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

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...

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Sichuan Languang Development Says Sale of Chengdu Dikang Pharmaceutical Is Strategic Decision

Sichuan Languang Development Says Sale of Chengdu Dikang Pharmaceutical Is Strategic Decision

With the Asia Core Credit team publishing more than 20 updates on Sichuan Languang so far this year, it has certainly been "one to watch." In response to the disposal of drug maker Chengdu Dikang Pharmaceutical in July 2020, Languang denied that the sale was due to its liquidity needs. Languang has been trying to introduce shareholders and sell Dikang when appropriate since 2019. It pointed out that the timing of the announcement of the sale was a function of the natural progression of the negotiations. Please click through to read an update from Thu 03/04/2021, and request a trial to...

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Americas Podcast: Brazos Chapter 11 Filing and Hertz Chapter 11 Plan

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...

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All Year Management Chapter 11 Bankruptcy Case Summary

All Year Management Chapter 11 Bankruptcy Case Summary

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...

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Financial Restructuring in Asia Recap – Week of March 1, 2021

Financial Restructuring in Asia Recap – Week of March 1, 2021

Financial restructuring in Asia, especially India’s restructurings, are seldom swift, but they are colorful. DHFL’s founder offers family assets to creditors from jail; Reliance Communications’ chairman Anil Ambani is chastised by a U.K. High Court justice for inadequacies, inaccuracies and “at least one clear falsehood” in evidence submitted on personal guarantees on billions of dollars of loans. Anil’s markedly more successful brother, Mukesh Ambani, and his firm Reliance Industries is currently on one side of a high-profile tussle over India retailer Future Retail. On the other is Jeff Bezos’ Amazon Inc. The protracted legal spat between Amazon and Future Retail involves a disputed Singapore arbitration process...

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Cabonline EBITDA, Revenue Decrease and Covenant Waiver

Reporting a 44% year over year revenue decrease, from 1.8 billion Swedish kroner to 997 million, as well as an EBITDA of negative 11 million Swedish kroner and a very illiquid bond maturing in 2022, Nordic taxi company Cabonline’s bond has fallen to 70. The decrease in demand from travel restrictions due to the Covid-19 pandemic have taken a toll on the company, but these impacts are reportedly not as bad as other companies in the same industry because of the “public service” nature of Cabonline. Even so, the company saw a negative cash flow of SEK 52 million in...

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