U.S.-based energy firm Breitburn Energy Partners LP filed for Ch-11 bankruptcy, on being negatively impacted by falling oil prices. The company filed for restructuring in the U.S. Bankruptcy Court in New York, with reported assets of $4.7bn and debts of $3.4bn as of 31 March 2016.
According to company CFO James Jackson, the decision to file for bankruptcy was made when persistent negotiations with lenders failed and an out-of-court restructuring agreement would have affected the company’s liquidity severely.
The company has lined up a $75m DIP financing facility, and is in talks with senior lenders to include an additional $75m, if certain conditions were met.
A talking point during Breitburn’s restructuring would include its hedging assets, contracts that cushion the company’s cash holdings against oil price volatility. The company estimates that proceeds of its hedging agreements could be up to $500m, which, outside bankruptcy, could be “a significant source of liquidity.”
However, some of the Breitburn’s senior lenders have objected to the distribution of proceeds arising from hedging arrangements during bankruptcy as they are counter-parties to it.
Sandridge Energy Inc. filed for Ch-11 bankruptcy in the U.S. Bankruptcy Court of Houston on reaching a debt-to-equity swap agreement with creditors. The swap would give its existing creditors control of the re-organized company.
Sandridge, which is the latest victim of falling oil prices, intends to finance its operations without securing a bankruptcy or a DIP loan. The company intends to conduct business normally whilst undergoing restructuring and intends to pay its operating expenses associated with production activities, royalties and wages to its workers and also intends to pay all of its suppliers and vendors.
At the time of filing for bankruptcy, the company had assets of $7bn and debt of about $4bn.
SandRidge is advised by law firm Kirkland & Ellis LLP, which is handling the chapter 11 case, and Houlihan Lokey Inc. is the company’s financial adviser.
U.S-based CHC Group Ltd., which is engaged in the provision of transportation services to the offshore oil and gas industry, filed for Chapter-11 bankruptcy. The filing came days after a fatal accident of one of its helicopters in Norway, which forced the company to ground much of its fleet.
As of 31 January 2016, the company had debt of $2.19bn against assets of $2.17bn and operated a fleet of 231 helicopters as on 31 January 2016. Industry experts estimated that one-fifth of the company’s fleet was idle, due to lack of demand for its services from oil & gas companies, forcing it to explore cost-cutting options.
Further, on 15 April 2016, the company missed a $46m interest payment on approximately $1bn of its bonds, triggering a 30-day grace period to make the payment and avoid default.
Weil Gotshal & Manges and Debevoise & Plimpton are the legal representatives of the company.
Financial advisers to CHC are Seabury Advisors, PJT Partners and CDG Group.
Teen retailer Aeropostale Inc. is preparing to file for bankruptcy this week and close more than 100 stores on falling sales and increasing losses. The company has been unable to return to growth in the last few years, unlike its peers American Eagle Outfitters and Abercrombie & Fitch, as young customers have turned away from branded clothing.
Aeropostale would become the latest retailer to file for Ch-11 bankruptcy. Previously, the Wet Seal, Quicksilver, Pacific Sunwear, Sports Authority, and Vestis Retail (parent of Eastern Mountain Sports) are among the chains to seek bankruptcy protection from the courts in the last 16 months.
The company’s shares were delisted by the NYSE in April 2016 for trading below $1 a share for an extended period.
SunEdison Inc. filed for Chapter-11 bankruptcy protection, a move that has been expected by investors for weeks.
Trading in the company’s stock was halted at $0.34 a share prior to the filing.
The company secured $300m debtor-in-possession facility whilst it undergoes restructuring.
SunEdison’s yieldcos, TerraForm Power and TerraForm Global were not part of the bankruptcy filing.
TerraForm Power’s stock surged 4.1% in morning trade and TerraForm Global shares climbed 3%.
U.S-based teen apparels retailer Pacific Sunwear filed for Chapter 11 bankruptcy protection on Thursday. The company will continue to operate its 600 stores during the restructuring process.
As part of the restructuring, private equity firm Golden Gate Capital will convert more than 65% of the firm’s debt into equity. Further, Golden Gate would also provide at least $20m in additional capital once the company emerges from bankruptcy.
The retailer has also secured a $100m debtor-in-possession financing facility from Wells Fargo, which it can draw from while it goes through bankruptcy. Upom emerging from bankruptcy, Wells Fargo would provide the company a five-year, $100m revolving line of credit facility.
Company CEO Gary Schoenfeld stated that Pacific Sunwear was seeking bankruptcy protection in order to get rid of two thirds of its debt and restore its balance sheet, reduce store costs either by negotiating with landlords or getting out of leases.
PacSun follows in the footsteps of other retailers who have sought Chapter 11 protection, including American Apparel, Wet Seal, Delia’s and Sports Authority.
According to sources, U.S-based surfwear chain Pacific Sunwear of California Inc. (PacSun) was preparing to file for Chapter 11 bankruptcy as early as next week.
Sluggish retail spending and shifting consumer tastes claimed peers such as American Apparel Inc. and Quiksilver Inc. into bankruptcy in 2015.
The company, which operated about 613 stores, had recorded losses each year since 2008, and its shares had plunged about 90% in the past 12 months.
PacSun had a $60m Sr. secured Term Loan provided by an affiliate of private equity firm Golden Gate Capital.
US-based E&P company Goodrich Petroleum Corp. reached an agreement with lenders based on a prepackaged plan to file for Chapter 11 bankruptcy protection by 15 April 2016..
The prepackaged plan, which aimed to secure support from all lenders prior to filing for Chapter 11 bankruptcy, fell short of desired participation levels. As on 31 March 2016, the company received support from its unsecured lenders totaling 61% of the 95% needed to implement its debt-for-equity exchange offer.
The new plan of re-organization aims to give its second-lien lenders an equity stake in the re-organized company through its ongoing debt-for-equity exchange offer. The company has extended its offer to 8 April 2016.
Separately, Goodrich announced earlier in March 2016, that it would delay the filing of its annual report for 2015 citing a material loss that auditors had detected which would affect the company’s ability to operate as a going concern.
U.S-bases energy firm Sandridge Energy, in a regulatory filing, considered the possibility of filing for a Chapter 11 bankruptcy on being negatively impacted by falling energy prices.
The company is actively looking to restructure its debt of $3.6bn by hiring law firm Kirkland & Ellis and investment bank Houlihan Lokey.
Spain-based renewable energy company Abengoa S.A.’s subsidiary Abeinsa Holding, along with 13 affiliated debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware (lead case number 16-10790).
The company is represented by R. Craig Martin of DLA Piper. Documents filed with the court state that global slowdown, distress within the energy sectors and a over leveraged balance sheet led to the filing of bankruptcy.
Parent company Abengoa S.A. itself filed for Chapter 15 protection on 28 March 2016. The company had received backing from 75% of its lenders, 15.04 % more than the required threshold of 60%, to approve its restructuring plan.
Abengoa would present, as part of its restructuring, a plan to file Chapter 11 bankruptcy for all its affiliates in the United States and Chapter 15 for all affiliates to apply for creditor protection and a homologation of the agreement in the US. This move would permit the company to complete the Financial Viability Plan that has already been accepted by lenders.
Further, Abeinsa Holding’s Chapter 11 filing follows the 24 February 2016 Chapter 11 filing of Abengoa Bioenergy U.S. Holding and affiliated debtors. Abeinsa Holding’s Chapter 11 petition indicates total assets greater than $1bn.