service King entered into an agreement that will provide as much as $200 million in new capital.

As in the Americas, companies in Europe are continuing to feel the strain from supply-chain disruptions and inflationary costs. French chilled dough and pancake maker Cerelia is seeking an amendment to be able to raise an €80 million loan amid rocketing input costs. As an added pressure, the primary markets are all but shut, leaving companies with upcoming maturities between a rock and a hard place and banks on the hook for underwritten deals.

As Shanghai is reopening after a months-long Covid-19 lockdown, the Chinese government is eyeing economic recovery and picking winners and losers in the property sector by hosting a virtual road show for five privately held developers to pitch new bond offerings. In Indonesia, a puzzling bondholder identification announcement for palm oil producer Sawit Sumbermas Sarana has market participants chattering, and an unusual judgment shows unpaid creditors can access recourse despite prior appointment of insolvency officer-holders in a company’s place of incorporation if the company can prove sufficient connection with Hong Kong.

Request trial access to Reorg here.

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Asia Bi-Weekly: Flight From Lockdown (May 17-31)
Tue May 31, 2022 5:32 pm Bankruptcy Filings  Distressed Debt  High Yield Bonds

Over the weekend, one of our staff members scored a victorious escape from Shanghai, where over the last 2.5 months, the only times she had been out of her apartment were for mandatory Covid tests or picking up grocery deliveries. The video clips she shot on her phone – while riding on the back of a delivery guy’s motorcycle en route to the train station – showed deserted streets, clean but empty. After a four-hour train ride, she arrived at a city in central China where she’s from originally. Upon arrival, she was shepherded into a student dormitory-turned hotel for a seven-day quarantine, with food and lodging paid for by the local government.

Compared with tens of thousands who are trying to leave Shanghai, she is among the lucky ones. A widely circulated documentary, produced by the state-owned Shanghai Daily newspaper, shows people who walked for hours or rode bicycles to train stations as taxis or car rides are either unavailable or exorbitantly expensive. Some slept overnight in underground parking lots hoping to be admitted into the station. Others slept on lawns outside the Hongqiao station, the main railway hub that is seeing 6,000 people departing every day. Flights out of Shanghai have also been canceled.

Those voluntary departures coincided with Shanghai starting to reopen and lifting some Covid control measures, allowing certain business enterprises to resume in-person operations and people in low-risk neighborhoods to leave homes. But the path of reopening is fraught with uncertainty, both from the implementation of the recovery policies and from the ever-changing infection rates. Some of the jobs lost, such as construction gigs for migrant workers, may never come back as development of residential buildings gets delayed indefinitely. Resuming operations can be a money-losing proposition for many small and medium-sized businesses when mandatory Covid control costs are factored in such as providing employees with three meals, afternoon and overtime snacks, PCR and antigen tests, N95 masks, toiletries, and even cot beds or sleeping bags.

Official statistics show the impact of the monthslong lockdown on Shanghai’s economy: In April, industrial production was down 61.5% year over year, exports from industrial enterprises down 57.3%, infrastructure investment down 21.4%, industrial investment down 17.7%, and real estate development investment down 10%.

The impact reaches far beyond Shanghai. Lockdown at one of the busiest ports in China has forced shipping companies to reroute, exacerbating strains on global logistics and dealing a heavy blow to China’s own exports. Disruptions to industrial manufacturing may cause demises of small businesses that are vital to the supply chain. A poll of small and medium-sized companies in Shanghai conducted this month showed that of 941 respondents, 61% said they could not survive beyond six months.

National economic statistics paint a similar picture to that of Shanghai. According to minutes of a May 25 teleconference held by the central government officials with those at the provincial and local levels, in April, industrial production value-add was down 2.9% year over year, compared with a 53% year-over-year increase in March. Manufacturers’ purchasing managers index and non-manufacturing commercial activity index were down 47.4% and 41.9%, respectively. Service sectors were down 6.1%, and retail down 11.1%. In April, the unemployment rate reached 6.1% for the national average, and 6.7% for the 31 largest cities.

All of this stands in stark contrast to what I remember from living in Shanghai in the mid-1990s. Back then, the modern metropolis was full of youthful pride and ambition to eventually rival Hong Kong to be the next financial hub in Asia. No sooner was the newest elevated inner city highway erected than it was congested with cars bumper to bumper during rush hours. On public holidays, hundreds of thousands thronged the storied Bund, where in dusk buildings and the Oriental Pearl television tower across the river were illuminated to light up Shanghai’s skyline.

It will be some time for the Bund to be crowded again.

The lockdown has had an immediate and tangible effect on Chinese real estate companies, which constitute some of the most active credits in our coverage universe. Property developers including Shimao, Logan, Jingrui, Agile and a Powerlong subsidiary have delayed release of 2021 audited financial statements citing pandemic control measures in the mainland since March.

Impediments to audit was just one direct impact on developers. April 2022 also saw the largest year-over-year declines since January 2021 in the median numbers of contracted sales, contracted sales areas and implied average selling price from 34 developers that had reported April operating stats, according to Reorg’s May 19 analysis. Developers don’t typically disclose reasons for changes in monthly contracted sales, but one can surmise that foot traffic to showrooms has diminished.

On June 9, we will host a webinar discussing Shanghai’s reopening and implications for the real estate sector. Register to attend the webinar HERE.

Perhaps what’s more disconcerting for the property sector and China’s economy at large is the brain drain. The labor exodus from Shanghai is reminiscent of the elite departures from Hong Kong over the past year, although the more recent emigration is still at its early days with no clear patterns yet. Some predict that the people departed will come back or be replaced. Our staff member plans to return to Shanghai when it reopens.

Things tend to come full circle.

-Shasha Dai, Managing Editor – China

From Reorg Asia’s Managing Editors
In this column, managing editors Stephen Aldred and Shasha Dai take turns writing about trends in high yield, distressed debt, restructuring and bankruptcy in major Asian markets including China, Southeast Asia, India and Australia. Any opinions or other views expressed in this column are the author’s own and do not necessarily reflect the opinion or views of Reorg or its owners. To request trial access to Reorg for you and your team, click here.

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FTLive and Reorg: Global Alternative Credit Summit (May 4-5, 2022) — Hong Kong program

Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Hear from market leading experts on distressed restructuring, bankruptcy analysis, and the leveraged loan market in 2022 and beyond.  During the summit, we will discuss debt restructuring, leveraged finance, financial restructuring and many other topics. 

GLOBAL ALTERNATIVE CREDIT SUMMIT
4 – 5 May 2022
Unlocking Opportunities in Private Debt as the Credit Cycle Turns
In-Person & Digital l Glaziers Hall, London and Harvard Club, New York | #FTAltCredit

The potential for this market is enormous, but there are risks. For LPs, non-bank credit offers diversification uncorrelated with traditional investments; for borrowers, it promises quicker decisions on loans, better tenors and tailored covenants. Yet, despite ample capital, caution remains a watchword as the global credit cycle turns and the pandemic continues to influence the prospects for business and finance. Moreover, with growing calls for greater transparency and tighter regulation in private credit, is now the right time to join this market? Do the benefits outweigh the risks of this dynamic new asset class?

How does this shadow banking market compare to other private asset classes in terms of returns and ease of access? To what extent has it matured to meet the risk and return profile of an increasingly sophisticated pool of global investors? Can current rates of return be sustained in developed markets, against a fast changing and uncertain macro-economic and geo-political background? To what extent will Asia follow a similar growth path? As demand for direct lending, distressed debt, structured credit and leverage finance increases, where will new avenues for growth emerge? How concerned should investors be about warnings around systemic risks, market opacity, standards and illiquidity issues? Is it time to step up the regulation of private credit?

Hong Kong Program: May 5

Welcome remarks from the FT and Reorg

  • Joshua Oliver, Asset Management Reporter, Financial Times
  • Jenn Jutakeo, Head of Credit Research, Reorg

Leaders’ Panel: How should investors balance opportunity and risk Asia’s private credit markets?

Demand from global investors and local borrowers is pushing private debt to new heights across Asia. As the markets in the US and Europe reach maturity, Asia is seen as a new avenue with massive potential for further growth. Where are the key pockets of opportunity for private debt investors as the region recovers from the impact of Covid-19? What are the most effective investment opportunities in this market, from direct lending to mezzanine and distressed debt? How can LPs navigate this complex market with its multiple regulatory frameworks and diverse political regimes? To what extent is the potential for local currency swings an issue that indirectly impacts on private investments?

  • Vaibhav Chadha, Managing Director, Distressed Loans, Cantor Fitzgerald
  • Kanchan Jain, Managing Director & Head of Credit, Baring Private Equity Asia
  • Leslie Lim, Investment Director, Tsao Family Office
  • Roderick Sutton, Special Advisor, FTI Consulting

Fireside Chat: Has private debt come of age in Asia?

  • Andrew Ferguson, Chief Executive Officer, Asia Pacific Loan Market Association (APLMA)
  • Shasha Dai, Managing Editor, Reorg 

Sector Focus Panel: Asia real-estate outlook for private debt investors

Long characterised by large-scale, stable returns, downside protection, and measurable risk, real estate has been considered one of the key opportunities for private debt investors focused on Asia. But have recent events in China’s real estate market altered that picture? Have events in China impacted other regional real estate markets? How is the overall market evolving and how do yields compare with the other debt investment vehicles in the sector? Where are the regional hot spots for value, and has the pandemic affected the risk outlook for real estate? Which loan structures and strategies, from direct lending to investing via funds, are proving most effective in the current market? To what extent does private real estate debt provide an access route to distressed opportunities?

  • Ron Thompson, Managing Director, Asia Restructuring Leader, Alvarez & Marsal
  • Robert Petty, Co-CEO and Co-CIO, Fiera Capital (Asia)
  • Stephen Aldred, Managing Editor, Asia, Reorg
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Chapter 11 Plans’ Analysis Using Credit Cloud

Reorg experts recently conducted an analysis of chapter 11 filings. Using Reorg’s new restructuring dataset, included in Credit Cloud, the analysis reveals that since 2020, five debtors have emerged or will emerge from bankruptcy with more funded debt than they had on their petition dates. Three of these companies have securities trading at stressed levels, with over 10% yields. Mallinckrodt second lien notes are indicated with a 12% yield and Buckingham Senior Living’s 2021B notes are indicated 42.3/43. Reorg has not been able to secure pricing information for the other two companies.

Mall owner Pennsylvania REIT and senior living operator Buckingham obtained concessions from lenders upon exit, including extended maturities, in an effort to carry the companies through the downcycle.

Read the full article here.

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Reorg on the Record: Russia sanctions will not free parties from contractual obligations… (04/20/22)

Written by Shan Qureshi, Head of Legal Restructuring Innovation and Initiatives || The sanctions imposed on Russian individuals and entities by the U.K., EU and the U.S. over the previous months are the most far reaching seen in modern times.

In a recent webinar Reorg hosted with lawyers from Pallas Partners LLP on the impact of sanctions on the loan agreements, we highlighted that sanctions do not act as a route around parties’ agreed contractual arrangements. Lenders who find their arrangements are caught by the sanctions will be forced to act quickly to avoid being fined, while some borrowers may be prevented from making payments easily. Additionally, wrongful termination of contracts could have costly consequences.

Elsewhere, we have seen some judicial criticism of challenging creditors in the U.K. Courts. Creditors were accused of “shouting from the sidelines” in Smile Telecoms’ recent restructuring plan, rather than engaging in a proper challenge. We expect the comments to dissuade creditors with weak grounds of challenge from obstructing future plans.

Our European teams are delivering the most in-depth data, analysis and reporting on thousands of credits that are either stressed, distressed, performing, going through restructuring or post-reorg. Below is a glimpse into our editorial offering:

SMCP
GLAS, as trustee to European TopSoho’s, or ETS’s, defaulted €250 million convertible bond, has brought a claim of fraudulent transfer against the company, seeking to trace and recover 12 million unpledged shares in French fashion retailer SMCP. The shares were last known to be in a JPMorgan account in Singapore in December, transferred via the British Virgin Islands. The U.K claim is one front in a dispute that has been litigated in France, Luxembourg and Singapore » Continue Reading

Smile Telecoms
Lord Justice Snowden sanctioned Smile Telecoms’ Part 26A Restructuring in early April. Smile’s Part 26A Plan is novel for two main reasons: i) The Plan was the first to use section 901C(4) of the Companies Act, 2006, which allowed Smile to exclude it “out-of-the-money” creditor and member classes who did not have a genuine economic interest in the company from voting on the Plan; and ii) The Plan successfully altered the capital structure and constitution of a foreign company. Reorg hosted lawyers Damien Gomez and Rebecca Jarvis from Linklaters in a two-part podcast discussing the name. » Listen here

Lukoil
Lukoil faces several upcoming coupon payments in April, followed by the maturity of its $500 million senior unsecured notes in June, which are currently priced at about 71. Reorg’s analysis notes that the Russian energy giant has ample cash on the balance sheet to address these maturities – the key problem for investors is whether the company will be able to make the payment because of restrictions imposed by the Russian government in response to Western sanctions following Russia’s invasion of Ukraine. » Continue Reading

Corestate
Should German real estate manager Corestate choose to use proceeds from an asset sale to solely redeem its 2022 bonds while the 2023 bonds remain outstanding, this may be restricted by the asset sale covenant of the 2023 bonds. Reorg looks at the asset sales covenant and its implications under the 2022 and 2023 bonds’ indentures. We also consider whether redeeming the 2022 bonds with proceeds from the cash conversion plan without finding a solution for the 2023 bonds could have implications for its directors under the German insolvency regime. » Continue Reading

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Reorg on the Record: Inflationary pressures, supply-chain disruptions, labor shortages and commodity costs… (03/23/22)
Mon Mar 28, 2022 12:36 pm Bankruptcy Filings  Distressed Debt

Written by Mark Fischer, Director of Credit Research || In a surprising move last week, movie theater company AMC Entertainment said it is buying a 22% stake in gold mining company Hycroft Mining Holding Corp. and its 71,000-acre Hycroft Mine in northern Nevada. While operationally, the connection is still not clear, the headline at least can be used to highlight the intersection of risks in the credit markets between companies still trying to recover from the effects of Covid-19 and how companies can adapt to inflationary pressures brought on by supply-chain disruptions, labor shortages and commodity costs.

Equity markets last week posted their strongest performance since November 2020. However, as credit analysts we are acutely focused on the cash flow considerations brought on by inflationary pressures. The supply-chain issues in the automotive sector have been well documented, but after a sharp increase in nickel prices, Reorg initiated coverage of American Axle. Natural gas and power prices have hit companies in a number of ways, including squeezing margins at paper companies, forcing Norske Skog to take downtime at one of its mills. Reorg initiated coverage of another paper company, Sylvamo, which in addition to energy concerns also has considerable operations in Russia. Certain companies that hedge power prices and need to meet margin requirements are feeling pressure, such as Talen Energy.

Unfortunately, unlike its movie theater competitor, Cineworld is unable to deploy excess cash to buy a mine and take advantage of higher metal prices. The company hopes its theaters can return to 85% of 2019 admission levels later this year, but whether it can meet upcoming covenant tests is still uncertain.

However, amid all the market volatility, the week might be remembered as the week during which the commonwealth of Puerto Rico, after its nearly four-year stint in Title III bankruptcy, had its joint plan of adjustment go effective on Tuesday, March 15.

A preview of our in-depth coverage of these names, and many more, is available below.


Our Americas teams are working tirelessly to bring subscribers the most in-depth data, analysis and reporting on more than 3,000 performing and distressed credits. Below is a glimpse into our offering:

Buyk
Buyk, an “ultra-high speed” grocery delivery business with 39 locations throughout New York City and Chicago, filed for chapter 11 protection on Thursday, March 17, in the Bankruptcy Court for the Southern District of New York. After funding sources ran dry upon Russia’s invasion of Ukraine and the debtor having “relatively little cash on hand,” Buyk terminated “virtually all” of its employees and entered into a “relatively small” $6.5 million loan with Legalist DIP GP LLC to fund a liquidating chapter 11 case. » Continue Reading

Cineworld
Amid uncertainty over its liquidity, Cineworld may have to pay down roughly $300 million on its revolver to address a June covenant test. The company said that its board is assessing several options regarding additional sources of liquidity, including an increase of the rest of world, or ROW, private placement loan. Reorg concludes that the ROW segment likely has the debt capacity to incur incremental loans and should be able to generate positive free cash flow despite a potential increase in cash interest, assuming last-12-month EBITDA continues to improve following Cineworld’s reopening of theaters in the second quarter of 2021. » Continue Reading

Talen Energy
Concerns about Talen Energy’s hedge positions have intensified as power prices in the PJM Interconnection have held at near their highest levels this year, according to sources. PJM Western Hub Peak Calendar Month futures for April 2022 are currently trading at $55.75/MWh, compared with about $43/MWh at the start of the year and a contract high of $58/MWh seen in early February. » Continue Reading

Puerto Rico
Restructured Puerto Rico bonds consisting of $7.4 billion in Series 2022A general obligation debt and $8.7 billion in general obligation and clawback contingent value investments, or CVIs, broke for trading this week after the Tuesday, March 15, plan effective date. During a press conference on Thursday, March 17, to present his fiscal 2023 budget proposal, Puerto Rico Gov. Pedro Pierluisi said that market reception to the issuance of the restructured GO bonds “has been very good,” noting that some bonds have traded at a premium. » Continue Reading

American Axle
Automotive and mobility supplier American Axle, which had reported declining results driven by supply chain effects on the auto industry from semiconductor shortages and rising raw material prices, said it had expected results to stabilize in 2022, predicting flat EBITDA off an increase in revenue. However, subsequent to the company providing guidance, certain raw material costs have increased dramatically, including nickel. » Continue Reading

Register now:
Join Reorg on Wednesday, March 30, at 12 p.m. ET as we discuss how companies facing mass tort liabilities, including Johnson & Johnson, have used the “Texas two-step” maneuver to box litigation claims in a new asset-lite subsidiary and use the tools available in chapter 11 to reduce their overall liability while continuing to operate normally outside of bankruptcy. Register here.

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