Reorg Blog

Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Hear from market leading experts on distressed restructuring, bankruptcy analysis, and the leveraged loan market in 2022 and beyond. GLOBAL ALTERNATIVE CREDIT SUMMIT 4 - 5 May 2022 Unlocking Opportunities in Private Debt as the Credit Cycle Turns In-Person & Digital l Glaziers Hall, London and Harvard...

Reorg experts recently conducted an analysis of chapter 11 filings. Using Reorg’s new restructuring dataset, included in Credit Cloud, the analysis reveals that since 2020, five debtors have emerged or will emerge from bankruptcy with more funded debt than they had on their petition dates. Three of these companies have securities trading at stressed levels, with over 10% yields. Mallinckrodt second lien notes are indicated with a 12% yield and Buckingham Senior Living’s 2021B notes are indicated 42.3/43. Reorg has not been able to secure pricing information for the other two companies. Mall owner Pennsylvania REIT and senior living operator Buckingham...

Written by Shan Qureshi, Head of Legal Restructuring Innovation and Initiatives || The sanctions imposed on Russian individuals and entities by the U.K., EU and the U.S. over the previous months are the most far reaching seen in modern times. In a recent webinar Reorg hosted with lawyers from Pallas Partners LLP on the impact of sanctions on the loan agreements, we highlighted that sanctions do not act as a route around parties’ agreed contractual arrangements. Lenders who find their arrangements are caught by the sanctions will be forced to act quickly to avoid being fined, while some borrowers may...

Written by Stephen Aldred, Managing Director, Asia Core Credit by Reorg.  Logan Group has substantial offshore assets in Hong Kong and Singapore of at least $1.2 billion which could offer attractive credit enhancements for offshore creditors in an expected liability management exercise. This is among the key findings of Reorg’s April 13 extensive TEAR SHEET on Shenzhen headquartered Chinese real estate developer Logan. Full details of the assets and potential enhancements they could offer to both onshore and offshore creditors can be found in the tear sheet, but similar to Shimao Group, Logan’s assets that could be disposed of may include larger scale...

Written by Seth Brumby, Deputy Managing Editor, Americas Municipals by Reorg || After almost five years, the commonwealth of Puerto Rico exited its historic Title III restructuring in March, coincident with one of the worst municipal bond market performances in recent memory. As almost $16.1 billion in restructured general obligation and contingent value instruments broke for trading on March 15, the municipal market more broadly was on track for a loss of 6.2% in the first quarter of 2022. Continued outflows from the municipal bond market were the primary culprit in the underperformance, driven largely by the Federal Reserve’s campaign...

Written by Mark Fischer, Director of Credit Research || In a surprising move last week, movie theater company AMC Entertainment said it is buying a 22% stake in gold mining company Hycroft Mining Holding Corp. and its 71,000-acre Hycroft Mine in northern Nevada. While operationally, the connection is still not clear, the headline at least can be used to highlight the intersection of risks in the credit markets between companies still trying to recover from the effects of Covid-19 and how companies can adapt to inflationary pressures brought on by supply-chain disruptions, labor shortages and commodity costs. Equity markets last week posted their strongest performance since...