Reorg Blog

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...

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...

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...