One week after the regents of the University of Alaska voted to consolidate operations amid a large state funding cut of USD 136m, it remains to be seen exactly how the university system will achieve cost savings in fiscal year 2020.   The option chosen by the regents does not offer information about immediate cost savings, long or short-term.   “The.....

The US Virgin Islands’ (USVI) Waste Management Authority (WMA) has a budget that doesn’t properly cover the costs of disposing solid waste, which leaves the territory at risk of a public health crisis, Adrian Wade Taylor, WMA Interim Executive Director testified yesterday (30 July) to the Senate Committee on Finance.   Governor Albert Bryan.....

  Debtwire Municipals hosted a webinar today, Tuesday, 30 July, on the current economic and legal conundrum that is impacting Puerto Rico's debt restructuring and leadership.   Our journalists and analysts discussed:   General obligation support agreement — which claims it does and does not cover Puerto Rico Electric Power Authority.....

Hong Kong Airlines’ (HKA) key shareholders have settled their quarrel, enabling HNA Group to regain undisputed control of the carrier, large shareholder Zhong Guosong told Debtwire.   Management of the Hong Kong carrier informally told some credit investors over the past two weeks that it thought a settlement was reached, smoothing the way for.....

As the opioid epidemic continues across the US, multiple drug companies, pharmaceutical distributors and other businesses are finding themselves the target of thousands of lawsuits, in federal and state courts, seeking to hold them financially responsible for fueling the crisis. In this Special Report, the Debtwire court and legal analyst teams sketch.....

The largely unregulated state-based residential Property Assessed Clean Energy (PACE) bond programs are headed for increased regulation and standardization that will likely boost their popularity among investors, according to market participants.   PACE bonds are taxable munis issued by local governmental entities that finance energy improvement.....

Puerto Rico’s Financial Oversight and Management Board (FOMB) has paved the way for a 2020 exit from Title III with its new deal with USD 3bn of general obligation (GO) bondholders, said FOMB executive director Natalie Jaresko, even as stakeholders threw cold water on the agreement.   “We’ve reached a significant milestone for Puerto Rico,”.....

Puerto Rico’s Financial Oversight and Management Board (FOMB) has paved the way for a 2020 exit from Title III with its new deal with USD 3bn of general obligation (GO) bondholders, said FOMB executive director Natalie Jaresko, even as stakeholders threw cold water on the agreement.   “We’ve reached a significant milestone for Puerto Rico,”.....

The Municipal Electric Authority of Georgia (MEAG) is seeking to stop JEA from taking action in a federal district court in Florida over a power purchase agreement (PPA) associated with the Vogtle nuclear plant expansion project.   MEAG filed an emergency motion to reopen its case in the Northern District of Georgia, Atlanta Division, according.....

Cook County Circuit Court Judge Neil Cohen today denied the City of Chicago’s request for a temporary restraining order (TRO) to block state Comptroller Susana Mendoza from diverting state grant funds to the city’s pension funds.   The city’s lawsuit is tied to a relatively young Illinois law that allows the comptroller to intercept and divert.....

It has been more than five months since Pacific Gas & Electric (PG&E) commenced its Chapter 11 cases and, although some progress has been made, the company’s future and path forward is still largely uncertain. Wildfire liabilities continue to mount, California Governor Gavin Newsom is putting pressure on shareholders, and the California Public Utilities.....

Missouri Circuit Court Judge James Van Amburg last week affirmed Platte County’s legal right to drop its appropriation pledge backing bonds issued for a struggling Kansas City mall, Debtwire’s Caitlin Devitt reported. The ruling, for now, ends the legal dispute over the county’s appropriation pledge on bonds issued in 2007 with trustee UMB Bank.....

Breaking up with Pacific Gas & Electric (PG&E) is hard to do.   But the San Francisco Public Utilities Commission (SFPUC) and other municipalities across California are evaluating the possibility of doing just that, seeking to take advantage of a groundswell of public discontent in the wake of PG&E’s wildfire-driven collapse into bankruptcy,.....

Breaking up with Pacific Gas & Electric (PG&E) is hard to do.   But the San Francisco Public Utilities Commission (SFPUC) and other municipalities across California are evaluating the possibility of doing just that, seeking to take advantage of a groundswell of public discontent in the wake of PG&E’s wildfire-driven collapse into bankruptcy,.....

The Metropolitan Pier and Exposition Authority (MetPier) this month privately placed USD 36.8m of bonds backed by a new credit with Morgan Stanley, with a second deal in the works, according to Jason Bormann, MetPier’s director of treasury and capital management.   It’s the first time MetPier in Chicago has borrowed from its net operating.....

New Chicago Mayor Lori Lightfoot (D) is “smart to keep property taxes on the table” as the city begins to consider how to tackle its financial challenges, said Alderman Scott Waguespack (D), who was confirmed today as chair of the powerful City Council Finance Committee. As finance chair, Waguespack also said he would keep the city’s ratings.....

New Chicago Mayor Lori Lightfoot (D) is “smart to keep property taxes on the table” as the city begins to consider how to tackle its financial challenges, said Alderman Scott Waguespack (D), who was confirmed today as chair of the powerful City Council Finance Committee.   As finance chair, Waguespack also said he would keep the city’s ratings.....

Marc Rosenthal, chief investment officer of MP Securitized Credit Partners, is betting the CMBX6 rally is growing long in the tooth and sees two foreclosed malls in CMBX6 deals — and other troubled properties like them — as breaking points for the trade that’s gripped the index’s BBB- and BB tranches this year.   Both the 211,404 sq ft Salem,.....

A US Appeals Court’s ruling on Puerto Rico’s special revenue bonds will reverberate throughout the municipal bond market, panelists said today at a meeting of the Municipal Analysts Group of New York (MAGNY).   Jim Spiotto, a managing director at Chapman Strategic Advisors, said that, while the court case should be overturned, there is no guarantee.....

A Delaware Chancery Court Judge today lopped off one claim of tortious interference against Nuveen LLC in Preston Hollow Capital’s suit, alleging the mutual fund giant engaged in an illegal scheme to cut its smaller competitor out of the municipal bond market.   Vice Chancellor Sam Glasscock III’s decision axed Preston Hollow’s claim of.....

On 30 April 2019, Singapore’s Court of Appeal delivered its much-awaited decision on Empire Capital Resources Pte Ltd’s proposed scheme of arrangement. On the surface, the Court’s decision to prevent Empire – a Berau Coal Group company – from convening a creditor meeting due to what the court called “woefully inadequate” financial disclosure.....

Debtwire Municipals hosted a webinar today on the impact of cannabis on state and local budgets. Our journalists and analysts discussed:   The current status of legalization nationwide The budget and credit impact on states where marijuana is decriminalized The expected budget and credit impact on states where decriminalization is in.....

  The leveraged loan market is warming up after a frosty start to the year. But the improved conditions have collided with a slowdown in M&A action during the first quarter, leading to a surge in dividend financings as originators stretch to fill the new issue pipeline, according to Debtwire data and multiple buyside and sellside sources. So.....

Northern California’s rolling hills flash a vivid green this time of year, soaked with spring rains. But come June, the arid summer browns vast swaths of vegetation, leaving literal mountains of kindling for fire.   California is in a race against time. Another potentially explosive wildfire season is just around the corner, even as the state.....

What previously seemed like a relentless decline in investor protections for new leveraged loan deals not only abated in the first quarter of 2019, but in some respects actually reversed course, according to data from sister publication Xtract Research.   A big catalyst for the change is lower demand for leveraged loans after the Federal Reserve signaled.....

On Thursday 4 April, the Pennsylvania Turnpike Commission won dismissal of litigation brought by truckers and other plaintiffs who are attempting to stop the commission’s USD 450m annual payment to the Pennsylvania Department of Transportation (PennDOT). The plaintiffs, which include the Owner Operator Independent Drivers Association, Inc. and the National.....

Debtwire hosted an online roundtable discussion on Hexion Holdings’ recent Chapter 11 filing. During the live event, Debtwire reporters and analysts discussed the company’s restructuring support agreement, USD 700m debtor-in-possession financing, and post-bankruptcy projections. The webinar featured commentary from Associate Editor Kyle Younker,.....

New York (April 3, 2019) – Xtract Research, an Acuris company, today unveiled a new covenant scoring system to help quickly assess how risky an issuance is and how it compares to others in a similar market while making it easier to push back on aggressive terms.   Each U.S. credit agreement reviewed[1] by Xtract Research’s team of finance attorneys.....

Jamie Sprayregen, the architect and head of Kirkland & Ellis’ global restructuring team, may be a stranger to coffee (never had a cup in his life), but he is no stranger to failure.  He was not accepted by most of the colleges, law schools or law firms to which he applied, and he was even rejected from Kirkland’s summer associate program.   But.....

On 15 March 2019, the Financial Oversight and Management Board for Puerto Rico (FOMB) released an analysis by Duff & Phelps, LLC (D&P) of Puerto Rico bank accounts and balances as of 30 June 2018. At FOMB’s request, Duff & Phelps focused on borrowers operating under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).   The.....

Amid financial challenges, the plan by Connecticut State Colleges and Universities (CSCU) to consolidate the state’s 12 community colleges is a risky move, said Matthew Warshauer, professor of history at Central Connecticut State University and a vocal opponent of the consolidation plan.   The structural change would consolidate the 12 individually.....

China Huiyuan Juice Group Limited has indicated that it belatedly transferred the funds today for the coupon on its USD 200m, 6.5% bonds due-August 2020, said two creditor sources.   The coupon, which was originally scheduled for 16 February, a Saturday, actually became payable the next business day, but has a 30-day grace period.   The.....

In Memoriam, Xavira Neggers Crescioni March 20, 1967 – February 22, 2019   It is with great sadness and heavy hearts that Debtwire and its parent company, Acuris, announce the passing of our treasured friend, dear colleague and tenacious reporter, Xavira Neggers Crescioni on February 22, 2019. Xavira had a vibrant personality, an unmistakable.....

Southern Company, parent of Georgia Power, is seeking to speed up work on the expansion of the Vogtle power plant in Burke County, Georgia, to meet cost and schedule targets. Southern Co. expects productive work at the nuclear project to increase and will refine its construction plan, Chief Executive Thomas Fanning said in a call with investors to.....

Southern Company, parent of Georgia Power, is seeking to speed up work on the expansion of the Vogtle power plant in Burke County, Georgia, to meet cost and schedule targets.   Southern Co. expects productive work at the nuclear project to increase and will refine its construction plan, Chief Executive Thomas Fanning said in a call with investors.....

The Puerto Rico Electric Power Authority’s (PREPA) latest proposed restructuring support agreement (RSA) for the utility’s USD 9bn in debt is going nowhere fast, said a source close to the situation and three sources familiar.   “The number of parties working at cross purposes has created a level of cacophony and confusion that has complicated.....

Secured bond issuance skyrocketed in January, as the increased cost of leveraged loan funding drove borrowers toward cheaper alternatives. Issuers such as TransDigm, Commscope and Dun & Bradstreet all pivoted to print large secured bonds, in a dynamic stemming partly from the Fed’s increasingly dovish outlook.   Issuers have priced USD 8.8bn.....

[The Inside Track is a Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging, complex,.....

The direct effect on the municipal market of Pacific Gas & Electric’s (PG&E) pending bankruptcy will be limited, as the utility has only USD 103m in tax-exempt bonds payable solely from PG&E’s revenues. An additional USD 762m is backed by bank letters of credit (see Excel link below).   Of more concern is the financial viability of a utility.....

Zimbabwe was in the hot seat this week as rioters took to the streets of Harare and Bulawayo to protest the government’s latest fuel price hikes. The violent police crackdown that ensued, with reports of up to eight deaths, will compromise a government intent on clearing billions of US dollars in arrears and end decades of financial isolation, said market.....

The Puerto Rico Financial Oversight and Management Board (FOMB) rejected USD 6bn in general obligation (GO) debt, arguing in a new objection filed on Monday (14 January) that the commonwealth breached its debt limit as early as March 2012.   Puerto Rico has failed to count Public Building Authority (PBA) debt — which, the FOMB says, is GO debt.....

European NPL market reached a new peak in 2018 with disposals totalling EUR 205.2bn Italy was the most active country, producing half of the total volume of NPL sales Sales started to slow down in Spain as large Spanish banks near end of their balance sheet clean-ups   London, United Kingdom, 10th January 2019: The European non-performing.....

    Covenant deterioration in the leveraged loan market has caused sleepless nights for CLO managers who worry that when defaults start to rise, recovery rates will be lower than in past downturns. But market participants are expressing concern that ratings, rather than defaults, pose a greater risk to the market.   Rebecca Dorrian, Managing.....

China Development Bank support appears to be the last hope for HNA Group-affiliated Hong Kong Airlines (HonAir)’s redemption of USD 550m 6.9% bonds due 20 January, said six buysiders, including at least three holders, as well as two sellsiders.   The assumption is rooted in HNA management’s indication in late December that the Chinese policy.....

Some historically black colleges and universities (HBCUs) are struggling to keep their doors open — and their origin story has a direct correlation to their current difficulties, said Harry L. Williams, president of the Thurgood Marshall College Fund.   Cheyney University, the first HBCU, was founded in 1837, and there are 100 currently operational......

Cyber risk is a worry for municipal bond investors, and the tight labor market hasn’t helped, T. Rowe Price municipal credit analyst Linda Murphy said in an Interview with Debtwire Municipals.   Competition for talented Information technology (IT) professionals makes it difficult, particularly for local governments, to guard their IT systems.....

  While several major ballot measures targeting climate change failed during the midterm election, reality will catch up with spiraling costs, which have not been fully captured by the credit rating agencies, according to several market sources.   Although Fitch Ratings said in a report in May that credit downgrades on municipal credits due.....

[The Inside Track is a Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging, complex,.....

The Republic of Congo's trade finance creditors have formed a consortium to negotiate the reprofiling of sovereign and sovereign-guaranteed debt, but discussions have stalled due to a lack of government engagement, said a source close to and a source familiar with the situation. The consortium includes commodity traders Glencore and Trafigura as well.....

    Debtwire Municipals hosted a webinar this morning (13 November) on the current status of two public power authorities in the US — the Municipal Electric Authority of Georgia (MEAG) and the South Carolina Public Service Authority (Santee Cooper).   Our team of journalists and analysts discussed myriad developments such as:   Recent.....

    Orchids Paper recently retained Houlihan Lokey as it shifts gears to consider a bankruptcy filing after prior plans aimed at an out-of-court balance sheet fix fell flat, according to two sources familiar with the matter.   The struggling tissue product manufacturer began exploring strategic alternatives in March and later received deadlines.....

Distribuidora Internacional de Alimentación (DIA), the Spanish discount chain, issued a major profit warning on 15 October, which prompted S&P and Moody’s to downgrade the company by several notches from IG to BB-/Ba2. In the wake of the profit warning, bonds sold off 30-45 points and the stock price fell over 40% on 15 October, with the YTD decline now.....

    Platte County, Missouri was in the news last month after Moody’s Investors Service imposed multiple-notch rating downgrades on various bond issues of the county and the Platte County Industrial Development Authority (IDA). The downgrades occurred on 14 September after county officials indicated that they might choose to not appropriate.....

The recent slide in the price of US Treasuries (from a yield of 2.85% in the last week of August 2018, to around 3.20% by mid-October) has potentially cracked the upwardly floating glass bubble in which the equity markets – and asset prices in general – have been riding. The market has seen this sort of price break before, but the reaction – especially.....

    Two Toys ‘R' Us suppliers have filed suit against ETG Capital Advisors in New York over unpaid put fees, accusing the Maglan Capital affiliate of breach of contract, unjust enrichment and fraud.   DGL Group Ltd. and Happy Threads LLC signed claims purchase agreements with ETG in the months after Toys filed for Chapter 11 protection.....

  Debtwire Municipals hosted a webinar this morning (16 October) on the 2018 midterm elections in five key states: California, Connecticut, Illinois, Michigan and Pennsylvania.   Our team of journalists and analysts discussed the effect of the gubernatorial elections on policies affecting the municipal market, such as state aid to municipalities,.....

by Farhin Lilywala, Paula Seligson and Anastasia Donde     Uber is working with Morgan Stanley on outreach related to raising around USD 1.5bn via an unsecured bond deal, said two buysiders and two trading sources.     The company has outlined a dual-tranche structure that includes an eight-year non-call three piece whispered at 8%.....

On 26 September, co-owners of the Vogtle 3&4 nuclear plants agreed to continue construction of those facilities. The agreement gives investors a degree of comfort, but the possibility of additional delays and cost overruns remains a significant and unquantifiable risk. This is especially the case given that construction was only 55.3% complete as of 31.....

    A request for proposals (RFPs) shows that the Puerto Rico Electric Power Authority (PREPA) is considering any and all fuel options—not just natural gas—as long as they are cheaper, according to documents reviewed by Debtwire Municipals. “To the extent that potential suppliers have alternative ways to supply acceptable fuel in a cost-effective.....

  by Reshmi Basu Nine West sponsor Sycamore has threatened to direct its Belk portfolio company to discontinue selling Nine West products if parties can’t reach a litigation settlement that’s to the private equity fund’s liking, according to three sources familiar with the matter. The threat from Sycamore to Nine West unsecured creditors.....

  BlackRock is expanding responsibilities of its securitized debt group to oversee potentially enormous amounts of consumer and real estate loans for big investors looking to improve on returns and quality available in bonds, according to one of the company’s top money managers. The manager of USD 1.85tn in fixed-income has just begun running.....

Simon Walker, head of loan markets and syndicate at Mizuho Americas, has left the bank barely a year after he joined, amid high-level disagreements over its strategy in leveraged finance, according to two people familiar with the situation.   Mizuho, which reported a 4.4% decline in profit for fiscal year 2017, has flagged the non-investment grade.....

    A Singapore lawsuit initiated by Oro Negro bondholders against the Mexican oil driller and its executives has been dismissed due to a lack of jurisdiction, a spokesperson for the bondholders and a source close to the situation told Debtwire today. The Singaporean judge that has been handling the proceeding since its filing in late January has.....

  Editor's note: This updates Debtwire's earlier previous Digicel story from this afternoon. The update adds new reporting in paragraph 10 on the 2020 bondholder group orgnaizing with legal counsel.]   Digicel (Caa1/C) has amended its exchange offer for USD 3bn in bonds, removing a proposed USD 640m intercompany loan in an effort to give greater.....

  The plan by Berkeley, California, to use blockchain technology to issue microbonds later this year could revolutionize the municipal bond market, said Vice Mayor Ben Bartlett in an interview with Debtwire Municipals.   A microbond or minibond is a smaller issuance of a traditional muni bond – about USD 3m, in Berkeley’s case. The minibond.....

    Oi SA's (Oi) approved reorganization plan stated, among other restructuring measures, that the company may enter mediation with its creditors over disputed claim amounts. Following the plan, the Restructuring Court recently ordered the creation of an online mediation proceeding, to provide the stakeholders with an opportunity to consensually.....

  Midtown Acquisitions, an affiliate of hedge fund Davidson Kempner, is demanding full payment of a loan that the Puerto Rico municipality of Bayamon cannot pay, according to documents seen by Debtwire Municipals and Bayamon’s deputy mayor.   Midtown and Bayamon officially signed on to a three-month forbearance agreement this July after the.....

  Petroleos de Venezuela (PdVSA) is planning to honor approaching principal and interest payments on senior secured USD 2.5bn 8.5% 2020 bonds, even as the cash-strapped Venezuela state-owned oil company faces mounting short-term debt obligations, a source at PdVSA and a source familiar with the matter told Debtwire.   PdVSA must pay USD 840m.....

by Will Caiger-Smith   A string of giant cross-border LBOs launching next week is set to provide a crucial test of investors’ appetite for risk, amid mounting concerns over the increasing popularity of leveraged loans and the impact of tighter monetary policy on borrowing costs.  These supersize deals could be a sign of things to come—increasingly.....

by Anastasia Donde, Paunie Samreth and Tanvi Acharya  Papa John’s International, the publicly traded pizza franchise company, has enlisted Bank of America and Lazard to pursue strategic alternatives including a possible sale, according to two sources familiar with the situation. The move comes as members of Papa Johns’ board clash with the.....

Mediobanca has appointed ex-Deutsche Bank credit trader Joel Bensoor as head of loan trading. In this role, he is tasked with building and strengthening Mediobanca’s loan franchise.   Creditflux understands this will involve emerging markets loan trading, but also a broader array of loans and related products, potentially including secondary CLO.....

Two of Chicago’s pension funds recently announced higher discount rates, resulting in significantly lowered pension liabilities. The city is now considering pension obligation bonds (POBs) of up to USD 10bn, which, if issued, would further decrease liabilities of one or more city pension funds.   Chicago’s business and civic leaders are understandably.....

“The DESKAA bill is a very serious proposition, and the recent fallout is an indication of the damage that could be done to the Russian markets if the bill is signed into law. We are in unprecedented territory,” the lawyer said. The banks targeted by DESKAA (Vnesheconombank, Sberbank, VTB Bank, Gazprombank, Bank of Moscow, Rosselkhozbank and Promsvyazbank),.....

Among the selloff in Turkish bonds over recent days, lenders’ subordinated bonds have fared the worst, as fear mounts the securities could be written-off if the unfolding economic crisis is not resolved swiftly, said market participants.   The lira’s downward spiral has resulted in deteriorating capital levels at Turkey’s banks, while a surge.....

South Africa’s fate is inextricably linked to Eskom. Not only is the state-owned electricity company too big to fail, given its political importance, but the presence of ZAR 350bn (USD 26.33bn) of contingent guarantees handcuffs the sovereign to it. Lately, Eskom’s standalone credit ratings have slipped markedly to several notches below South Africa’s,.....

The Government of Qatar has ridden out a full year following its boycott by three GCC states and Egypt. But far from scrabbling for survival, the peninsular monarchy looks in fighting form with growing sources of alternative funding and a widening network of influence globally.   On 5 June 2017, Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt announced.....

Congressional lawmakers have circulated more than 20 pages of detailed legislative language to have the Department of Energy (DOE) take over the embattled Puerto Rico Electric Power Authority (PREPA), according to documents seen by Debtwire Municipals.   Still in rough draft form, a bill tentatively titled the “Puerto Rico Energy Stabilization.....

Puerto Rico’s restructuring and the presence of the Financial Oversight and Management Board (FOMB) is expected to last decades as the scope of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) becomes clear.   Three restructuring attorneys, two creditors, a constitutional attorney, and one minority party lawmaker agreed.....

CIFC Asset Management looks to have made a major breakthrough in its bid to establish a European credit business with the $17 billion asset manager rumoured to be hiring Dan Robinson from Apollo Global Management. London-based Robinson has been at Apollo for the last three years, heading the firm’s European performing credit business. In this role he was.....

  Certain holders of Andrade Gutierrez Engenharia’s past-due USD 344m 4% 2018 bonds have been in talks with law firms ahead of a potential bond exchange offer, according to three sources familiar with the matter. After an expected financing package from Pimco has become increasingly difficult to close, the Brazilian builder has been discussing.....

US loan investors are fighting back against terms which they believe are effectively turning supposedly senior secured loans into unsecured agreements. Some are outright rejecting loans which feature excessively borrower-friendly language, while others are lobbying rating agencies to assign lower assumed recovery rates to certain deals.   According.....

Eskom, the South African state-owned utility, has hired Lazard as financial advisor, according to three sources close to and a source familiar with the situation.   The company issued a request for financial advisors earlier this year to assist on refinancing options, with some dozen or so 'Big Four', international and local banks pitching, as reported.....

Richard Johns, formerly executive director of the Structured Finance Industry Group, has left the organization, according to a letter sent to members last Friday. His departure follows months of wrangling among board members concerned about his leadership style and compensation package, according to four people close to the situation.   Johns's.....

In the intellectual property race between China and the US, China Oceanwide may have found the most effective tool yet: overpay for a troubled US insurer whose IP could be invaluable back home. On the surface, Oceanwide’s run at Virginia-based Genworth Financial aims to give the real estate-focused conglomerate entry to US insurance markets. But.....

The US Congress took up legislation last week that would sell federally-held distressed debt and use the proceeds to help fund infrastructure improvements, said municipal advisors Larry Kidwell and Robbi Jones.   The bipartisan legislation, House Bill 6104, would sell United States Department of Agriculture (USDA) distressed debt to the market......

  Click here for abridged transcript of Debtwire's inaugural India Insolvency Summit, sponsored by Deloitte and Clifford Chance.   Debtwire held the event in Mumbai in late May, days after Bhushan Steel became the first of India’s so-called “dirty dozen” to complete a bankruptcy resolution process. In the round-table discussion, the panelists.....

  The BBB- rated Ds of the USD 514m XAN 2018-RSO6 priced at L+ 250bps today, tight of the S+ 295 and S+ 305bps spreads at which comparable bonds from the USD 1.1bn LNCR 2018-CRE1 and the USD 560m ARCLO 2018-FL1 priced last month.   The XAN CRE CLO’s USD 290.5m AAA rated As priced at L+ 83bps, tight of L+ 113 and L+ 115bps at which AAA bonds.....

    Puerto Rico’s Retiree Committee is asserting a USD 58.5bn claim for pensions and other post-employment benefits (OPEBs) against the commonwealth as of 3 May 2017, according to an unpublished proof of claim seen by Debtwire Municipals.   This amount covers the full amount of accrued pension and other post-employment benefits held by.....

[The Inside Track is a new Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging,.....

PetSmart has moved a 16.5% stake in Chewy.com to an unrestricted subsidiary, using its ability to make a sponsor dividend as the mechanism for the transaction, said four sources familiar with the matter. The announcement put investors on alert for more details about the ramifications of the move, which has echoes of J.Crew’s controversial transfer of.....

  A five-judge New York appeals court panel issued a unanimous order yesterday upholding a lower court’s decision that Davidson Kempner Capital Management did not have standing to sue special servicer C-III over servicing practices.    In the 31 May order, the New York Supreme Court Appellate Division panel’s narrowly focused opinion.....

CMBS Monthly Activity Report for May 2018 | PDF    Brookfield Asset Management stepped into the politically-charged saga of Kushner Cos’ 666 Fifth Avenue property last month when it was revealed that the company was in late-stage discussions to buy out Vornado Realty Trust’s stake in its office portion. Brookfield’s signaled interest in the.....

With CRE CLO issuance gaining in popularity following Blackstone Mortgage Trust’s USD 1bn deal late last year, and with others following suit or considering it, it might seem like CLOs are back and here to stay. But the current enthusiasm for the once-maligned debt vehicle is likely short-sighted, especially for smaller players, said Jeff DiModica,.....

Indian bell curve   Activity in India slowed slightly in terms of the number of mandates. In 1Q18, the country generated 11 new mandates on a total of USD 20.49bn of debt, compared with 13 roles in 4Q17 on a total debt of USD 18.64bn from seven companies.   This pales in comparison to 3Q17 when 28 roles were awarded in July and another 16 in.....

The planned auction of 15 Sears stores has been pulled from the RealINSIGHT Marketplace website pending a decision by the retailer as to whether to sell the properties individually or as a portfolio, according to James Shevlin, a managing director at CWCapital, which owns the online platform.   The decision to postpone the 31 May auction was made.....

  CASE PROFILE - Sevenhills Healthcare Private Limited | PDF   Sevenhills Healthcare, a Visakhapatnam, Andhra Pradesh-based hospital operator, was admitted into bankruptcy by the National Company Law Tribunal's (NCLT) Hyderabad bench on 13 March 2018 at the behest of a petition from Axis Bank. Resolution professional Alvarez & Marsal's Abhilash.....

State Bank of India has recently brought together domestic bank lenders on 19 distressed Indian thermal power projects to try to hash out resolutions before the Reserve Bank of India’s end-August deadline to put them into bankruptcy, according to three sources with knowledge of the matter.   The interbank talks, which began early this month, cover.....

Among the many players involved in the privatization of the Puerto Rico Electric Power Authority (PREPA), none have any solidarity, and that’s a problem for the governor’s 18-month time frame, said four industry experts.   “When a government decides to privatize an asset it must state whether it’s doing so to raise funds or to improve.....

  Market sources say that AIG is embarking on a return to CLO management with the insurance giant acquiring Covenant Credit Partners. The transaction will see the entire Covenant team being absorbed into AIG, including managing partner and well-known CLO portfolio manager Marc Boatwright. AIG has a long track record in the CLO market having previously.....

  The judge overseeing Puerto Rico’s Title III bankruptcy proceedings erred in a ruling that stands to upend the revenue bond market, the National Federation of Municipal Analysts (NFMA) argued yesterday (16 May).   Judge Laura Taylor Swain dismissed on 30 January a lawsuit brought by Puerto Rico Highways and Transportation Authority (PRHTA).....

  Debtwire Municipals hosted a webinar this morning on Illinois' upcoming election and what it means for the state's credit.   Senior Reporter Caitlin Devitt and Head of Research Greg Clark discussed the three front runners for governor of Illinois, along with ongoing budget negotiations.   CLICK HERE for the audio recording on Debtwire.....

[The Inside Track is a new Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging, complex,.....

  Reliance Communications(RCom) was admitted into a bankruptcy resolution process today by a Mumbai bench of the National Company Law Tribunal (NCLT) in response to an application by trade creditor Ericsson India, according to court proceedings attended by Debtwire.   The admittance order is the culmination of a litigation process initiated.....

  A Chicago office building at 120 South LaSalle Street is being marketed for sale and is likely to trade for about USD 160m, said two sources familiar with the asset.   That price indicates a capitalization rate of about 6%, both sources said. The 660,000 sq ft building is about 81% leased, making it a value-add play for the buyer, the first.....

A recent Reuters' article indicated that lenders are successfully negotiating a provision to block borrowers from transferring material intellectual property out from under secured lenders. Reuters reported that “secured lenders are now including language in loan documents, known as the ‘J Crew blocker,’ to stop companies transferring intellectual.....

  Aircel Ltd's resolution professional is seeking to raise around INR 3.5bn (USD 51.93m) in so-called interim finance for the bankrupt Indian wireless network operator, according to three sources with knowledge of the matter. The funds would enable the company to continue to operate its four functioning circles while resolution professional Vijaykumar.....

    JBF Petrochemicals Ltd’s lead lender, IDBI Bank, is planning to file a bankruptcy petition against the KKR-backed project, according to two sources with knowledge of the situation.   The state-owned bank is to file its petition at National Company Law Tribunal’s (NCLT) Mumbai bench, the two sources added.   IDBI Bank declined.....

  By Tanvi Acharya   The Rockport Group is working with Alvarez & Marsal and law firm Richards Layton & Finger as the footwear retailer continues to evaluate options for a balance sheet fix, including a potential restructuring, according to two sources familiar with the matter. The mandates complement the company's engagement of Houlihan.....

The Italian non-performing loan (NPL) market is on track for a record year in terms of securitisations and mergers and acquisitions of servicers and NPL management platforms, according to analysis of Debtwire and Mergermarket data.   The data will be presented at the Debtwire Italian Restructuring Forum on 9 May in Milan.   The Debtwire.....

  Shell North American LNG, Kindle Energy, and ITC Holdings are floating a bid for the Puerto Rico Electric Power Authority (PREPA) as part of the utility’s privatization, according to documents seen by Debtwire Municipals.   The three-company consortium is targeting PREPA’s generation business and its transmission and distribution (T&D).....

European Leveraged Finance Issuance Falls, Though Investors Eagerly Seize New Supply Debtwire’s European Leveraged Insights Report Explores Key Q1 2018 Trends   London, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 European Leveraged Insights.....

US Leveraged Loan Market Prevails Over 1Q18 Equity, Bond Volatility Debtwire’s U.S. Leveraged Insights Report Explores Key Q1 2018 Trends   New York, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 US Leveraged Insights Report and found that the.....

New York, April 25, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today announced the launch of two new offerings: Restructuring Data and Debtwire Par. For 15 years, Debtwire has provided the investor and advisor communities with market-moving news, key data points and in-depth research across the lifecycle.....

  US investment firm Pimco is expected to provide financing to Andrade Gutierrez Engenharia of around USD 500m, according to three sources close to the matter. The Brazilian construction and infrastructure company has been trying to raise around USD 300m to finance the maturity payment for its USD 344m 4% bond, due Monday 30 April. The approximately.....

  A deal for Maefield Development and Fortress Investment to purchase their partners’ shares in the project underway at 701 Seventh Avenue will likely be financed by Natixis Real Estate Capital, said two sources familiar with the situation.   The planned sale came to light after Winthrop Realty Trust said in a Securities and Exchange Commission.....

[The Inside Track is a new Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging, complex,.....

The RealINSIGHT Marketplace auction of 16 Sears locations has been pushed out until next month despite “tremendous response” from over 200 interested parties, according to James Shevlin, a managing director at CWCapital. Sears is marketing 16 US Midwestern and Texas locations for sale, as reported (see story, 6 March). Five of those stores are located.....

The Puerto Rico Electric Power Authority (PREPA) has re-established 70% of Puerto Rico's energy grid generation capacity and expects full restoration by noon today after yesterday’s (18 April) general blackout, El Nuevo Dia reported.   The paper cited PREPA's interim executive director, Justo González Torres, as telling radio station WKAQ 580.....

Robust restructuring landscape emphasized by pre-packaged and pre-arranged bankruptcy plans Debtwire’s Restructuring Insights Report Finds Explores Key 1Q2018 Trends   New York, April 18, 2018 - Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its 1Q2018 Restructuring Insights report.....

[The Inside Track is a new Debtwire podcast series featuring in depth and intimate conversations with today’s restructuring market leaders. It is a platform upon which guests will share the lessons they’ve learned throughout their careers guiding distressed companies and municipalities, as well as their constituencies, through the most challenging,.....

Document(s)   Vilela de Queiroz profile April 5 2018 | PDF   The Vilela de Queiroz family, which consists of several first-generation siblings and their children, controls São Paulo-listed Minerva SA, Brazil’s third-largest beef producer. The company also exports live cattle and produces leather. In addition to Minerva, the family owns.....

Connecticut’s agreement to help pay Hartford’s debts for the next 20 years is expected to improve market confidence in other cities across the state, said Office of Management and Budget Director Ben Barnes.   Barnes, also the chairman of the Municipal Accountability Review Board (MARB), made his remarks during an MARB meeting held today to.....

A review of Puerto Rico’s 23 March fiscal plan provides little reason for optimism once the analysis goes beyond the plan’s cash flow summary.   The summary indicates that cash flow surpluses, net of any debt service payments, are to occur in every fiscal year from FY18 through FY23. By the close of FY23, the sum of all these projected surpluses.....

Document(s)   Batista profile update 28 March 2018 | PDF   The Batista family founded and controls meatpacker JBS, which expanded globally via acquisitions with strong financial support from BNDES and other government entities. J&F Investimentos, through which the family holds JBS, also owns Banco Original, cosmetics and cleaning products maker.....

This story was originally published on Debtwire on 20 March 2018.   Government of Mozambique bondholders are underwhelmed by the around 35-point net present value haircuts outlined yesterday (20 March) by the Ministry of Economy and Finance and its advisors, Lazard and White & Case. Three options were presented, with notional haircuts of zero,.....

Investors are still analyzing the potential pricing fallout from liquidation plans for Toys “R” Us as certain exposed senior bonds traded or covered around a 98 area price this week, according to a portfolio manager, a debt advisor, and data from Solve Advisors and ICE Data Services.   “People are digging in and trying to figure out what the [CMBS].....

Though less aggressive than previous versions, Kentucky’s latest pension overhaul still breaches inviolable rights and will likely face legal challenges, three public employee advocates told Debtwire Municipals.   “Over the last decade, there’s been substantial changes on the benefit side, so from our viewpoint a lot has already been done up.....

  The CLO market has welcomed a new manager. Permira Debt Managers launched its debut 2.0 transaction via Bank of America Merrill Lynch, according to market sources, pricing a €362.5 million deal yesterday named Providus CLO I, which is expected to close on 11 April.   Providus CLO I is believed to be the first CLO issued with ESG (environmental,.....

    The Puerto Rico Aqueduct and Sewer Authority's (PRASA) access to community disaster loans (CDL) is contingent upon it commencing a Title III proceeding, according to an official letter written by Puerto Rico Governor Ricardo Rossello.    In a letter dated 26 February to US Congress leaders—posted on the governor's Twitter page today—Rossello.....

Kentucky’s latest proposal to address USD 42bn in pension liabilities still imposes a high burden on local government, said two retiree advocates and a pension fund official.   The proposal arrived last week in the form of Senate Bill 1, introduced by Republican Senator Joe Bowen. While it still poses a burden to local governments, the measure.....

Joseph Otting, the head of the Office of the Comptroller of the Currency, said today that it’s up to banks to decide what level of risk they are comfortable with in leveraged lending, and that bankers shouldn’t consider themselves bound by the leveraged lending guidelines issued in the wake of the financial crisis.   In a question and answer.....

Puerto Rico’s special revenue and general obligation bondholders got some important answers in two separate rulings issued by Judge Laura Taylor Swain in January. Unfortunately, those answers created a whole new set of questions for the larger municipal bond market.   On 30 January, Judge Swain dismissed two lawsuits brought in connection with.....

Renewable energy in South Africa faces a tough job competing with a lengthy to-do list in 2018, but the country’s programme carries renewed hope following the departure of President Jacob Zuma, according to four bankers polled by Debtwire.   Eskom, the state-owned electricity monopoly, has been subject to state-capture and mired in corruption.....

Debtwire Municipals had two guest participants to discuss President Donald Trump’s (R) latest infrastructure plan as well as financial and hurricane recovery in Texas. We also discuss the Puerto Rico Electric Power Authority’s potential debtor-in-possession financing and Detroit Public Schools.   This week’s participants are Debtwire Municipals’.....

Debtwire Municipals with Debtwire North America hosted a webinar this morning discussing the future of Puerto Rico and the Puerto Rico Electric Power Authority (PREPA). Journalists and analysts discussed the implications of recent court decisions by Judge Laura Taylor Swain and the most recent fiscal economic growth plans.   CLICK HERE for the.....

Debtwire Municipals with Debtwire North America hosted a webinar this morning discussing the future of Puerto Rico and the Puerto Rico Electric Power Authority (PREPA).   Journalists and analysts discussed the implications of recent court decisions by Judge Laura Taylor Swain and the most recent fiscal economic growth plans.   CLICK HERE for.....

More E&P borrowers are expected to raise DrillCo funding this year as management teams aim to boost development while also curbing leverage, according to multiple industry and financing sources.   Thus far, growth capital piling into the nascent energy sector recovery has been largely cut off from the public equity markets, where hype last year.....

The LSTA has prevailed in its lawsuit against the SEC and the Federal Reserve, with an appeals court ruling that US CLO managers are not subject to credit risk retention laws under the Dodd-Frank Act.   The LSTA filed the lawsuit in October 2014, arguing that CLO managers are not securitisers and therefore are not subject to the Dodd-Frank regulations......

GNC Holdings has retained Alvarez & Marsal to help draft a restructuring contingency plan should the company’s efforts to address near-term maturities fall flat, according to three sources familiar with the situation.   The vitamin and supplement retailer is under the gun to address a March 2019 maturity of a USD 1.2bn term loan in order to avoid.....

Bills to the Puerto Rico Electric Power Authority (PREPA) from Whitefish Energy tally USD 144.9m as of last week, Christian Sobrino Vega, Governor Ricardo Rossello’s designee to the Financial Oversight and Management Board, told Debtwire Municipals.   PREPA has paid USD 36.7m of that total, leaving a pending balance of USD 108.2m, said Sobrino,.....

We asked managers to predict the year ahead across a range of credit strategies. Overall, they had a positive outlook.   Direct lending: some sectors are at risk of major correction   "This depends a bit on the jurisdiction. The one we’re closest to is Europe and I think the basic principle there for us is the continuation of.....

The Puerto Rico Electric Power Authority (PREPA) this week left USD 8.1bn in bondholders with an increasingly unfavorable outlook following Governor Ricardo Rossello’s proposal for partial privatization of the utility.   The governor’s 22 January statement was superseded two days later by release of PREPA’s new fiscal plan, which provides more.....

Debtwire, the leading provider of expert news, data and analysis on global leveraged credit, today released its inaugural Leveraged Insights Report and found that strong investor appetite, low volatility and cheap borrowing costs pushed U.S. leveraged finance volumes sharply higher in 2017. The report itself features an overview of the most recent.....

The head of CLO management at Canyon Capital Partners has left the asset manager, ending a near two-decade affiliation with the $20 billion-plus firm. Dominique Mielle was a partner and senior portfolio manager at Canyon in Los Angeles and is best known for building the firm’s CLO management business, which was established back in 2004.   Last.....

Moody's Investors Service downgraded 26 classes of FFELP ABS subject to CFTC swap margin posting requirements on Thursday, following years of advocacy work on behalf of former Moody's rating analyst and Debtwire ABS alum Bill Harrington. Harrington, now a senior fellow at the Croatan Institute, lobbied the rating agencies, SEC, CFTC and others to require.....

A CMBS benchmark deal aimed at boosting price discovery and secondary market liquidity is on the wish list of a number of attendees at the CRE Finance Council conference in Miami this week, according to industry executives speaking on the sidelines.   CREFC’s CMBS Secondary-Market Liquidity Task Force is considering the merits of pushing for a large.....

"Green" bonds are a growing trend within the municipal bond market, but the benefits to the structure may be limited as the green label is widely regarded as a marketing technique without much regulation or pricing benefits, several market sources say.   Most issuers use green bonds to attract more interest in their issuances, but green bonds offer.....

Lone Star Funds is turning to residential rentals as it grapples with the dregs of more than USD 30bn in delinquent loans purchased over the past several years, according to two sources familiar with the matter and an investor.   The USD 70bn private equity firm is embarking on an aggressive strategy to fix and rent out thousands of REO properties.....

Investment bankers are already starting to push their compliance teams to allow aggressive deals in leveraged finance, as the stars begin to align for a loosening of post-crisis guidelines intended to curb excessive risk-taking, according to numerous leveraged finance bankers. After the guidelines were officially opened up for Congressional review.....

The final 2017 edition of the Middle Market Junction Podcast brings in W. Todd Holleman, a partner and head of the BDC practice at King & Spalding, and Brian Garfield, a director in Lincoln International’s valuations and opinions group to discuss how business development companies (BDCs) mark-to-market (MTM) their loans on a quarterly basis.   As.....

DLA Piper Restructuring Partner David Ampaw recently sat down with Debtwire Europe Legal Analyst Dawn Grocock to discuss Europe’s ongoing battle to deal with its mountain of non-performing loans.   The podcast addresses the current state of the NPL market in Europe, the legal and regulatory influences and the challenges they bring to the market,.....

As Saudi Arabian Oil Company (Aramco) prepares for an expected initial public offering (IPO) in the coming year, discussions are underway with banks about the merits of issuing a pre-IPO debut international bond or sukuk, according to four sellside sources familiar with the situation.   With negotiations concerning the IPO heating up, focus has increasingly.....

Underperformance shouldn’t be an excuse to not test the market in today’s frothy environment, just ask Triangle Capital and Medley Capital. In the past 24 months, both business development companies cut their respective dividends. In recent weeks, they also effectively hit the auction block, likely buoyed by the returns that another struggling BDC.....

Thomas M Cooley Law School, Sweet Briar College, and New York Law School were the top three enrollment decliners among the 151 private universities and colleges that we reviewed in our first edition of Private Higher Education Watch.   Enrollment losses between FY12 to FY16 for the above three schools were 63%, 62.3%, and 49.4%, respectively. Such.....

With allegations against Harvey Weinstein mounting, his namesake company and its lenders are making preparations for an increasingly likely Chapter 11 filing, said three sources familiar with the matter.   The Weinstein Company (TWC) recently engaged the consulting firm FTI to advise on restructuring contingencies, said two of the sources. Meanwhile,.....

The Federal Emergency Management Agency (FEMA) warned the Puerto Rico Electric Power Authority (PREPA) about a controversial clause in the Whitefish Energy mandate 10 days before it was amended and executed, confirmed a FEMA spokesperson.   On 7 October, PREPA held a meeting with FEMA officials in Puerto Rico to discuss the Whitefish mandate,.....

In the November edition of the Middle Market Junction Podcast, Keith Daniels, partner at Carl Marks Advisors, explores the trends that are driving the struggling environment for regional grocers and what the future might look like for this industry with Debtwire Middle Market retail reporter Tanvi Acharya and editor Jon Berke.   The podcast focuses.....

In this week’s Momentum Monitor, The McClatchy Company took the top spot on our Top 20 Gainers list, with Walter Investment Management’s senior notes taking the No. 2 position. Also noteworthy on the list are Hexion, Talen Energy Supply, Dynegy and Seagate Technology.   Walter Investment Management’s subordinated convertible notes.....

Recent struggles in the regional grocer market aren’t expected to abate any time soon, as Amazon’s recent buyout of Whole Foods, the continued rise in e-commerce and non-traditional venues carrying groceries, such as Walgreens, are expected to continue to eat into their market share.   In past 15 months, this has resulted in the bankruptcies.....

Ghana’s finance minister Ken Olfori-Atta landed in London (19 October), having already visited autumnal New York and Boston, just in time to feel a noticeable temperature drop towards winter. Although billed as a non-deal roadshow, the intention of his trip was to add heat to the African bond market and convince investors to buy into the country’s.....

In the October edition of the Middle Market Junction Podcast , Jay Jacquin and James Hadfield of Configure Partners, the newly formed boutique investment and advisory firm, discuss the nuances of smaller restructurings with Debtwire Middle Market editor Jon Berke.   The banking executives go over the differences between how private credit lenders.....

Eurotorg (part of Euroopt), Belarus’s largest private company and largest food retailer, looks set to offer a yield close to double digits for its debut international benchmark offering to draw EM bond shoppers through its doors. But even this may prove insufficient to bag the deal at the check-out desk, according to a Moscow-based banker, a fixed.....

Competitive bidding and pressure to put record cash raises to work have created an aggressive new paradigm in deal-making—one in which private equity firms rush to close acquisitions before they even nail down committed financing, according to multiple buyout industry sources.   Several recent LBOs by firms including Thoma Bravo and CCMP were.....

When Gryphon Investors completed a buyout of OB/GYN services provider Ob Hospitalist in July, lenders, led by Antares Capital, provided the company with over 6x leverage across a first lien/second lien structure, according to two sources familiar with situation.   The LBO was then financed through a USD 45m PIK HoldCo note, bumping total leverage.....

In the September edition of the Middle Market Junction, healthcare-oriented restructuring lawyers Nancy Peterman of Greenberg Traurig and Thomas Califano of DLA Piper join Middle Market reporter Bill Weisbrod to discuss the nuances of workouts in the skilled nursing facility industry. Factors such as decreased government reimbursement rates and.....

The volatile selloff in The Fresh Market bonds this week featured several deep-pocketed funds swooping in to establish sizeable positions, noted three sources familiar with the matter. Among the distressed and private equity heavyweights piling into this capital structure is Cerberus Capital Management, which has quickly accumulated a stake in the grocery.....

Debtwire this morning (20 September) hosted an online roundtable discussion on Toys R Us and its recent bankruptcy filing. During the live event, our reporters and analysts delved into the company’s USD 3.1bn debtor-in-possession financing, its relationship with its vendors, and potential stumbling blocks to creating a plan of reorganization. The.....

Drydocks World, the UAE-based shipyard embroiled in long-running restructuring talks - and part of the Dubai World complex - has secured a restructuring deal with creditors funded by a USD 225m injection by DP World. The transaction was announced by DP World today and confirmed by a source close to the situation. “It’s a Dubai-based solution,”.....

Mortgage servicers facing millions of dollars in hurricane-related losses are considering an appeal for relief from a US government policy that leaves them on the hook when a property is irreparably damaged, according to two sources familiar with the effort. Alarm over the handling of federally insured loans will top the agenda for large servicers as.....

Lynn Tilton allegedly exploited large losses at certain Zohar portfolio companies in order to reduce or avoid personal income taxes, even as she was funneling out tens of millions of dollars per year in income for herself, according to documents filed in a fraud case brought in New York by two German banks. Papers filed late Friday (8 September) show.....

Toys R Us advisors Lazard and Kirkland & Ellis have been holding talks with restricted investors about raising new financing for the distressed retailer, said four sources familiar with the situation. The company’s foremost aim is to net a rescue financing package -- proceeds of which could be used to take out 2018 maturities -- but executives are also.....

Tajikistan can surprise by issuing its 8.75-year average life bond around 7% as EM investors’ indiscriminate hunt for yield shows no sign of abating, according to three buysiders and a trader. China’s infrastructure plans as well as positive government initiatives are likely to boost support for the unusual debut. But high external debt-to-GDP.....

The skilled nursing facility (SNF) industry has been pressured recently by reimbursement changes, regulatory changes and high fixed costs.   This has led to multiple SNF operators to negotiate a restructuring with both its landlords and secured working capital lenders as its either late on rental payments or has liquidity issues. Outcomes could.....

Navajo Nation Oil and Gas Company’s (NNOGC) quest to refinance a loan that already matured last month has taken an unusual turn. The company told prospective lenders that it’s willing to waive its sovereign immunity, a hallmark legal designation that prevents tribes from being forced into bankruptcy court by creditors after a default, the sources said. Furthermore,.....

Caesars Entertainment Operating Company will finance its bankruptcy exit in part via the CMBS market, according to a source familiar with the company and a person briefed. The company is on track to exit bankruptcy court protection in October, according to Joe Graham, an attorney representing CEOC.   The company has long said it will use up to USD.....

Citadel Servicing Corp. last week dropped its requirement for income documentation to a single month’s bank statement in a move that resets the limits of how far mortgage lenders will go to wave in borrowers, according to an executive at the company and four other lenders. The new bank statement program came as a surprise to some market participants,.....

In this special episode of Debtwire Radio, we talk about a new Debtwire Investigations report looking at the growing threat posed by decommissioning liabilities to E&P companies in the Gulf of Mexico.   In this edition, Debtwire editor Jon Berke, reporter Alex Plough, and credit analyst Michael Coleman discuss how independent energy companies.....

Debtwire Middle Market conducted research on 146 companies in North America that emerged from bankruptcy between 2014 and 2017.   CLICK HERE to view the report in PDF   Strategics wound up being the most active shoppers in the market as 69 or 47% of all the cases wound up being sold wholesale or piecemeal. Private equity or distressed funds.....

Debtwire has published a profile of the Paulmann family, which controls Chilean retailer Cencosud SA. Last month, Cencosud issued USD 1bn 4.375% notes due 2027 and completed a tender offer for its USD 750m 4.4% 2021 notes and USD 1.2bn 4.875% 2023 notes, repaying USD 493m of the former and USD 257m of the latter.   The report is the latest in a.....

Sponsors for CompuCom Systems and Pomeroy have entered into discussions to merge the two IT companies in a transaction that would result in significant synergies, according to three sources familiar with the situation.   CompuCom— a mid-tier provider of IT outsourcing services, including end-user computing, held desk and IT workforce— was.....

Iran expects more than USD 15bn worth of oil project finance deals before the end of its calendar year on 20 March 2018 – a bullish view for a country that has long languished under international isolation and sanctions. But recent tenders and deals suggest that Iranian project finance is finally on the table once again for foreign companies, following.....

Rising controversy and heavy indebtedness saddling Avolon Holdings’ parent HNA Group threaten to erode the subsidiary’s own credit quality, two bondholders said. Chief among bondholder concerns – Avolon’s USD 1.25bn 5.5% unsecured notes were raised just seven months ago – is that a turbulent ownership group could take advantage of loose restricted.....

GST AutoLeather has retained advisors Alvarez & Marsal and Lazard for restructuring assistance, according to two sources familiar with the situation.   GST is a supplier of interior automotive leather products. But the company’s earnings have come under pressure as a number of a contracts with major auto-suppliers are in jeopardy, noted two.....

  RNHB has opened the books on its unconventional Dutch RMBS, Dutch Property Finance 2017-1, and it expects to price the deal this week after strong investor interest. The deal is being syndicated via ABN Amro and HSBC as joint leads.   The bank held on-site presentations for potential investors on 13 July, shortly after it first announced the.....

When independent oil and gas producers based in the semi-autonomous Kurdistan Region of Iraq (KRI) turned to the bond market between 2007 and 2015, fixed-income investors welcomed the opportunity to gain exposure to vast untapped reserves. But the honeymoon didn’t last – by 2016, three of the five bond issuers with operations in the region had renegotiated.....

When independent oil and gas producers based in the semi-autonomous Kurdistan Region of Iraq (KRI) turned to the bond market between 2007 and 2015, fixed-income investors welcomed the opportunity to gain exposure to vast untapped reserves. But the honeymoon didn’t last – by 2016, three of the five bond issuers with operations in the region had renegotiated.....

When independent oil and gas producers based in the semi-autonomous Kurdistan Region of Iraq (KRI) turned to the bond market between 2007 and 2015, fixed-income investors welcomed the opportunity to gain exposure to vast untapped reserves. But the honeymoon didn’t last – by 2016, three of the five bond issuers with operations in the region had renegotiated.....

Women’s shoe retailer Aerosoles has retained Piper Jaffray to advise on strategic and financial alternatives, said three sources familiar with the matter.   A first order of business under the mandate is for the bank to explore capital-raising prospects, said two of the sources. Additionally, Aerosoles is intent on reducing its US storefront.....

Rothschild is advising the Ukrainian government on its long-term funding strategy, according to two sources close to the situation and a person briefed on the matter. The government has also recently mandated three banks for its upcoming Eurobond issue, according to the first two sources.   Goldman Sachs, JPMorgan and BNP Paribas will lead the country’s.....

Kramer Levin Naftalis & Frankel and Debtwire last week (12 July) co-sponsored a retail restructuring event that brought together a formidable roster of retail restructuring experts to discuss opportunities and strategies for preserving and unlocking value of distressed retail assets. The panel, which was moderated by Debtwire senior legal content specialist.....

While the political agreement reached at the end of May settled the primary questions the ABS industry had over the shape of future regulation in Europe, the compromise text approved in ECON last week still carried a few surprises.   One big surprise was the extension of the prohibition on self-certified residential loans from the STS criteria to.....

The quarterly Debtwire Middle Market-Piper Jaffray private credit report for 2Q17 provides pricing intelligence and commentary on the private debt market. Piper Jaffray surveyed 50 middle-market funds, including private credit funds, for average pricing and leverage on deals completed during 1Q17 and 2Q17. The report also includes commentary on market.....

Warren Buffett’s competition against Paul Singer for control of Oncor makes for a popular storyline: billionaire vs billionaire in a literal power play. But to reach a bankruptcy court resolution, Buffett’s more straightforward bid may need to pull from entangled prior rulings to overcome Singer’s robust blocking position, according to two sources.....

  Banco Sabadell has mandated Deloitte for the sale of a EUR 1bn non-performing loan portfolio, dubbed Project Voyager, said two sources and a person familiar with the situation. The deal is at the very early stages and the portfolio is still being prepared, the person familiar said.   The portfolio is expected to hit the market later this.....

The quarterly Debtwire Middle Market-Piper Jaffray private credit report for 2Q17 provides pricing intelligence and commentary on the private debt market.   Piper Jaffray surveyed 50 middle-market funds, including private credit funds, for average pricing and leverage on deals completed during 1Q17 and 2Q17. The report also includes commentary.....

  Glas Trust Corporation, the trustee of ground rents CMBS Fairhold Securitisation, cannot adopt advisory fees incurred by the ad hoc group of noteholders wholesale, the English High Court has ruled.   In a judgment handed down today (13 July), Justice William Blair directed the parties to agree an order which lay out the mechanism by which.....

Debtwire Municipals with Debtwire North America hosted a webinar this morning discussing Puerto Rico’s restructuring and litigation landscape.   Our team discussed the five pending Title III cases — the commonwealth, the Puerto Rico Sales Tax Financing Corporation (COFINA by its Spanish acronym), the Puerto Rico Highways and Transportation Authority,.....

Commitments were due today for BBVA Compass’ financing for Nobilis Health after pricing widened from L+ 475bps to the L+ 550-600bps range, said two sources close to the situation.   The credit facility consists of a USD 150m term loan, the sources said, with one source noting it also includes of a USD 25m revolver. The funds will be used to.....

Granite City Food & Brewery is looking to raise up to USD 20m in junior capital, according to three sources close to the situation. Management is exploring several structures, ranging from second lien debt down to convertible securities, the sources added.   The Minneapolis-based restaurant owner previously engaged Lincoln International to advise.....

by Gunjan Banerji   The City of Chicago recognizes the importance of liquidity and has added to long-term reserves while tightening its costs in FY15, CFO Carole Brown told Debtwire Municipals in an interview.   The city’s latest CAFR, released today, reflects progress with the city’s internal financial controls as well as its cost-tightening.....

  Apollo Global Management has sold its circa EUR 1.2bn German office portfolio to Intown Invest, according to a source familiar with the situation and three market sources.   Apollo initially asked brokers to pitch for the mandate to sell the portfolio, as first reported by this news service, but later told them it had already found a buyer.   The.....

On 5 July, Vince Holding Corp (VNCE) announced a credit amendment agreement has been reached with both its ABL and term loan lending groups. The recent term loan amendment waives the net leverage ratio covenant requirement through 1Q19, which we previously expected the company’s compliance to necessitate the use of further equity cures. The company also.....

The middle market leveraged-finance market has been bookended as of late by the frothiness of the market compounded by the lack of quality M&A opportunities. This has led, in some circles, to aggressive buyouts on both the equity and debt side, for new inventory, while others have stood on the sidelines using their capital for bolt-on investments and refinancings,.....

BBVA is selling a EUR 600m NPL portfolio to Cerberus Capital Management, according to a source familiar with the situation and a person familiar with it. Cerberus won against the competition of Apollo Global Management and Deutsche Bank, which presented binding offers at the end of June, as reported. Vozpopuli  first wrote about the sale. The portfolio,.....

  Puerto Rico’s oversight board has filed a voluntary petition for a Title III debt restructuring process for the Puerto Rico Electric Power Authority (PREPA).   The Finanical Oversight and Management Board announced the petition filing in the following 2 July press release:   The Financial Oversight and Management Board for Puerto.....

Zedcor Energy Inc. (ZDC) (f.k.a Canadian Equipment Rentals Corp.) provides oilfield rental equipment and accommodations to the drilling segment of the oilfield industry in Western Canada. Its services mostly involve surface and accommodation rentals.   ZDC was previously in a forbearance expiring 28 April with its former revolver lender group,.....

by David Graves and Priscila Azevedo-Rocha   Hopes are dimming of a swift resolution to the Mozambique debt crisis, as advisers to the government maintain that sovereign guarantees of the controversial ‘secret’ loans to state enterprises should not be disavowed. Mozambique bondholders argue that the findings of a recently published audit into.....

Debtwire hosted on  Monday 13 February an online roundtable discussion on the Government of Mozambique‘s potential sovereign debt restructuring.   Our sovereign debt reporter Priscila Azevedo-Rocha and guest specialists on sovereign debt restructurings provided listeners with an overview and an analysis of the situation a month after the Mozambique.....

by Tomas Cutts, and Dan Alderson   Russian bond markets are a world away from how they looked a year ago. The corporate Eurobond market has been in favour this year due to the looming volume of bond maturities in 2018 and 2019, with issuance accelerating in April on the back of hefty redemptions.   RUSAL underscored the global appetite for.....

Family-owned carpet maker and distributor Beaulieu has been working with Armory Group for help exploring strategic alternatives, said two sources familiar with the situation.   The company’s LTM EBITDA hovers around breakeven, the sources continued, while it has roughly USD 70m outstanding on a BofA Merrill Lynch-agented revolver that matures.....

African project finance is under-invested, hampered by difficulties in identifying investable projects, an over-reliance on sovereign support and a lack of regulatory framework, according to a banker, a developer and two lawyers. For all these challenges, the project finance market is becoming increasingly resourceful in structuring deals to address the.....

Valeant has been fielding reverse inquiries from bondholders who are looking to engage in private debt-for-equity swaps that would be executed in one-off transactions, according to two sources familiar with the matter. Such deals could be done piecemeal, helping the specialty pharmaceutical company delever at the cost of incrementally diluting common shares,.....

Comerica is now just over a decade removed from moving its headquarters to Dallas from Detroit in order to chase business in the oil patch. Predictably, its massive buildup in energy loans took a turn for the worse as it upped reserves for bad loans by three times in 3Q15 triggering a massive drop in its stock. Management brought in Boston Consulting.....

The last six months have brought Europe to a tumultuous precipice and unchartered territory in terms of what the future of the European Union will look like and the level of ease of trade across the EU countries and their counter parties. As the British negotiator David Davis and the EU negotiator Michel Barnier begin Brexit talks this week, the TMA Europe.....

Granite City Food & Brewery has retained Lincoln International to advise on financial and strategic alternatives while the company operates under a recently inked forbearance agreement with its secured lenders, said two sources close to the situation.   The publicly traded restaurant company entered into a forbearance agreement with secured lender.....

Bentham Capital’s David Kerstein and Morgan Lewis & Bockius’ Ed Smith and James Moore recently joined Debtwire legal analyst Richard Goldman to discuss litigation financing and its increasing presence in the distressed space. During the conversation, the expert panel breaks down the market factors that have supported the industry’s two decade-long.....

Read our introduction to Sukuk Structures here.   Dana Gas is attempting to render its USD 300m 9% 2017 sukuk and USD 350m 7% 2017 convertibles unenforceable under the guise of the Islamic debt not adhering to Shariah principles. But creditors, Islamic lawyers and market observers alike see the move as a delaying tactic and an attempt to jam an unfavourable.....

By Madalina Iacob, Joshua Friedman, Yulia Latysheva, and Pat Holohan   Debtwire will host an online roundtable discussion on GenOn Energy’s bankruptcy today (16 June) at 11am ET. Our team of journalists and analysts will recap the first-day hearing and explore a variety of topics, including the debtor’s noteholder-backed restructuring support.....

by Jon Berke   In the June edition of the Middle Market Junction podcast, we engage Josh Benn, managing director at Duff & Phelps, in a roundtable discussion with Debtwire Middle Market Managing Editor Jon Berke and court reporter Pat Holohan about the chain of events that led to Ignite Restaurant Group – owner of the casual restaurant.....

The June Debtwire Middle Market Watchlist highlights bonds and loans of levered borrowers that are either engaged in balance sheet restructurings or face imminent pressure to reduce debt.   The Debtwire Middle Market universe typically covers credits with funded debt of USD 150m or less and an overall total debt load of USD 300m if the debt.....

by Reshmi Basu, Patrick Holohan, Philip Emma, and Joshua Friedman   Debtwire will host an online roundtable discussion on The Gymboree Corp’s bankruptcy on Wednesday, June 14 at 11am ET. Our team of journalists and analysts will recap the first-day hearing and explore a variety of topics, including the debtor’s lender-backed restructuring.....

The latest edition of the BDC Quarterly Trends and Analysis report provides a two-year look back at pricing trends for all issuances and exits for 40 BDCs Debtwire tracked through 1Q17. The BDCs tracked carry the largest market capitalizations in the industry. This quarter we’ve added new industry analysis, featuring average cash coupon and first.....

by Allison Pyburn   JPMorgan Chase does not need regulatory approval to transfer roughly USD 6.9bn in student loans to Navient Corp, despite assertions to the contrary, according to federal banking regulations and spokespeople for the bank and the Department of Education.   This means that any remaining hurdles to the sale — if any — are.....

by Priscila Azevedo-Rocha   The financing for Mozambique’s USD 8bn Coral South LNG project in Area 4, off the coast of the country’s Rovuma basin, has drawn the backing of 12 non-Chinese banks in addition to the deal’s three Chinese bank leads, according to two sources close to the situation.   The largest tickets on the subscription,.....

  Valparaiso University will issue USD 39.545m revenue bonds through Indiana Finance Authority tomorrow (6 June) for various capital projects and to refund past issues.   Wells Fargo Securities is the underwriter. The capital projects include construction of a new academic building for STEM programs, renovation of certain educational facilities,.....

by Laura Gardner Cuesta, and Alesia Sidliarevich   As the Bank of Georgia prepares to issue the first ever Eurobond denominated in lari (GEL), the Eurasian country’s local currency, four buysiders out of five polled think the FX risk justifies a premium over local interest rates of 8%-9%.   Georgia’s second largest private bank.....

by Priscila Azevedo-Rocha   Eastern European governments are bolstering domestic debt issuance and driving through structural reforms to strengthen local currency markets, according to four market participants. They are seeking to break their dependency on foreign-currency investment, increase resilience and mitigate exogenous shocks to their economies.   Georgia’s.....

Tom Newberry, partner in CVC Credit Partners, joins the Middle Market Junction this month to discuss the European direct lending landscape in 2017 and how US style features are starting to permeate a still growing universe with Jon Berke and Joelle Jefferis of Debtwire Middle Market.   Particular topics of discussion include how the European middle.....

In this week’s edition of the Middle Market Junction podcast, Jon Berke and Danielle Randall of Debtwire Middle Market, and Rich Goldman, legal analyst for Debtwire North America, explore the trends that led to the recent bankruptcies of Marsh Supermarkets and Central Grocers and the ramifications that each case might have on future supermarket.....

by Michael Ogunleye   The strong performance of Nigerian bank Eurobonds is starkly at odds with the country’s dismal economic fortunes and owes much to riding this year’s fixed-income wave, according to several market participants. CEEMEA debt has been fighting fit, buoyed by record fund inflows of USD 26bn chasing thin supply, and Nigerian.....

Thursday (11 May) at 11:30 a.m. ET, journalists from Debtwire Municipals will discuss the latest developments with Chicago Public Schools (CPS) and the State of Illinois.   This month will provide critical clues to the credit strength of these entities, as the state attempts to secure its first budget deal in years and CPS faces a significant pension.....

by Reshmi Basu, Danielle Randall-Saba, and Jon Berke   Bankers from BoA Merrill Lynch have been rounding up investor interest in a potential refinancing for Tops Holdings, according to three sources familiar with the situation.   Tops’ ability to refinance its capital structure has been a front and center issue for investors, given.....

  The Puerto Rico Financial Oversight and Management Board has certified the territory's petition to enter Title III restructure, according to a press release from Chairman Jose Carrion.   The full text of the 3 May press release follows:   The Financial Oversight and Management Board for Puerto Rico, created by Congress under the bipartisan.....

by Kyle Younker   Remco Maintenance, a company managed by Lynn Tilton and Patriarch Partners, is in the process of liquidating its remaining assets following an abrupt closure late last month, according to three former employees.   The latest shutdown by a borrower in the Zohar portfolio comes amid ongoing disputes between Patriarch and the.....

by Alexander Gladstone, Reshmi Basu, and John Bringardner   Two months after amending its revolving credit agreement, Hertz is again at risk of being driven back to the negotiating table for another round of covenant revisions, according to a lender and two sellside analysts. Moreover, the car rental company’s ability to address a wave of.....

In this month’s Middle Market Junction podcast, Alexander Montano, Managing Director in investment banking at Roth Capital Partners, sits down with Jon Berke and Rachel Butt of Debtwire Middle Market to discuss the spate of oil and gas producers trying to get their second bites of the apple.   The A&D (acquisition and divestiture) market.....

by Paunie Samreth, Reshmi Basu, and Jon Berke   PaperWorks Industries tapped SVN International to sell off a recently closed paper mill, said four sources familiar with the situation. A sale, while small, could offset an expected cash burn this year as the issuer examines strategies for addressing the maturity of its entire capital structure in.....

by Danielle Randall-Saba, and Jon Berke   Central Grocers is in talk to sell 22 of its Strack & Van Til grocery stores to supermarket giant Albertson’s, according to two sources familiar with the matter. The distressed grocer has been exploring restructuring and strategic alternatives, including a sale of its retail grocery chains.   Management.....

In the inaugural podcast of The Muni Lowdown, Debtwire Municipals’ Paul Greaves, Seth Brumby, Greg Clark and Maryellen Tighe bring you a short recap of the week’s news in municipal bonds.   This week they talk about the latest in Puerto Rico’s restructuring, what the Westinghouse Chapter 11 means for municipal bondholders, credit concerns.....

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In the inaugural podcast of The Muni Lowdown, Debtwire Municipals’ Paul Greaves, Seth Brumby, Greg Clark and Maryellen Tighe bring you a short recap of the week’s news in municipal bonds. This week they talk about the latest in Puerto Rico’s restructuring, what the Westinghouse Chapter 11 means for municipal bondholders, credit concerns for theIn the.....

Debtwire Municipals with Debtwire North America hosted a webinar this morning on what the Westinghouse bankruptcy means for municipal issuers Municipal Electric Authority of Georgia (MEAG) and South Carolina Public Service Authority (Santee Cooper).   Our team discussed how Westinghouse got where it is, and how the contractor and its utility.....

by Rachel Butt   Arhaus LLC has appointed GlassRatner Advisory & Capital Group as chief restructuring officer, two sources close to the situation said. This complements the co-advisory roles of Piper Jaffray and Candlewood Partners to explore a refinancing.   The Ohio-based furniture maker has 60-plus stores nationwide and also sells high-end.....

by Richard M. Goldman   M-III Partners’ Ken Simon and Daniel Allan, along with Cooley’s Jay Indyke and Cathy Hershcopf, recently joined Debtwire legal analyst Richard Goldman to discuss the ins and outs of representing an unsecured creditors’ committee in a retail restructuring. During their conversation, the turnaround experts.....

In this month’s Middle Market Junction podcast Dr. Sohail Masood, founder and CEO of KabaFusion Holdings, a home infusion services provider, sits down with Bill Weisbrod of Debtwire Middle Market to discuss the impact the 21st Century Cures Act will have on his company.   KabaFusion, which was recapitalized by BBH Capital Partners in 2014,.....

by John Bringardner   Lynn Tilton, her Patriarch Partners firm and its MD Helicopters portfolio company are awaiting an appeals court ruling on whether a whistleblower lawsuit can proceed against them. The ordeal, which led to the conviction of a US Army colonel, centers on a narrow legal dispute over whether MD violated the federal False Claims.....

by Richard M. Goldman   Kramer Levin partner Adam Rogoff and special counsel Anupama Yerramalli recently joined Debtwire legal analyst Richard Goldman to discuss the distressed state of US healthcare providers. During their conversation, the legal experts addressed the market and regulatory factors contributing to the healthcare industry’s.....

Debtwire Municipals hosted a webinar this morning on the US Virgin Islands (USVI) and its financial stress.   Our team of journalists discussed how the USVI’s plans to balance its budget might work, or how it might access a structure similar to the Puerto Rico Oversight, Management and Economic Stability Act. The webinar also gave a history.....

by Madalina Iacob, and Kyle Younker   Several distressed hedge funds who were deftly active during the energy sector bankruptcy blitz have emerged as stronger power players poised to direct the industry’s future, said multiple energy focused buysider and sellsider sources, along with several financial advisors involved in energy workouts.   Apollo,.....

by Hassan Jivraj, and Laura Gardner Cuesta   The Government of Kuwait’s debut five-and-10-year Eurobond will likely be well received by the market, benefiting from a solid investment grade rating and scarcity value, according to market participants. While most investors were in agreement that Kuwait will price somewhere between the Abu Dhabi.....

by Richard Goldman   Debtwire‘s legal analyst team today published a special report on the state of US coal restructurings.  In this special report, the team revisits the bankruptcy boom that plagued some of the largest US coal companies over the past two years, including Peabody Energy, Arch Coal, Alpha Natural Resources, Walter Energy, Patriot.....

In this month’s edition of the Middle Market Junction Podcast, Andrew Lines, principal in CohnReznick valuation advisory services practice, specializing in real estate, speaks with Debtwire Middle Market’s Danielle Randall-Saba and Jon Berke and Sarika Gangar from Debtwire ABS about the state of class B&C malls and a look into the year ahead.   Top.....

by Al Yoon   Angelo, Gordon & Co. has engaged a team of residential loan managers from the distressed loan unit of Ranieri Partners as part of an expansion of its mortgage credit business, according to three investors and a bond issuer.   The Selene Investment Partners group is led by Dave Reedy, a senior vice president with Selene who has.....

by Jack M. Tracy II   Debtwire’s Head of Legal Analysis Jack Tracy, along with Legal Analysts Richard Goldman and Paul Gunther, recently sat down to record episode two of their podcast series and discuss some of the more notable issues concerning today’s highest-profile Chapter 11 cases. In this episode, the legal team tackles Delaware Judge.....

by Chris Haffenden, David Graves, and Alesia Sidliarevich   Over the past month, Agrokor bondholders and prospective investors have made frantic calls to Zagreb-based lawyers to find out how friendly the local jurisdiction is for foreign creditors to the beleaguered Croatian retailer. At face value, there is some reassurance with local pre-bankruptcy.....

by Aline Lima A potential purchase offer for Tonon Bioernergia’s (D) two mills, the centerpiece of the first option in its restructuring plan, will likely imply a large haircut for creditors, according to two sources close to the matter and a source familiar. The Brazilian sugar and ethanol producer has been in talks to potentially.....

by Al Yoon   The National Credit Union Administration for the first time has sold some of its legacy securitized asset portfolio formed to help stabilize member institutions in the aftermath of the financial crisis, said Anthony Cappetta, a supervising financial analyst at the NCUA.   The NCUA today sold USD 18.3m (current) in non-agency RMBS.....

by Richard M. Goldman   AlixPartners managing directors Deborah Rieger-Paganis and Robert Albergotti recently joined Debtwire legal analyst Richard Goldman to discuss Alix’s 2017 restructuring expert survey.  Now in its 11th year, the survey—which solicited responses from hundreds of practitioners in the global restructuring space—forecasts.....

by Richard M. Goldman   Shearman & Sterling Financial Restructuring & Insolvency Group practice leader Fred Sosnick and Capital Markets partner Harald Halbhuber, along with Debtwire North America’s own Head Legal Analyst Jack M. Tracy, II, last week joined legal analyst Richard Goldman for a riveting roundtable on the Second Circuit’s.....

Sukuk (commonly referred to as Islamic bonds), are growing in popularity amongst issuers and investors, with JPMorgan recently including eight deals in their EMBI index for the first time. Ahead of Saudi Arabia’s upcoming sukuk, Debtwire has prepared a brief history of the market, providing an overview of the key principles and differences that make.....

A USD 100m loan tied to President Donald Trump and New York’s Trump Tower that is securitized in WFCM 2012-LC5 is among the collateral being drawn into a political battle by a lawsuit alleging the President’s links to properties that receive payments from other countries violate the US Constitution.   -The suit could lead to a change in the.....

by Alexander Gladstone   If you have ever ridden in a taxi in New York, Chicago, or Boston, chances are that your cab’s government permit was financed by a company called Medallion Financial. While the taxicab medallion financing kingpin was flush with cash for decades, over the past year the company has been struggling to stay afloat amidst competition.....

by Jon Berke, and Bill Weisbrod   In this month’s edition of the Middle Market Junction podcast, David Brackett, co-CEO and founder of Antares Capital, speaks with Debtwire Middle Market’s Jon Berke and Bill Weisbrod on previewing the 2017 lending environment for middle market sponsor buyouts and also takes a look back on a very transformational.....

by Aline Lima   Raizen Energia (BBB-/BBB) has hired Rothschild as its financial advisor to work on the potential purchase of two mills from Tonon Bioenergia (D), according to two sources familiar with the matter. Tonon, meanwhile, has replaced its legal advisor, Felsberg Advogados, with Thomaz Bastos Waisberg Kurzweil, according to two sources.....

by Hassan Jivraj, and Elias Lambrianos   The Government of Egypt kicked off a roadshow in the UAE for its proposed US dollar-denominated benchmark Eurobond on Tuesday (17 January). The Arab world’s most populous country is seeking to issue a dual-tranche bond carrying five-and 10-year maturities.A recent slowdown in growth,.....

Debtwire’s Head of Legal Analysis Jack Tracy, along with Legal Analysts Richard Goldman and Joshua Friedman, yesterday (12 January) sat down for the debut episode of their new podcast series to discuss some of the most notable issues concerning today’s highest-profile Chapter 11 cases. During their conversation, the legal team tackled Caesars Entertainment.....

by Richard Goldman   In the wake of Energy XXI’s 30 December emergence from Chapter 11, WilmerHale bankruptcy and financial restructuring co-chair Phil Anker, Loughlin Management Partners managing directors Aaron Kibbey and John Sordillo, and H.J. Gruy and Associates executive vice president Robert Rasor joined Debtwire legal analyst Richard.....

The United States Virgin Islands (USVI) has again delayed its USD 221m bond sale amid low interest, as investors seek greater security, said Andre Wright, the USVI’s external advisor at Standard International Group.   Underwriter Morgan Stanley got orders for USD 150m in bonds, about USD 125m of the almost USD 150m in seniors and USD 25m of the.....

by Priscila Azevedo-Rocha, and David Graves   On an autumnal London October afternoon, the Government of Mozambique’s 2023 bondholders shuddered during a meeting arranged by Lazard and White & Case – Mozambique’s financial and legal advisers – after  being told to engage in potential restructuring talks. The bonds collapsed over 20.....

Debtwire Legal Analyst Richard Goldman today published a special report examining unitranche financing and the potential pitfalls that unitranche lenders may face in the event that borrowers commence in-court restructuring proceedings or seek to sell assets pursuant to Bankruptcy Code section 363.  In the special report, Richard analyzes key elements.....

by Danielle Randall-Saba   Tourneau’s sponsor Leonard Green & Partners engaged Houlihan Lokey to sell the luxury watchmaker, said two sources close to the situation.   The sales process, which has been ongoing for three months, has so far failed to gain traction in light of the decline of the watch exports industry, the two sources said.   The.....

by Reshmi Basu   Sears Holdings earnings outlook, following another quarterly loss, remains bleak, and a host of suppliers are now requesting cash in advance before they agree to ship or are opting instead to avoid shipments altogether, according to three sources familiar with the matter.   Rocky vendor relations for Sears are nothing new,.....

by Richard Goldman   Gibson Dunn restructuring co-head Robert Klyman, Berkeley Research Group managing director Steve Coulombe and former Toys “R” Us SVP Corporate Finance and Treasurer Chetan Bhandari recently joined Debtwire legal analyst Richard Goldman for an in-depth discussion on the state of the distressed retail market.  During.....

by Reshmi Basu, Kyle Younker, and Andrew Berlin   J.Crew management is executing a plan to transfer the company’s intellectual property to an unrestricted Cayman Islands subsidiary, according to four sources familiar with the matter. The Madewell segment is not part of the transfer and will stay in its current box, two of the sources added.   The.....

Jay Goffman, Skadden Arps’ global restructuring co-head and the “Godfather of Prepacks,” recently sat with Debtwire legal analyst Richard Goldman to discuss some of the most challenging and controversial topics impacting today’s restructuring landscape.   During their conversation, Goffman provided candid viewpoints and practical.....

by Simone Baribeau   The backing for FirstEnergy subsidiaries’ unsecured municipal debt is more diverse than the secured debt, according to a hedge fund manager and a company spokesperson, leading to disparate prices among unsecured debt.   The importance of the difference between the debt has come to the forefront after First Energy.....

Debtwire’s African Editor, John Foster, hosted the Financing Renewable Energy session at the 14th Annual African Capital Markets Conference in Cape Town, South Africa on 1st December 2016.   Listen to the full panel discussion here.   Agenda:   - Opportunities for financing renewable energy products in a fossil fuel country   -.....

In this month’s edition of the Middle Market Junction podcast, Bruce Mendelsohn, head of Perella Weinberg Partners’ restructuring group, speaks with Debtwire’s Jon Berke. Mendelsohn previews the landscape for 2017 and reviews the impact that hot-button 2016 issues, like the Trust Indenture Act, may have in the new year.   The podcast.....

by Antonio Vanuzzo, and Alessia Pirolo   The timeline for Banca Monte dei Paschi di Siena’s (BMPS) EUR 27.6bn NPL securitisation remains unchanged despite the political turmoil following the Italian Constitutional referendum’s outcome, according to two sources close to, a source familiar with and a person familiar with the situation.   Today,.....

by Stephen Aldred   Boyu Capital, a China-focused private equity firm co-founded by the grandson of former Chinese president Jiang Zemin, could come to the market to raise a dollar fund of as much as USD 2bn next year, a source close to the situation said.   This would be Boyu’s third US dollar fund, and follows swiftly from a USD 1.5bn.....

by Stephen Aldred   Executives of Nepoch Capital, one of China’s so-called “princeling” private equity funds, have spun out into a new fund called Pagoda Capital after Nepoch co-founder He Jintao, the son of China’s former head of Communist Party discipline He Guoqiang, was questioned in connection to a corruption investigation, said.....

by Madalina Iacob, and Jon Berke   Concordia International tapped PJT Partners as financial advisor as it faces regulatory and financial pressures, and on the heels of organization among its bondholders, said two sources familiar with the matter.   The generic drugmaker owes a roughly GBP 72m earn-out payment due 16 December to Cinven,.....

by Jack Tracy, and Richard Goldman   Debtwire’s Head of Legal Analysis Jack Tracy and Legal Analyst Richard Goldman published a special report examining a recent decision in the ongoing liquidation of Bernard L. Madoff Investment Securities (BLMIS).   That decision, issued by Southern District of New York Bankruptcy Court Judge Stuart.....

by Jon Berke, and Paunie Samreth   An ad hoc group of Concordia International unsecured bondholders has sent a letter to the CFO Edward Borkowski expressing concerns about the company’s prospects in light of near-term financial and regulatory developments.   The unsecured bondholders, who collectively hold under 50% of the company’s.....

It’s about that time of year when brick-and-mortar retailers court customers with catalogs to jump-start the peak holiday spending season.   Advertising dollars continue to flow online, and companies have found the source code on the back of catalogs as an effective way to track shoppers, according to the FY16 Statistical Fact Book Catalogues issued.....

by Reshmi Basu, and Madalina Iacob   J.Crew management is working with advisor Lazard to explore balance sheet restructuring options, according to three sources familiar with the matter.   The mandate follows the retailer’s talks last month with different investment banks on how to fix the over-levered capital structure, the sources.....

Debtwire Municipals hosted a webinar this morning on Flint, the Karegnondi Water Authority and the Great Lakes Water Authority.   Our team of journalists and analysts discussed a recent timeline of how Flint’s water situation arose, estimated costs to replace lead pipes and how the city’s water problems could impact the Karegnondi Water Authority......

by Jon Berke   With banks starting to win back middle market direct lending business in Europe, private fund managers are increasingly choosing to migrate stateside in hopes of scoring investing opportunities in the US, said multiple market participants.   In recent months, CVC Credit Partners announced plans to roll up its US assets to.....

by Greg Clark   Atlantic City last week submitted a five-year financial recovery plan to the State of New Jersey with at least one major flaw that may lead the state to reject it.   Central to the plan is a USD 110m bond issue by the junk-rated Atlantic City Municipal Utilities Authority (MUA). Bond proceeds would be used to pay down.....

On the heels of Breitburn Energy’s recently appointed equity holder committee, Ancela Nastasi of Nastasi Partners joined Debtwire legal analyst Richard Goldman for a comprehensive look at the practical realities that Chapter 11 equity committees face on their path to official appointment.  With the Energy XXI, Horsehead Holdings and Ultra Petroleum committee.....

by Bill Harrington   * The rating agency’s generous assumption allows the second-largest global financial institution to postpone remedial actions for innumerable structured finance transactions with inflated ratings.   Is Deutsche Bank the next Lehman Brothers or merely another Bear Stearns?   Given the size of Deutsche Bank, does.....

The for-profit education industry was dealt a blow last month when ITT Educational Services filed for Chapter 7 liquidation.   The move came after the debtor suffered from a series of fraudulent lending practice allegations from federal and state attorneys general, as well as regulatory bodies including the Department of Education. The Carmel,.....

by Madalina Iacob   Dynegy’s ring-fenced subsidiary Illinois Power Generating (Genco)tapped legal counsel Latham & Watkins and financial advisor Ducera Partners to assist in its restructuring negotiations with creditors and with its parent, said two sources familiar with the matter.   For its part, Dynegy is working with White & Case.....

by Lucy Monteiro, Fabiana Lopes, Camila Dias, and Aline Lima   An ad hoc group of Samarco Mineracao’s bondholders has decided to hire Houlihan Lokey, working in association with Brazilian Metrica Investments, as financial advisor, according to a source close and a source familiar to the matter.   Holders were also close to tapping Dechert.....

Debtwire hosted a webinar on Puerto Rico earlier on September 28, focusing on the growing list of lawsuits and defaults on the island. An audio recording of the event is available via the link below.   Our team of journalists and analysts discussed a bevy of new litigation seeking to lift an automatic stay enabled by the Puerto Rico Oversight Management.....

by Susan Mandel   The New York Department of Financial Services’ probe into Caliber Home Loans is likely focused on whether the company has refused to modify loans using the US government’s Home Affordable Loan Modification program, according to Linda Tirelli, a consumer bankruptcy litigator based in White Plains, New York.   In April,.....

by Zhou Ping   Hanjin Shipping’s attempts to win Chinese recognition of its South Korean bankruptcy proceedings would be a challenging endeavor even if it weren’t for the neighboring nations’ lack of a judicial reciprocity agreement, according to Chinese restructuring experts including a judge, two lawyers and an advisor.   The South.....

Much ink has been spilled this campaign season about the influence of Wall Street on both major party US presidential candidates. The truth behind the headlines, however, is that the top executives in at least one powerful asset class have little loyalty to political parties, and are instead bifurcating their support between Hillary Clinton for president.....

by Paunie Samreth, and Reshmi Basu   After fighting for nearly two years with management, the CEOC official committee of second lien noteholders has abruptly reversed course and plans to consent to the debtor’s new restructuring proposal, said three sources familiar with the situation. But that doesn’t mean the company has a path out of.....

by Jay Antenen, and Eleanor Duncan Prosper Marketplace is involved in a lengthy arbitration with Colchis Capital Management, one of its original institutional debt investors, according to a source and a person familiar with the matter. Prosper and the San Francisco-based credit hedge fund have been in arbitration for over a year, the sources said......

Just five months ago Fieldwood Energy investors agreed on a comprehensive recapitalization deal that helped preserve the company’s dwindling liquidity position. Fieldwood’s second lien holders provided new money and took part in a debt exchange that was designed to give the oil and gas producer a chance to weather the unprecedented downturn in oil.....

Business development companies (BDCs) finally got some relief in 2Q16 as many of their stocks rallied and some managers were able to shore up liquidity through equity raises. Still, BDC managers continue to cut dividends, as competition for middle market lending from private direct lending funds and private BDCs intensifies.   Sam Tillinghast,.....

Debtwire Investigations today hosted a roundtable webcast on the impact that regulations recently enacted by the Bureau of Ocean Energy Management (BOEM) will have on offshore oil and gas producers.   The regulatory changes make offshore drillers fully accountable for the costs associated with plugging and abandonment (P&A) of idle wells. Today’s.....

by Andrew Scurria   The City of Chicago’s largest pension system may be unable to rely on active employee contributions to cover retiree benefit obligations as insolvency nears, said Kim Nicholl of Segal Consulting at a legislative hearing today.   “It’s unclear to us” whether the Municipal Employees Annuity and Benefit Fund (MEABF).....

by Camila Dias, and Lucy Monteiro   The agreement between Oi (D/D) shareholders Pharol and Societe Mondiale has added another layer of difficulty to bondholders’ desire to get equity in the Brazilian telecom’s bankruptcy process, according to three sources close and one familiar with the matter. It is clear for both sides that Oi will have.....

by Alex Plough, Marion Halftermeyer and Alexander Gladstone   Debtwire Investigations is a new editorial initiative brought to you by a hand-picked group of some of our best and brightest investigative journalists. A rotating team of five beat reporters have taken countless hours away from their already expert coverage to go far beyond specific.....

by Maryellen Tighe, and Simone Baribeau   Puerto Rico and its instrumentalities would only be responsible for paying the costs of cleaning up the Dorado superfund site if they’re found to be responsible for the contamination, said Environmental Protection Agency (EPA) spokesperson Elias Rodriguez in an interview with Debtwire Municipals.   A.....

by Jon Berke   ITT Educational Services has engaged Alvarez & Marsal for assistance exploring restructuring options, said two sources close to the situation.   The Indianapolis-based for-profit school operator announced yesterday that it would discontinue academi operations following a Department of Education ruling rendered late last.....

by Aline Lima   Grupo Schahin’s chances of securing a debtor-in-possession (DIP) loan to fund maintenance are shrinking, due to a lack of interest from investors, according to two sources close to the matter and a source familiar. The legal issues facing the Brazilian oil services provider and “Lava Jato” (“Car Wash”) investigation.....

by Pablo Dominguez, and Mariana Santibanez   El Salvador’s FMLN party-led government may find the International Monetary Fund (IMF) an ally in overcoming a political impasse that is pushing the Central American sovereign to the edge of a debt payment default. Bondholders and the country’s main opposition party want the multilateral to play.....

by Bill Harrington   Sometimes, digging into a tough problem uncovers more and more trouble for the affected parties, and no easy solutions.   For instance, review of the swap margin rules indicates that the margin requirements will apply to existing swaps that are amended in any wayafter the relevant compliance date — 1 March 2017 for.....

by Reshmi Basu, Jon Berke, and Danielle Randall   Bon-Ton Stores has been reaching out to potential investors with the help of BofA Merrill Lynch to measure interest in a new liquidity-enhancing loan or bond, said four sources familiar with the situation. The distressed retailer aims to bring new cash in the door while it also examines options.....

The sporting goods retail space went through a good deal of consolidation and liquidation over the past half year. One-time category leader Sports Authority is liquidating in bankruptcy proceedings, while smaller hockey specialist Total Hockey also filed for bankruptcy but got sold to TSG Enterprises in a USD 22.5m going concern bid in which the latter.....

by Madalina Iacob   Dynegy is working with legal counsel White & Case and financial advisor Lazard to hash out a restructuring plan for ring-fenced subsidiary Illinois Power Generating (Genco), said two sources familiar with the matter.   Dynegy created the Genco subsidiary in March 2013 when it acquired a 2,895 MW portfolio of coal fired.....

by Camila Dias, and Fabiana Lopes   The Oi (D/D) ad hoc bondholder group’s financial advisor has been in contact with export credit agency (ECA) creditors to discuss the possibility of aligning in future negotiations with the Brazilian Telecom, three sources close to the matter told Debtwire. These efforts are in addition to the bondholder.....

by Paunie Samreth, and Madalina Iacob   The ad-hoc group of Comstock Resources unsecured bondholders has been active behind the scenes this week, holding several organizational calls with legal counsel Morrison Foerster to lay the groundwork for pushback against the company’s exchange offer, said three sources familiar with the matter.   The.....

by Madalina Iacob, Alexander Gladstone, and Kyle Younker   Comstock Resources is evaluating a series of liability management transactions, including a potential swap of unsecured debt into second lien bonds and/or equity to delever its balance sheet, said two sources familiar. The company is working with Ipreo to scour the market for the.....

by Lucy Monteiro, and Fabiana Lopes   Sete Brasil is planning to present its restructuring plan in August, without having yet reached any agreement with Petrobras regarding rig contracts, according to two sources close to the matter. The plan will feature a proposal for creditors based on the assumption of successful negotiations with Petrobras,.....

by Paunie Samreth   iHeartCommunications strategy to reduce debt has taken a big step forward. The media company recently scooped up some of its junior USD 850m 10% unsecured notes due 2018 at a discount to par in the secondary market, according to two sources familiar with the situation and a buysider.   The buybacks amounted to the company.....

by Marion Halftermeyer, Madalina Iacob, and Jon Berke   PetroQuest Energy is working with Jefferies to evaluate financial alternatives, said two sources familiar with the matter. The company will soon have to address the August 2017 maturity of its USD 135m in 10% unsecured notes, which remain outstanding after the rest of the tranche swapped.....

by Maria Amante   Atlantic City, which ran out of cash earlier this month, may not be able to pay workers on 29 July or make a 1 August bond payment, multiple sources tell Debtwire Municipals.   Requests for comment from Mayor Don Guardian’s (R) chief of staff, Chris Filiciello, were not returned.   The city owes about USD 7m.....

by Pablo Dominguez   Latina Offshore Holding, the offshore drilling business of Mexico-based Constructora y Perforadora Latina (CP Latina), is negotiating with bondholders a three-month waiver on the USD 50m maturity payment due at the end of July, CFO Miguel Ruiz told Debtwire today. Such a waiver would come in addition to a recent agreement.....

by Madalina Iacob, and Paunie Samreth   Cloud Peak has enlisted Centerview as financial advisor as the pure-play Powder River Basin (PRB) coal company is under pressure to renegotiate uneconomic take-or-pay railroad contracts amid dwindling earnings and increased regulatory pressure to cover coal mine reclamation costs, said two sources familiar.....

by Reshmi Basu, and Madalina Iacob   Claire’s Stores’ unexpected release of preliminary 2Q16 earnings guidance set off a new round of chess moves by players involved in the distressed retailer’s capital structure. With the bonds in a tailspin after the weak numbers, investor expectations are mounting for some sort of near-term liability.....

by Alex Plough, Madalina Iacob, and Alexander Gladstone   A group of Illinois Power Generating (IPG) bondholders have hired Houlihan Lokey as they negotiate with parent company Dynegy over the terms of a potential distressed debt exchange, according to two sources familiar with the matter. The consortium has also engaged Willkie Farr as legal.....

by Kyle Younker, Alexander Gladstone, and Madalina Iacob   Bonanza Creek has retained Perella Weinberg to assist the E&P company in exploring restructuring and financing alternatives, according to two sources familiar with the matter. The company has also enlisted the restructuring team at longtime corporate counsel Davis Polk, said one of the.....

by Kyle Younker   Lynn Tilton and her private equity fund Patriarch Partners have been subject to multi-year investigations conducted by the Department of Justice and Department of Defense, according to a source familiar with the matter along with declarations filed by SEC lawyers in the commission’s administrative proceeding against Tilton.....

Nothing is out of bounds in the June edition of the Debtwire Middle Market Junction Podcast.   First, Bill Weisbrod, our middle market primary reporter, speaks with Justin Solomon, a partner in the private funds group of Kirkland & Ellis. The interview focuses on the surge capital raising for new direct lending funds.   Later in the podcast,.....

by Maria Amante, Maryellen Tighe, and Andrew Scurria   Following “Brexit,” the UK’s vote Thursday to leave the European Union, yields on municipal bonds showed significant drops during trading Friday, said Triet M. Nguyen, managing director at NewOak Capital. Yields across the municipal bond curve tightened about 20bps in early trading.....

by Alexander Gladstone, and Kyle Younker   Ocean Rig has retained Evercore to assist with restructuring negotiations after operational challenges sunk the offshore driller into distressed waters, said two sources familiar with the matter.   The Cyprus-based company engaged with lenders beginning in February after a lost drilling contract.....

by Kyle Younker, and Reshmi Basu   Thompson Creek Metals has cancelled a bondholder site visit to its Mt. Milligan mine scheduled for next week as it focuses on its auction process, according to two sources familiar with the situation. The company is working through final bids from at least three potential buyers, and the site visit cancellation.....

On 23 June the Debtwire Latin America and Europe teams hosted an online roundtable discussion examining the bankruptcy protection process of Brazilian telecom Oi.   An unsuccessful European expansion and a Brazilian recession have left Oi with a BRL 65.4bn (USD 19bn) debt burden. Holders of USD, EUR and BRL-denominated bonds have competing interests,.....

On 23 June, Debtwire hosted a webcast on Puerto Rico, focusing on the upcoming 1 July due date for USD 1.9bn in debt service payments.   The webcast broke down the payments due across Puerto Rico’s credit complex and predicted that some bonds would not suffer a default next week. The conversation also explored recent developments in trading.....