India’s Jaypee Group defaults on debt & interest payments

India-based infrastructure conglomerate Jaypee Group defaulted on its debt and certain other payments, including that on debt, worth INR 44,600m ($661m).

The conglomerate owes INR 29,056m to banks and INR 15,589m in interest payments.

Bank debt, interest payments and other payments owed by Jaypee Group’s subsidiaries is as follows:

  • Jaiprakash Associates owed debt of INR 21,831m, INR 8,374m in interest payments
  • Jaiprakash Power Ventures owed debt of INR 6,884m, INR 1,521m in interest payments
  • Jaypee Cement owed debt of INR 339m of debt, INR 631m in interest payments

Additionally, overdue interest included INR 1,930m on Jaypee Infratech, INR 30m on Jaypee Agra Vikas Ltd, INR 3,086m on Prayagraj Power Generation Ltd, INR 7m on Madhya Pradesh Jaypee Minerals Ltd and INR 6m on Bhilai Jaypee Cement, all of which are Jaypee Group’s subsidiaries.

In order to lower its debt burden, the company divested certain of its cement assets and hydro-power assets to raise c.INR 190,000m ($2.8bn) earlier this year.

Source: Economic Times

CHC Group files for Chapter 11 bankruptcy

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.

Source: WSJ

Pacific Sunwear to prepare Chapter 11 bankruptcy filing

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.

Source: Bloomberg

Ultraviolet Petroleum (UPL) to defer $26m interest payment due April 1

U.S-based oil and gas explorer Ultra Petroleum Corp., deferred making an interest payment of approximately $26m on its 6.125% bonds due 2024. The payment was due to creditors on 1 April 2016.

The company, as per its indenture governing the 2024 notes, permits it a grace period of 30 days to make the interest payment.

Failure to either make a payment within the grace period, or obtain a waiver from the bond holders of the 2024 notes would result in a technical default.

Source: StreetInsider