New Chapter 11 Filing - Answers Holdings Inc.
Answers Holdings Inc.
- 3/3/17 Recap: Apax Partners' backed website operator has filed for bankruptcy because it never evolved from Internet 1.0, has too much debt, its main site, Answers.com, is the red-headed step-child of Quora, and, quite frankly, not a single person receiving the PETITION newsletter has visited the site(s) since 2006. Yahoo, Facebook, Amazon (AWS), Amex and Silicon Valley Bank are among the top 10 creditors. The debtors solicited a prepackaged plan and so all of the above will be unimpaired - somewhat ironic given that algorithmic changes by Google and Facebook - in addition to a mountain of debt - are the real root causes of the company's decline.
- Jurisdiction: SD of New York
- Capital Structure: $40mm revolver, $325mm '21 first lien TL, $180mm '22 second lien TL.
- Company Professionals:
- Legal: Kirkland & Ellis LLP (James Sprayragen, Jonathan Henes, Christopher Greco, Melissa Koss, John Weber, Anthony Grossi)
- Financial Advisor: Alvarez & Marsal LLC (Justin Schmaltz, Erin McKeighan)
- Investment Banker: Rothschild (Steven Antinelli)
- Claims Agent: Rust Bankruptcy/Omni Consulting (*click on company name for docket)
- Other Parties in Interest:
- Ad Hoc Group of Consenting First Lien Lenders
- Legal: Jones Day LLP (Scott Greenberg, Michael Cohen, Bryan Kotliar)
- Financial Advisor: Houlihan Lokey
- First Lien Agent: Credit Suisse AG
- Legal: Gibson Dunn & Crutcher LLP (David Feldman, J. Eric Wise)
- Ad Hoc Group of Consenting Second Lien Lenders (Deerpath Capital Management LP, North Haven Credit Partners LP, Summit Partners Credit Advisors LP)
- Legal: Akin Gump Strauss Haur & Feld LLP (David Botter, David Simonds)
- Financial Advisor: FTI Consulting Inc.
- Legal: Akin Gump Strauss Haur & Feld LLP (David Botter, David Simonds)
- Second Lien Agent: Wilmington Trust NA
- Legal: Alston & Bird LLP (Jason Solomon, David Wender)
- Sponsor Entities: Apax Partners LP, Clarity Holdco LP, Clarity GP LLC
- Legal: Simpson Thacher & Bartlett LLP (Elisha Graff, Edward Linden)
- Proposed Board of Directors of the Reorganized Entity: William Ruckelshaus, Eric Ball, Peter Daffern, Eugene Davis, John Federman, Lonne Jaffe, Brian Mulligan.
- Ad Hoc Group of Consenting First Lien Lenders
Updated 4/2/17