New Chapter 11 Filing - Keystone Tube Company LLC (A.M. Castle & Co.)

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Keystone Tube Company LLC (A.M. Castle & Co.)

  • 6/18/17 Recap: Publicly-traded ($CASL) Illinois-based specialty metals distribution company with customers in some hard hit sectors of late, e.g., oil and gas, retail, mining, defense, filed a prepackaged bankruptcy case to de-lever its balance sheet. 
  • Jurisdiction: D. of Delaware 
  • Capital Structure: $112mm first lien debt (Cantor Fitzgerald Securities), $177mm
  • 18 12.75% second lien notes (US Bank NA), $22.3mm '19 5.25% convertible third lien notes (US Bank NA)     
  • Company Professionals:
    • Legal: Pachulski Stang Ziehl & Jones LLP (Richard Pachulski, Jeffrey Pomerantz, Maxim Litvak, John Lucas, Peter Keane)
    • Financial Advisor & Investment Banker: Imperial Capital LLC (Joseph Kazanovski)
    • Claims Agent: KCC (*click on company name above for free docket access)
  • Other Parties in Interest:
    • Ad Hoc Lender Committee (At Filing: Corre Partners Management LLC, Highbridge Capital Management LLC, SGF Inc., Pandora Select Partners LP, Whitebox Advisors LLC, Wolverine Asset Management Ltd.)
      • Legal (except SGF Inc.): Paul Weiss Rifkind Wharton & Garrison LLP (Andrew Rosenberg, Jacob Adlerstein, Michael Rudnick) & (local) Young Conaway Stargatt & Taylor LLP (Pauline Morgan, Joel Waite, Ian Bambrick)
      • Legal (SGF Inc): Goodwin Proctor LLP (Michael Goldstein, Gregory Fox) & (local) Pepper Hamilton LLP (David Fournier, John Schanne)
      • Financial Advisor: Ducera LLC
    • Prepetition First Lien Agent: Cantor Fitzgerald Securities
      • Legal: Shipman & Goodwin LLP
    • Prepetition Indenture Trustee: US Bank NA
      • Legal: Dorsey & Whitney LLP (Eric Lopez Schnabel, Robert Mallard, Alessandra Glorioso)
    • Administrative Agent: PNC Bank NA
      • Legal: Goldberg Kohn Ltd (Jacob Marshall, Danielle Juhle) & (local) Blank Rome LLP (Josef Mintz)
    • Bank of America NA
      • Legal: Morgan Lewis & Bockius LLP (Jody Barillare, Rachel Jaffe Mauceri)
    • Nantahala Capital Management
      • Legal: King & Spalding LLP (Arthur Steinberg) & (local) The Rosner Law Group LLC (Frederick Rosner)

Updated 7/11/17 6:22 pm

Source: First Day Declaration.

Source: First Day Declaration.

New Chapter 15 Filing - U.S. Steel Canada Inc.

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U.S. Steel Canada Inc.

  • 6/2/17 Recap: Large steel producer files for Chapter 15 to satisfy a condition of its proposed plan in its 2014-originated CCAA case. 
  • Jurisdiction: S.D. of New York
  • Company Professionals:
    • Legal (Foreign Representative): Weil (Marcia Goldstein, Robert Lemons)
    • Legal (Debtor): McCarthy Tetrault LLP 
    • Monitor: Ernst & Young Inc. (Alex Morrison)
    • Legal: (Monitor): Bennett Jones LLP
    • DIP Lender: Brookfield Capital Partners Ltd.
    • Legal (DIP Lender): Osler Hoskin & Harcourt LLP

New Chapter 11 Filing - EB Holdings II Inc. (Eco-Bat)

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EB Holdings II Inc.

  • 5/18/17 Recap: When you fail to repay nearly 1.8 billion Euro on a (PIK) note, you risk getting yo' a$$ involuntaried into bankruptcy court. Which is exactly the game of chicken that EB Holdings II Inc., the parent to lead recycling behemoth Eco-Bat, played with some irritated and aggressive hedge funds like GoldenTree Asset Management and Fortress Investment Group (see list below). The company, though, is of the view that this is all just a charade to avoid discovery in a state court trial to come. Apparently, there have been a variety of lawsuits and countersuits since Summer 2016 including some sexy allegations that sound a whole lot like fraud. So, the PIK lenders filed the involuntary petition to ensure that the company acts as a fiduciary to its creditors and get the benefit of court oversight over a principal they think is shady AF. 
  • Jurisdiction: D. of Nevada
  • Capital Structure: 1.8b EUR PIK debt (GLAS USA LLC)    
  • Company Professionals:
    • Legal: Garman Turner Gordon (Gregory Garman, Talitha Kozlowski, Gabrielle Hamm)
  • Other Parties in Interest:
    • Ad Hoc PIK Lender Group (GoldenTree Asset Management LP, Alcentra Limited, Fortress Investment Group/Mount Kellett Capital Management, HIG Capital International Advisors LLP/Bayside Capital, Sound Point Capital Management LP, Varde Partners Europe LImited)
      • Legal: Kirkland & Ellis LLP (James Sprayragen, Paul Basta, David Zott, William Guerrieri) & (local) Fox Rothschild LLP (Brett Axelrod)
    • GLAS USA LLC
      • Legal: Wilmer Cutler Pickering Hale & Dorr LLP (Andrew Goldman, Michael Guipoone, Benjamin Loveland, Charles Platt)

Updated 5/19/17

New Chapter 15 Filing - Forge Group Power Pty Ltd.

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Forge Group Power Pty. Ltd.

  • 1/3/17 Recap: Australian-based company that assists with the engineering, procurement and construction of mining and oil and gas projects files for chapter 15 to ward off US-based litigation that threatens the administration of its '14 launched Australian liquidation. The company cites a legal retainer with Alston & Bird LLP held in a California-based Wells Fargo account as contacts to the US. The company originally launched liquidation proceedings after suffering from weakened commodity prices, reduced Chinese demand and reduced industry-wide capex in the face of weakened mining demand.
  • Jurisdiction: N.D. of California
  • Capital Structure: $249mm secured debt     
  • Company Professionals:
    • Legal: Alston & Bird LLP (Leib Lerner, Jeffrey Tsai) & Linklaters LLP (Aaron Javian, Adam Lurie)

Updated 1/4/17

New Filing - Optima Specialty Steel LLC

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Optima Specialty Steel

  • 12/15/16 Recap: Miami-based independent specialty steel products manufacturer files for bankruptcy in the District of Delaware, capitulating under the weight of debt-laden acquisitions predicated on synergies and efficiencies that, shockingly, couldn't counteract various macroeconomic headwinds. The company cites low oil prices, a strong US dollar, excess capacity, slowing growth in other parts of the world (read: China), and decreased demand for specialty steel products. Unable to pay its December 15 debt maturity, the company filed to take advantage of the automatic stay - funded by cash collateral initially and seeking a DIP by January - and try to reorganize as a going concern.
  • Jurisdiction: D. of Delaware
  • Capital Structure: $171.7mm 12.5% senior secured notes (Wilmington Trust), $87.5mm 12% senior unsecured note (Wilmington Trust; privately-placed with DDJ Capital Management LLC)     
  • Company Professionals:
    • Legal: Greenberg Traurig (Dennis Meloro, Nancy Mitchell, Paul Keenan, John Dodd, Ari Newman, Maria DiConza)
    • Financial Advisor: Ernst & Young LLP (Briana Richards)
    • Investment Banker: Miller Buckfire & Co., LLC (James Doak)
    • Claims Agent: Garden City Group (*click on company name for docket)
  • Parties in Interest:
    • Ad Hoc Group of Unaffiliated Holders of Senior Secured Notes
      • Legal: Akin Gump Strauss Hauer & Feld LLP (Philip Dublin, Jason Rubin)
    • Official Committee of Unsecured Creditors
      • Legal: Squire Patton Boggs (US) LLP (Stephen Lerner, Norman Kinel, Nava Hazan, Elliot Smith) & (local) Whiteford Taylor & Preston LLP (Christopher Samis, L. Katherine Good, Chantelle McClamb)
    • Wilmington Trust
      • Legal: Morrison & Foerster LLP (Jonathan Levine, James Newton) & (local) Morris Nichols Arsht & Tunnell LLP (Eric Schwartz, Matthew Harvey)
    • DDJ Capital Management LLC
      • Legal: Latham & Watkins LLP (Richard Levy, Ted Dillman)

Updated 1/6/17