12/11/17 Recap: Holding company which holds, as its primary asset, an interest in a non-debtor online forex trading company filed a prepackaged bankruptcy to restructure its balance sheet. Troubles for the company began in early 2015 when "unprecedented volatility" in the euro-to-franc currency rate led the Swiss National Bank to eliminate its 1.2 france per euro floor. Instantly, the company was in breach of certain regulatory capital requirements and had to cease operations. After getting rescue financing from Leucadia National Corp. - bridging the company back into regulatory compliance - the company knew that the short term bridge would become an issue. A looming NASDAQ delisting triggered a "fundamental change" call provision on the notes which, of course, the company couldn't pay. The company's plan, solicited prior to filing, is basically an amend-and-extend. The term loan maturity is pushed one year and the converts will get (secured) take-back paper in the same nominal amount with maturity extended five years (with an interest rate uptick from 2.25% to 7%...PIK Toggle, of course).
Jurisdiction: S.D. of New York (Judge Wiles)
Capital Structure: $300mm secured term loan (Leucadia National Corp), $172.5mm 2.25% convertible notes (Bank of New York Mellon)
Company Professionals:
Legal: King & Spalding LLP (Arthur Steinberg, Michael Handler, Sarah Borders, Thaddeus Wilson, Elizabeth Dechant)
Financial Advisor: Perella Weinberg Partners
Claims Agent: Prime Clerk LLC (*click on company name above for free docket access)
Other Parties in Interest:
Ad Hoc Group of Convertible Noteholders (683 Capital Partners LP, Lazard Asset Management LLC, Penderfund Capital Management Ltd., Phoenix Investment Advisor LLC, Wolverine Flagship Fund Trading Limited)
Legal: Vinson & Elkins LLP (Steven Abramowitz, David Meyer, Lauren Kazer, Eric Hilmo)
3/13/17 Recap: Frisco Texas-based minority-business-enterprise (MBE) and wireless network and satellite television systems servicer filed a prepackaged chapter 11 case to de-lever its balance sheet by $212.5mm. This is a story, in many respects, about a concentrated revenue base and too much debt. 83% of the company's revenue is attributable to AT&T and "substantial completion of AT&T's 4G network build-out has diminished the associated demand for Goodman's services." Consequently, the company wasn't generating enough revenue to sustain its capital structure. Now, holders of the secured debt will receive cash, $112.5mm of new debt, PIK preferred stock and common stock. To preserve the MBE status, current equity will get PIK preferred stock and 50.1% of the common stock. Query whether that level of retained equity is a lesson to those who invested in this MBE structure.
Legal: Kirkland & Ellis LLP (Patrick Nash, Joshua Sussberg, Joseph Graham, Laura Krucks, Alexander Cross) & (local) Haynes & Boone LLP (Stephen Pezanosky, Kelli Norfleet)
Financial Advisor: FTI Consulting (John Debus)
Investment Banker: June Creek Interests (Andy Jent)
Claims Agent: KCC (*click on company name for docket)
Other Parties in Interest:
Ad Hoc Committee of Second Lien Bondholders (Alden Global, AllianceBernstein Global LP, J.P. Morgan Investment Management Inc., J.P Morgan Chase Bank N.A., Phoenix Investment Advisor LLC, Principal Global Investors LLC, Invesco Senior Secured Management Inc., Sound Point Capital Management LP)
Legal: Akin Gump (Michael Stamer, Charles Gibbs, Meredith Lahaie, Sara Brauner)
Financial: Greenhill & Co. Inc.
Wells Fargo
Legal: Reed Smith LLP (Eric Schaffer, Lloyd Lim, Maura Nuno)
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)
