New Chapter 11 Filing - M&G USA Corporation

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M&G USA Corporation

  • 10/24/17 Recap: Disruption via cliche and foreign competition. Here, the plastics maker and indirect subsidiary of petrochemical giant Mossi Ghisolfi Group filed for bankruptcy. The company had begun construction on a vertically-integrated plant in Corpus Christi Texas back in 2013 but then they ran headfirst into the single-most common construction cliche out there: delays and cost overruns. And that was before Hurricane Harvey compounded matters. The plant remains incomplete and, consequently, the company has "severe liquidity constraints" that it intends to address in bankruptcy - specifically, through a significant deleveraging. The company highlighted several other causes for its state of affairs: (i) higher raw material costs due to supply shortages, (ii) a recent wave of competing low-priced imports that flooded the US market (note: the company has outstanding petitions with the US Department of Commerce and the US International Trade Commission alleging that imports of polyethylene terephthalate resin from Brazil, Indonesia, South Korea, Pakistan and Taiwan are being "dumped" in the US market), and (iii) price-compression due to a competitors GOB sale. The company seeks approval of a $100mm DIP credit facility to fund its cases. 
  • Jurisdiction: D. of Delaware (Judge Shannon)
  • Capital Structure: $1.7b outstanding principal amount of debt (see below)   
  • Company Professionals:
    • Legal: Jones Day (Scott Greenberg, Carl Black, Stacey Corr-Irvine, Michael Cohen, Nicholas Morin, Peter Saba, James Sottile IV, Daniel Merrett, Oliver Zeltner) & (local) Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, James O'Neill, Joseph Mulvihill)
    • Financial Advisor/CRO: Alvarez & Marsal North America LLC (Dennis Stogstill)
    • Investment Banker: Rothschild Inc. (Neil Augustine)
    • Board of Directors: Alan Carr, Frederick Brace
    • Claims Agent: Prime Clerk LLC (*click on link above for free docket access)
  • Other Parties in Interest:
    • DAK Americas LLC 
      • Legal: Weil Gotshal & Manges LLP (Alfredo Perez, Christopher Lopez) & (local) Morris Nichols Arsht & Tunnell LLP (Curtis Miller)
    • Equity Holders: Magnate S.a r.l.
      • Legal: Kirkland & Ellis LLP
    • DIP Lender: Banco Inbursa S.A., Institucion De Banca Multiple, Grupo Financiero Inbursa
      • Legal: Cleary Gottlieb Steen & Hamilton LLP
    • Large Unsecured Creditor: Indorama Ventures Montreal LP
      • Legal: Lowenstein Sandler LLP (Paul Kizel, Nicole Fulfree)
    • Official Committee of Unsecured Creditors:
      • Legal: Milbank Tweed Hadley & McCloy LLP (Dennis Dunne, Abhilash Raval, Lauren Doyle) & (local) Cole Schotz P.C. (J. Kate Stickles, David Hurst)

Updated 11/19/17

Source: First Day Declaration

Source: First Day Declaration

New Filing - Valuepart Inc.

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Valuepart Inc.

  • 10/27/16 Recap: Distributor of parts for earth-moving equipment made by the likes of Caterpillar and Deere files for bankruptcy due to decreased revenues. The WSJ highlights that the company doesn't specify what caused the decline but it's pretty obvious: both CAT and DE new builds are down as farmers and others rely more heavily on rentals given depressed commodity prices.  
  • Jurisdiction: N.D. of Texas
  • Capital Structure: $27mm funded ABL (Wells Fargo)     
  • Company Professionals:
    • Legal: Gardere Wynne Sewell LLP (Marcus Helt, Thomas Scannell, Mark Moore)
    • Financial Advisor: CR3 Partners (Greg Baracato)
    • Investment Banker: FocalPoint Securities LLC (Michael Fixler)
    • Claims Agent: Upshot Services (*click on company name for docket)
    • Other Parties in Interest:
      • Official Committee of Unsecured Creditors
        • Legal: Kane Russell Coleman & Logan PC (Joseph Coleman, John Kane)
        • Financial Advisor: Lain Faulkner & Co., PC (Dennis Faulkner)

Updated 12/30/16.