Key takeaways of the updates on Pacific Exploration’s restructuring plan:
- $500m debtor-in-possession financing to be provided as part of restructuring transaction
- Gained court approval of consensual resolution with IFC of stay of extension of proceedings
- Company would be able to continue paying all of suppliers, trade partners and contractors of subsidiaries across jurisdictions
- Restructuring transaction aims to reduce debt and improve its liquidity
- The superior court of Ontario approved an extension of stay of proceedings until 26 August 2016
Bankrupt Spanish renewable energy company Abengoa SA‘s subsidiary was seeking court approval for more time to control its restructuring case, saying that it was not currently in position to fully evaluate claims against it or prepare a reorganization plan.
Abengoa Bioenergy US Holding LLC said in court papers it needs a 120-day extension to its exclusivity period to give it until 21 October 2016 to file a reorganization plan.
According to an announcement in the New York court, bankrupt solar power producer SunEdison allowed its unsecured creditors to investigate its bankruptcy amid an agreement the company reached with its junior creditors on its finance package.
SunEdison, carrying debt of $16bn at the time of filing for bankruptcy. The troubled company hasn’t yet filed audited financial statements for 2015.
It appears that during court proceedings, creditor’s evaluation of SunEdison’s financial affairs revealed little information regarding SunEdison’s subsidiaries that were not involved in the bankruptcy.
In exchange for the right to investigate, SunEdison’s unsecured creditors agreed to withdraw opposition to the company’s $300m bankruptcy financing package.
SunEdison’s yieldcos or its most significant creditors, TerraForm Power Inc. and TerraForm Global Inc., reached an agreement designed to make sure the company that once owned them would be able to meet its obligations to them.
The committee investigation would replace a probe SunEdison had earlier requested, one that creditors declared to be too limited in scope and budget.
In addition, SunEdison’s bankruptcy financers, which are also the company’s senior lenders, agreed to free up for junior creditors up to $50m of insurance coverage available under the company’s officers and directors liability insurance coverage.
SunEdison’s scheduled hearing on Thursday in a New York bankruptcy court on its $300m bankruptcy loan was postponed until Friday.
Some of SunEdison’s creditors and its so-called yieldcos, TerraForm Global Inc. and TerraForm Power Inc., had objected in court papers to the debtor-in-possession loan, which includes features that may help a group of lenders recoup their initial investment.
According to SunEdison’s attorney Jay Goffman, a deal on the DIP loan was expected by Friday.
SunEdison filed for bankruptcy in April after its ambitious growth plan proved unsustainable. It received approval from a judge last month to tap some of the DIP loan.
U.S.-based oil explorer Pacific Exploration & Production Corp stated that its board was in favor of a restructuring proposal submitted by Catalyst Capital Group over a bid by EIG Global Energy Partners.
Previously, EIG Global had submitted a proposal in early May 2016 to provide $250m debtor-in-possession (DIP) financing to Pacific Exploration and sponsor the company’s restructuring.
Catalyst Capital had also agreed to provide $250m in DIP financing in April 2019 to take a 29.3 percent stake in the restructured company.
Belgium-based VLM Airlines filed for bankruptcy protection in an Antwerp commercial court.
The move, if approved, would grant the airline operator creditor protection for a period of six months, enabling it to restructure operations.
According to VLM’s CEO Hamish Davidson, the company expected that the judicial reorganization would enable it to repay historical debts and suppliers and ensure the smooth running of daily operations.
KBC Bank’s decision to freeze VLM’s accounts on Wednesday last week triggered the filing, equivalent to Chapter 11 in the United States.
The airline’s debts reportedly included €3m ($3.4m) owed to the bank as well as an additional €3m owed to various suppliers which include the Antwerp Airport.
The operator had suffered a €13m ($14.7m) loss for its last financial year making it abandon plans to lease four SSJ 100-95 LRs from Russian lessor, the Ilyushin Finance Co., earlier this year.
At present, VLM operates eleven Fokker 50s (of which two are leased to each of Cityjet and flybe) on passenger charter flights as well as scheduled passenger flights between Belgium, Switzerland, Germany, the United Kingdom, Ireland, the Netherlands, Italy, and Norway.