Update: Pacific Exploration’s restructuring plan

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

Source: Reuters

 

SunEdison bankruptcy loan hearing moved to Friday

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.

Source: Reuters

Pacific Exploration backs restructuring bid by Catalyst over EIG

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.

Source: Reuters

 

High-end supermarket chain operator Fairway files for bankruptcy

U.S-based high-end supermarket chain Fairway Group filed for a “pre-pack” bankruptcy and reached an agreement with creditors to cut $140m in debt.

The chain, which primarily operates its stores in New York, reached an agreement with 70% of its senior secured creditors to convert $140m of c.$279m of debt into equity.

The “pre-pack” chapter 11 filing is an agreement and restructuring plan with a majority of creditors that has already been reached.

The secured lenders have also provided $55m in a superpriority secured debtor-in-possession (DIP) credit facility and a $30.6m letter of credit to cover operating financing.

The proposed DIP financing would support Fairway’s reorganization plans and enable normal post-petition operation of its business, including timely payment of employee wages, benefits and other obligations.

Source:  Undercurrent News

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

SunEdison files for Ch-11 bankruptcy

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%.

Source: MarketWatch

Pacific Sunwear files for Chapter 11 bankruptcy

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.

Source: Forbes