New Chapter 11 Bankruptcy Filing - Golden Eagle Entertainment $ENT

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Golden Eagle Entertainment

July 22, 2020

Suffice it to say, high correlation to the airline and cruiseline industries is a credit negative these days. A few months ago Speedcast — a provider of information technology services and (largely satellite-dependent) communications solutions (i.e., cybersecurity, content solutions, data and voice apps, IoT, network systems) to customers in the cruise, energy, government and commercial maritime businesses — discovered this the hard way and free fell into bankruptcy court. There’s still no resolution of that case. Similarly, Global Eagle Entertainment Inc. ($ENT), a business that generates revenue by (i) licensing and managing media and entertainment content and providing related services to customers in the airline, maritime and other “away-from-home” nontheatrical markets, and (ii) providing satellite-based Internet access and other connectivity solutions to airlines, cruise ships and other markets, couldn’t avoid trouble once COVID-19 shutdown its core end users. No monthly recurring revenue model can save a company when its clients are effectively closed for business AND there’s $855.6mm of funded debt to service. Not to state the obvious.

Things may get worse before they get better. The company’s largest customer is Southwest Airlines Co. ($LUV) (21% of overall revenue) and it has a pretty bearish take on …

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  • Jurisdiction: D. of Delaware (Judge Dorsey)

  • Capital Structure: $85mm RCF, $503.3mm TL, $188.7mm second lien notes, $82.5mm unsecured convertible notes.

  • Professionals:

    • Legal: Latham & Watkins LLP (George Davis, Madeleine Parish, Ted Dillman, Helena Tseregounis, Nicholas Messana, Eric Leon) & Young Conaway Stargatt & Taylor LLP (Michael Nestor, Kara Hammond, Betsy Feldman)

    • Financial Advisor: Alvarez & Marsal LLC

    • Investment Banker: Greenhill & Co. Inc.

    • Claims Agent: Prime Clerk LLC (*click on the link above for free docket access)

  • Other Parties in Interest:

    • Prepetition First Lien Admin Agent & DIP Agent: Citibank NA

      • Legal: Weil Gotshal & Manges LLP (David Griffiths, Bryan Podzius)

    • Ad Hoc DIP & First Lien Lender Group: Apollo Global Management, L.P., Eaton Vance Management, Arbour Lane Capital Management, Sound Point Capital Management, Carlyle Investment Management LLC, Mudrick Capital Management, BlackRock Financial Management, Inc.

      • Legal: Gibson Dunn & Crutcher LLP (Scott Greenberg, Michael Cohen, Jason Goldstein) & Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, TImothy Cairns)

    • Second Lien Agent: Cortland Capital Market Services LLC

    • Second Lien Noteholders: Searchlight Capital Partners LP

      • Legal: Paul Weiss Rifkind Wharton & Garrison LLP (Alan Kornberg, Michael Turkel, Irene Blumberg, Elizabeth Sacksteder) & Richards Layton & Finger PA (Daniel DeFranceschi, Zachary Shapiro)

    • Southwest Airlines Inc.

      • Legal: Vinson & Elkins LLP (William Wallander, Paul Heath, Robert Kimball, Matthew Struble) & Saul Ewing Arnstein & Lehr LLP (Lucian Murley)

    • AT&T Corp.

      • Legal: Arnold & Porter Kaye Scholer LLP (Brian Lohan) & Morris Nichols Arsht & Tunnell LLP (Derek Abbott, Brett Turlington)

    • Terry Steiner International

      • Legal: Loeb & Loeb LLP (Daniel Besikof, Geneva Shi)

    • Telesat International Limited

      • Legal: Hodgson Russ LLP (Garry Graber)

    • Nantahala Capital Management LLC

      • Legal: King & Spalding LLP (Arthur Steinberg, Scott Davidson) & The Rosner Law Group LLC (Frederick Rosner, Jason Gibson)

🧀 New Chapter 11 Bankruptcy Filing - CEC Entertainment Inc. 🧀

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CEC Entertainment Inc.

June 24, 2020

For our rundown, please go here.

  • Jurisdiction: S.D. of Texas (Judge Isgur)

  • Capital Structure: $1.089b funded debt ($760mm TL, $108 RCF, $6mm LOC, $215.7mm notes)

  • Professionals:

    • Legal: Weil Gotshal & Manges LLP (Matthew Barr, Alfredo Perez, Andrew Citron, Rachael Foust, Scott Bowling)

    • Board of Directors: David McKillips, Andrew Jhawar, Naveen Shahani, Allen Weiss, Peter Brown, Paul Aronzon

    • Financial Advisor: FTI Consulting Inc. (Chad Coben)

    • Investment Banker: PJT Partners LP (Jamie O’Connell)

    • Real Estate Advisor: Hilco Real Estate LLC

    • Claims Agent: Prime Clerk LLC (*click on the link above for free docket access)

  • Other Parties in Interest:

    • PE Sponsor: Queso Holdings Inc./AP VIII CEC Holdings, L.P. (Apollo)

      • Legal: Paul Weiss Rifkind Wharton & Garrison LLP

    • First Lien Credit Agreement Agent: Credit Suisse AG, Cayman Islands Branch

      • Legal: Davis Polk & Wardwell LLP (Eli Vonnegut) & Rapp & Krock PC (Henry Flores, Kenneth Krock)

    • Ad Hoc Group of First Lien Lenders: American Money Management Corp, Arbour Lane Capital Management, Arena Capital Advisors LLC, Ares Management LLC, Bank of Montreal, BlueMountain Capital Management, Carlson Capital LP, Catalur Capital Management LP, Citibank NA, Credit Suisse AG, Deutsche Bank New York, Fidelity Management & Research Co., Fortress Investment Group LLC, GS Capital Partners LP, Hill Path Capital, Indaba Capital Fund LP, ICG Debt Advisors, Jefferies Financ LLC, J.H. Lane Partners Master Fund LP, Monarch Alternative Capital LP, MSD Capital LP, MSD Partners LP, Octagon Credit Investors LLC, Par Four Investment Management LLC, RFG-Clover LLC, Second Lien LLC, UBS AG, Wazee Street Capital Management, Western Asset Management Company LLC, WhiteStar Asset Management, ZAIS Group LLC

      • Legal: Akin Gump Strauss Hauer & Feld LLP (Ira Dizengoff, Philip Dublin, Jason Rubin, Marty Brimmage Jr., Lacy Lawrence)

    • Indenture Trustee: Wilmington Trust NA

      • Legal: Reed Smith LLP (Kurt Gwynne, Jason Angelo)

    • Ad Hoc Group of ‘22 8% Senior Noteholders (Longfellow Investment Management Co. LLC, Prudential Financial Inc., Resource Credit Income Fund, Westchester Capital Management)

      • Legal: King & Spalding LLP (Matthew Warren, Lindsey Henrikson, Michael Rupe)

      • Financial Advisor: Ducera Partners LLC

    • Official Committee of Unsecured Creditors: Wilmington Trust NA, The Coca-Cola Company, National Retail Properties, Performance Food Group, Washington Prime Group, NCR Corporation, Index Promotions

      • Legal: Kelley Drye & Warren LLP (Eric Wilson, Jason Adams, Lauren Schlussel & Womble Bond Dickinson LLP (Matthew Ward)

7/17/20 Dkt. 352.

New Chapter 15 Filing - Mood Media Corporation

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Mood Media Corporation

  • 5/22/17 Recap: Publicly-traded (on the Canadian exchange) provider of sound, sight, and scent solutions for retail, restaurant and hospitality companies has filed for CBCA and Chapter 15 to effectuate a deleveraging transaction. The transaction in brief: noteholders are swapping their 9.25% notes for $500mm new second lien notes and common stock in the reorganized company (subject to upsize via rights offering participation). Equity will get 17 cents on the dollar. The company will also install a $315mm first lien facility. So, it sounds like the company will still have a f*ck-ton of debt on it. But we're just thankful that the company that brags that "We Put People in the Mood to Buy" will still be providing customers of Qdoba, McDonald's & Ikea, to name a few, with the full sensory experience that inspires needless consumerism of unhealthy and/or bad quality food and wares. Those annoying text message offers you might randomly get? Yeah, it's possible that's from Mood Media. Remember muzak? Yeah, that's also Mood Media. Muzak filed for bankruptcy back in February '09 (with Kirkland & Ellis as counsel then too) and emerged a year later with Silver Point Capital Management as the majority owner. Mood Media then bought Muzak for $345mm in March 2011. Pursuant to this transaction, Apollo Global Management LP and GSO Capital Partners will own this sucker.
  • Jurisdiction: S.D. of New York
  • Capital Structure: $250mm first lien term loan (Credit Suisse AG), $350mm '20 9.25% senior unsecured notes (Bank of New York Mellon), $50mm '23 10% senior unsecured MMGSA notes (Computershare Trust Company NA)(subsidiary level)    
  • Company Professionals:
    • Legal: Kirkland & Ellis LLP (James Sprayragen, Edward Sassower, Joshua Sussberg, Adam Paul, Bradley Giordano, Whitney Fogelberg) & (Canadian counsel) Stikeman Elliott LLP (Alexander Rose)
    • Financial Advisor: Allen & Company LLC
    • Investment Banker: Origin Merchant Partners
    • Claims Agent: JND Legal Administration (*click on company name above for free docket access)
  • Other Parties in Interest:
    • MMGSA noteholders: GSO Capital Partners LP, Apollo Global Management LLC
      • Legal: Paul Weiss Rifkind Wharton & Garrison LLP (Robert Agar) & (Canadian counsel) Goodmans LLP (Brendan O'Neill)
      • Financial Advisor: Credit Suisse
    • New Lender: HPS Investment Partners LLC
    • The Bank of New York Mellon & BNY Trust Company of Canada
      • Legal: Emmet Marvin & Martin LLP (Edward Zujkowski, Thomas Pitta)

Updated 7/11/17