Angelica Corporation

• 4/3/17 Recap: Thanks Obama! Alpharetta Georgia based provider of linens to the healthcare industry filed for bankruptcy to effectuate a sale to KKR Credit Advisors (US) LLC for $125mm (including a $17.4mm credit bid) - exclusive of liabilities emanating out of certain collective bargaining agreements because, well, why should anyone care about low-earning laundry employees, right? Not when you've got slicked back hair and a sick new Hamptons house to party in this Summer, right, bro? The company pointedly cites ObamaCare as a major source of pricing pressure as healthcare providers "became ever more cost-conscious to mitigate lower expected reimbursements from insurance companies." Reacting to the legislation, private customers joined forces via Group Purchasing Organizations, using strength in numbers as leverage to drive discounts with companies like Angelica. This, coupled with hospital consolidation - also apparently resultant from ObamaCare - led the company to suffer from significant revenue declines. The company has secured a $65mm DIP from certain ABL lenders to fund the bankruptcy case.
• Jurisdiction: S.D. of New York
• Capital Structure: $50.5mm ABL (funded, Wells Fargo Capital Finance LLC) & $85mm TL debt (Cortland Capital Market Services LLC)    
• Company Professionals:
  • Legal: Weil (Matthew Barr, Jill Frizzley, Kevin Bostel, Joshua Apfel, Prashant Rai, Matthew Skrzynski)
  • Financial Advisor: Alvarez & Marsal LLC (John Makuch, Joel Rogers, Paul Kinealy, Bryan Fleming)
  • Investment Banker: Houlihan Lokey Capital Inc. (Bradley Jordan)
  • Claims Agent: Prime Clerk LLC (*click on company name for docket)
• Other Parties in Interest:
  • ABL Agent: Wells Fargo Capital Finance LLC
    • Legal: Greenberg Traurig LLP (David Kurzweil, Nathan Haynes, John Dyer, Michael Leveille)
  • TL Agent: Cortland Capital Market Services LLC
    • Legal: Holland & Knight LLP (Joshua Spencer, Renee Lewis, Barbra Parlin)
  • Stalking Horse Bidder: KKR Credit Advisors (US) LLC
    • Legal: Paul Weiss Rifkind Wharton & Garrison LLP (Brian Hermann, Lauren Shumejda)
  • Largest Secured Creditors: KKR Asset Management LLC, Wells Fargo Capital Finance LLC, GACP Finance Co., LLC, Regions Bank
  • Official Committee of Unsecured Creditors
    • Legal: Cole Schotz PC (Michael Sirota, Daniel Geoghan, Ryan Jareck, Warren Usitine, Mark Tsukerman, Jacob Frumkin, Rebecca Hollander)
    • Financial Advisor: FTI Consulting Inc. (Conor Tully, Marshall Eisler, Sean Eimer, Harrison West, Marili Hellmund-Mora)

Updated 5/31/17