3/13/17 Recap: Clearly Warren Buffett doesn't own this dog. The Omaha, NE-based publicly-traded (GMAN) specialty retailer (apparel and home fashions) with 72 stores in 16 states (according to PE sponsor Sun Capital Partners) or 106 stores in 22 states (according to the company) filed bankruptcy to continue the 5-month long evisceration of Sun Capital Partners' retail portfolio. Oh, and liquidate. Choice quote: "It is likely that other retailers may commence chapter 11 cases in the near term, as retail is set to replace the troubled oil and gas industry as the most distressed sector this year." Just in case anyone is scratching their heads as to how this liquidation could possibly be happening, note that e-commerce made up less than 1-percent of the Company's sales. This REALLY begs the question: what value was Sun Capital Partners bringing to the table? Do they not have operating partners? Sheesh.
Jurisdiction: D. of Nebraska
Capital Structure: $68.75mm RCF (Wells Fargo) + $31.25mm RCF (PNC Bank NA) of which $29mm in total outstanding, $30mm TL (Wells Fargo - $15mm, Pathlight - $7.5mm & Gordon Brothers Finance - $7.5mm)($27.9mm outstanding).
Company Professionals:
Legal: Kirkland & Ellis LLP (Jayme Sprayragen, Patrick Nash, Brad Weiland, Jamie Netznik, Alexandra Schwarzman) & Kutak Rock LLP (Lisa Peters, Jeffrey Wegner)
Financial Advisor: Clear Thinking Group LLC (Joseph Marchese)
3/10/17 Recap: Preppers alert! The Minneapolis-based outdoor retailer that specializes in guns guns and more guns has run out of "dry powder" (score!) and finds itself in chapter 11. This comes around the same time that the Cabela's/Bass merger looks to be hanging by a thread. Tough time for outdoor retail. On the brightside, folks who are so scared by the recent election can now get a break on MREs and other survival gear as they go off-grid or to Canada. So, there's that.
5/3/17 Update: The company has sold to Camping World Inc. and, attendant to the sale, entered into an agency agreement with a JV of liquidating firms noted below to handle the assets left out of the sale.
Jurisdiction: D. of Minnesota
Capital Structure: $390mm ABL (Wells Fargo Bank NA) & $35mm TL (Pathlight Capital LLC) debt
Company Professionals:
Legal: Fredrikson & Byron PA (Ryan Murphy, Clinton Cutler, Cynthia Moyer, James Brand, Sarah Olson, Steven Kinsella)
Financial Advisor: Lighthouse Management Group (Timothy Becker, James Bartholomew)
Investment Banker: Houlihan LokeyCapital Inc. (Stephen Spencer)
Real Estate Advisor: Hilco Real Estate LLC (Ryan Lawlor)
Liquidators: Tiger Capital Group LLC (Dan Kane, Michael McGrail), Great American Group LLC (Scott Carpenter, Alan Forman), Gordon Brothers Retail Partners LLC (Mackenzie Shea), Hilco Merchant Resources LLC (Ian Fredricks)
Legal for Liquidators: Wachtell Lipton Rosen & Katz (Scott Charles, Neil Snyder) & Riemer & Braunstein LLP (Steven Fox)
Claims Agent: Donlin Recano (*click on the company above for free docket)
Other Parties in Interest:
Prepetition ABL & DIP Lender: Wells Fargo Bank NA
Legal: Choate Hall & Stewart LLP (Sean Monahan, Kevin Simard)
Term Loan Agent: Pathlight Capital LLC
Legal: Morgan Lewis & Bockius LLP (Mark Silva, Julia Frost-Davis, Amelia Joiner)
Official Committee of Unsecured Creditors
Legal: Lowenstein Sandler LLP (Jeffrey Cohen, Keara Waldron, Barry Bazian) & (local) Barnes & Thornburg LLP (Connie Lahn, Peter Clark, Christopher Knapp, Roger Maldonado)
3/8/17 Recap: We're exasperated. Let's revisit history. In February 2015, Radio Shack filed for bankruptcy. The bankruptcy court confirmed the plan of reorganization in October 2015 and it went effective just five days later. So...six...wait, carry the one...yeah, sixteen months later the successor entity General Wireless Operations is now in bankruptcy looking to shut the lights and/or pass this toad on to another sucker as Standard General pulls the chute. Why did this all happen? Well, because Sprint sucks, apparently ("[w]hile the retail business progressed, the Sprint relationship did not yield the benefits that the Debtors expected"). The arrangement out of bankruptcy was for the reinvented Radio Shack to have co-branded stores with Sprint for the purpose of selling Sprint mobile devices that nobody wants (note: 78+mm Apple iphones were sold last quarter). Sprint was obligated to pay rent for the space it occupied as well as commissions above a certain threshold level of sales ($60mm). Hahahaha...above a threshold level of sales? Yeah, never got there (wait what? erroneous projections? you don't say!). Absent that cash inflow, the company had insufficient funds to continue to operate as a going concern. Hence, the Scarlet 22.
Jurisdiction: D. of Delaware
Capital Structure: $75mm revolver and term loan debt ($25.5mm funded) (Royal Bank of Canada & GACP Finance Co. LLC) & $88mm second lien revolver and term loan debt ($39.7mm funded)(Standard General Master Fund LP, Cortland Capital Market Services LLC, Prisma Capital Partners LP) & $23mm IP term loan (Kensington Technology Holdings LLC)
Company Professionals:
Legal: Jones Day LLP (Scott Greenberg, Mark Cody) & Pepper Hamilton LLP (David Fournier, Evelyn Meltzer, Michael Custer, Kay Kress)
Financial Advisor: Loughlin Management Partners & Company Inc.
Liquidation Consultant: Tiger Capital Group LLC
Claims Agent: Prime Clerk LLC (*click on company name for docket)
Other Parties in Interest:
Sprint
Legal: McGuire Woods LLP (David Swan, James Van Horn) & (local) K&L Gates LLP (Steven Caponi)
Kensington Technology Holdings LLC
Legal: Honigman Miller Schwartz and Cohn LLP (Joseph Sgroi)
GACP Finance Co. LLC
Legal: Paul Hastings LLP (Andrew Tenzer, Leslie Plaskon, Michael Comerford) & (local) Young Conaway Stargatt & Taylor LLP (Pauline Morgan, Justin Rucki, Allison Mielke)
3/8/17 Recap: The Pittsburgh-based manufacturer of saltwater batteries used for energy storage has filed for bankruptcy after burning through tens of millions of dollars. The goal is to explore an asset sale. Prepetition efforts by Citi Global Markets Inc. to attract a buyer or raise capital for the company fell short (something tells us their engagement letter and tail payment are going to be in the rejection bin). The privately-owned company received $180mm of venture capital money from high profile investors like Bill Gates (labeled the "kiss of death in energy storage" here and conveniently omitted from mention in the filing declaration), top venture capital fund Kleiner Perkins Caufield & Byers, and corporate venture capital units of Total, Exelon Corporation and Royal Dutch Shell. This case is generally smaller than what we cover but it is representative of the fact that, despite widespread adoption of renewable energy sources, storage solutions are very expensive to deploy.
Capital Structure: $20mm TL (~$5.2mm funded)(Trinity Capital Fund II LP)
Jurisdiction: D. of Delaware
Company Professionals:
Legal: Pachulski Stang Ziehl & Jones LLP (Laura Davis Jones, David Bertenthal, Joseph Mulvihill, Maxim Litvak) & (special counsel) Morgan Lewis & Bockius LLP (Julia Frost-Davies)
Financial Advisor: Protiviti Inc. (Suzanne Roski)
Claims Agent: KCC (*click on company name for docket)
3/6/17 Recap: Indianapolis-based (and formerly publicly-traded - HGGG) brick-and-mortar retailer of appliances, consumer electronics, home products (read: all things that millennials don't buy) FINALLY filed for bankruptcy after an endless barrage of negative news stories, including reports of 88 store closures. The company's distress - brought on by trends afflicting the retail space generally and repeated to death in each and every retail bankruptcy filing, e.g., declining mall traffic, onerous leases, etc., - was exacerbated by its credit card program with Synchrony Bank and the need to post letters of credit to collateralize Synchrony's acquired receivables ($3mm paid, another $14mm owed). Note: there's a commentary here about consumer lending. The filing is intended to enable the company to continue with store closing sales and potentially find a buyer for its remaining locations.
Jurisdiction: S.D. of Indiana
Capital Structure: $300mm '21 credit facility ($56mm out)(Wells Fargo)
Company Professionals:
Legal: Morgan Lewis & Bockius LLP (Neil Herman, Rachel Jaffe Mauceri, Benjamin Cordiano, Katherine Lindsay, Matthew Ziegler, Michaela Dragalin) & (local) Ice Miller LLP (Jeffrey Hokanson, Sarah Fowler)
Financial Advisor: Berkeley Research Group (Robert Duffy)
Investment Banker: Stifel & Miller Buckfire & Co. (James Doak)
Liquidators: Hilco Merchant Resources LLC (Ian Fredericks) and Gordon Brothers Retail Partners LLC (Michael Chartock)
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)
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.
3/1/17 Recap: The San Diego-based proton radiation treatment center is the latest treatment center to file for bankruptcy. It opened in February '14 and managed to be very successful...at bleeding cash from the get-go. Now, the company hopes to achieve a sale in bankruptcy with the help of a $32mm DIP credit facility (of which only half is new money).
Jurisdiction: D. of Delaware
Capital Structure: ~$180mm first lien debt (ORIX Capital Markets)
Company Professionals:
Legal: Locke LordeLLP (David Wirt, Aaron Smith, Phillip Nelson, Brian Raynor) & (local) Polsinelli PC (Christopher Ward, Justin Edelson)
Financial Advisor: Carl Marks Advisory Group (J. Jette Campbell)
3/1/17 Recap: As malls empty out across the country, the dominoes are starting to fall. If there is nothing but vacancy and tumbleweed around you, foot traffic will stall. If foot traffic stalls, revenue stalls. If revenues stall, landlords can't get paid. And if landlords can't get paid, well, say hello to the Grim Reaper. Okay, that's a little dramatic, but, to be fair, this does generally describe mall-based retail these days. And the latest chapter in this sad story is the liquidation of Vanity Shop's 137 stores - the affect of which in smaller geographies like North Dakota can't be underestimated (not to mention any ripple effect: 60% of the company's inventory came from US suppliers). In addition to the (now) regular laundry list of prior companies who have had a similar fate in the retail space, e.g., The Limited Brands, THIS was probably the most interesting disclosure in the company's filing: "The Debtor initially contemplated soliciting a bid from Hilco Merchant Resources, LLC (who has routinely performed inventory appraisals and liquidation analyses of Debtor's assets every six months) but was advised that Hilco is currently unavailable to take on another liquidation project at this time." (emphasis added). Now THAT is telling.
Jurisdiction: D. of North Dakota
Capital Structure: $4.3mm debt (Wells Fargo), $5mm subordinated debt
Company Professionals:
Legal: Vogel Law (Jon Brakke, Caren Stanley)
Liquidator: Tiger Capital Group LLC
Legal: Cohen Tauber Spievack & Wagner PC (Robert Boghosian)
Claims Agent: KCC (*click on company name for docket)
Other Parties in Interest:
Wells Fargo
Legal: Riemer Braunstein LLP (Donald Rothman, Alexander Rheaume)
Official Committee of Unsecured Creditors (Washington Prime Group Inc., GGP Limited Partnership, Simon Property Group Inc.)
Legal: Fox Rothschild LLP (Mette Kurth, Paul Labov, Ellie Barragry, L. John Bird)
3/1/17 Recap: Fashion powerhouse founded in 1989 filed for bankruptcy yesterday with a plan to optimize optionality: within the next six months, the company will dual track a potential debt-for-equity transaction (its second in 2 years) and a sales process to allow the business to continue as a going concern. This process comes on the heels of an operational restructuring which dramatically decreased the company’s brick-and-mortar footprint, with ~120 of ~550 stores already closed and attendant headcount reductions initiated. This is another sad retail story: macro retail headwinds (read: Amazon and decreased brand loyalty), too much debt, poor wholesale and IP licensing strategies, and too much unjustifiable stateside and global growth. Make no mistake: Amazon is a big story in all of this recent retail bloodshed but these bankruptcies wouldn’t be happening if that story wasn’t compounded by tunnel vision and poor strategy - here, marked, notably, by no recognizable online presence. Now, the restructuring professionals are going to earn their keep, devising a fast-track multi-tier process to try and keep this thing out of the liquidation bin. On an aside, we'd like to point out that, again, Simon Property Group and GGP Limited Partnership have made notices of appearances in this case so anyone who says that the A Mall operators are unharmed by the recent bloodbath in retail is smoking crack. Footnote: neither Twitter nor Sears can catch a break; they are both owed hundreds of thousands of dollars.
Jurisdiction: S.D. of New York
Capital Structure: ~$460mm debt. $82mm ABL Facility (Bank of America), $35mm TL Tranche A, $4.2mm TL Tranche A-1, $48.5mm Term Loan Tranche A-2, $0 (undrawn) Term Loan Tranche A-3, $289.4mm Term Loan Tranche B (Guggenheim Corporate Funding LLC).
Company Professionals:
Legal: Kirkland & Ellis LLP (Jayme Sprayragen, Christopher Marcus, Joshua Sussberg, Benjamin Rhode, John Luze)
2/28/17 Recap: Some offshore blood here. The Houston-based deepwater subsea construction service company (which sounds pretty bada$$ btw) suffered from declining revenue and cash flow (read: declining demand), high costs and increasingly limited access to credit. Hence, bankruptcy. With the benefit of a $90mm dual-tranche DIP, the Company will sell its marine base in Texas and otherwise use bankruptcy to restructure the balance sheet.
Jurisdiction: S.D. of Texas
Capital Structure: $480mm secured debt & $175mm unsecured debt
2/27/17 Recap: High-flying (ugh) drone startup that put together kick-a$$ production videos and crowdfunded tens of millions of dollars ($34.8mm to be exact) from tens of thousands of generous suckers (61.450 to be exact) filed for bankruptcy to implement an IP sale, a liquidating plan and avoid investigation and litigation. They'll probably throw in extensive releases for Spark Capital for good measure because, well, why the hell not? And next thing you know, the "revolutionary" and "disruptive" founders will end up fundraising for their next hair-brained scheme and convince yield-starved investors to back them again a la Fab.com's Jason Goldberg. No bubble to see here. Just the dumpster fire that is $13.8mm of Spark Capital's equity capital.
Jurisdiction: D. of Delaware
Capital Structure: ~$4mm TL (Spark Capital, VC, successor to SVB Financial Group)
Company Professionals:
Legal: Orrick Herrington & Sutcliffe LLP (Laura Metzger, Jennifer Asher, Douglas Mintz) & (local) Morris Nichols Arsht & Tunnell LLP (Robert Dehney, Andrew Remming, Marcy McLaughlin)
2/14/17 Recap: Happy Valentine's Day, honey, your favorite midwestern sporting goods store is going out of business and I picked up some sweet Nike kicks for you at (an alleged) 60% off. Great for you. Great for me. Not so great for the 1300 employees, Nike (who is owed $3.8mm), Under Armour (owed $2.4mm), and the company CEO who owns 86% of the equity. Berkeley Research Group is at the helm of another liquidation: never before has a single firm's use of "tombstones" been so literal.
Jurisdiction: W.D. of Michigan
Capital Structure: $49.4mm funded secured ABL debt (Wells Fargo)
Company Professionals:
Legal: Warner Norcross & Judd LLP (Stephen Grow, R. Michael Azzi)
Financial Advisor: Berkeley Research Group LLC (Steve Coulombe)
Investment Banker: Stout Risius Ross Advisors LLC (Michael Krakovsky)
Liquidators: Tiger Capital Group LLC and Great American Group LLC
Intellectual Property Disposition Consultant: Hilco IP Services LLC (Gabriel Fried)
Real Estate Advisors: A&G Realty Partners LLC (Michael Jerbich)
2/6/17 Recap: The Chicago-based brainiacs behind the specialty retailer that sells games, puzzles, books and software apparently weren't smart enough to run a sustainable business. Consequently, Marbles Holdings filed a Chapter 11 to find a buyer for certain assets and liquidate the remainder. A proposed sale of IP and a wind-down of the 37 mall-based locations (including one in the ultimate "tourist mall," the World Trade Center, and many others in the, cough, "A Malls" owned by Westfield, Simon Properties, and General Growth Properties) and six in-store concept stores within Macy's will be funded pursuant to a $900k DIP. Choice quote in the first day declaration, "It is likely that other retailers may commence chapter 11 cases in the near term." Ominous.
Jurisdiction: N.D. of Illinois
Capital Structure: ~$17.5mm secured debt (Amzak Capital Management, AMPR Marbles Investors LLC)
Company Professionals:
Legal: Adelman & Gettleman LLP (Howard Adelman, Henry Merens, Erich Buck, Alexander Brougham)
Liquidator: Gordon Brothers Retail Partners LLC
Investment Banker: Hilco IP Services LLC d/b/a Hilco Streamback
2/5/17 Recap: Seems like chapter 22 bankruptcies are the "it" thing now: everyone's doing it. Last year, Versa Capital Management bought the company in the Vestis Group bankruptcy and, now, Sports Direct looks to pick up the pieces in yet ANOTHER sale of the Bob's Stores and Eastern Mountain Sports retail properties. Top creditors include Under Armour and Google which says something about (a) why UA's growth numbers were considerably off last quarter and (b) the cost of Google SEO for companies in this internet age.
Jurisdiction: D. of Delaware
Capital Structure: $41mm RCF (PNC Bank), $42mm TL (Sportsdirect)
Company Professionals:
Legal: Bracewell LLP (Robert Burns, Jennifer Feldshur, David Riley, Mark Dendinger) & (local) Cole Schotz (Norman Pernick, Marion Quirk, Katharina Earle)
Turnaround Advisor: AlixPartners LLC (Spencer Ware, Susan Brown, Afshin Azhari)
2/6/17 Recap: These bada$$ strapping towing lads fought the law and the law won. Meaning: a $5mm judgment was rendered against the Illinois-based company for purportedly charging excessive fees and now the company has less money, mo' problems. The company filed chapter 11 to obtain cover under the automatic stay (and avoid enforcement of the judgment) and sell the company. No stalking horse bidder, however, is in tow (see what we did there?). First lien lender Wells Fargo is providing a $32.25mm DIP to fund the case.
Jurisdiction: D. of Delaware
Capital Structure: $32.3mm first lien credit facility ($13.8mm out - Wells Fargo) & $17mm second lien credit facility ($19.4 claim - Medley Capital)
Company Professionals:
Legal: Winston & Strawn LLP (Daniel McGuire, Grace D'Arcy, Carrie Hardman) & (local) Young Conaway Stargatt & Taylor LLP (M. Blake Cleary, Ryan Bartley, Andrew Magaziner)
Financial Advisor: Getzler Henrich & Associates LLC
Investment Banker: SSG Advisors LLC
Claims Agent: Rust Consulting/Omni Bankruptcy LLC (*click on company name for docket)
2/6/17 Recap: Private equity backed marine shipping company files for prepackaged chapter 11 to effectuate sale of assets, the proceeds from which will be used to pay down debt. Sparrow Capital Investments Ltd. will purchase the company's river business holding companies for $73mm in cash. Barry Ridings of Lazard will be on the reorganized company's Board of Directors (and collect an $80k paycheck).
Jurisdiction: S.D. of New York
Capital Structure: $566mm '21 8.875% notes & credit facilities with International Finance and OPEC Fund.
Company Professionals:
Legal: Zirinsky Law Partners PLLC (Bruce Zirinsky, Sharon Richardson) & Hughes Hubbard LLP (Christopher Kiplok, Erin Diers, Dustin Smith) & Seward & Kissel (Ronald Cohen, Lawrence Rutkowski, Anthony Tu-Sekine)
Financial Advisor: AlixPartners International LLP (Rebecca Roof, Stephen Spitzer, Peter Baldwin, Jon Bryant)
Investment Banker: Miller Buckfire & Co. LLC (Kevin Haggard)
Claims Agent: Prime ClerkLLC (*click on case name above for free docket)
2/2/17 Recap: Houston-based oil and gas producer files chapter 11 pursuant to a restructuring support agreement that, if implemented, will permit the company to cut over $700mm of debt. The company has secured a $50mm DIP.
Legal: Paul Hastings LLP (Chris Dickerson, James Grogan, Todd Schwartz, Alexander Bongartz, Brendan Gage)
Financial Advisor: Opportune LLP (Scott Anchin)
Investment Banker: Evercore Partners (Daniel Aronson, Marco Acerra)
Claims Agent: Prime Clerk (*click on company name for docket)
Other Parties in Interest:
Ad Hoc Group of 2L noteholders (Fir Tree Inc., Wexford Capital LP, York Capital Management Global Advisors)
Legal: Morrison & Foerster LLP (Jonathan Levine, John Pintarelli, Daniel Harris) & (local) Jackson Walker LLP (Monica Blacker, Matthew Cavenaugh)
Ad Hoc Committee of Senior Noteholders & UMB Bank NA
Legal: Milbank (Dennis Dunne, Andrew LeBlanc, Samuel Khalil) & (local) Porter Hedges LLP (John Higgins, Eric English)
Investment Bank: PJT Partners Inc.
RBL Lender: Citibank NA
Legal: Weil (Stephen Karotkin, Joseph Smolinsky, Blaire Cahn, Christopher Lopez)
UMB Bank
Legal: Kelley Drye & Warren LLP (Eric Wilson, Benjamin Feder, T. Charlie Liu)
Wilmington Trust
Legal: Pryor Cashman LLP (Seth Lieberman, Patrick Sibley, Matthew Silverman) & (local) Cole Schotz PC (Michael Warner, Benjamin Wallen)
Independent Directors of the Board
Legal: Andrews Kurth Kenyon LLP (Robin Russell, Tad Davidson, Joseph Buoni)
Unsecured Noteholder & Preferred Unitholder: Panning Capital Management
Legal: Munger Tolles & Olson LLP (Thomas Wolper, Seth Goldman) & (local) Norton Rose Fulbright US LLP (William Greendyke, Jason Boland, Bob Bruner, Louis Strubeck)
Ad Hoc Equity Committee
Legal: Gardere Wynne Sewell LLP (John Melko, Sharon Beausoleil, Michael Riordan, Sean Wilson, Holland O'Neil)
Official Committee of Unsecured Creditors
Legal: Akin Gump (Charles Gibbs, Michael Stamer, Abid Qureshi, Meredith Lahaie, Kevin Zuzolo)
1/30/17 Recap: This is a revenue and operating costs story. Not enough of the first. Too much of the latter. Utilization didn't make up for the cost and capital structure and now the debtor is in Chapter 11 with the hope of finding a buyer.
Jurisdiction: E.D. of Louisiana (transferred from D. of Delaware)
Capital Structure: $12mm RCF/$6.7mm funded (MidCap Financial LLC), $105mm Demand Note (Cardiovascular Care Group Inc.),
Company Professionals:
Legal: Alston & Bird LLP (Grant Stein, David Wender, Sage Sigler), Jones Walker LLP (Elizabeth Futrell) & (local) Young Conaway Stargatt & Taylor LLP (Joel Waite, Kenneth Enos)
Financial Advisor & CRO: Solic Capital Advisors LLC (Neil Luria)
Claims Agent: Garden City Group (*click on company name above for free docket)
1/30/17 Recap: Spurned on by the potential riches guaranteed by $105 crude oil and $3.68 natural gas, Azure Midstream Partners - a master limited partnership headquartered in Dallas - invested heavily in natural gas pipeline in 2015, incurring hundreds of millions of debt to fund the expansion. Shortly thereafter, oil sank to $26 and natural gas to $1.62. With the industry in turmoil, capex budgets contracted considerably and the company’s largest contract counterparties terminated or lapsed contracts (including Anadarko Petroleum Corporation), materially reducing EBITDA and triggering covenant defaults. Now, the company seeks to sell its assets in bankruptcy and liquidate the rest. Discussions with a stalking horse bidder hadn’t been finalized at the time of filing.
Capital Structure: $175mm debt (Wells Fargo Bank NA)
Company Professionals:
Legal: Weil (Gary Holtzer, Robert Lemons, Charles Persons, Chris Lopez, Katherine Doorley, David Zubkis) & Vinson & Elkins LLP (Bradley Foxman)
