MARCH 2012
BANKRUPTCY update
EAS TMAN KODAK CO. RE TAINED JAMES A. MES TERHARM of AlixPartners as chief
restructuring officer as of January 23, 2012, replacing Dominic DiNapoli in that role.
AlixPartners will be the company’s restructuring adviser during the reorganization
process, leveraging its knowledge of the company based on its pre-existing
operational enhancement advisory engagement with the company over the past
several months. FTI Consulting is expected to continue to work on certain post-petition matters alongside AlixPartners.
Separately, a Bloomberg article reported that Wal-Mart Stores and the Pension
Benefit Guaranty Corp. (PBGC) were named to the company’s unsecured creditors
committee, along with Sony Pictures Entertainment, and four other companies.
Wal-Mart’s claim against Kodak amounts to approximately $11.4 million, court
documents said. PBGC is part of the committee to protect pension plans.
Previously, U.S. Bankruptcy Judge Allan L. Gropper of the U.S. Bankruptcy Court
for the Southern District of New York approved initial availability of $650 million in
interim DIP financing of a full $950 million loan. According to court documents,
Kodak is receiving the financing, which consists of a $250 million revolver and a
$700 million term loan, from Citibank Global Markets. Citicorp is the administrative,
collateral and syndication agent on the financing.
Court documents noted that Kodak owes $100 million on a first lien revolving
credit facility and $96 million in letters of credit from Bank of America, Citicorp,
Citibank, Wells Fargo Capital Finance, Citigroup USA, Morgan Stanley, PNC Bank,
Bank of New York Mellon, Industrial and Commercial Bank of China Co. and Sumitomo
Mitsui Banking. The first lien date is dated April 26. n
J.P. Morgan Chase and Credit Suisse.
The article noted that J.P. Morgan will
provide $75 million of the revolver and
Credit Suisse will offer $25 million. The
rest of the financing will come from
others lenders. A&P previously filed a
motion to close 14 more stores in four
states.
Friendly’s Emerges From Chapter 11
Friendly Ice Cream Corp. and its
subsidiaries emerged from Chapter
11 by consummating the sale of its
business to Friendly’s Ice Cream LLC and
its subsidiaries. The company said with
the emergence it had to shutter another
37 restaurants. Friendly’s filed to
reorganize under Chapter 11 on October
5, 2011, in the U.S. Bankruptcy Court
for the District of Delaware.
BP Clothing Files for Bankruptcy
Protection
BP Clothing, the Los Angeles-area
apparel company that, until recently,
held the license to make Baby Phat
clothing, primarily for Wal-Mart, filed
for Chapter 11 bankruptcy protection
in the U.S. Bankruptcy Court in New
York. BP Clothing, founded in 2003 by
Steven Feiner along with Scott London
and investment company Steel Partners,
listed $57.4 million in assets and nearly
$94 million in debt. The top three
secured creditors were Guggenheim
Corporate Funding, owed $58 million;
MVC Capital, owed $24 million; and
First Capital Factors, owed $3.7 million.
affiliate, Bellus ALC Investments 1, will
purchase American Laser. Previously,
Bellus provided the company with $59.8
million to support its operations during
American Laser’s Chapter 11 process,
the article said. In the asset purchase,
Bellus will use $30 million in debt
forgiveness and the leftover new capital
from American Laser’s bankruptcy
financing, after lenders are paid off
$40.3 million, Bloomberg said.
Hostess Receives Interim
Approval of DIP Loan
The Wall Street Journal reported that
Hostess Brands received approval
from Judge Robert D. Drain of the U.S.
Bankruptcy Court for the Southern
District of New York to use $35 million
of the $75 million DIP loan it obtained
from its first lien lenders led by
Silver Point Capital. Hostess, whose
brands include Wonder, Merita and
Butternut breads; Drake’s, Twinkies and
Hostess cakes, filed for Chapter 11 in
mid-January.
ACM Capital Helps B&F Marine
Emerge From Bankruptcy
ACM Capital Partners announced that its
client, B&F Marine, Inc., one of Miami’s
oldest marine retailers, emerged from
Chapter 11 protection.
Court Approves Sale of American
Laser to Versa Affiliate
American Laser Centers , a provider of
hair removal, cellulite reduction and
skincare services, received approval
from U.S. Bankruptcy Judge Mary F.
Walrath in the U.S. Bankruptcy Court in
the District of Delaware to sell its assets
to a Versa Capital Management affiliate,
a Bloomberg article reported. Versa’s
Court Approves A&P Exit Financing
Dow Jones Newswires reported that U.S.
Bankruptcy Judge Robert D. Drain of the
U.S. Bankruptcy Court for the Southern
District of New York granted permission
for Great Atlantic & Pacific Tea Co. (A&P)
to receive $750 million in exit financing,
consisting of a $400 million revolver
and a $350 million term loan from
Nebraska Book Delays Reorg Hearing
Bloomberg/BusinessWeek reported
that the confirmation hearing for
approval of the reorganization plan of
college bookseller Nebraska Book was
pushed back to March, citing a court
filing. Nebraska Book was unable to
confirm the plan because of an inability
to secure $250 million in outside
financing. In addition, NBC Acquisition
and its subsidiaries, announced the
plan to close seven of its off-campus
bookstore locations. The company
also obtained an extension from
40 additional off-campus stores to
continue evaluation of performance
and negotiation efforts.
Coach America Receives
Interim Approval of DIP Loan
U.S. Bankruptcy Judge Kevin Gross of the
U.S. Bankruptcy Court for the District of
Delaware granted interim approval for
tour and charter bus operator Coach
