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.

Tue Apr 20, 2021 5:34 pm Bankruptcy Filings  Distressed Debt

Highlighting our TECT Aerospace bankruptcy case summary, the First Day by Reorg team took a deep dive into the chapter 11 filing that occurred on Monday, April 12 discussing the company’s background and events leading up the the bankruptcy filing as well as the DIP financing motion, the motion for joint administration, the motion to use cash management system and other motions involved. 

The manufacturer of high precision components and assemblies for the aerospace industry took a hit when Boeing suspended the production of its 737 MAX airplane, Spirit AeroSystems put an end to their supply agreement with TECT and when the Covid-19 pandemic restricted travel across the globe. Debtors are hopeful that the chapter 11 filing will result in the sale of most of their assets and with $50 million to $100 million in assets and $100 million to $500 million in liabilities, the debtor’s prepetition capital structure includes secured debt, unsecured debt and equity. Click through to read our full TECT Aerospace bankruptcy case summary here: 

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Reorg Webinar Series: REIT Chapter 11 Filings and Out-of-Court Solutions

Discussing REIT chapter 11 filings and out-of-court restructurings and financings that certain REITs are using to avoid bankruptcies, our Americas Core Credit experts Mark Fischer, Kevin Eckhardt and Wing Li will be conducting a webinar on Friday, April 23 at 11:00am ET to help provide further transparency on the industry. Our team will be discussing certain REIT subsectors and how companies have restructured capital structures in light of reduced revenue caused by the Covid-19 pandemic. Mall REITs CBL and Pennsylvania REIT have each sought chapter 11 protection, and Washington Prime Group has warned of a possible chapter 11. However, hotel REITs Ashford Hospitality and Hersha Hospitality have so far avoided bankruptcy by securing out of court financing and selling assets, respectively. 

Our coverage team will discuss potential reasons why certain REITs have avoided bankruptcy and how REITs have used the bankruptcy process to fix their balance sheets. Register for the webinar here: 

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Chapter 11 Filing Activity for March 2021
Wed Mar 31, 2021 8:25 pm Bankruptcy Filings  Distressed Debt

Written by Ian Howland, Research and Data Analyst, First Day ||

After a tepid start for chapter 11 filing activity during the first two months of 2021, spring has sprung some liveliness filing activity, as March’s count rose to 34, representing a 36% increase from February’s level and and a 79% increase from January, which was one of our slowest months on record. With one day left in the month, March’s numbers are down 5.6% from March 2020 and 12.8% from March 2019.

While January and February captured low filing counts by month-end across all sectors this year, they resembled some of 2020’s busiest months with respect to consumer discretionary and real estate filings, which represented a combined 64% of all chapter 11’s over the same period. Not only did the filing frequency increase significantly in March, the month’s filing set is also much more diverse, led by the communication services and real estate sectors with six cases each, followed by consumer discretionary with five, financials with four and each of the energy, healthcare and utilities sectors with three.

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Featuring a discussion on a force majeure dispute following the Texas winter storm, CBL Property’s amended RSA, Seadrill Partners’ disclosure statement approval and a deep dive into Argentine oil company YPF’s state of play after their liability management exercise, our Americas Core Credit weekly podcast breaks down the most important stories from the week of March 22nd, 2021. 

In terms of the force majeure dispute following Texas winter storm Uri, our team discussed the applicability of these clauses in power hedging agreements and how they could dictate legal strategies taken by Texas electricity generation projects facing high bills from financial institution hedge counterparties. Our team takes a look specifically at Canadian Breaks, a large wind farm in the Texas panhandle, after they filed a petition against J.P. Morgan when the bank presented the wind farm with a $79M bill for power purchased during the storm. 

On CBL Properties, our experts discuss the debtors filing of an amended restructuring support agreement which resolved their disputes with prepetition lenders and agent Wells Fargo paving the way for a potentially consensual restructuring of the mall REIT’s funded debt. Discussing Seadrill Partners, our team broke down the disclosure statement as well as Judge David Jones’ approval of this statement on a conditional basis after counsel announced significant progress on a global settlement with Seadrill Limited.  

Finally, Kyle Owusu, Director of Emerging Markets Credit, took a deep dive into Argentine oil company YPF and their current state of play after their liability management exercise. The company’s new 2029 and 2033 bonds, which were issued as part of the company’s February liability management exercise, are being offered at around 58, 50, and 48 respectively according to advisers. Click through to listen to the full episode on Spotify, Soundcloud or Apple Podcasts.

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Highlighting the Texas winter storm bankruptcies, Seadrill Partners’ amended plan and the Highpoint Resources chapter 11 plan, our Americas Core Credit experts released a podcast last Friday where legal analyst Sean Daly discussed a few of the most prominent distressed debt, high-yield and bankruptcy stories from the previous week. 

The Seadrill Partners debtors filed an amended plan of disclosure statement on Thursday, March 18th, out of their March 23rd disclosure statement hearing, which contains new information regarding the estimated amount of claims for each class and projected recoveries under the plan including information not expressly detailed in the previous plan and disclosure statement. For Highpoint Resources, Judge Christopher Sontchi confirmed a prepackaged chapter 11 plan for the company just 5 days after the cases were filed in the US Bankruptcy Court for the District of Delaware. Highpoint Resources’ debtors filed chapter 11 to effectuate a merger under a transaction support agreement with Bonanza Creek Energy. Finally, developments related to last month’s winter storm in Texas continue. Gritty Energy filed for chapter 11 bankruptcy on March 15 and Brazos Electric was appointed with a 5 member committee of unsecured creditors which selected Kramer Levin as counsel. Click through to listen to the full podcast on Spotify, Soundcloud or Apple Podcasts.

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Reorg on the Record; Greensill, Nordic Aviation Capital and Success for Open Justice in the English Courts
Thu Mar 18, 2021 5:00 pm Bankruptcy Filings  Financial Restructuring

The English courts have seen a busy start to the year with a number of new precedents that will impact debtors and creditors in a post-Brexit, post-Covid world, particularly those involved in new Part 26A restructuring plans. The Part 26A tool had its pan-European effectiveness curtailed by the judgment of Justice Zacaroli in Gategroup’s restructuring plan. The Gategroup decision means that Part 26A plans will not fall under the remit of the Lugano or Hague conventions, making automatic recognition in E.U. member states more difficult. In the scheme of MAB Leasing Ltd., Justice Zacaroli held that numerous different lease obligations could be placed in the same single creditor class. The MAB precedent on treatment of leases could see retail landlords placed in a single class for the purposes of a Part 26A plan and potentially “crammed down” – an alternative to the traditional company voluntary arrangement route. Elsewhere, following application to the English High Court, Reorg gained access to previously private witness statements filed in Global Ports Holdings’ scheme. The application was a success for the principle of open justice.
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Reorg Webinar Series: Deep Dive Into Seadrill Chapter 11 Cases

Next Tuesday, March 16, 2021 at 12:00pm, our Americas Core Credit experts including senior legal analysts Ana Lucia Hurtado and Karen Leung, distressed debt legal analyst Cathy Ta, and director of emerging markets credit research Kyle Owusu will be conducting a webinar to delve into deepwater drilling contractor, Seadrill Partners and Seadrill Limited. The webinar will break down the Seadrill chapter 11 cases initiated by both subsidiaries discussing how these filings may impact the company moving forward as a whole. Our coverage team will also provide an overview of the debtors’ respective chapter 11 cases. 

Watch the replay here:  

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Texas Winter Storm Chapter 11 Filings and Other Restructurings – Week of March 8, 2021

Just as a number of large chapter 11 cases that Reorg has been following moved closer to wrapping up, fallout from Winter Storm Uri in Texas, for which the Electric Reliability Council of Texas, or ERCOT, estimates will return in losses of $55 billion, has led to at least two large in court restructurings, including Brazos Electric Power Cooperative, which sought chapter 11 protection in the Southern District of Texas on March 1, and Just Energy, which filed restructuring proceedings in Canada on March 9. The storm led to power generation facilities being knocked off line, lack of natural gas availability, and numerous other knock-on effects. Other situations that Reorg is following related to the storm include Rayburn Country Electric CooperativeNational Rural Utilities Cooperative and Sandy Creek.  The Texas winter storm chapter 11 filings will continue to be monitored by our team.

The large, previously contentious cases noted above include offshore driller Valaris, which had its plan confirmed on March 3, and auto parts supplier Garrett Motion, which successfully mediated a revised plan with various equity groups. Hertz and Intelsat also filed plans of reorganization, but those cases appear far from over as creditor groups either work to prepare competing proposals or lodge objections to derail the debtors’ processes.

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Each Friday, the Americas Core Credit by Reorg team releases a podcast discussing high-yield, stressed and distressed markets as well as performing credits in North and South America, including Puerto Rico and Argentina. Each episode features highlights from the previous week and the week ahead as well as a deep dive into a particular company, credit or situation. This week Conor Skelding and Sean Daly discuss Brazos and Hertz in relation to their chapter 11 protections.

The after effects of mid-February’s extreme cold temperatures in Texas have, so-far, created lawsuits, historically high collateral posting requirements and caused have Brazos to file for chapter 11. On the other hand, this was a big week for anyone following the Hertz situation. Debtors working with advisors have developed a few plans to emerge from chapter 11 including court approval on the sale of their Donlen fleet leasing management business to Athene. Click through to listen to the full episode on Apple Podcasts, Spotify or Soundcloud for our full analysis and discussion on Brazos and Hertz.

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All Year Management Chapter 11 Bankruptcy Case Summary
Fri Mar 5, 2021 5:30 pm Bankruptcy Filings

All Year Management affiliate Evergreen Gardens Mezz, owner of the Denizen, a luxury apartment complex in Bushwick, NY, filed for chapter 11 on Feb. 22 initiating a public sale as well as a foreclosure of the Denizen. Unfortunately for All Year, the Denizen is one of their most valuable assets and it’s financial health played a primary role in the company’s ongoing restructuring plans. These continued discussions will be focused on paving a path forward to create a plan that maximizes the value for All Year’s bondholders and stakeholders.  

The Covid-19 pandemic played a major role in the Evergreen Gardens bankruptcy filing. Many of the complex’s tenants were unable to pay rent and most prospective tenants negotiated much lower than average rent pushing All Year to consider restructuring alternatives. To read our full case summary of the All Year Management chapter 11 filing as well as some background information on the company’s bankruptcy click here:

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