New Chapter 11 Filing - Westinghouse Electric Company LLC

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Westinghouse Electric Company LLC

  • 3/29/17 Recap: File this under the most heavily leaked/discussed bankruptcy filing of all time: the Japanese government seemed to make an announcement about the proposed filing every hour. So...Pennsylvania-based nuclear power company filed for bankruptcy (30 debtors in total) after its parent, Toshiba, took a uuuuuuuuuge $6b+ write-down due to delayed and above-budget construction of plants in Georgia and South Carolina. The company secured a $800mm commitment for a DIP facility to fund the cases after a competitive DIP process with powerhouses like Goldman Sachs, Highbridge and Silver Point duking it out with Apollo. We've already covered this company a lot in previous weeks so suffice it to say that the upshot of this filing is that it will lead many to question the viability of nuclear as an alternative power source.
  • Jurisdiction: SD of New York 
  • Company Professionals:
    • Primary Legal: Weil (Gary Holtzer, Garrett Fail, Robert Lemons, David Griffiths, Charles Persons, David Cohen)
    • Legal for Toshiba Nuclear Energy Holdings (UK) Limited: Togut Segal & Segal LLP (Albert Togut, Brian Moore, Kyle Ortiz)
    • Financial Advisor: AlixPartners LLC (Lisa Donahue)
    • Investment Banker: PJT Partners Inc. (Timothy Coleman, John Singh, Mark Buschmann, Harold Kim)
    • Claims Agent: KCC (*click on company name for docket)
  • Other Parties in Interest:
    • Toshiba Corporation
      • Legal: Skadden Arps Slate Meagher & Flom LLP (Van Durrer, Paul Leake, Annie Li) 
    • Prepetition Agent:
      • Legal: Latham & Watkins LLP (Zulfiqar Bokhari) 
    • Proposed DIP Lenders: Apollo Investment Corporation, AP WEC Debt Holdings LLC, Midcap Financial Trust, Amundi Absolute Return Apollo Fund PLC, Ivy Apollo Strategic Income Fund, Ivy Apollo Multi Asset Income Fund
      • Legal: Paul Weiss Rifkand Wharton & Garrison LLP (Jeffrey Saferstein, Claudia Tobler, Kevin O'Neill) 
    • Proposed DIP Agent: Citibank NA
      • Legal: Shearman & Sterling LLP (Fredric Sosnick, Ned Schodek) 
    • Competing (but losing) DIP Providers: Goldman Sachs Bank USA, HPS Investment Partners LLC, Silver Point Finance LLC
    • Georgia Power Company, Oglethorpe Power Corporation, Municipal Electric Authority of Georgia and City of Dalton Georgia
      • Legal: Jones Day (Gregory Gordon, Dan Prieto, Amanda Rush, Anna Kordas, Jeffrey Ellman)
    • Municipal Electric Authority of Georgia
      • Legal: Alston & Bird LLP (Dennis Connolly)
    • South Carolina Electric & Gas Company and South Carolina Public Service Authority
      • Legal: Reed Smith LLP (Paul Singer, Derek Baker, Tarek Abdalla)
    • Oglethorpe Power Corporation (An Electric Membership Corporation)
      • Legal: Dechert LLP (Michael Sage, Stephen Wolpert) & Parker Hudson Rainer & Dobbs LLP (C. Edward Dobbs)
    • Exelon Generation Company LLC
      • Legal: Ballard Spahr LLP (Matthew Summers)
    • Official Committee of Unsecured Creditors
      • Legal: Proskauer Rose LLP (Martin Bienenstock, Timothy Karcher, Vincent Indelicato)
      • Financial Advisor: Alvarez & Marsal LLC

Updated 5/31/17

New Chapter 11 and CCAA Filing - Modular Space Holdings, Inc.

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Modular Space Holdings Inc. 

  • 12/21/16 Recap: A "classic example of a good company with a bad balance sheet," the Virginia-based largest US-owned provider of temporary and permanent modular buildings files a prearranged bankruptcy and corresponding CCAA to restructure its balance sheet. The company struggled after the 2007 recession, with utilization levels dropping meaningfully. More recently, oil-related business in Texas and Western Canada has contracted significantly. Finally, a proposed merger with Williams Scotsman International Inc. which would have infused the company with new equity and help manage the balance sheet issues collapsed after new money equity investors grew skittish after Brexit. Subsequent equity investment proposals were rejected and a restructuring transaction pursued and ultimately agreed upon. 
  • Jurisdiction: D. of Delaware
  • Capital Structure: $984.2mm total funded debt + $37.7mm of accrued interest ($609.2 ABL (Bank of America), $375mm 10.25% '19 senior secured second lien notes (Wells Fargo))
  • Company Professionals:
    • Legal: Cleary Gottlieb Steen & Hamilton LLP (James Bromley, Jane VanLare, Kara Hailey, Samuel Hershey) & (local) Young Conaway (Pauline Morgan, Joel Waite, Ian Bambrick)
    • Financial Advisor: Zolfo Cooper (David Orlofsky)
    • Investment Banker: Lazard Freres & Co. LLC and Lazard Middle Market LLC (Jason A. Cohen)
    • Claims Agent: KCC (*click on company name for docket)
  • Other Parties in Interest:
    • Wells Fargo Capital Finance LLC
      • Legal: Otterbourg PC (Andrew Kramer)
    • ABL Lenders
      • Legal: Parker Hudson Rainer & Dobbs (C. Edward Dobbs, James Rankin, Eric Anderson) & (local) Ashby & Geddes LLP (William Bowden)
    • Ad Hoc Group of Consenting Noteholders (AllianceBernstein, Blackrock, Brookfield, Carl Marks, Corre Partners, KLS Diversified, Manulife, and Symphony) 
      • Legal: Dechert LLP (Michael Sage, Brian Greer, Stephen Wolpert, Michael Maloney) & (local) Richards Layton & Finger PA (Daniel DeFranceschi, Robert Stern)
      • Financial Advisor: Moelis & Co.
    • Calera Capital Advisors
      • Legal: Morris Nichols

Updated 1/6/17