Paragon GmbH & Co KGaA Liabilities and Bonds

New coverage from our EMEA Middle Market by Reorg team takes a look at Paragon GmbH & Co KGaA and their bond’s recent double digit rise as well as the company’s plans to repay their liabilities and invest in the automotive business. Paragon, a German automotive supplier, has recently sold a stake in its subsidiary Voltabox which has given investors reason to monitor the company’s bonds. Since the beginning of February the Swiss Franc bond rose to 55, while the Euro bond gained 15 points to rise to about 75. These bonds are hardly trading, but a Swiss investor in...

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Podcast: The Impact of Equity Issuances, IPOs and SPACs on Companies’ Flexibility Under Debt Documents

Podcast: The Impact of Equity Issuances, IPOs and SPACs on Companies’ Flexibility Under Debt Documents

Each episode of Reorg’s weekly podcast series, released Friday afternoons, features a look back at highlights and top stories from the previous week and a preview of what's to come in the week ahead, followed by a deep dive on issues and companies in the distressed and high-yield space. This week, Peter Washkowitz, head of Americas Covenants, takes a deep dive into the impact of equity issuances, IPOs and SPACs on companies’ flexibility under debt documents.  The deep dive talks through how proceeds from equity issuances and cash contributions flow through debt documents and how those amounts could potentially significantly...

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Podcast: LATAM Airlines Upcoming Chapter 11 Filing

Each episode of the Americas Core Credit by Reorg weekly podcast series, released on Friday afternoons, features a look back at highlights and top stories from the previous week and a preview of what's to come in the week ahead in the world of distressed debt. Each episode also includes a deep dive on issues and companies in the distressed and high-yield space. In the episode released Friday, Feb. 12, Director of Emerging Markets Credit Research Kyle Owusu discussed Chilean airline operator LATAM Airlines and their upcoming chapter 11 filing, for which their hearing has been set for Feb. 24....

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Codere Financial Restructuring: Working With Houlihan Lokey, Clifford Chance, PJT Partners, Milbank

Codere Financial Restructuring: Working With Houlihan Lokey, Clifford Chance, PJT Partners, Milbank

Update 1: Codere's liquidity shortfall is estimated at £146M-£180M with £200M of new super senior money alongside partial equitization of SSNs leading to a 50% reinstatement, 70% SSN recovery under base case and 56% in low case. Click through and request a trial to read the full update here: https://reorg.com/cash-flow-model-codere-liquidity-shortfall-estimated-to-be-e146m-e180m/  Starting negotiations for a new round of debt talks with bondholders due to liquidity pressure from Covid-19 restrictions, Spanish gaming company Codere is working with Houlihan Lokey and Clifford Chance. The group’s bondholders are working with PJT Partners and Milbank. The advisors are focusing on new money needs and on how much...

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Chapter 11 Recap: Week of Feb. 15 2021

Chapter 11 filings have picked up slightly in recent weeks, but remain down around 40% year-over-year as measured by First Day by Reorg. The drop appears to be due to what has become a perfect storm for distressed investors: government stimulus, the expectation of even more government stimulus and frothy capital markets. It’s hard to envision a marked pickup of in-court activity with high-yield offerings still booming and no end in sight from investors chasing yield (down to 3%?! for some “high-yield” issuers). One resulting wildcard, of course, is inflation and that could end up being a major narrative for...

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Greenway Health Operational Issues and Class Action Lawsuit Lead To Lower EBITDA

Greenway Health Operational Issues and Class Action Lawsuit Lead To Lower EBITDA

Anticipating a lower EBITDA and revenue in 2021 compared to 2020, Tampa, Fla.-based electronic health records vendor Greenway Health continues to face operational issues and a class-action lawsuit from the misrepresentation of the capabilities of its electronic health records product Prime Suite. The expected 2021 EBITDA is between $70 million and $80 million and their revenue is expected at about $300 million amid lower demand due to the pandemic. With $60 million of liquidity including $30 million in cash and $30 million available under its revolver, Greenway Health’s financial performance in the past year led a few lenders to consider...

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