Relevant Document:April Stipulation
The
deal agreed between holders of the €1.8 billion EB Holdings II PIK loan and Eco-Bat owner Howard Meyers features a full conversion of the entity’s debt into equity, according to sources familiar with the situation. Creditors will eventually control Eco-Bat alongside Meyers and the deal will be implemented in a prepack chapter 11 process which could kick off as early as June, sources added.
Following the implementation of the deal, whose terms have been agreed and which have been shared with about 20 lenders but have not yet been made public, the company will be put up for sale via JP Morgan, sources said.
Following the sale, Meyers will receive 8.5% of the proceeds if the group’s valuation hits $800 million, 12.5% for an additional $400 million and 20% above that, sources explained.
On April 16, EB Holdings II, Inc., and holders of 95% of the PIK loan, including the GoldenTree group plaintiffs, executed transactional documents that will, among other things, resolve appellate proceedings at the Nevada Supreme Court. According to a stipulated request of a further 90-day stay of the Nevada Supreme Court's
review of an
April 26, 2018 discovery order entered in the state court, there "remain conditions precedent to consummation of the agreement, including certain worldwide regulatory approvals, which the Parties expect may take another 90 days to accomplish."
Last year, members of a committee of investors, which represents 77% of the €1.8 billion PIK loan, were funds affiliated with each of Alcentra Ltd., Fortress Investment Group/Mount Kellett Capital Management, GoldenTree Asset Management LP, HIG Capital International Advisors LLP/Bayside Capital, Sound Point Capital Management LP, and Varde Partners Europe Ltd.
In the past, EB Holdings II owner Meyers and the funds exchanged proposals to reach an out-of-court loan restructuring. All attempts, including the last public proposal in July 2017, failed,
as reported by Reorg. A previous exchange of proposals occured in
early 2017.
EBH and the PIK lenders have been locked in litigation in Nevada since 2016 and have been negotiating with Meyers since 2013.