Reorg Blog

After completing their IPO on April 19, 2021, Applovin risk under their credit agreements has become a highly discussed topic. The software company was provided with a $1.82B term loan and a $600M revolving credit facility, both maturing in 2025 initiating our Americas Covenants team to analyze the company’s credit agreement. Our experts highlighted two covenant concepts that add to Applovin risk for investors including the aggregate basket inconsistencies and the consequences of these inconsistencies as well as the potential impact of allowing all structurally senior debt to be secured by the assets of non guarantor restricted subsidiaries. Furthermore, the...

Late on May 21, Reorg followed up earlier breaking news which revealed Sritex had appointed AJ Capital as financial advisor, replacing Helios Capital, at a first creditors meeting. Continuing a series of exclusive breaking news stories around Sritex, Reorg reported that AJ Capital had told meeting attendees it was now conducting due diligence and collecting further information for the upcoming PKPU composition plan, and critically, that creditors would be divided into five groups: Offshore and onshore syndicated lenders, bilateral lenders, MTN holders, USD noteholders, and trade vendors / suppliers. Click through to read more.

Analyzing the Sanchez Energy contract rejection based on a recent decision in the bankruptcy case for the privately held oil and natural gas company, our most recent Americas Core Credit podcast features Reorg legal analysts Mike Legge and Sean Daly as they discuss the first in a recent trend of midstream contract rejection decisions to move beyond hypothesizing in dicta and to actually authorize the rejection of a midstream agreement despite the presence of a covenant running with the land. Bankruptcy professionals with an interest in midstream rejection issues saw notable debtor friendly trends in 2020 case law weakening both...

Join Reorg’s Asia Core Credit team on Thursday, May 20 for a discussion on direct lending in India; the challenges, risks and rewards. Our senior reporters for Asia, Nidhi Pandurangi and Rajhkumar Shaaw will be joined by industry guest Eshwar Karra from Kotak Special Situations Fund. In India, private investors have plugged the gap left by traditional funding avenues such as banks and non-banking financial companies (or NBFCs). However, with central banks worldwide opting to keep the liquidity flowing to tackle the pandemic, the spreads narrowed while the risks increased. This webinar will examine the challenges investors face investing in...

Brent crude oil is up about 9% from one month ago and is hovering around $68 per barrel, setting the backdrop for what should be a healthier market for exploration and production companies as well as offshore drillers. Within offshore drilling, signs of highly anticipated industry consolidation are starting to emerge. For example, Noble reportedly made a bid for certain Seadrill assets. Seadrill Partners secured a four-well contract plus an option for up to seven additional wells for the West Capella drillship in Malaysia. Vantage Drilling will provide services for the West Capella, pursuant to a management services agreement between Vantage and Seadrill Partners. Commodity prices...