Hanjin Shipping to begin creditor-led debt restructuring

South Korea-based Hanjin Shipping reached an agreement with creditors who have agreed to offer financial assistance to the company and initiate a corporate restructuring program.

Creditor banks, led by state-run Korea Development Bank, approved Hanjin’s debt restructuring proposal at a meeting on Wednesday.

The conditions for the bailout include reduced charter rates that Hanjin pays out to foreign shipowners, retaining a global alliance membership and signing a debt restructuring agreement with bondholders.

The agreement comes days after Hanjing Shipping submitted a revised self-rescue measure to creditors on 2 May 2016.

The creditors plan to give a three-month maturity extension of principal and interest starting and roll out debt refinancing measures by hiring accounting firms.

The company plans to finalize negotiations with 22 shipowners by the end of May 2016. Further, it also plans to hold a meeting with bondholders on 19 May 2016 to extend the maturity date on KRW 35.8bn won of its bonds by four months.

Source: The Korea Herald

Pacific Exploration restructuring receives support from creditors; extends deadline for further acceptances

Canada-based oil and gas explorer Pacific Exploration & Production Corp., announced that its Restructuring Plan was supported by bondholders holding c. 67.8% of the company’s debt.

Previously, on 27 April 2016, the company and certain of is subsidiaries had obtained an Initial Order from the Superior Court of Justice in Ontario under the Companies Creditors Arrangement Act.

Bondholders, who supported the restructuring plan by 29 April 2016, would receive a 2.2% stake in the reorganized company’s equity.

Further, the company has extended the restructuring deadline until 6 May 2016.

Source: PRNewswire

 

SunEdison to access $300m DIP loan whilst undergoing Ch-11 restructuring

SunEdison Inc., which filed for bankruptcy in April 2016, received interim approval from a U.S. Bankruptcy court to access upto $300m debtor-in-possession financing loan whilst it pursues Chapter-11 restructuring.

Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District of New York refrained from making a decision on the company’s request for an independent examiner, by stating that other creditor groups might want to have a say on these matters.

The court also approved the continuation of payment of employee wages and benefits, work on ongoing projects and certain vendor payments.

Separately, the company’s yieldcos, TerraForm Power Inc and TerraForm Global Inc, on Monday named Peter Blackmore as their interim chief executive, effective 21 April 2016. These yieldco’s are not part of the bankruptcy.

Source: St. Louis Bizjournal, Reuters

Hercules Offshore could be pushed back into bankruptcy

Shallow-water driller Hercules Offshore could be forced to file for bankruptcy for the second time in less than a year as some creditors state that it may have breached its covenant on the $450m first lien sr. sec. credit facility. Previously, Hercules had filed for Ch-11 restructuring in August 2015 and emerged from bankruptcy in November 2015.

During the restructuring process, the company issued a debt-to-equity swap conversion for bondholders holding c.$1.2bn of debt for a 96.9% stake in the new equity shares and raised a $450m credit facility.

S&P downgraded the company’s $450m credit facility to CCC-. Further, the company had filed a forebearance agreement last week which has caused concern amongst creditors.

Creditors claimed that Hercules first violated the terms of the loan when its subsidiary, Hercules Offshore Nigeria Limited, failed to offer a vessel’s mortgage as collateral for the loan on 15 April 2016. The second violation occurred when Hercules didn’t meet a deadline to consolidate its Gibraltar-based affiliate into another unit of the company.

In the forebearance agreement filed with the SEC, Hercules stated that creditors had asserted that the company was in default, although they had not provided a formal notice on the same. Hercules also stated that it believed that default could be avoided before next week’s deadline.

Source: Fuelfix