Reorg Blog

After a year plus of COVID-related lockdowns where the financial markets have been thrown into confusion by our inability to predict the path forward. Americas Core Credit senior distressed debt analyst Andrew Sung will moderate an expert panel on Monday, May 3 at 12:30 pm ET to discuss distressed investing opportunities for investors coming out of this period. Will motion picture theaters, cruise lines hospitality and airlines be able to recover after the capital markets have seemingly provided them with unlimited capital to get through this period? And will this unprecedented fiscal stimulus finally lead to inflation which has up...

Written by Ana Lucia Hurtado, Senior Legal Analyst, Americas Core Credit || Although chapter 11 filings have slowed from the barrage of cases that hit for several months during the thick of the Covid-19 pandemic in 2020, filings for companies with more than $100 million in liabilities have steadily increased over the past few years, rising to 37% in 2021 from 25% in 2018, as measured by First Day by Reorg. Two of the latest casualties are Automotores Gildemeister and Stoneway Capital, both of which recently filed for chapter 11 protection in the bankruptcy court for the Southern District of...

Reorg's EMEA Core Credit team has published 19 updates so far this year on KME Group, one of the world's largest copper producers. In its second-quarter call in October 2020, KME’s management guided that the extension to its borrowing base facility would be concluded in November 2020. By mid-December 2020, the company said it had received extension commitments from 51% of its lenders. At the start of January this year, Reorg reported that the company had obtained the approval of over 70% of its lenders. The delay in the extension of the facility was due to some lenders’ concern about the sharp rise...

Discussing REIT chapter 11 filings and out-of-court restructurings and financings that certain REITs are using to avoid bankruptcies, our Americas Core Credit experts Mark Fischer, Kevin Eckhardt and Wing Li conducted a webinar on Friday, April 23 at 11:00am ET to help provide further transparency on the industry. Our team discussed certain REIT subsectors and how companies have restructured capital structures in light of reduced revenue caused by the Covid-19 pandemic. Mall REITs CBL and Pennsylvania REIT have each sought chapter 11 protection, and Washington Prime Group has warned of a possible chapter 11. However, hotel REITs Ashford Hospitality and...

Written by Stephen Aldred, Managing Editor, Asia Core Credit || Indonesian textile company PT Sri Rejeki Isman Tbk’s (Sritex) restructuring will play out in an arena where the company has far narrower funding sources available. Sritex’s lenders are sounding the market to sell their holds. The company’s bonds are trading in the low to mid-30s and its unsecured loan debt is expected to price south of those marks. Somewhat perversely, reduced funding sources may serve the company well, as increased scale has not improved Sritex’s operating efficiency. Sritex has generally seen a lengthening working capital cycle financed by debt, resulting in poor...