New Chapter 11 Filing - Arecont Vision Holdings LLC

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Arecont Vision Holdings LLC

5/14/18

Arecont Vision Holdings LLC, a California-based manufacturer of high-performance IP cameras and video surveillance solutions, has filed for bankruptcy to effectuate a sale to an affiliate of Turnspire Capital Partners. 

The company sells its products to a variety of industries including data centers, government, retail, financial, sports, and healthcare. End user customers include big names like Wells Fargo, Apple, Google, Facebook, Microsoft and others. In addition to holding several patents, the company counts a litigation claim against a once-secured-but-ultimately-failed-buyer, NetPosa, in the amount of $50 million among its assets. NetPosa signed a share purchase agreement in early 2017 for the purchase of Arecont for $170 million but the deal fell through while awaiting regulatory review. Apropos to the current international trade environment, NetPosa is a publicly-traded Chinese company. 

Speaking of China, the company notes, "The Debtors' performance has been negatively impacted by increased competition from Chinese manufacturers who are able to produce and sell products at lower price points." This combined with other factors, stemmed the company's previously demonstrated compound double-digit growth from 2007 through 2016; it then experienced a dramatic EBITDA decline in 2017 from $72.7 million to $41.7 million. 

To address this decline, the company engaged in a number of cost-reduction initiatives including shedding employees and outsourcing component and subassembly work to Asia from the US. Contemporaneously, Imperial Capital initiated a sale process. Enter Turnspire Capital. 

  • Jurisdiction: D. of Delaware (Judge Sontchi)
  • Capital Structure: $73.2mm secured debt (AIG)    
  • Company Professionals:
    • Legal: Pachulski Stang Ziehl & Jones LLP (Ira Kharasch, Joshua Fried, Maxim Litvak, James O'Neill)
    • CRO/Financial Advisor: Armory Group LLC (Scott Avila, Allen Soong)
    • Investment Banker: Imperial Capital LLC 
    • Claims Agent: Omni Management LLC (*click on company name above for free docket access)
  • Other Parties in Interest:
    • Stalking Horse Buyer: Turnspire Capiral LLC
    • DIP Agent: Cortland Capital Market Services LLC
    • ($4mm) DIP Lenders: American General Life Insurance Company, American Home Assurance Company, The United States Life Insurance Company in the City of New York, The Variable Annuity Life Insurance Company, American Home Assurance Company and United Guaranty Residential Insurance Company

New Filing - Forbes Energy Services Ltd.

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Forbes Energy Services Ltd.

  • 01/22/17 Recap: Texas-based oil field services provider files bankruptcy to effectuate a prepackaged plan of reorganization pursuant to which noteholders will take 100% equity and a cash distribution. 
  • Jurisdiction: S.D. of Texas 
  • Capital Structure: $90 mm ABL (Regions Bank), $277mm '19 9% senior notes (Wells Fargo)
  • Company Professionals:
    • Legal: Pachulski Stang Ziehl & Jones LLP (Richard Pachulski, Ira Kharasch, Maxim Litvak, Joshua Fried) & (local) Snow Pence Green LLP (Phil Snow, Kenneth Green)
    • Financial Advisor: Alvarez & Marsal LLC (Marc Leibman, Gary Barton)
    • Investment Banker: Jefferies Group Inc. (Robert White)
    • Claims Agent: KCC (*click on name above for link to docket)
  • Other Parties in Interest:
  • Ad Hoc Group of Senior Unsecured Noteholders: Ascribe Capital, Solace Capital Partners LP, Courage Capital Management LLC, Pacific Investment Management Co., Phoenix Investment Advisor LLC
    • Legal: Fried Frank Harris Shriver & Jacobson LLP (Brad Scheler, Matthew Roose) & (local) McKool Smith PC (Hugh Ray, Christopher Johnson)
    • Financial Advisor: FTI Consulting Inc.
  • Regions Bank
    • Legal: Norton Rose Fulbright (William Greendyke) & Parker Hudson Rainer & Dobbs LLP (Eric Anderson)
  • Wells Fargo
    • Legal: Loeb & Loeb LLP (Bernard R. Given, Walter Curchack, Vadim Rubinstein)

Updated 1/30/17

New Filing: Bonanza Creek Energy Inc.

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Bonanza Creek Energy Inc.

  • 1/4/17 Recap: The company filed a prepackaged bankruptcy to eliminate $850mm of debt from its balance sheet and infuse the company with $200mm of new equity.
  • Jurisdiction: D. of Delaware
  • Capital Structure: $475mm '17 1.5-2.5% RCF (Key Bank), $500mm '21 6.75% senior unsecured notes, $300mm '23 5.75% senior unsecured notes (Delaware Trust Company).      
  • Company Professionals:
    • Legal: Davis Polk & Wardwell LLP (Marshall Huebner, Brian Resnick, Elliot Moskowitz, Adam Shpeen, Lara Samet Buchwald) & (local) Richards Layton & Finger PA (Mark Collins, Amanda Steele, Brendan Schlauch)
    • Financial Advisor: Alvarez & Marsal LLC (Seth Bullock)
    • Investment Banker: Perella Weinberg Partners (Kevin Cofsky, Jacob Czarnick)
    • Claims Agent: Prime Clerk LLC (*click name above for docket link)
  • Other Parties in Interest:
    • RBL Agent: Key Bank
      • Legal: Bracewell LLP (Trey Wood, Jennifer Feldshur, Dewey Gonsoulin)
    • Ad Hoc Committee of Noteholders (Apollo Energy Opportunity Mgmt, Continental Casualty, Credit Suisse Asset Mgmt, DE Shaw Galvanic Portfolios, Gen IV Investment Opportunities LLC, Lord Abbett & Co., Luxor Capital Group LP, Mangrove Partners, Nomura Corporate Research & Asset Mgmt, Oaktree Capital Management LP, Paloma Partners Management Company, Par-Four Investment Management LLC, Perry Creek Capital Fund I, Socratic Fund Management LP, Whitebox Advisors). Added subsequent to the case filing (Aristeia Capital LLC, Barclays Bank PLC, Continental Casualty Company, Venor Capital Management LP, Wells Fargo Securities LLC); Subtracted subsequent to the case filing (Credit Suisse Asset Mgmt).
      • Legal: Kirkland & Ellis LLP (Edward Sassower, Steven Serajeddini, John Luze, Stephen Schwarzbach Jr.) & (local) Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, Peter Keane)
      • Investment Bank: Evercore
    • Ad Hoc Committee of Equity Security Holders (Fir Tree Inc., HHC Primary Fund, CVI Opportunities Fund I, Silver Point Capital, MatlinPatterson Global Opportunities Master Fund)
      • Legal: Brown Rudnick LLP (Edward Weisfelner, Bennett Silverberg, D. Cameron Moxley) & (local) Chipman Brown Cicero & Cole LLP (William Chipman Jr.)
      • Financial Advisor: Miller Buckfire & Co. (Richard Klein, Matthew Rodrigue)
    • Delaware Trust Company (as successor trustee to Wells Fargo)
      • Legal: Haynes and Boone LLP (Charles Beckham Jr., Keith Sambur) & (local) The Rosner Law Group LLC (Frederick Rosner, Scott Leonhardt)
    • Silo Energy LLC
      • Legal: Arent Fox LLP (George Angelich, Jackson Toof, Andrew Silfen) & (local) Polsinelli PC (Justin Edelson)
    • Senior Unsecured Noteholders: GMO Credit Opportunities Fund LP and Global Credit Advisors LLC
      • Legal: Ropes & Gray LLP (D. Ross Martin, Andrew Devore) & (local) Pepper Hamilton LLP (David Stratton)

Updated 4/2/17

New (Chapter 22) Filing - American Apparel Inc.

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American Apparel Inc.

  • 11/14/16 Recap: Large US-based apparel manufacturer and retailer with 193 total stores files for bankruptcy - months, uh, after emerging from bankruptcy. Company filed with a $30mm DIP proposal from Encina Business Credit LLC. Plan is to sell (for parts) expeditiously to Gilden Activewear SRL for $66mm (IP, remaining wholesale inventory and wholesale POs during restructuring).  
  • Jurisdiction: D. of Delaware
  • Capital Structure: $215mm of funded debt ($90mm DIP-rolled-into-TL-exit + $82mm of additional financing) & $15mm unsecured UK facility (Standard General)    
  • Company Professionals:
    • Legal: Jones Day LLP (Carl Black, Scott Greenberg, Michael J. Cohen, Erin Brady, Stacey Corr-Irvine, Genna Ghaul, Christpher Lovrien) & (local) Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, James O'Neill, Joseph Mulvihill)
    • Financial Advisor: Berkeley Research Group LLC (Mark Weinsten, Joseph D'Ascoli) & FTI Consulting (Andrew Hinkelman, Chuck Goad, Adam Saltzman, Frank Marshall, William Breashears, Zach Contreras)
    • Claims Consultants: Resources Global Professionals (Thora Thoroddsen, Evelyne Anglade, Scott Ashcraft, Luis Barreda, Sharon Dannewitz, Yolanda Hoelscher, Rodney Teruya)
    • Investment Banker: Houlihan Lokey (Saul Burian, Devin Shanahan, Sanaz Memarsadeghi, Ethan Kopp, Alexander Stolarz, Varun Desai)
    • Claims Agent: Prime Clerk (*click on company name for docket)
  • Other Parties in Interest:
    • DIP Lender: Encina Business Credit LLC
      • Legal: Riemer & Braunstein LLP (Steven Fox, Donald Rothman, Lon Singer, Alexander Rheaume) & (local) Ashby & Geddes PA (Gregory Taylor)
    • Agent to Prepetition Secured Lenders: Wilmington Trust
      • Legal: Covington & Burling LLP (R. Alexander Clark, Dianne Coffino) & Pepper Hamilton LLP (David Fournier)
    • Buyer: Gilden Activewear SRL
      • Legal: Sullivan & Cromwell LLP (Michael Torkin, Brian Hamilton, Miaoting Wu) & (local) Womble Carlyle (Matthew Ward)
    • Lead Lenders & Equityholders: Monarch Alternative Capital LP, Coliseum Capital Management LLC, Goldman Sachs Asset Management LP, Pentwater Capital Management LP, Standard General. 
      • Legal (except Standard General): Milbank Tweed (Gerard Uzzi, Eric Stodola) & (local) Fox Rothschild (Jeffrey Schlerf, L. John Bird)
      • Legal (Standard General): Debevoise & Plimpton LLP (Natasha Labovitz, Shannon Rose Selden, Craig Bruens, Erica Weisgerber) & (local) Young Conaway (Edmon Morton, Joseph Barry)
    • Largest Unsecured Creditors: Standard General, FTI Consulting, Moelis, Garden City Group
    • Unsecured Creditors' Committee:
      • Legal: Cooley LLP (Cathy Hershcopf, Seth Van Aalten, Robert Winning, Sarah Carnes, Michael Klein, Max Schlan) & (local) Bayard PA (Justin Alberto, Evan Miller, Gregory Flasser)
      • Financial Advisor: Emerald Capital Advisors (John Madden, Ryan O'Sullivan, Lawrence Jacobs, Christopher Moffatt, Jack Allen, Christopher Saitta, Daniel Pace, Ryan Feulner)

Updated 3/30/17

New Filing - Nasty Gal Inc.

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Nasty Gal Inc.

  • 11/9/16 Recap: Sophia Amoruso's provocative female-fashion e-commerce retailer with two California brick-and-mortar locations collapses under the weight of its own growth, global currency effects, and the inability to tap capital markets given depressed valuations for retailers, generally, and e-commerce businesses, specifically, and files for bankruptcy to delever its balance sheet. There is no stalking horse bidder for the assets. 87% of its revenues are from e-commerce. The company had at least $65mm of venture capital funding (Index Ventures, Ron Johnson).
  • Jurisdiction: C.D. of California
  • Capital Structure: $15mm secured debt (Hercules Technology Growth Capital Inc.), $5mm unsecured convertible bridge loan (at 3x liquidation preference)(Stamos & Johnson Fund I, LLP)   
  • Company Professionals:
    • Legal: Robins Kaplan LLP (Scott Gautier, Lorie Ball, Kevin Meek)
    • Investment Banker: Peter J. Soloman Company 
    • Claims Agent: Rust Consulting/Omni Bankruptcy (*click on company name for docket)
  • Other Parties in Interest:
    • Hercules Technology Growth Capital Inc.
      • Legal: Cole Schotz (Stuart Komrower, Ryan Jareck) & (local) Pachulski (Jeffrey Pomerantz, Jeffrey Dulberg)
    • Boohoo F I Limited
      • Legal: Troutman Sanders LLP (Penelope Parmes, Harris Winsberg, Stephen Roach)
    • Unsecured Creditors' Committee
      • Legal: Levene Neale Bender Yoo & Brill LLP (Gary Klausner, Todd Arnold)
      • Financial Advisor: B. Riley & Co. 

Updated 12/30/16

New Filing - Channel Technologies Group LLC

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Channel Technologies Group LLC

  • 10/17/16 Recap: Manufacturer of ceramics, transducers and sonar equipment sold to the US Navy and defense contractors like Northrop Grumman, Lockhead Martin and Raytheon files for chapter 11 to address onerous long-term contracts and attempt an expeditious sale of the business.  
  • Jurisdiction: Central District of California
  • Capital Structure: $2.86mm secured debt     
  • Company Professionals:
  • Other Parties in Interest:
    • Prepetition Secured Creditor/DIP Lender: Blue Wolf Capital Partners
    • Northrup Grunman
      • Legal: Gibson Dunn (Sam Newman, Daniel Denny)
    • Lockhead Martin
      • Legal: Hogan Lovells LLP (Christopher Donoho, M. Shane Johnson)

Updated 12/30/16.

New Filing - IMX Acquisition Corp. (Implant Services Corp.)

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IMX Acquisition Corp. (Implant Services Corp.)

  • 10/10/16 Recap: L-3 Communications is stalking horse bidder in $117.5mm sale (plus assumed debt) of previously publicly-traded explosives trace detection business.  
  • Jurisdiction: D. of Delaware
  • Capital Structure: $84mm funded secured debt b/t Term Notes ($61.6mm) & Revolver Note ($22.5m)    
  • Company Professionals:
  • Other Parties in Interest:

Updated 12/30/16

New Filing - Garden Fresh Restaurant Intermed. Holdings LLC

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Garden Fresh Restaurant Intermed. Holdings LLC

  • 10/3/16 Recap: Operator of 123 farm-sourced self-serve restaurants under the Souplantation & Sweet Tomatoes brands seeks expedited sale after suffering cash flow pressure from sector headwinds, workers' comp liability, minimum wage and health benefit pressures and rent increases.  
  • 8/8/17 Update: Perpetual Capital Partners and CR3 Capital LLC acquired the reorganized company for an undisclosed amount.
  • Jurisdiction: D. of Delaware
  • Capital Structure: ~$195mm of funded debt     
  • Company Professionals:
    • Legal: Morgan Lewis (Neil Herman, James Moore, Benjamin Cordiano, Katherine Lindsay) & (local) Young Conaway (Kenneth Enos, Michael Nestor, Ian Bambrick, Michael Neiburg, Travis Buchanan)
    • Financial Advisor: RAS Management Advisors LLC (Timothy Boates, Michael Rizzo)
    • Investment Banker: Piper Jaffrey (Teri Stratton, Peter Schwab, Jean Hosty, John Twichell, Jason Wang, Cooper Ziecik, Galen Hand)
    • Real Estate Advisor: Hilco Real Estate LLC (Ryan Lawlor)
    • Claims Agent: Epiq Bankruptcy Solutions, LLC
  • Other Parties in Interest:
    • Term Loan A Agent: Cerberus Business Finance LLC
    • Term Loan B Agent & DIP Lender: Cortlandt Capital Market Services LLC
      • Legal: Holland & Knight LLP (Barbra Parlin) & (local) Pachulski Stang (Laura Davis Jones)
    • Term Loan C and Term Loan D Agent: Apollo Investment Management
    • Other Lenders:
      • Ares Capital Corporation, Beach Point Capital, Sun Capital
    • UCC:
      • Legal: Kelley Drye & Warren LLP (Lauren Schlussel, Jason Adams, Eric Wilson, Scott Fleisher, Charlie Liu) & (local) Drinker Biddle & Reath LLP (Steven Kortanek, Joseph Argentina, Robert Malone)
      • Financial Advisor: Province Advisors (Paul Huygens, Thomas Jones, Carol Cabello, Jorge Gonzalez, Jin Dong)

Updated - Done