2020-04-04 IFR Magazine

International Financing Review April 4 2020 93

LOANS RESTRUCTURING

COMPANYSûLARGESTûDEBTûANDûEQUITYûHOLDERû

WITHûABOUTû53MûINûSECUREDûPRE

PETITIONû

CLAIMS

ICONIX LENDERS WAIVE DEFAULT

"RANDûMANAGEMENTûCOMPANYûICONIX BRANDS

SAIDûITSûLENDERSûHAVEûSIGNEDûANûAGREEMENTû

WAIVINGûANûEVENTûOFûDEFAULTûCLAUSEûUNDERûITSû

ûCREDITûAGREEMENT

4HEûADMINISTRATIVEûAGENTûISûCortland

Capital

4HEûCOMPANYûISSUEDûTHEûlVE

YEARû

53MûSENIORûSECUREDûTERMûLOANûINû

!UGUSTû

'UGGENHEIMû3ECURITIESûWASûTHEûLEADû

ARRANGERûONûTHEûDEALûWHILEû$EUTSCHEû"ANKû

WASûTHEûLEADûLENDER

)Nû/CTOBERûûTHEûCREDITûAGREEMENTû

WASûAMENDEDûANDûTHEûLOANûWASûDOWNSIZEDû

TOû53Mû4HEûTERMûLOANûHADû

53MûOUTSTANDINGûASûOFû$ECEMBERû

4HEûNEWûAGREEMENTûALSOûINCLUDESûAû

REVISIONûTOûANûASSETûPRE

PAYMENTûCLAUSEûINû

THEûCREDITûDOCUMENTû)CONIXûISûNOWûREQUIREDû

TOûPAYûûOFûNETûPROCEEDSûFROMûASSETûSALESû

EXCEEDINGû53MûTOûITSûLENDERS

)CONIXûSAIDûTHATûTHEûCORONAVIRUSûHASû

affected its business and could potentially

IMPACTûITSûCOMPLIANCEûWITHûFUTUREûDEBTû

COVENANTS

h)FûWEûAREûUNABLEûTOûOBTAINûAûWAIVERûWEû

WOULDûBEûINûDEFAULTûUNDERûOURûEXISTINGû

indebtedness, the holders of such

INDEBTEDNESSûCOULDûEXERCISEûTHEIRûRIGHTSûxû

ANDûWEûCOULDûBEûFORCEDûINTOûBANKRUPTCYûORû

LIQUIDATIONvûTHEûCOMPANYûSAID

LENDERS TO TAKE OVER PIER 1

Retailer PIER 1 IMPORTS said an auction for the

sale of its business has been cancelled and

ITSûTERMûLOANûLENDERSûWILLûTAKEûOVERûTHEû

COMPANYû0IERûûlLEDûFORû#HAPTERûû

BANKRUPTCYûPROTECTIONûINû&EBRUARY

0IERûûLAWYERSûSAIDûTHEûCOMPANYûANDûITSû

lenders are still negotiating the structure of

the transaction in light of the coronavirus,

WHICHûHASûAFFECTEDûACCESSûTOûCAPITALûANDûEXITû

lNANCINGûOPTIONS

4HEûCOMPANYûSAIDûINûAûCOURTûlLINGûLASTû

MONTHûTHATûITûWASûWORKINGûWITHûLENDERSûTOû

MAXIMISEûTHEûRECOVERYûVALUEûOFûITSûBUSINESSû

after it closed all its stores and corporate

HEADQUARTERSûINûRESPONSEûTOûTHEûVIRUSû

SPREAD

MURRAY WARNS OF LIQUIDATION

Bankrupt coal supplier MURRAY ENERGY could

FACEûLIQUIDATIONûASûVOLATILITYûCREATEDûBYûTHEû

CORONAVIRUSûHASûRATTLEDûMARKETSûANDû

AFFECTEDûITSûLIQUIDITY

-URRAYûWHICHûlLEDûFORû#HAPTERûû

BANKRUPTCYûPROTECTIONûINû/CTOBERûSAIDûTHATû

ITûLOSTûMOREûTHENû53MûOFûLIQUIDITYûASûTHEû

CORONAVIRUSûIMPACTEDûGLOBALûCOALûDEMAND

$UEûTOûCASHûCONSTRAINTSûTHEûCOMPANYûMAYû

NOTûBEûABLEûTOûACCESSûITSûDEBTOR

IN

POSSESSIONû

lNANCINGûANDûCOULDûBEûFORCEDûTOûLIQUIDATE

)NûANûATTEMPTûTOûCUTûCOSTSûTHEûCOMPANYû

HASûASKEDûTHEûCOURTûTOûALLOWûITûTOûSKIPû

PAYMENTSûTOûITSûRETIREEûHEALTHCAREûPLANûOFû

APPROXIMATELYû53MûPERûMONTH

!SûOFû-ARCHûûTHEûCOMPANYûHADû

53MûINûLIQUIDITYûCOMPRISINGû53MûINû

CASHûANDû53MûINûREMAININGû$)0ûFUNDSû

DOWNûFROMû53MûINûLIQUIDITYûATûTHEûENDû

OFûû)TûRECEIVEDûCOURTûAPPROVALûFORû

53MûINû$)0ûlNANCINGûINû/CTOBER

4HEûCOMPANYûWHICHûDISCLOSEDûCUMULATIVEû

%BITDAûOFû53MûFORû.OVEMBERûTHROUGHû

*ANUARYûHADûINITIALLYûFORECASTû53Mû

'IVENûMARKETûCONDITIONSûITûEXPECTSû%BITDAû

TOûCONTINUEûDECLINING

!SûAûRESULTûOFûITSûlNANCIALûPERFORMANCEû

-URRAYSûACCESSûTOûTHEûREMAININGû53Mû

OFû$)0ûlNANCINGûHASûBEENûCOMPROMISED

-URRAYûWILLûBEûSOLDûTOûAûGROUPûOFûPRE

PETITIONûLENDERSûWHICHûPLACEDûAûSTALKINGû

HORSEûBIDûTOûSWAPû53BNûINûPRE

PETITIONû

DEBTûFORûOWNERSHIPûOFûTHEûCOMPANYû4HEû

COMPANYSûLAWYERSûVIEWûTHEûLENDERû

TAKEOVERûWHICHûWASûANNOUNCEDûLASTûMONTHû

ASûTHEûBESTûPATHûFORWARDûFORûMAXIMISINGûTHEû

VALUEûOFûTHEûBUSINESS

WHITING GETS COURT APPROVAL

Shale driller WHITING PETROLEUM has received

COURTûAPPROVALûTOûUSEûCASHûCOLLATERALûFROMû

ITSûPRE

PETITIONûRESERVE

BASEDûLENDINGû

FACILITYûTOûlNANCEûOPERATIONSûDURINGû

BANKRUPTCYûPROCEEDINGS

7HITINGûWHICHûlLEDûFORû#HAPTERûû

BANKRUPTCYûPROTECTIONûONû!PRILûûWASûABLEû

TOûNEGOTIATEûTHEûUSEûOFûCASHûCOLLATERALûFROMû

BANKSûUNDERûTHEû53BNû2",ûFACILITYû

PRIORûTOûITSûlLINGûREMOVINGûTHEûNEEDûFORû

DEBTOR

IN

POSSESSIONûlNANCINGûACCORDINGû

to a declaration by chief restructuring

OFlCERû*EFFREYû3TEIN

JP Morgan ISûTHEû2",ûCOLLATERALûAGENT

4HEûCOMPANYûHADû53BNûINûPRE

PETITIONûDEBTûCOMPRISINGû53BNû

UNDERûITSûSECUREDû2",ûFACILITYûANDû

53BNûINûUNSECUREDûBONDûDEBT

7HITINGûENDEDûûONûSOLIDûGROUNDû

3TEINûSAIDûINûTHEûDECLARATIONû(OWEVERûASû

THEûOILûPRICEûWARûBETWEENû3AUDIû!RABIAûANDû

2USSIAûESCALATEDûTHEûCOMPANYSûEQUITYû

TOOKûAûMASSIVEûHITûPLUNGINGû

APPROXIMATELYûûTOû53ûPERûSHAREû

BETWEENû-ARCHûûANDû-ARCHû

'IVENûITSûEQUITYûPOSITIONûTHEûCOMPANYû

OPTEDûNOTûTOûMAKEûAû53MûMATURITYû

PAYMENTûDUEû!PRILûûONûITSûCONVERTIBLEû

BONDSûANDûlLEDûFORûBANKRUPTCYûHEûSAID

4HEûCOMPANYûHASûNEGOTIATEDûAû

PREPACKAGEDûDEALûWITHûITSûBONDHOLDERSûTOû

SLASHû53BNûINûPRE

PETITIONûDEBTûINû

EXCHANGEûFORûûOFûTHEûCOMPANYSûPOST

PETITIONûEQUITYû4HEû2",ûISûEXPECTEDûTOûBEû

RElNANCEDûUPONûEMERGENCEûFROMû

BANKRUPTCY

EUROPE/MIDDLE EAST/

AFRICA

LIMITLESS SEEKS ADVISERS

$UBAI

BASEDûCOMMERCIALûPROPERTYû

developer LIMITLESS has told its creditors it

ISûLOOKINGûTOûAPPOINTûLEGALûANDûlNANCIALû

ADVISERSûTOûWORKûONûAûlNANCIALû

RESTRUCTURINGûPLAN

,IMITLESSûALONGûWITHû.AKHEELûWASû

AMONGûTHEûBIGGESTûCASUALTIESûOFû$UBAISû

PROPERTYûCRASHûANDûSUBSEQUENTûDEBTûCRISISû

THATûBEGANûINû

4HEûCOMPANYûFORMERLYûOWNEDûBYûSTATEû

INVESTMENTûVEHICLEû$UBAIû7ORLDûWASûONEû

OFûAûNUMBERûOFûENTITIESûINû$UBAIûTHATûWEREû

FORCEDûTOûRESTRUCTUREûTHEIRûDEBTS

h/WINGûTOûTHEûLIQUIDITYûCRISISûWEûAREû

CONlRMINGûTHATûTHEûCOMPANYûWILLûBEûUNABLEûTOû

PAYûACCRUEDûPROlTûATûTHEûENDûOFû-ARCHûvû

,IMITLESSûSAIDûINûAûLETTERûDATEDû-ARCHûûANDû

SENTûTOû-ASHREQBANKûWHICHûWORKSûASûANûAGENTû

FORûAûGROUPûOFûTHEûCOMPANYSûCREDITORS

,IMITLESSûSAIDûAûTEAMûFROMû$UBAIû7ORLDû

ISûADVISINGûTHEûBOARDûOFûDIRECTORS

)Nûû,IMITLESSûREACHEDûAûSECONDû

RESTRUCTURINGûAGREEMENTûWITHûLENDERSûTOû

PAYûAROUNDû53BNûINûBANKûDEBTûINûTHREEû

INSTALMENTSûINû$ECEMBERûûûANDû

ûBUTûHASûONLYûREPAIDûPARTûOFûIT

0ROPERTYûPRICESûHAVEûBEENûDECLININGûFORû

MOSTûOFûTHEûPASTûDECADEûANDû$UBAIûISû

BRACINGûFORûAûlNANCIALûHITûASûTHEû

CORONAVIRUSûCRISISûHASûIMPACTEDûSECTORSû

VITALûTOûITSûECONOMYûSUCHûASûTOURISMûANDû

CONSTRUCTION

PROSAFE STILL IN TALKS

.ORWEGIANûPROSAFEûREMAINSûINûTALKSûWITHû

ITSûLENDERSûOVERûAûLONG

TERMûlNANCINGûPLANû

AFTERûAûSERIESûOFûTEMPORARYûPAYMENTû

DEFERRALSûANDûDEFAULTûWAIVERSûEXPIRED

4HEûCOMPANYûWHICHûPROVIDESûSEMI

SUBMERSIBLEûACCOMMODATIONûPLATFORMSû

HASûSECUREDûFORBEARANCEûONûTHEûNON

PAYMENTSûANDûDEFAULTSûFROMûMOSTûOFûITSû

LENDERSûACROSSûITSû53BNûANDû53Mû

LOANûFACILITIES

&ORBEARANCEûHASûINITIALLYûBEENûGRANTEDû

UNTILû!PRILûûBUTûCANûBEûEXTENDEDûBYûTHEû

LENDERSûTHROUGHûAûSIMPLIlEDûPROCESS

0ROSAFEûWILLûCONTINUEûTOûDEFERûMAKINGû

PAYMENTSûOFûSCHEDULEDûINSTALMENTSûANDû

INTERESTSûUNDERûBOTHûFACILITIES

)NûADDITIONûPAYMENTûOFûTHEûlNALû

INSTALMENTûOWEDûUNDERûAûSELLERûCREDITûTOû

9 IFR Loans 2327 p 75 - XX.indd 93 03 / 04 / 2020 19 : 26 : 37