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.

LTL Management Bankruptcy Case Conclusion
Thu Oct 21, 2021 7:17 pm Bankruptcy Filings

Showcasing the speed, accuracy and reliability of our Americas Core Credit team’s coverage, our recent update discussing the Johnson & Johnson talc liabilities and the new LTL Management bankruptcy case, posted for subscribers yesterday, is ahead of the curve.

Our team started covering the potential litigation strategy months ago and since J&J filed its new talc subsidiary (LTL) we’ve had wall-to-wall coverage.

In addition, our team provided a number of breaking alerts from the first day hearing yesterday plus we provided subscribers with a detailed summary of the entire hearing last night. Read our detailed LTL Management chapter 11 case conclusion analysis here and request a trial to access our extensive coverage of the situation: https://reorg.com/ltl-management-chapter-11/

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Reorg’s Asia Core Credit Reports on Modern Land Bondholder Call
Thu Oct 21, 2021 1:41 pm Bankruptcy Filings  Distressed Debt

Our Asia Core Credit team dialed into a conference call Modern Land bondholders the company’s management, and reported that the company has identified more than 90% of holders of its $250 million due Oct. 25 notes for its proposed consent solicitation, and that the company’s cash on hand stood at a paltry $100 million.

Management of China-based property developer Modern Land told bondholders on a conference call today, Oct. 12, that the company has identified the holders of more than 90% in principal amount of the $250 million 12.85% senior notes due Oct. 25, 2021 for its proposed consent solicitation to extend the notes’ maturity by three months. Continue reading for more reporting on Modern Land’s proposed consent solicitation from our Asia Core Credit team, and request a trial to access reporting and analysis on stressed, distressed and performing credits in Asia.

Management said the company only has $100 million offshore cash and overall just RMB 450 million at holding company level. There is a cash shortfall due to a delay in the approval of an onshore loan but management expects to be able to redeem its next maturity, the $200 million 11.8% notes due Feb. 26, 2022, using operating cash and a shareholder loan. Modern Land has also suspended all land acquisitions in the fourth quarter in order to preserve cash and there are available channels for transferring funds from onshore to offshore, management added. (more…)

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Fri Oct 1, 2021 4:30 pm Bankruptcy Filings  Distressed Debt

Reorg’s Head of Credit Research, Jenn Jutakeo was pleased to join BBC News to discuss the Evergrande debt crisis during the Asia Business Report segment, saying: “All eyes will be on [Evergrande] today, but the real question is what will it look like if they address foreign creditors before onshore, when they still have quite a bit of onshore debt to address”.

 

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New Developments in Bankruptcy and Restructuring | 9/22/2021 |
Wed Sep 22, 2021 7:50 pm Bankruptcy Filings  Financial Restructuring

Fall is here, and with it comes a slew of new developments in bankruptcy and restructuring.

Recently in oil & gas, oilfield services company Key Energy announced the sale of substantially all of its fluid management and saltwater disposal well assets in Texas and New Mexico, effectively completing the company’s exit from that line of business in those states. In addition, lenders to Yak Access, a supplier of access mats to oil & gas companies in North America, have reportedly organized amid concerns over the company’s liquidity position, earnings trajectory and possible expansion into the power markets.

Later this month, experts from our Americas team will discuss PBF Energy, including regulatory challenges such as the ongoing effect of increased renewable fuel standard compliance costs.

In consumer discretionary, although supply chain issues and labor and commodity inflation continue to challenge the restaurant industry, public restaurant companies generally reported improved financial performance in 2021 and multiple chains, including Dutch BrosPortillo’s and Sweetgreen, have announced or consummated plans to go public.

In addition, although BJ’s RestaurantsCheesecake Factory and Red Robin continue to operate under covenant relief waivers obtained near the onset of Covid-19 pandemic, each has significantly improved its financial ratios over the first and second quarters and appears positioned to meet its upcoming financial covenant tests when they are reinstated by the end of the year.

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Americas Core Credit Podcast: Purdue Chapter 11; Fraudulent Transfer Claims and Third-Party Claims
Mon Sep 13, 2021 4:04 pm Bankruptcy Filings  Distressed Debt  High Yield Bonds

Each episode of Reorg’s weekly podcast series features a look back at highlights and top stories from the week in review and a preview of what’s to come in the week ahead, followed by a deep dive on issues and companies in the distressed and high-yield space. For this week’s deep dive, Reorg’s Karen Leung and David Zubkis discuss the $4.6 billion settlement with the Sackler family in the Purdue chapter 11 cases and explore the releases of fraudulent transfer claims and third-party claims against the Sacklers.

Purdue has been taking up a lot of headlines and with the opioid crisis coming to a head with a variety of litigation cases accelerating due to the pandemic, our Americas Core Credit analysts dive deep into the chapter 11. The plan is both innovative and controversial, and the Purdue chapter 11 was the first major bankruptcy driven by the opioid crisis. Thousands of related lawsuits have been tied to the company’s role in developing, making, marketing and branding oxycontin, the narcotic painkiller. What you can see in the plan is the parties in the case using the tools in the chapter 11 toolbox to address not bonds and loans, but trillions of dollars in claims related to a mass social crisis. Listen to the full episode below.

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Leveraged loan lender protections weakening continues…

Written by Peter Washkowitz, Senior Director and Head of Americas Covenants ||

The dog days of summer did not slow down activity in the bankruptcy and restructuring world.

In the United States, August came to a close with a mix of real estate, healthcare and consumer services companies filing chapter 11, including Tix Corp., Brown Industries, Regional Housing & Community Services Corp., Advanced Tissue and New England Sports Village.

After the reduction of revolving commitments under its asset-backed lending facility in the wake of a pipeline leak at the Inglewood Oil Field, E&B Natural Resources may seek a replacement for the facility, while restructuring negotiations between Glass Mountain Pipline’s major stockholders have recently begun to gain momentum.

Meanwhile, with Ion Geophyiscal’s $7 million of 2021 notes maturing on Dec. 15, market participants continue to speculate on how the company will fund the notes’ repayment. Reorg’s Americas Covenants team has provided an updated tear sheet analysis of the credit, which is linked to below.

As fall is fast approaching, the prevalence of weak lender protections in the leveraged loan market appears to be running full steam ahead. Throughout the summer months, new credit agreements for publicly owned sponsored companies continue to include loose covenants and aggressive terms that provide significant flexibility to incur additional first lien debt, transfer assets to unrestricted subsidiaries and pay dividends. (more…)

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Middle Market Distressed Debt; Americas & EMEA

Providing subscribers with intelligence, analysis and news on middle market distressed debt and high-yield situations, our EMEA and Americas reporters and analysts work tirelessly to stay up to speed on situations involving up to €250 million or $500 million in funded debt. Our workflow tools enable financial and legal professionals to perform in-depth searches on companies of interest, dockets, new filings and proprietary Reorg content. In addition, insightful coverage from our uniquely structured team combines reporting with legal and financial analysis offering a holistic perspective on the information you need to stay competitive in the middle market distressed debt and high-yield space.

Our Americas Middle Market and EMEA Middle Market product offerings include a range of content and capabilities for investment managers, law firms, investment banks, professional services and corporations interested in middle market distressed debt and high-yield situations to use for their critical workflows. Stay current on breaking news and developing situations through full-text email alerts and push notifications, customize your flow of information by company, sector, case and more, and increase you and your team’s efficiency with our extensive databases and powerful search engine. Additionally, with a subscription to our Americas and EMEA Middle Market products you are able to connect with our team of legal and financial, middle market distressed debt and high-yield experts whenever questions arise requiring additional information or clarification about specific credits, companies or situations. 

Below are a few examples of the types of middle market distressed debt and high-yield intelligence you would receive access to as a Reorg subscriber:

Americas Middle Market

EMEA Middle Market

If you are interested in learning more about our middle market distressed debt and high-yield intelligence, analysis and news, feel free to request a trial here: 

 

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Reorg Webinar Series: Spotlight on Xihe Group’s Vessel Fleet
Tue Aug 24, 2021 4:02 pm Bankruptcy Filings  Distressed Debt

Back in April 2020, Reorg covered the Singaporean commodities trading company Hin Leong Trading Pte Ltd’s collapse after significant fraudulent activity was uncovered. Prior to the collapse, affiliated Xihe Group purportedly owned one of the largest tanker fleets in the world valued at around $1.5 billion (more…)

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Industry continues to grapple with chip shortages

Written by Noor Sehur, Analyst Team Lead || With a quiet primary market amid the earning season, we shifted our focus to secondary situations in Europe, some of which are auto-parts suppliers Adler Pelzer and Standard Profil, German real-estate company Adler Group and Indian-based entertainment company Eros STX.


Yields of B- rated senior secured notes of Adler Pelzer and Standard Profil rose to 5.2% and 7.3%, respectively, as the industry continues to grapple with chip shortages and margin pressure from rising raw material costs. (more…)

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2021 Chapter 11 Filing Trends from Q1 and Q2
Mon Aug 16, 2021 6:10 pm Bankruptcy Filings  Distressed Debt

Coming off a record-setting year of chapter 11 filings in 2020 as the Covid-19 pandemic swept the globe and affected multiple industries, our First Day team analyzed the 2021 chapter 11 filing trends from Q1 and Q2 in our midyear report. The first half of 2021 trended well below historical averages, with a low point in May. Compared with the busiest second and third quarters of 2020 where consumer discretionary sector cases and, in particular, brick-and-mortar heavy companies, were filing with unprecedented frequency, 2021’s first-half consumer discretionary cases dropped by almost half. Real estate was the only industry to see an increase in filings, as compared with chapter 11 filing trends from both the first and second halves of 2020, as hotels and commercial real estate struggled. Financials also had an increase of less than 20% in filings in the first half of 2021 as compared with the second half of 2020, but a decrease of about 20% as compared with the first half of 2020.

A big story from 2020 was also a huge increase in larger bankruptcy filings, one of the many chapter 11 filing trends which did not continue into 2021. There were only 10 $1B bankruptcies during the first half of 2021, as compared with 57 over the full-year period of 2020. The dropoff in filings by companies with more than $1B in liabilities fell off by about 60% as compared with the second half of 2020, and 75% compared with the first half of 2020. All liability ranges saw less action in the first half of 2021 relative to both halves last year, with cases involving more than $500 million in liabilities dropping most vastly, cases in the $10 million to $50 million and $100 million to $500 million ranges falling less significantly, and filings in the $50 million to $100 million range increasing slightly. 

To read our full 2021 chapter 11 filing trends from Q1 and Q2 including analysis on chapter 11 filings in the real estate, financials, consumer discretionary, healthcare, consumer staples, industrials, energy and materials industries click through and download our 2021 Midyear Review: 

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