Reorg on the Record: Rising inflation and continuing supply-chain slowdowns… (12/15/21)
Thu Dec 16, 2021 5:12 pm Bankruptcy Filings  Covenants Analysis

Written by Peter Washkowitz, Head of Americas Covenants || Although the year is quickly coming to an end, and soon no creatures will be stirring, not even mice, Reorg continues apace, covering all things credit from performing and high-yield, to distressed and post-reorganization.

As the new year approaches and Covid-19 shows little sign of slowing, rising inflation and continuing supply-chain slowdowns seem poised to ring in the new year with continued volatility and unpredictability. When 2021 began, most market participants were cautiously optimistic that Covid-19-related market volatility would subside and stability would return as the vaccine rollout expanded around the world. It now appears that 2022 will begin in much the same way.

Peter Washkowitz

Tabula Rasa Partners
Houston oil and gas exploration and production company Tabula Rasa Partners filed for chapter 11 protection on Dec. 3 in the Bankruptcy Court for the Southern District of Texas, seeking to reject “burdensome” midstream agreements with Sunoco Pipeline LP and to retain an investment banker to run a marketing and sale process for its assets once the agreements are rejected. » Continue Reading

Intelsat’s confirmation hearing has focused on arguments between plan supporters and the convertible noteholder ad hoc group, the last creditor group holding out from voting in favor of the debtors’ plan. In addition, on Nov. 6, the debtors reached an agreement with adversary SES Americom to push resolution of its claims until after confirmation. » Continue Reading

Ferrellgas Partners
Ferrellgas Partners LP, a retail distributor of propane and related equipment sales, emerged from bankruptcy on March 30 after equitizing its senior notes and refinancing the debt at its subsidiary operating partnership, Ferrellgas LP. As part of the bankruptcy, the holding company, Ferrellgas Partners, issued Class B units to holders of its $357 million of senior notes that were due in 2020 in satisfaction of their claims and issued Class A units to prepetition limited partnership interests. We analyzed the differing incentives Ferrellgas has for redeeming one class of units over the other. » Continue Reading

In the performing credit world, despite reporting declining yearly EBITDA and net sales, Tupperware entered into a new secured term loan and revolving credit facility that not only simplified its capital structure but also provides it with additional flexibility. Americas Covenants by Reorg analyzed the terms of restrictions under the company’s new credit facility, highlighting potential risks to lenders of collateral dilution and value leakage. » Continue Reading

GCP Applied Technologies
GCP Applied Technologies Inc., a developer of high-performance products for use in the construction industry, filed a definitive merger agreement with the SEC reflecting the company’s agreement with Compagnie de Saint-Gobain SA pursuant to which Saint-Gobain will acquire all of the outstanding shares of GCP in an all-cash transaction valued at approximately $2.3 billion. Under the terms of the merger agreement, Saint-Gobain will acquire GCP’s shares for $32 per share in cash. Reorg’s M&A team provided an overview of the transaction, including analyzing the terms of the merger agreement. » Continue Reading

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