10/23/17 Recap: Here, Fort Worth Texas-based Think Finance LLC, "a leading provider of financial technology services" (think online consumer lending) alleges that Victory Park Capital Advisors LLC, through an affiliate, prevented said affiliate from paying tens of millions of dollars for services Think rendered. This sparked a cascade of horribles as the company then didn't have money to make payroll, had to lay people off, and then, in turn, incurred severance payables. Insert adversary proceeding between the company and Victory Park Capital here. It doesn't help that the company is the defendant in a variety of other lawsuits that it needs funding for. Indeed, the Wall Street Journalhighlights that the company is the subject of a variety of "predatory lending" suits. Sounds like a dramatic bankruptcy. Popping popcorn.
Jurisdiction: S.D. of Texas (Judge Hale)
Company Professionals:
Legal: Hunton & Williams LLP (Gregory Hesse, Tyler Brown, Jason Harbour)
7/17/17 Recap: Georgia-based carpet manufacturer filed for bankruptcy as consumers increasingly prefer hardwood flooring over carpets that remind them of a convalescent center. Consequently, the $10b market has gotten increasingly competitive and price compression is the result: the company's revenues have declined nearly 50% from $1b in 2007 to approximately $525mm in 2016. Recognizing these trends, the company commenced an operational restructuring in 2016 but with sustained overhead and a bloated cost structure, the company needs to do more. Its borrowing base, however, has decreased and the company, therefore, has run out of liquidity to continue pursuing its efforts. The company has arranged a $70mm DIP facility to facilitate a restructuring - the form of which is unspecified.
Jurisdiction: ND of Georgia
Capital Structure: $51.7mm RCF (Bank of America NA), $15.8mm TL (Cygnets LLC), $6mm third lien loan (CT Lender LLC)
Company Professionals:
Legal: Scroggins & Williamson PC (Robert Williamson, Ashley Reynolds Ray, Matthew Levin)
Investment Banker: Coveview Advisors LLC and Advisory Group Equity Services Ltd. (Thomas Canning)
Claims Agent: American Legal Claim Services LLC
Other Parties in Interest:
Prepetition & DIP Agent: Bank of America NA
Legal: Parker Hudson Rainer & Dobbs LLP (C. Edward Dobbs, James Rankin Jr.)
Official Committee of Unsecured Creditors
Legal: Fox Rothschild LLP (Michael Menkowitz, Paul Labov, Jason Manfrey, Marie Dooley) & (local) Thompson Hine LLP (John Isbell, Garrett Nail, John Allerding, Douglas Walters)
