Reorg on the Record: Uptick in billion-dollar chapter 11 cases… 11/24/21

Written by Ian Howland, Research and Data Analyst || While chapter 11s across nearly all sectors continue to cruise well below the levels of prior years, there has been a recent uptick in cases reporting more than $1 billion in liabilities. Three billion-dollar bankruptcies were filed in the seven-day stretch of Nov. 11 through Nov. 17, after three others filed over the Oct. 14-Oct. 31 period. As a result, one-third of all year-to-date billion-dollar chapter 11s have been filed within the past six weeks.

Notwithstanding this recently elevated activity, billion-dollar filings are down 67% year-over-year from 2020, 31% from 2019 and 10% from 2018, while filings across all First Day liability ranges are down 43%, 32% and 14%, respectively. Overall filings for the year-to-date period are relatively lopsided across sectors, with real estate and consumer discretionary representing 28% and 22% of the total, respectively, and each of the remaining nine sectors falling in the 4%-to-9% range.

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Our Americas teams are working tirelessly to bring subscribers the most in-depth data, analysis and reporting on more than 1,000 performing and distressed credits. Below is a glimpse into our offering:

• NITROcrete
  A Fort Collins, Colo.-based technology and services provider to the concrete and construction materials industry, NITROcrete LLC, filed for chapter 11 protection on Thursday, Nov. 18, in the Bankruptcy Court for the District of Colorado. The company says it “believes it has a strong opportunity to reorganize or sell as a going concern.” » Continue Reading
• No Surprises Act
  Two trade groups representing healthcare providers have filed lawsuits against the Department of Health and Human Services, the Department of the Treasury and the Department of Labor and their respective heads, challenging the interim final rule part 1 and part 2 released in connection with the No Surprises Act. » Continue Reading
• City of Long Beach, New York
  The city of Long Beach, one of New York’s most fiscally distressed municipalities, is developing a multiyear financial plan amid efforts toward a restructuring against the backdrop of nearly $500 million in long-term liabilities that include legacy bond debt, pensions and other post-employment benefits, or OPEB. » Continue Reading
• Mitel Networks
  Mitel Networks disclosed to lenders during a private call that it will prepay $200 million of its $1.123 billion L+450 bps first lien term loan with cash as part of a plan to spend $450 million to reduce debt with proceeds from its strategic partnership with RingCentral. » Continue Reading
• Penn National Gaming
  Penn National Gaming, which owns and manages gaming and racing properties and video gaming terminal operations, has secured a $700 million revolver, an approximately $597 million term loan A and an approximately $983 million term loan B-1, each under the same credit agreement. » Continue Reading
• Panda Stonewall
  Panda Stonewall, led by its main stakeholder, Ares Management, has completed a refinancing of the power plant’s outstanding loan facilities, which totaled $485 million at the end of September, sources said. As part of the recapitalization, Panda Stonewall’s main stakeholder, Ares Management, is expected to contribute about $60 million of new money to the project » Continue Reading

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