Reorg Blog

After a year of multiple defaults in China’s real estate sector, with the country’s ‘Three Red Lines’ policy, frozen escrow accounts, and opaque restructuring processes all contributing to substantial losses in Asian high-yield markets, 2023 has kicked off with two signature deals that suggest a better year could lie ahead. Dalian Wanda Commercial Management on Jan. 12 priced a $400 million two-year bond yielding 12.375%, taken by many as the reopening of the debt capital markets for high-quality performing China property names. The issue was 3.7x oversubscribed, attracting the likes of Fidelity, PIMCO, Blackrock and PAG as subscribers, and marked...

Editor’s Note: Below is the latest in Reorg’s Expert Views series: an article written by Timothy Karcher, Vincent Indelicato and Daniel Desatnik of Proskauer Rose LLP. Request trial access of Reorg’s coverage of Celsius’ bankruptcy. In resolving a “gating issue” in Celsius’ chapter 11 cases, the United States Bankruptcy Court for the Southern District of New York determined that Celsius, and not the customers/account holders, owns the cryptocurrency assets deposited in Earn accounts. Rather than owning their deposited crypto, Earn account customers are left with an unsecured claim in Celsius’ chapter 11 cases, fixed as of the petition date. The...

When analyzing a credit, building a comprehensive and accurate capital structure can be one of the largest challenges when staying on top of complex, evolving situations like Carnival. Developed by Reorg's financial analysts with industry professionals needs at the forefront, Reorg's 3,200+ capitalization tables with 20,000 historical debt instruments are huge time-savers. Our capital structures provide an excellent overview of a company’s debt structure and key terms. They cleanly lay out a credit’s principal debt amounts by tranche based on priority, and an up-to-date market value column with pricing feeds through daily for bonds and loans. Professionals can quickly see a company’s...

Reorg tracks nearly every aspect of medium and large sized chapter 11 bankruptcies, from our editorial content covering case developments in real time to our robust data offerings tracking important case details over time. In particular, our Advisor Fee data set, found exclusively on Credit Cloud, captures an enormous amount of data on advisor engagements and fees.In this story we aggregate and share some of our advisor fee data for the first time, highlighting trends in financial advisor and investment banker engagements in medium to large chapter 11 cases (generally $100 million in liabilities or more). Specifically, the data captures...

The wave of hard financial restructurings expected in Europe in 2022 to rival the 2008/9 crisis appears to have been mistimed. As a result of cheap debt and fiscal support available since the Covid-19 pandemic, stressed debtors have been able to avoid insolvency or restructuring. In our 2022 European Restructuring Wrap, legal experts analyze the restructurings from 2022 and look ahead to 2023. Here’s a few key takeaways from 2022: Restructuring activity, defined by the occurrence of liability management exercises (LMEs), in 2022 has briefly returned to pre-pandemic levels, following a surge in 2020; (Source: Reorg’s Credit Cloud on Dec 31,...

Reorg's EMEA Middle Market team has published a Mid Market wrap that highlights debt capital markets, direct lending, debt and leverage data and more through 2022. This year, disruptions in the debt capital market helped shine a brighter light on the expanding potential for private debt. Despite economic headwinds and uncertainty for M&A, direct lenders have sustained dealmaking, adapting and seizing opportunities such as large cap deals, public-to-private transactions, refinancings and add-ons. “Direct lenders can provide higher visibility and certainty of execution without any caveats. Sponsors are now prioritizing such certainty over other elements that in the past were considered...