New Chapter 11 Bankruptcy - Walter Investment Management Corp.

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Walter Investment Management Corp. 

  • 11/30/17 Recap: Mortgage banking firm focused primarily on the servicing and origination of loans, including forward and reverse loans, has filed a much-anticipated prepackaged bankruptcy with the intention of shedding nearly $800mm of debt from its balance sheet. The company originates "conventional conforming loans eligible for securitization by government-sponsored enterprises, such as Fannie Mae and Freddie Mac, or eligible for guarantees by government agencies, such as Ginnie Mae MBSs." If that was painful reading, imagine how the lawyers felt drafting that. Even more painful is understanding that this bankruptcy is directly attributable to decisions the company made in the aftermath of the financial crisis. From 2010 through 2015, the company went on a debt-ridden acquisition spree (including once bankrupt Residential Capital LLC) which just goes to show that, while one's crisis is another's opportunity, one's crisis could be one's crisis. With this deleveraging transaction, the company hopes to be more competitive in the market going forward.

  • Jurisdiction: S.D. of New York (Judge Garrity)

  • Capital Structure: $100mm '18 RCF, $1.4b '20 TL (Credit Suisse AG), $540mm 7.875% '21 senior unsecured notes (Wilmington Savings Fund Society FSB), $242mm '19 senior subordinated convertible notes (Wells Fargo Bank NA)(public equity: $WAC)

  • Company Professionals:

    • Legal: Weil Gotshal & Manges LLP (Ray Schrock, Matthew Barr, Sunny Singh)

    • Financial Advisor: Alvarez & Marsal North America LLC (David Coles)

    • Investment Banker: Houlihan Lokey Capital Inc. (Reid Snellenbarger, Jeffrey Levine, Jeffrey Lewis, James Page, Daniel Martin, Derek Kuns)

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

  • Other Parties in Interest:

    • Administrative Agent: Credit Suisse AG

      • Legal: Davis Polk & Wardwell LLP (Brian Resnick, Michelle McGreal)

    • Consenting Term Lenders (Carlson Capital LP, TAO Fund LLC, Credit Suisse Asset Management LLC, Marathon Asset Management LP, Nuveen, Symphony Asset Management LLC, Eaton Vance Management)

      • Legal: Kirkland & Ellis LLP (Patrick Nash, Gregory Pesce)

      • Financial Advisor: FTI Consulting Inc.

    • Consenting Senior Noteholders (Canyon Capital Advisors LLC, CQS UK LLP, Deer Park Road Management Company LP, Lion Point Capital LP, Oaktree Capital Management LP, Omega Advisors Inc.)

      • Legal: Milbank Tweed Hadley & McCloy LLP (Dennis Dunne, Gregory Bray, Haig Maghakian, Rachel Franzoia)

      • Financial Advisor: Moelis & Co.

    • Prepetition Indenture Trustee: Wilmington Savings Fund Society FSB

      • Legal: Pryor Cashman LLP (Patrick Sibley, Seth Lieverman, Matthew Silverman)

    • Prepetition Convertible Notes Indenture Trustee: Wells Fargo Bank NA

      • Legal: Thompson Hine LLP (Curtis Tuggle)

    • Administrative Agent for DIP Warehouse Facilities: Credit Suisse First Boston Mortgage Capital LLC

      • Legal: Alston & Bird LLP (Gerard Catalanello, Karen Gelernt, James Vincequerra)

    • Fannie Mae

      • Legal: O'Melveny & Myers LLP (Darren Patrick, Steve Warren, Jennifer Taylor)

    • Freddie Mac

      • Legal: McKool Smith (Paul Moak, Kyle Lonergan)

First Day Declaration

First Day Declaration

Updated 11/30/17 10:05 CT

New Chapter 11 Filing - Lombard Public Facilities Corporation

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Lombard Public Facilities Corporation

  • 7/28/17 Recap: Illinois-based not-for-profit corporation formed to finance the cost of acquiring, designing, constructing, and equipping a conference center, hotel (Westin), restaurant and related improvements in the Village of Lombard filed for bankruptcy with a prearranged deal with its creditors. The corporation was funded via revenue bonds (A through C, with the A-2 bonds wrapped by an ACA Financial Guaranty Corporation policy) on the basis of a 2005 market study. Much like we saw with the Chapter 9 filing of The Kennewick Public Hospital District back in June, the study proved to be off the mark and the project has underperformed from the get-go. Some of this was bad timing: the project came online in August 2007: we all know what came shortly thereafter. The convention business the Project depended upon never came, rendering revenues insufficient and debt service payments difficult. Reserves set aside for the bonds were quickly depleted and the Project defaulted on the bonds. The Project enters bankruptcy with the A bonds as the declared fulcrum and a consensual restructuring in hand with each of ACA, holders of a majority of the bonds (here, Nuveen Asset Management LLC and OppenheimerFunds Inc.), and the hotel and restaurant managers, respectively. Taking it as given that Lombard is an "affluent" suburb of Chicago, you have to wonder why people thought this financing was a good idea. Lombard sounds quaint and all - with its annual Lilac Festival and parade - but there's nothing there, far as we can tell, that screams "convention business." Query how many Mom and Pop municipal bond investors are getting burned by this (seemingly) ill-advised financing. 
  • Jurisdiction: N.D. of Illinois (Judge Cox) 
  • Capital Structure: $246.65mm principal and interest municipal debt (Amalgamated Bank of Chicago)   
  • Company Professionals:
    • Legal: Adelman & Gettleman, Ltd. (Henry Merens, Brad Berish, Alexander Brougham)
    • Financial Advisor: EisnerAmper LLP (Thomas Buck, Deborah Friedland, Allen Wilen)
    • Claims Agent: Epiq Bankruptcy Solutions LLC (click on case name above for free docket)
  • Other Parties in Interest:
    • ACA Financial Guaranty Corp.
      • Legal: Greenberg Traurig LLP (Nancy Peterman)
    • Lord, Abbett & Co. LLC
      • Legal: Shaw Fishman Glantz & Towbin LLC (Peter Roberts)
    • Indenture Trustee: Amalgamated Bank of Chicago
      • Financial Advisor: FTI Consulting Inc.

Updated 7/28/17