New Chapter 11 Filing - Dynamic International Airways LLC

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Dynamic International Airways LLC

  • 7/19/17 Recap: North Carolina based "aviation enterprise" that services transportation between, among other places, JFK International Airport and so-called secondary cities like Nanjing China, filed for bankruptcy. The company is allegedly approved to fly to more Chinese cities than any other US-based carrier. Not too shabby for an "aviation enterprise" that, when described like that, sounds like it should be piloted by Pablo Escobar. The company pegs operational challenges including rapid management turnover as one cause of bankruptcy. Another is a series of lawsuits. Aside from a $6mm security interest, the capital structure consists of "unsecured debt" which sounds suspiciously like equity held primarily among the two principals, one of whom is providing a $6mm DIP. 
  • Jurisdiction: MD of North Carolina
  • Capital Structure: $6mm secured debt
  • Company Professionals:
    • Legal: Garman Turner Gordon LLP (Gerald Gordon) & (local) Bell Davis & Pitt (Daniel Bruton)
    • Financial Advisor: MJAC LLC d/b/a Allison Consulting

New Chapter 11 Filing - EB Holdings II Inc. (Eco-Bat)

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EB Holdings II Inc.

  • 5/18/17 Recap: When you fail to repay nearly 1.8 billion Euro on a (PIK) note, you risk getting yo' a$$ involuntaried into bankruptcy court. Which is exactly the game of chicken that EB Holdings II Inc., the parent to lead recycling behemoth Eco-Bat, played with some irritated and aggressive hedge funds like GoldenTree Asset Management and Fortress Investment Group (see list below). The company, though, is of the view that this is all just a charade to avoid discovery in a state court trial to come. Apparently, there have been a variety of lawsuits and countersuits since Summer 2016 including some sexy allegations that sound a whole lot like fraud. So, the PIK lenders filed the involuntary petition to ensure that the company acts as a fiduciary to its creditors and get the benefit of court oversight over a principal they think is shady AF. 
  • Jurisdiction: D. of Nevada
  • Capital Structure: 1.8b EUR PIK debt (GLAS USA LLC)    
  • Company Professionals:
    • Legal: Garman Turner Gordon (Gregory Garman, Talitha Kozlowski, Gabrielle Hamm)
  • Other Parties in Interest:
    • Ad Hoc PIK Lender Group (GoldenTree Asset Management LP, Alcentra Limited, Fortress Investment Group/Mount Kellett Capital Management, HIG Capital International Advisors LLP/Bayside Capital, Sound Point Capital Management LP, Varde Partners Europe LImited)
      • Legal: Kirkland & Ellis LLP (James Sprayragen, Paul Basta, David Zott, William Guerrieri) & (local) Fox Rothschild LLP (Brett Axelrod)
    • GLAS USA LLC
      • Legal: Wilmer Cutler Pickering Hale & Dorr LLP (Andrew Goldman, Michael Guipoone, Benjamin Loveland, Charles Platt)

Updated 5/19/17