New Chapter 11 Filing - CST Industries Holdings Inc.

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CST Industries Holdings Inc.

  • 6/9/17 Recap: So this is a soap opera. Kansas City-based manufacturer of (i) industrial containers used to store architectural and agricultural products, water, dry bulk and oil and gas and (ii) domes, filed for bankruptcy due to its unsustainable capital structure and seemingly strained relationship with its senior subordinated noteholders. According to the company's first day declaration, the company sought a prepetition sale that would pay off its BNP Paribas' loan and make a "substantial payout" to its unsecured creditors. But one obstreperous unsecured creditor rejected the sale overtures and demanded that the company pay to hire advisors "that in turn charged CST substantial fees and expenses" to the tune of $8-10mm (inclusive of its own pros fees). Welcome to the party pal. These fees, coupled with downturns in the oil and gas and Middle Eastern water markets, led to a precipitous drop in EBITDA and a liquidity crisis. Now the company hopes to use Chapter 11 to sell itself (pursuant to a $15mm DIP credit facility).
  • Jurisdiction: D. of Delaware
  • Capital Structure: $57.5mm TL (funded, BNP Paribas), $114.3mm senior subordinated notes (The Northwestern Mutual Life Insurance Company & OCM Mezzanine Fund II LP).     
  • Company Professionals:
    • Legal: Hughes Hubbard & Reed LLP (Kathryn Coleman, Christopher Gartman, Jacob Gartman, Anson Frelinghuysen) & Potter Anderson & Corroon LLP (Jeremy Ryan, R. Stephen McNeill, D. Ryan Slaugh)
    • Financial Advisor/Investment Banker: CDG Group LLC (Robert Del Genio)
    • Claims Agent: Epiq Bankruptcy Solutions LLC (*click on company name above for free docket access)
  • Other Parties in Interest:
    • TL Agent: BNP Paribas
      • Legal: Chadbourne & Parke LLP (Howard Beltzer, James Copeland, Joseph Giannini) & Norton Rose Fulbright US LLP (Louis Strubeck Jr.) & (local) Young Conaway Stargatt & Taylor LLP (Kara Hammond Coyle)
    • Official Committee of Unsecured Creditors
      • Legal: Lowenstein Sandler LLP (Jeffrey Prol, David Banker, Wojciech Jung, Bruce Nathan) & (local) Shaw Fishman Glantz & Towbin LLC (Thomas Horan, Ira Bodenstein, Christina Sanfelippo)
      • Financial Advisor: Teneo Restructuring and Teneo Capital LLC (Christopher Wu)
    • OCM Mezzanine Fund II, L.P.
      • Legal: Goldberg Kohn Ltd. (William Meyers)
    • Private Equity Sponsor: The Sterling Group

Updated 7/11/17

New Chapter 11 Filing - Ultrapetrol (Bahamas) Ltd.

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Ultrapetrol (Bahamas) Ltd.

  • 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 Clerk LLC (*click on case name above for free docket)
  • Other Parties in Interest:
    • Ad Hoc Group of Noteholders
      • Legal: Milbank Tweed Hadley & McCloy LLP (Tyson Lomazow)
      • Financial Advisor: PJT Partners Inc.
    • Offshore Agent: DVB Bank SE and DVB Bank Americas N.V.
      • Legal: White & Case LLP (Scott Greissman, Mark Franke)
      • Financial Advisor: Houlihan Lokey
    • IFC/OPEC Fund
      • Legal: Mayer Brown LLP (Frederick Hyman, Sean Scott,)
      • Financial Advisor: FTI Consulting Canada ULC
    • Sparrow Capital Investments Ltd.
      • Legal: Chadbourne & Parke LLP (Andrew Rosenblatt, Marc Ashley, Robert Kirby)

Updated 3/30/17