2/27/17 Recap: High-flying (ugh) drone startup that put together kick-a$$ production videos and crowdfunded tens of millions of dollars ($34.8mm to be exact) from tens of thousands of generous suckers (61.450 to be exact) filed for bankruptcy to implement an IP sale, a liquidating plan and avoid investigation and litigation. They'll probably throw in extensive releases for Spark Capital for good measure because, well, why the hell not? And next thing you know, the "revolutionary" and "disruptive" founders will end up fundraising for their next hair-brained scheme and convince yield-starved investors to back them again a la Fab.com's Jason Goldberg. No bubble to see here. Just the dumpster fire that is $13.8mm of Spark Capital's equity capital.
Jurisdiction: D. of Delaware
Capital Structure: ~$4mm TL (Spark Capital, VC, successor to SVB Financial Group)
Company Professionals:
Legal: Orrick Herrington & Sutcliffe LLP (Laura Metzger, Jennifer Asher, Douglas Mintz) & (local) Morris Nichols Arsht & Tunnell LLP (Robert Dehney, Andrew Remming, Marcy McLaughlin)
2/14/17 Recap: Happy Valentine's Day, honey, your favorite midwestern sporting goods store is going out of business and I picked up some sweet Nike kicks for you at (an alleged) 60% off. Great for you. Great for me. Not so great for the 1300 employees, Nike (who is owed $3.8mm), Under Armour (owed $2.4mm), and the company CEO who owns 86% of the equity. Berkeley Research Group is at the helm of another liquidation: never before has a single firm's use of "tombstones" been so literal.
Jurisdiction: W.D. of Michigan
Capital Structure: $49.4mm funded secured ABL debt (Wells Fargo)
Company Professionals:
Legal: Warner Norcross & Judd LLP (Stephen Grow, R. Michael Azzi)
Financial Advisor: Berkeley Research Group LLC (Steve Coulombe)
Investment Banker: Stout Risius Ross Advisors LLC (Michael Krakovsky)
Liquidators: Tiger Capital Group LLC and Great American Group LLC
Intellectual Property Disposition Consultant: Hilco IP Services LLC (Gabriel Fried)
Real Estate Advisors: A&G Realty Partners LLC (Michael Jerbich)
2/6/17 Recap: The Chicago-based brainiacs behind the specialty retailer that sells games, puzzles, books and software apparently weren't smart enough to run a sustainable business. Consequently, Marbles Holdings filed a Chapter 11 to find a buyer for certain assets and liquidate the remainder. A proposed sale of IP and a wind-down of the 37 mall-based locations (including one in the ultimate "tourist mall," the World Trade Center, and many others in the, cough, "A Malls" owned by Westfield, Simon Properties, and General Growth Properties) and six in-store concept stores within Macy's will be funded pursuant to a $900k DIP. Choice quote in the first day declaration, "It is likely that other retailers may commence chapter 11 cases in the near term." Ominous.
Jurisdiction: N.D. of Illinois
Capital Structure: ~$17.5mm secured debt (Amzak Capital Management, AMPR Marbles Investors LLC)
Company Professionals:
Legal: Adelman & Gettleman LLP (Howard Adelman, Henry Merens, Erich Buck, Alexander Brougham)
Liquidator: Gordon Brothers Retail Partners LLC
Investment Banker: Hilco IP Services LLC d/b/a Hilco Streamback
2/5/17 Recap: Seems like chapter 22 bankruptcies are the "it" thing now: everyone's doing it. Last year, Versa Capital Management bought the company in the Vestis Group bankruptcy and, now, Sports Direct looks to pick up the pieces in yet ANOTHER sale of the Bob's Stores and Eastern Mountain Sports retail properties. Top creditors include Under Armour and Google which says something about (a) why UA's growth numbers were considerably off last quarter and (b) the cost of Google SEO for companies in this internet age.
Jurisdiction: D. of Delaware
Capital Structure: $41mm RCF (PNC Bank), $42mm TL (Sportsdirect)
Company Professionals:
Legal: Bracewell LLP (Robert Burns, Jennifer Feldshur, David Riley, Mark Dendinger) & (local) Cole Schotz (Norman Pernick, Marion Quirk, Katharina Earle)
Turnaround Advisor: AlixPartners LLC (Spencer Ware, Susan Brown, Afshin Azhari)
2/6/17 Recap: These bada$$ strapping towing lads fought the law and the law won. Meaning: a $5mm judgment was rendered against the Illinois-based company for purportedly charging excessive fees and now the company has less money, mo' problems. The company filed chapter 11 to obtain cover under the automatic stay (and avoid enforcement of the judgment) and sell the company. No stalking horse bidder, however, is in tow (see what we did there?). First lien lender Wells Fargo is providing a $32.25mm DIP to fund the case.
Jurisdiction: D. of Delaware
Capital Structure: $32.3mm first lien credit facility ($13.8mm out - Wells Fargo) & $17mm second lien credit facility ($19.4 claim - Medley Capital)
Company Professionals:
Legal: Winston & Strawn LLP (Daniel McGuire, Grace D'Arcy, Carrie Hardman) & (local) Young Conaway Stargatt & Taylor LLP (M. Blake Cleary, Ryan Bartley, Andrew Magaziner)
Financial Advisor: Getzler Henrich & Associates LLC
Investment Banker: SSG Advisors LLC
Claims Agent: Rust Consulting/Omni Bankruptcy LLC (*click on company name for docket)
2/6/17 Recap: Private equity backed marine shipping company files for prepackaged chapter 11 to effectuate sale of assets, the proceeds from which will be used to pay down debt. Sparrow Capital Investments Ltd. will purchase the company's river business holding companies for $73mm in cash. Barry Ridings of Lazard will be on the reorganized company's Board of Directors (and collect an $80k paycheck).
Jurisdiction: S.D. of New York
Capital Structure: $566mm '21 8.875% notes & credit facilities with International Finance and OPEC Fund.
Company Professionals:
Legal: Zirinsky Law Partners PLLC (Bruce Zirinsky, Sharon Richardson) & Hughes Hubbard LLP (Christopher Kiplok, Erin Diers, Dustin Smith) & Seward & Kissel (Ronald Cohen, Lawrence Rutkowski, Anthony Tu-Sekine)
Financial Advisor: AlixPartners International LLP (Rebecca Roof, Stephen Spitzer, Peter Baldwin, Jon Bryant)
Investment Banker: Miller Buckfire & Co. LLC (Kevin Haggard)
Claims Agent: Prime ClerkLLC (*click on case name above for free docket)
2/2/17 Recap: Houston-based oil and gas producer files chapter 11 pursuant to a restructuring support agreement that, if implemented, will permit the company to cut over $700mm of debt. The company has secured a $50mm DIP.
Legal: Paul Hastings LLP (Chris Dickerson, James Grogan, Todd Schwartz, Alexander Bongartz, Brendan Gage)
Financial Advisor: Opportune LLP (Scott Anchin)
Investment Banker: Evercore Partners (Daniel Aronson, Marco Acerra)
Claims Agent: Prime Clerk (*click on company name for docket)
Other Parties in Interest:
Ad Hoc Group of 2L noteholders (Fir Tree Inc., Wexford Capital LP, York Capital Management Global Advisors)
Legal: Morrison & Foerster LLP (Jonathan Levine, John Pintarelli, Daniel Harris) & (local) Jackson Walker LLP (Monica Blacker, Matthew Cavenaugh)
Ad Hoc Committee of Senior Noteholders & UMB Bank NA
Legal: Milbank (Dennis Dunne, Andrew LeBlanc, Samuel Khalil) & (local) Porter Hedges LLP (John Higgins, Eric English)
Investment Bank: PJT Partners Inc.
RBL Lender: Citibank NA
Legal: Weil (Stephen Karotkin, Joseph Smolinsky, Blaire Cahn, Christopher Lopez)
UMB Bank
Legal: Kelley Drye & Warren LLP (Eric Wilson, Benjamin Feder, T. Charlie Liu)
Wilmington Trust
Legal: Pryor Cashman LLP (Seth Lieberman, Patrick Sibley, Matthew Silverman) & (local) Cole Schotz PC (Michael Warner, Benjamin Wallen)
Independent Directors of the Board
Legal: Andrews Kurth Kenyon LLP (Robin Russell, Tad Davidson, Joseph Buoni)
Unsecured Noteholder & Preferred Unitholder: Panning Capital Management
Legal: Munger Tolles & Olson LLP (Thomas Wolper, Seth Goldman) & (local) Norton Rose Fulbright US LLP (William Greendyke, Jason Boland, Bob Bruner, Louis Strubeck)
Ad Hoc Equity Committee
Legal: Gardere Wynne Sewell LLP (John Melko, Sharon Beausoleil, Michael Riordan, Sean Wilson, Holland O'Neil)
Official Committee of Unsecured Creditors
Legal: Akin Gump (Charles Gibbs, Michael Stamer, Abid Qureshi, Meredith Lahaie, Kevin Zuzolo)
1/30/17 Recap: This is a revenue and operating costs story. Not enough of the first. Too much of the latter. Utilization didn't make up for the cost and capital structure and now the debtor is in Chapter 11 with the hope of finding a buyer.
Jurisdiction: E.D. of Louisiana (transferred from D. of Delaware)
Capital Structure: $12mm RCF/$6.7mm funded (MidCap Financial LLC), $105mm Demand Note (Cardiovascular Care Group Inc.),
Company Professionals:
Legal: Alston & Bird LLP (Grant Stein, David Wender, Sage Sigler), Jones Walker LLP (Elizabeth Futrell) & (local) Young Conaway Stargatt & Taylor LLP (Joel Waite, Kenneth Enos)
Financial Advisor & CRO: Solic Capital Advisors LLC (Neil Luria)
Claims Agent: Garden City Group (*click on company name above for free docket)
1/30/17 Recap: Spurned on by the potential riches guaranteed by $105 crude oil and $3.68 natural gas, Azure Midstream Partners - a master limited partnership headquartered in Dallas - invested heavily in natural gas pipeline in 2015, incurring hundreds of millions of debt to fund the expansion. Shortly thereafter, oil sank to $26 and natural gas to $1.62. With the industry in turmoil, capex budgets contracted considerably and the company’s largest contract counterparties terminated or lapsed contracts (including Anadarko Petroleum Corporation), materially reducing EBITDA and triggering covenant defaults. Now, the company seeks to sell its assets in bankruptcy and liquidate the rest. Discussions with a stalking horse bidder hadn’t been finalized at the time of filing.
Capital Structure: $175mm debt (Wells Fargo Bank NA)
Company Professionals:
Legal: Weil (Gary Holtzer, Robert Lemons, Charles Persons, Chris Lopez, Katherine Doorley, David Zubkis) & Vinson & Elkins LLP (Bradley Foxman)
1/30/31 Recap: Bermuda-based operator of 19 offshore vessels servicing the oil and gas industry filed for chapter 11 bankruptcy to restructure its balance sheet amidst acceleration and demand notices from lenders (and, in one case, a ship seizure). With utilization rates down from 85% in 2014 to a scary 50% today and continued pressure projected throughout 2017, the company hopes the breathing spell triggered by the filing will provide the time needed to formulate a plan of reorganization.
Jurisdiction: S.D. of New York
Capital Structure: $123mm (Danish Ship Finance), $115mm (DNB), $115mm (ING)
Company Professionals:
Legal: Togut Segal & Segal (Al Togut, Frank Oswald, Kyle Ortiz, Brian Moore)
Financial Advisor: Scura Paley & Company (Paul Scura)
Investment Banker: PJT Partners LP (Steven Zelin)
Claims Agent: KCC (*click on link above for docket)
Other Parties in Interest:
Credit Agricole Corporate and Investment Bank
Legal: Linklaters LLP (Margot Schonholtz, Robert Trust)
01/22/17 Recap: Texas-based oil field services provider files bankruptcy to effectuate a prepackaged plan of reorganization pursuant to which noteholders will take 100% equity and a cash distribution.
Jurisdiction: S.D. of Texas
Capital Structure: $90 mm ABL (Regions Bank), $277mm '19 9% senior notes (Wells Fargo)
Company Professionals:
Legal: Pachulski Stang Ziehl & Jones LLP (Richard Pachulski, Ira Kharasch, Maxim Litvak, Joshua Fried) & (local) Snow Pence Green LLP (Phil Snow, Kenneth Green)
Financial Advisor: Alvarez & Marsal LLC (Marc Leibman, Gary Barton)
Investment Banker: Jefferies Group Inc. (Robert White)
Claims Agent: KCC (*click on name above for link to docket)
Other Parties in Interest:
Ad Hoc Group of Senior Unsecured Noteholders: Ascribe Capital, Solace Capital Partners LP, Courage Capital Management LLC, Pacific Investment Management Co., Phoenix Investment Advisor LLC
Legal: Fried Frank Harris Shriver & Jacobson LLP (Brad Scheler, Matthew Roose) & (local) McKool Smith PC (Hugh Ray, Christopher Johnson)
1/19/17 Recap: Late in its transition from a hardware-based business model to a software model, Santa Clara California based communications services provider filed a freefall bankruptcy to address its $6b+ balance sheet and ~$1.45b of pension/OPEB liabilities with the help of a proposed $725mm DIP Facility.
Jurisdiction: S.D. of New York
Capital Structure: $55mm domestic ABL credit facility (Citigroup USA Inc.), $3.235b prepetition cash flow credit facility (Citigroup USA Inc.), $1b 7% '19 first priority note, $290mm 9% '19 second priority note, $1.384b 10.5% '21 second priority notes (Bank of New York Mellon Trust Company N.A.).
Company Professionals:
Legal: Kirkland & Ellis LLP (Jayme Sprayragen, Jonathan Henes, Patrick Nash, Ryan Preston Dahl, Bradley Giordano, Justin Bernbrock, Kan Asimacopoulos, Bern Meyer-Loewy, Carl Pickerill, Asif Attarwala, Ameneh Bordi, Robert Britton, Jeremy Evans, Natasha Hwangpo, Stephen Iacovo, George Klidonas, Christopher Kochman, Justin Mercurio)
Financial Advisor: Zolfo Cooper LLC (Eric Koza, Charlie Carnaval, Jesse DelConte, Denise Lorenzo, Conor McShane, Fred Jelks, Andrew Ralph, Adam Searles, Jeff Wooding, Howard Gou, Eugene Lavrov, Rohan Joseph, Chris Baydar)
Claims Agent: Prime Clerk (*click on company name for docket)
Other Parties in Interest:
DIP Agent: Citigroup Global Markets Inc.
Legal: Davis Polk & Wardwell LLP (Damian Schaible, Natasha Tsiouris, Aryeh Falk)
Ad Hoc First Lien Noteholders' Group (400 Capital Management LLC, Aegon USA Investment Management LLC, Alta Fundamental Advisors LLC, Anchorage Capital Group LLC, Apollo Management LP, Auburn Mesa LLC, Bain Capital Credit LP, Bank of America NA, Barclays Capital Inc., Benefit Street Partners LLC, Bennett Restructuring Fund Inc., Blackrock Financing Management Inc., Blackrock Advisors LLC, Blackrock Institutional Trust Company NA, BlueCrest Capital Management, Candlewood Group Investment Group LP, Canyon Capital Advisors LLC, Carlson Capital LP, Centerbridge Capital LP, Cetus Capital LLC, Columbia Management Investment Advisors LLC, Continental Casualty Company, CQS (US) LLC, Crescent Capital Group LP, CRG Financial LLC, Cyrus Capital Partners LP, Deutsche Bank AG Cayman Islands Branch, Driehaus Capital Management LLC, DW Catalyst Master Fund Ltd., Empyrean Investments LLC, Farallon Capital Partners LP, Farallon Capital Institutional Partners LP, Farallon Capital Institutional Partners V LP, Farallon Capital Institutional Partners II LP, Farallon Capital Offshore Investors II LP, Farallon Capital F5 Master I LP, Farallon Capital (AM) Investors LP, Farallon Capital Institutional Partners III LP, Noonday Offshore Inc., GLG LLC, Graham Capital Management, GSO Capital Partners LP, HG Vora Capital Management LLC, HPS Investment Partners LLC, Investcorp Credit Management US LLC, ISL Loan Trust, ISL Loan Trust II, J.H. Lane Partners LP, JPMorgan Chase Bank NA, JP Morgan Investment Management LLC, Lord Abbett & Co. LLC, Mariner Glen Oaks LP, Medtronic Holding Switzerland GMBH, Merced Capital LP, Merrill Lynch Pierce Fenner & Smith Inc., Midtown Acquisitions LP, MJX Asset Management LLC, Monarch Alternative Capital LP, Napier Park Global Capital, Newfleet Asset Management LLC, New Mexico State Investment Council, Nut Tree Capital Management LP, NYL Investors LLC, OZ Management LP, OZ Management II LP, OFI Global Asset Management Inc., Onex Credit Partners LLC, OSK V LLC, Par-Four Investment Management LLC, P. Schoenfeld Asset Management LP, Putnam Investments, Redwood Capital Management LLC, Sentinel Dome Partners LLC, Shenkman Capital Management Inc., Silver Point Capital LP, Standard General LP, Taconic Capital Advisors LP, Talamod Asset Management LLC, Telos Asset Management LLC, THL Credit, Voya CLO, Wayzata Opportunities Fund III, Wayzata Opportunities Fund Offshore III LP, Wells Fargo Bank NA, Whitebox Advisors LLC, Wolverine Flagship Fund Trading Limited, Z Capital Credit Partners)
Ad Hoc Crossover Noteholders' Group (Alden Global Capital LLC, AllianceBernstein LP, Avenue Capital Management II LLP, Benefit Street Partners, Susquehanna Advisors Group Inc., Franklin Mutual Advisors LLC, Greenlight Capital Inc., Highland Capital Management LP, PGIM Inc., Symphony Asset Management LLC)
Updated Ad Hoc Crossover Noteholders' Group (Less: Benefit Street Partners)
1/17/17 Recap: Sun Capital owned multi-channel retailer with 250 locations (down from a peak of 750) filed for bankruptcy to continue its Hilco-assisted liquidation and sell its IP and e-commerce channel for a proposed ~$25.5mm sum to Sycamore Partners. Looks like some "A Malls" owned by Simon Property Group and GGP Limited Partnership just got nicked.
Jurisdiction: D. of Delaware
Capital Structure: $50mm RCF (unfunded, BofA), $13.4 TL (Cerberus Business Finance LLC)
Company Professionals:
Legal: Klehr Harrison Harvey Branzburg LLP (Domenic Pacitti, Michael Yurkewicz)
1/17/17 Recap: Utah-based oil and gas MLP filed bankruptcy to deleverage its balance sheet and swap out the entirety of its senior unsecured notes for equity. Shareholders set to receive a tip.
1/11/17 Recap: Pennsylvania-based GE-owned power company with three coal-fired electric power generating units files a prepackaged Chapter 11 to effectuate a deal to turnover the company's assets to its sale leaseback debtholders.
Jurisdiction: D. of Delaware
Capital Structure: $147mm '19 8.137% senior secured notes, $466mm '26 8.734% senior secured notes (Bank of New York Mellon)
Company Professionals:
Legal: Richards Layton & Finger PA (Mark Collins, Russell Siberglied, Paul Heath, Joseph Barsalona II, Andrew Dean)
Financial Advisor: Zolfo Cooper (John Boken)
Investment Banker: PJT Partners Inc. (Mark Buschmann, John Singh)
Claims Agent: Epiq Bankruptcy Solutions LLC (*click on company name for docket)
Other Parties in Interest:
Ad Hoc Group of First Lien Bondholders:
Legal: O'Melveny & Meyers LLP (George Davis, Andrew Parlen, Matthew Kremer, Joseph Zujkowski) & (local) Young Conaway (Sean Beach)
Financial Advisor: Charles River Associates
Investment Banker: Houlihan Lokey
Bank of New York Mellon
Legal: Emmet, Marvin & Marvin LLP (Thomas Pitta)
General Electric
Legal: Weil (Robert Lemons, Sunny Singh) & (local) Reed Smith LLP (Kurt Gwynne)
1/9/17 Recap: "You had ONE job!" Here, mining processing and selling frac sand. Only problem is: demand for sand collapsed along with the rest of the oil and gas industry. And, to boot, fracking companies are apparently racist and prefer white sand over the brown type that Chieftain produces. And so the company filed for chapter 11 to sell the company to its term lender and DIP provider, Energy Capital Partners.
Jurisdiction: D. of Delaware
Capital Structure: $60mm TL debt
Company Professionals:
Legal: Gibbons PC (Howard A. Cohen, Natasha Songonuga)
1/4/17 Recap: The company filed a prepackaged bankruptcy to eliminate $850mm of debt from its balance sheet and infuse the company with $200mm of new equity.
Investment Banker: Perella Weinberg Partners (Kevin Cofsky, Jacob Czarnick)
Claims Agent: Prime ClerkLLC (*click name above for docket link)
Other Parties in Interest:
RBL Agent: Key Bank
Legal: Bracewell LLP (Trey Wood, Jennifer Feldshur, Dewey Gonsoulin)
Ad Hoc Committee of Noteholders (Apollo Energy Opportunity Mgmt, Continental Casualty, Credit Suisse Asset Mgmt, DE Shaw Galvanic Portfolios, Gen IV Investment Opportunities LLC, Lord Abbett & Co., Luxor Capital Group LP, Mangrove Partners, Nomura Corporate Research & Asset Mgmt, Oaktree Capital Management LP, Paloma Partners Management Company, Par-Four Investment Management LLC, Perry Creek Capital Fund I, Socratic Fund Management LP, Whitebox Advisors). Added subsequent to the case filing (Aristeia Capital LLC, Barclays Bank PLC, Continental Casualty Company, Venor Capital Management LP, Wells Fargo Securities LLC); Subtracted subsequent to the case filing (Credit Suisse Asset Mgmt).
Legal: Kirkland & Ellis LLP (Edward Sassower, Steven Serajeddini, John Luze, Stephen Schwarzbach Jr.) & (local) Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, Peter Keane)
Investment Bank: Evercore
Ad Hoc Committee of Equity Security Holders (Fir Tree Inc., HHC Primary Fund, CVI Opportunities Fund I, Silver Point Capital, MatlinPatterson Global Opportunities Master Fund)
Legal: Brown Rudnick LLP (Edward Weisfelner, Bennett Silverberg, D. Cameron Moxley) & (local) Chipman Brown Cicero & Cole LLP (William Chipman Jr.)
Financial Advisor: Miller Buckfire & Co. (Richard Klein, Matthew Rodrigue)
Delaware Trust Company (as successor trustee to Wells Fargo)
Legal: Haynes and Boone LLP (Charles Beckham Jr., Keith Sambur) & (local) The Rosner Law Group LLC (Frederick Rosner, Scott Leonhardt)
Silo Energy LLC
Legal: Arent Fox LLP (George Angelich, Jackson Toof, Andrew Silfen) & (local) Polsinelli PC (Justin Edelson)
Senior Unsecured Noteholders: GMO Credit Opportunities Fund LP and Global Credit Advisors LLC
Legal: Ropes & Gray LLP (D. Ross Martin, Andrew Devore) & (local) Pepper Hamilton LLP (David Stratton)
1/3/17 Recap: Cocoa supplier to major US and European chocolate manufacturers files for bankruptcy citing integration, hedging, and customer liquidity issues.
Jurisdiction: S.D. of New York
Capital Structure: $400mm senior secured credit facility (ABN AMRO Capital USA) & $10mm unsecured credit facility (AMERRA Capital Management LLC)
