Reorg Blog

Written by Julian Bulaon, Legal Analyst, Americas Covenants || To kick off the new year, Reorg’s Americas team has prepared in-depth analyses on a number of highly topical names, including PBF Energy, SmileDirectClub and Synaptics Inc. Specifically, we discuss how regulatory considerations and drafting nuances in debt documents may expand each company’s ability to address current and future liabilities. In PBF, we quantified the impact on the company’s financials from recent proposed renewable fuel volume targets issued by the Environmental Protection Agency. We also looked at SmileDirectClub’s cash burn and concluded that the company could seek to address its shortening liquidity runway...

Morristown, N.J.-based Alliant Technologies, which does business as TenFour, a provider of turnkey, subscription-based networking, communications and security services for businesses, filed for chapter 11 protection. The bankruptcy filing is planned to effectuate a sale of substantially all of its assets, with Acuative Corporation as stalking horse. Mark Cantaluppi, the CEO of debtor Technology Keiretsu LLC, which serves as parent of the other debtors, says the debtors “now stand on the threshold” of consummating a going concern sale “designed to maximize recoveries for creditors, continue uninterrupted service to the Debtor’s’ customers, and preserve employment for TenFour’s workforce.” Get the full bankruptcy...

For years, sponsors have tried (most often, successfully) to chip away at lender protections in credit agreements. With so much money flowing into the leveraged loan market, the skyrocketing demand has created an increasingly borrower-friendly environment and resulted in many credit agreements looking more like IOUs than highly negotiated contracts that seek to balance the interests of borrowers and lenders. In the article linked below (available to LSTA subscribers), we discuss certain new terms and mechanics being seen in sponsored, private credit agreements reviewed by Reorg Covenants Prime and briefly review other terms that may at one time have been...

Reorg’s Court Opinion Review provides an update on recent noteworthy bankruptcy and creditors’ rights opinions, decision and issues across courts. In this special coverage, you will find a review of: The trend of post-reorg stock buybacks and payouts to plan investors Some clever post-reorg maneuvering in the Sanchez energy case A contested sale process in Limetree Bay Energy Quick hits on the trouble with the appellate finality rule in bankruptcy and the new class of ‘independent’ future claims representatives in the Texas two-step cases Read the full story: https://reorg.com/bankruptcy-industry-updates/ A note to subscribers: check out Reorg’s new post-reorg coverage!

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...

Our Asia Core Credit team has been reporting on the Indonesian flag carrier airline Garuda's restructuring since early January 2021, and as recently as Dec. 9, the team exclusively reported that AJCapital had resigned from its role as financial advisor to an ad hoc group (AHG) of holders of Garuda Indonesia’s $500 million 5.95% sukuk, and is now expected to take on that role for the carrier in an upcoming in-court supervised restructuring (PKPU). Garuda’s request to AJCapital is said to have come about as the carrier needs an experienced financial advisor to handle its onshore in-court restructuring, or PKPU processes, we reported....