Guitar Center, Inc. announced on November 13, 2020 that it has entered into a comprehensive Restructuring Support Agreement (the RSA) with its key stakeholders, including its equity sponsor, a fund managed by the Private Equity Group of Ares Management Corporation, new equity investors Brigade Capital Management and a fund managed by The Carlyle Group, as…
November 6, 2020 – The Court hearing the Smartours cases issued a final order authorizing the Debtors to (i) access the $841,642.28 balance of a $2.2mn debtor-in-possession (“DIP”) financing facility and (ii) continue using cash collateral [Docket No. 108]. Previously on October 22, 2020, the Court had authorized the Debtors to (i) access $496,548 in…
November 10, 2020 – The U.S. Trustee assigned to the Smartours' Chapter 11 cases objected to the Debtors’ Disclosure Statement [Docket No. 115] citing the proposed Plan's opt out mechanism for third-party releases. The objection argues, "The most material defect in the third-party release provision at this stage of the proceeding is that parties in…
November 10, 2020 – Further to a September 25th bidding procedures order [Docket No. 206] and the cancellation of a scheduled October 29th auction [Docket No. 387], the Court hearing the Shiloh Industries cases issued an order approving the $218.0mn sale of the Debtors' assets to Grouper Holdings, LLC ("Grouper," an affiliate of MiddleGround Capital)…
November 12, 2020 – The Debtors have filed a flurry of Plan documents in advance of their November 13th Plan confirmation hearing which include, inter alia, (i) their memorandum of law in support of Plan confirmation (the "Memorandum") [Docket No. 1203], (ii) a proposed Plan confirmation order [Docket No. 1204], (iii) a Fourth Amended Plan…
On November 12, 2020, Moody's Investors Service downgraded its corporate family rating on Peabody Energy Corporation to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and its senior secured debt ratings to Caa1 from B3. The downgrade is driven primarily by eroding liquidity and an increased likelihood of a debt restructuring,…
On November 12, 2020, S&P Global Ratings lowered its issuer credit rating on Third Coast Midstream LLC to CCC+ from B- and its senior unsecured notes rating to B- from B. Third Coast Midstream faces near-term refinancing risks related to the 2021 maturities of its revolving credit facility ($86.5 million currently outstanding) and $425 million…
On November 12, 2020, S&P Global Ratings lowered its issuer credit rating on Washington Prime Group Inc. to CC from CCC and its unsecured debt rating to C from CCC-. The downgrade reflects the strong likelihood of a technical default in the near term, according to the ratings agency. The Company has announced it is…
November 12, 2020 – Further to an October 21st bidding procedure order [Docket No. 986] and a lengthy November 9th auction [Docket No. 1105], the Court hearing the Ascena Retail Group cases issued an order approving sale of Debtors’ Justice Assets ($71.0mn purchase price) to stalking horse Justice Brand Holdings LLC, an entity formed by…
November 12, 2020 – The Court hearing the K.G. Im, LLC cases issued an order authorizing the Debtors to (i) access the $2.1mn balance of a $3.1mn debtor-in-possession (“DIP”) facility and (ii) continue using cash collateral [Docket No. 304] In an earlier October 23rd order, the Court had authorized access to $1.0mn of the DIP…
