SP NE WSPRIN T HOLDINGS, a producer of newsprint, and its subsidiaries announced
that they each filed a voluntary petition for relief under Chapter 11 in the U.S.
Bankruptcy Court for the District of Delaware. The company intends to use the
bankruptcy process to explore options to continue its business as a going concern.
The filing comes after the company was unable to restructure its debt with GE Capital.
SP Newsprint in 2008 received a $275 million revolving credit line and term
loan from GE Capital for a previous acquisition. The loans are set to mature at the
end of March 2012, according to court documents. However, SP Newsprint has
been in default on these loans since June 2011, and entered into a forbearance
agreement with GE, which expired in mid-September.
According to an article on
newstimes.com, on October 12, GE Capital had SP’s
accounts frozen and only allowed limited funding as a result of the default. Since
then, the company has been in negotiations to restructure its agreement with GE. In
its Chapter 11 filing, the company said that GE may agree to a sale of SP’s assets
and might serve as a stalking-horse bidder for a potential auction.
SP Newsprint is seeking to retain Cahill Gordon & Reindel and Richards, Layton &
Finger as legal counsel, as well as AlixPartners as financial advisors. n
Southern District of New
York. Chatham previously
purchased five of the
company’s hotels that
served as collateral for loan
trusts serviced by LNR
Partners for $195 million.
MF Global Files Chapter 11
MF Global Holdings filed
for Chapter 11 protection
in the U.S. Bankruptcy
Court in the Southern
District of New York listing
$41 billion in assets and
$39.7 billion in debt.
JPMorgan Chase and
Deutsche Bank were listed
as unsecured creditors.
MF Global, a holding
company for a broker-dealer run by Jon Corzine,
former New Jersey
governor and Goldman
Sachs Group co-chairman,
said it wishes to complete
a rapid reorganization.
Separately, the Securities
Investor Protection
Corporation announced
that it is initiating the
liquidation of MF Global
Inc., under the Securities
Investor Protection Act.
extend, until January 18,
2012, the maturity date of
its DIP facility with Wells
Fargo Capital Finance
Canada. This is the second
extension of the stay
period initially granted
by the Superior Court
on August 30, 2011.
Separately, following court
approval on October 19,
liquidation sales directed
by Tiger Capital Group
began at the selected
Hart Stores, Bargain Giant
and Geant des Aubaines
stores, including 12
locations in Quebec, 11
in Newfoundland and
Labrador, five in Ontario,
two in New Brunswick
and two in Nova Scotia.
plan. Judge Glenn
approved the terms of
creditor repayments after
objections to the plan were
resolved, a Bloomberg
article said. Approximately
98% of creditors voted
to approve the plan.
Unsecured creditors that
hold about $812 million to
$850 million in claims will
receive between 4% and
10%. About $2 million
in secured claims will be
paid in full, the article
said. Borders also received
court approval to sell its
stake (about 10%) in Kobo
Inc., which should bring
about $27 million to $32
million to the company.
an affiliate of Renovo
Capital for $16 million.
Andronico’s, founded in
1929 on Berkeley, CA’s
Solano Avenue, filed for
Chapter 11 bankruptcy
to affect a sale of the
company’s assets. The
Oakland division of the
U.S. Bankruptcy Court for
the Northern District of
California approved the
sale and the closing of the
transaction occurred on
October 27.
Dynegy Holdings, Four
Subsidiaries File Chapter 11
Dynegy Holdings and
four of its wholly owned
subsidiaries filed for
Chapter 11 in the U.S.
Bankruptcy Court for the
Southern District of New
York in order to implement
a restructuring agreement
with a group of investors.
the plan, the company’s
secured noteholders will
receive a combination of
new secured term loans
and cash.
Cagle’s, Cagle’s Farms File
Chapter 11; AgSouth to
Provide DIP
Cagle’s, an integrated
poultry company, and its
wholly owned subsidiary
Cagle’s Farms, filed for
Chapter 11 in the U.S.
Bankruptcy Court for
the Northern District of
Georgia. Cagle’s seeks
court approval for a DIP
financing facility from
AgSouth Farm Credit.
A&P Files Bankruptcy Exit
Plan Based on Yucaipa,
Goldman Sachs Financing
Bloomberg reported that
Great Atlantic & Pacific
Tea Co. (A&P) received
approval for financing
in its restructuring plan
from an investor group
that includes Ron Burkle’s
Yucaipa Companies
and Mount Kellett
Capital Management
and investment funds
managed by Goldman
Sachs Asset Management.
A&P, which announced the
$490 million financing, will
use the investment to pay
creditors and exit bankruptcy
as a private entity, according
to the plan filed with the
U.S. Bankruptcy Court for
the Southern District of
New York.
Perkins & Marie Callender’s
Emerge From Bankruptcy
Perkins & Marie
Callender’s, an operator
of family-dining and
casual-dining restaurants,
completed its financial
restructuring and
emerged from Chapter
11 bankruptcy. The U.S.
Bankruptcy Court for
the District of Delaware
approved the company’s
plan of reorganization
on October 31, 2011.
Private investment funds
managed by Wayzata
Investment Partners are
the majority stockholders
of Perkins & Marie
Callender’s Holding,
which is now the parent
company of the Perkins &
Marie Callender’s group
of companies. The court
confirmed the company’s
second amended plan of
reorganization in early
November. Pursuant to
Point Blank Wins Approval
of Sale to Sun Capital
U.S. Bankruptcy Judge
Peter Walsh in the U.S.
Bankruptcy Court in
the District of Delaware
approved the sale of
the majority of body
armor maker Point Blank
Solutions’ assets to a
Sun Capital Partners
affiliate for $36.6 million.
According to a Bloomberg
article, the final price at
the auction was almost
twice as much as the $20
million initial bid, provided
by a Gores Group affiliate.
Innkeepers Emerges
From Chapter 11
Innkeepers USA Trust and
its affiliates announced
completed its restructuring
and emerged from Chapter
11 protection. The company
emerged following the
closing of the $1.02 billion
sale of 64 Innkeepers’
hotels to a joint venture
between Cerberus Capital
Management and Chatham
Lodging for $1.02 billion,
which was approved by
the U.S. Bankruptcy Court,
Tilton’s Patriarch Wins
Auction for Hussey Copper
Private equity investor
Lynn Tilton’s Patriarch
Partners outbid four
bidders in an auction for
Hussey Copper, bidding
approximately $107.8
million, a Reuters article
reported. The auction
lasted nine hours, SSG
Capital’s Scott Victor
said. Proceeds from the
sale will pay creditors
including $38 million in
first lien debt owned to
Wells Fargo units, Bank of
America and PNC Financial
Services, the article said.
Previously, the company
received approval to
tap its $50 million DIP
loan provided by existing
lenders and PNC Bank.
Medicis Wins
Auction for Graceway
Pharmaceuticals
Pharmaceutical
company Medicis was
the successful bidder
at a bankruptcy auction
conducted by Graceway
Pharmaceuticals,
a manufacturer of
skin treatments and
asthma medication, for
substantially all of its
outstanding U.S. and
Canadian pharmaceutical
assets. Graceway filed for
Chapter 11 bankruptcy
protection on September
29, 2011. Under the
terms of its bid, Medicis
will pay a purchase price
of $455 million. In turn,
Medicis will receive
Graceway’s commercial
pharmaceutical product
portfolio. Previously, after
U.S. Bankruptcy Judge
Peter J. Walsh granted
permission for Graceway
to sell its assets at an
auction, the company
received a stalking-horse
bid of $275 million from
Cham, Switzerland-based
Galderma SA.
Bloomberg: Delaware’s
Status as U. S. Bankruptcy
Capital May End
House Judiciary Committee
leaders are sponsoring
a bipartisan bill that
could end the state of
Delaware’s reign as a
“premier venue” for
bankruptcy cases in the
U.S., and could cost the
state of Delaware about
$100 million a year, a
Bloomberg article said.
Delaware’s Congressional
delegation has disagreed
with this proposed bill and
noted the state’s expertise
in bankruptcy matters.
Hart Stores Extends WFCF
DIP Financing, CCAA Order
Hart Stores, an operator
of a network of 92 mid-sized department stores,
announced an order from
the Companies’ Creditors
Arrangement Act to
Borders Wins Approval of
Plan to Dissolve
U.S. Bankruptcy Judge
Martin Glenn of the U.S.
Bankruptcy Court for the
Southern District of New
York granted approval
of the final details of
Borders Group’s liquidation
