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.

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