Distressed Debt

Highlights of our extensive coverage and analysis of the largest stressed and distressed debt, loans, funds, companies and the distressed debt market across the Americas, EMEA and Asia. Our intelligence, reporting and analysis also includes information on distressed trading and investing written specifically for investment managers, investment bankers, legal professionals and corporate professionals.

Access robust financial information: Analyzing Revlon’s chapter 11 timeline
Fri May 26, 2023 3:07 pm Distressed Debt  Product News

Breaking down the intricacies of complex or long-term situations over time can be an elaborate or daunting task. But Reorg’s robust and well-organized financial analyses can easily help you and your team get up to speed on even the most rapidly developing situations.

For example, our coverage of Revlon’s restructuring over the past several years includes regularly updated financial tear sheets, covenants tear sheets, exchange models, waterfall models, Excel uploads of management projections and plan treatment models, including (but not limited to) the following:

  • In 2020 Reorg published exchange models after the BrandCo transaction;
  • In 2021 Reorg published a waterfall model illustrating BrandCo and RemainCo lenders’ recoveries;
  • Earlier this year, Reorg published a plan treatment model illustrating treatment and proposed recoveries for BrandCo and RemainCo lenders, rights offering participants and backstop parties; and
  • Finally, just after Revlon emerged from chapter 11 this month, Reorg developed and published an analysis of Revlon’s exit term loan.

If you’d like to explore all of the Revlon coverage in between, or learn more about the financial analysis we have available on the next topical restructuring you work on, request a trial

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Global Credit Spotlight May 2023
Fri May 12, 2023 3:13 pm Distressed Debt  High Yield Bonds  Leveraged Finance

Reorg delivers critical data and analysis for leveraged finance and restructuring professionals.

Here are some examples of coverage through the credit lifecycle from performing and primary markets to distressed, restructuring and post-reorg that you and your team could access through a subscription to Reorg.


In the Americas, 14 debtors filed for chapter 11 over the past two weeks, including six with liabilities in excess of $100 million. Bed Bath & Beyond entered the process on April 23, stating that “long shot transactions” failed to stabilize the company; the debtors now seek speedy store liquidations and potential 363 sales of other assets. Earnings season has kicked into high gear, with regional banks including First Republic a particular point of focus as the collapse of Silicon Valley Bank prompted a flow of deposits into larger institutions. The Federal Reserve meets next week, with most market participants expecting another rate increase of 25 bps despite a lower-than-expected first-quarter GDP print; nonfarm payrolls for April were released May 5.

Elevate Textiles

Elevate Textiles and sponsor Platinum Equity are negotiating with lenders to the textiles maker on a potential deal to be executed in a bankruptcy filing that would hand over substantially all reorganized equity to lenders in exchange for debt cancellation. Platinum Equity is expected to receive a small amount of new equity following restructuring, the sources said. Lenders are also expected to receive take-back paper. However, negotiations are ongoing and the parties may execute a restructuring out of court. >> Continue reading.

Securus Technologies

Securus Technologies disclosed last week that its majority owners committed $60 million of additional capital to support the business and that it is seeking a refinancing of its near-term debt maturities. The Dallas-based provider of telecom services to incarcerated people told investors that it expects to refinance its outstanding debt this year. Securus has an RCF due August 2024, a first lien term loan due November 2024 and a second lien term loan due 2025. >> Continue reading.


In Europe, the primary bond and loan markets resumed after the Easter break. A mixed bouquet of borrowers including hotel group Travelodge, chemicals producer CABB and a number of pharmaceutical-linked companies raised new debt to refinance, while frozen bread specialist Monbake locked in terms for a two-year amend-and-extend solution to its 2025 maturity. In restructuring, all eyes were on Justice Thomas Leech’s 164-page judgment in Adler’s contested English restructuring plan, which rejected a pari passu challenge to the company’s plan. The English High Court later ruled that the dissenting hedge funds cannot appeal the judgment.

Casino Guichard-Perrachon SA

A group of Casino’s €1.425 billion term loan B holders have mandated law firm Latham & Watkins as the retailer considers options to merge its French retail arm with Teract, sources told Reorg. While details on the merger remain limited, the transaction contemplates that two separate entities will be created. One will house all the retail activities of Casino and Teract in France (newco) and is expected to be listed and controlled by Casino. The other, named Teract Ferme France, would be in charge of supplying local agricultural products and controlled by InVivo. >> Continue reading.


Italian bank UniCredit said this week it will call its €1.25 billion 6.625% additional tier one notes at par, together with accrued and unpaid interest, on June 3. Investors had been buying into the discounted bond through April on the back of shivers stemming from Credit Suisse’s regulator led merger with UBS, which resulted in a $16 billion wipeout of Credit Suisse AT1 notes. >> Continue reading.


In Asia, Dalian Wanda focused attention on differing dynamics influencing onshore versus offshore China creditors through the lens of commercial bank loans as it seeks maturity extensions, while in India, eyes are again on perennial last-minute escape artist Vedanta, which managed to reduce its gross debt by about $1 billion in April but still faces a $500 million bond maturing in May. In Indonesia, Lippo Karawaci CEO John Riady has publicly expressed support for Lippo Malls Retail Investment Trust ahead of a widely anticipated liability management exercise. But the true nature and extent of that support from Lippo Karawaci – a 58.07% shareholder in Lippo Malls – remains to be seen.

Lippo Karawaci / Lippo Malls Indonesia Retail Trust

John Riady, CEO of Indonesian property and healthcare conglomerate PT Lippo Karawaci Tbk, or LPKR, said on an April 27 earnings call that the company continues to support Lippo Malls Retail Investment Trust, or LMIRT, “as much as we can.” But the nature and extent of that support from 58.07% shareholder LPKR remains an open question, as LMIRT heads toward a widely anticipated liability management exercise. >> Continue reading.

Sunac China Holdings

A group of dissenting creditors advised by Alvarez & Marsal and Latham & Watkins emerged to contest Chinese real estate developer Sunac’s announced restructuring proposal. The company’s advisors cautioned the action was value destructive and that the company reserved all rights and remedies. Meanwhile, A&M and Latham advised creditors on a conference call not to sign the company’s RSA and to demand that the company address specific material deficiencies in its proposal. >> Continue reading.

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Reorg Webinar: Untangling Casino’s Documentation
Fri May 12, 2023 2:46 pm Distressed Debt

On May 10, Reorg’s Managing Editor Julie Miecamp, Senior Legal Director Chetna Mistry, Senior Legal Analyst Temitope Adesanya and Senior High Yield Credit Analyst Cedrick Cassin discussed Casino’s potential restructuring options under its bonds documentation.

You can find recent analysis on Casino here.

To watch the replay click here.

If you would like to be panelist on any upcoming webinars, please contact marketing@reorg.com, and if you would like to be notified for the upcoming webinars, sign up for Reorg on the Record.

To keep up on the latest Lippo Malls Indonesia Retail Trust coverage with Reorg, follow Reorg on LinkedIn and Twitter.

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Lippo Malls Indonesia Retail Trust: Stress Points And The Road Ahead
Fri Apr 14, 2023 2:49 pm Distressed Debt

Throughout the year, Reorg hosts webinars bringing together industry professionals to discuss themes in the performing, distressed, restructuring and post-reorg credit markets.

Credit spreads on Lippo Malls Indonesia Retail Trust’s, or LMIRT, USD senior notes suggest it is in deep distress and its stock price has almost halved since the start of 2023. In this webinar, Reorg’s experts will explore LMIRT’s operational troubles, financial stresses and possible restructuring scenarios that could lie ahead.


  • Stephen Aldred, Reorg, Managing Editor (moderator) 
  • Junguang Tan, Reorg, Director
  • Jeff Burton, Reorg, Senior Legal Analyst
  • Cathy Lu, Reorg, Analyst

Attendees will be invited to submit questions during the webinar.

When: Thursday, April 20, at 9 a.m. BST / 4 p.m. SGT

Registration: To register for the webinar, please click HERE. Please register using your business email address.

If you would like to be panelist on any upcoming webinars, please contact marketing@reorg.com, and if you would like to be notified for the upcoming webinars, sign up for Reorg on the Record.

To keep up on the latest Lippo Malls Indonesia Retail Trust coverage with Reorg, follow Reorg on LinkedIn and Twitter.

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Americas Municipals Webinar Replay: Recent Trends in Distressed Healthcare
Fri Feb 17, 2023 3:32 pm Distressed Debt

Throughout the year, Reorg hosts webinars discussing themes in the performing, distressed, restructuring and post-reorg credit markets.

Watch the replay here.

The healthcare industry is broad with many subsectors but is still an essential service that has been afflicted with similar sources of stress. Panelists will investigate the sources of stress in the industry, from the high cost of scarce labor to non-operating losses that have eroded liquidity.

On Wednesday, Feb. 21, Reorg hosted a panel discussion on recent credit and distressed trends in the healthcare sector. During the webinar, we narrowed our focus to three sub-industries: senior life plan communities, also known as CCRCs, skilled nursing facilities, or SNFs, and acute care hospitals

Panelists included:

  • Tom Califano, partner at Sidley Austin;
  • Jon Schotz, co-managing partner at Saybrook Fund Advisors;
  • Alex Geier, managing director at GLC Advisors; and
  • Suzanne Koenig, founder and CEO of SAK Healthcare. 

Watch the replay.

If you would like to be panelist on any upcoming webinars, please contact marketing@reorg.com, and if you would like to be notified for the upcoming webinars, sign up for Reorg on the Record.

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Recent Reorg Podcasts
Fri Feb 3, 2023 12:00 pm Distressed Debt  High Yield Bonds  Leveraged Finance

Every week Reorg reporters and financial and legal analysts provide recaps, previews of what’s to come, interviews with experts and deep dives on topical credit situations. We focus on issues affecting and impacting distressed debt, leveraged finance, direct lending, high yield, municipals, covenants, private credit, and more.

You can listen to recent podcast episodes below, and follow Reorg on Apple Podcasts, Google Podcasts, SoundCloud or Spotify to access all past and future episodes.

Reorg Radio Europe: Primary Highlights; Maxeda Cash Flow Analysis; GenesisCare Updates; Adler Pelzer
Jan. 31, 2023. Listen here.

The Reorg Primary View: Debt Instruments and Soccer Teams in Brazil
Jan. 30, 2023. Listen here.

Reorg Radio Americas: Serta Simmons, Heritage Power Chapter 11; Party City, DISH Network
Jan. 27, 2023. Listen here.

Reorg Radio Europe: What Next for Adler?
Jan. 25, 2023. Listen here.

Reorg Radio Europe: Primary Highlights; Orpea Second Conciliation; Issuers With Near-Term Maturities
Jan. 24, 2023. Listen here.

Reorg Radio Americas: Recap, Look Ahead and Latest Episode From The Reorg Primary View
Jan. 24, 2023. Listen here.

The Reorg Primary View: Cryptocurrency Bankruptcy and Regulation
Jan. 23, 2023. Listen here.

The Reorg Primary View: Bernstein Shur’s Bob Keach Discusses Subchapter V With Reorg’s Harvard Zhang
Jan. 18, 2023. Listen here.

Reorg Radio Europe: Primary Highlights; Matalan Recapitalization Plan; Adler Group Restructuring
Jan. 17, 2023. Listen here.

Reorg Primary View: 2022 Recap, Muni High Yield Hot Spots and Expectations for 2023
Jan. 17, 2023. Listen here.

Reorg Radio Americas: Bed Bath & Beyond, Cineworld Group, Venator Materials, FTX
Jan. 13, 2023. Listen here.

Reorg Radio Europe: Matalan, Orpea, Telepizza, Vivion
Jan. 10, 2023. Listen here.

The Reorg Primary View: The Private Debt Secondary Market
Jan. 9, 2023. Listen here.

Reorg Radio Americas: Avaya Inc., Clovis Oncology Inc., FTX, AIG Financial Products Corp.
Dec. 16, 2022. Listen here.

The Reorg Primary View: The Importance of Buying Assets and Cash Flows…
Dec. 12, 2022. Listen here.

Reorg Radio Americas: Endo International, AMC Entertainment Holdings, Reverse Mortgage Funding
Dec. 9, 2022. Listen here.

Reorg Radio Europe: Primary; Frigoglass Notes Restructuring Plan; Convene Restructuring Proposal
Dec. 6, 2022. Listen here.

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2022 European Restructuring Wrap
Sat Jan 14, 2023 3:31 pm Distressed Debt  Financial Restructuring

The wave of hard financial restructurings expected in Europe in 2022 to rival the 2008/9 crisis appears to have been mistimed. As a result of cheap debt and fiscal support available since the Covid-19 pandemic, stressed debtors have been able to avoid insolvency or restructuring.

In our 2022 European Restructuring Wrap, legal experts analyze the restructurings from 2022 and look ahead to 2023. Here’s a few key takeaways from 2022:

  • Restructuring activity, defined by the occurrence of liability management exercises (LMEs), in 2022 has briefly returned to pre-pandemic levels, following a surge in 2020;
(Source: Reorg’s Credit Cloud on Dec 31, 2022)
  • During 2022, a higher proportion of restructuring transactions (63%) were implemented consensually compared with the previous two years;
  • Restructuring transactions that introduced new money at a secured, senior secured or super senior secured level in 2022 were more likely (66%) than non new money deals to have been implemented using a restructuring tool, (non consensually);
  • There has been a large uptick in restructuring advisor appointments over the last three months. Reorg is currently monitoring 45 debtors who have appointed advisors but not yet completed a restructuring. Consumer discretionary, energy and industrial sectors feature most prevalently in this list and further details on each name can be found on our EMEA Special Situations Tracker.

Examining our observations, and wary of the previously mistimed predictions of increased restructuring activity, we have the following outlook for 2023:

  • Following a busy Q4’22, we expect to see a continued increase in restructuring activity in Europe throughout 2023.
  • We also expect to see a high percentage of consensual LME exercises over the coming months. We could see the occurrence of LME exercises match the higher levels seen in 2020 and 2021 – marking an increase from 2022;
  • English law tools (being the scheme of arrangement and restructuring plan) will continue to feature heavily in non-consensual European restructurings, in spite of the recent proliferation of new domestic restructuring tool in other European countries;
  • We expect to continue to see amend and extend, or A&E, activity in the short term, with a lot of borrowers facing maturity issues in the coming years. A&Es offer an opportunity for lenders to reprice and avoid hard restructurings which could cause credit investors to prematurely realize losses

Data compiled by Reorg in our EMEA Restructuring Database, available exclusively through Credit Cloud, paints a fascinating picture, hinting at what we might see in the financial restructuring arena in 2023.

(Source: Reorg’s Credit Cloud on Dec 31, 2022)

Read the full article written by Reorg’s Shan Qureshi or catch up on other recent intelligence articles published by Reorg.

For full access to Reorg’s platform of news, analysis and data built for financial and legal professionals, request a trial.

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EMEA Middle Market 2022 Wrap

Reorg’s EMEA Middle Market team has published a Mid Market wrap that highlights debt capital markets, direct lending, debt and leverage data and more through 2022.

This year, disruptions in the debt capital market helped shine a brighter light on the expanding potential for private debt. Despite economic headwinds and uncertainty for M&A, direct lenders have sustained dealmaking, adapting and seizing opportunities such as large cap deals, public-to-private transactions, refinancings and add-ons.

“Direct lenders can provide higher visibility and certainty of execution without any caveats. Sponsors are now prioritizing such certainty over other elements that in the past were considered more important.” Leticia Ruenes, managing director and head of Spain at Pemberton, said.

Dry powder available for the asset class has increased 4% year over year amounting to $198.5 billion as of Wednesday, Dec. 14, according to research from Preqin. In 2023, market participants said they expect a slow start and an increase of activity from the second quarter mainly driven by leveraged buyouts.

Key Trends in 2022

One trend from 2022 is the amount of club deals that have arisen to satisfy the increasing average deal size, which is more than $1 billion for reported deals in 2022, according to Preqin. Rather than individual funds being sole underwriters, some sponsors are preferring optionality and a diversification of lenders because of the difficult economic climate.

In the first half of the year, various large direct lenders took a higher amount of debt financing deals and benefited from large cap borrowers’ inability to use a shut leveraged loan market due to macro uncertainties including the war in Ukraine.

In the second half of the year, club deals have allowed direct lenders to remain active, even as capacity declined due to heavy deployment at the start of the year and funds showed caution in a more challenging macro environment.

“Club deals are becoming more and more the norm in Europe and we have experienced this trend in our last recent transactions.” Luis Mayans, partner and deputy head, private debt for Europe at CDPQ, said. “There is an acceptance among lenders that club deals are the way forward.”

He cautioned that in a less certain market “some lenders, which would have done €500 million to €600 million deals six months ago, are now taking tickets a third of that size.”

A club deal structure isn’t yet a practice that all European funds are prepared to embrace. “Europe is about 10 years behind the U.S. in terms of club deals,” Stuart Hawkins, managing director in private credit at Ardian, said.

Access our EMEA Mid Market Debt Origination tracker, a monthly tracker capturing debt and leverage data from Reorg’s coverage, by requesting a trial.

To keep up to date on the EMEA credit market, subscribe to our weekly podcast and check our events page regularly for upcoming EMEA webinars.

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Year in Review — Americas Webinars 2022

Throughout the year, Reorg hosts webinars bringing together industry professionals to discuss themes in the performing, distressed, restructuring and post-reorg credit markets. Reorg’s webinars cover topical credits and industry updates. They’re produced by our reporters and analysts with selected external guests.

Americas Webinars from 2022:

  1. Primary in the Eye of the Storm: Challenges and Opportunities in Leveraged Finance in a Downturn
  2. Hot Topics in Crypto Winter
  3. Winter Came for Covid-Era Darlings? – Distress in Crypto and Tech
  4. Bausch’s Remedies for Potential Patent Defeat & Creditor Angst Over B+L Spin
  5. Puerto Rico’s Restructuring Endgame and Beyond
  6. Revlon – Chapter 11 Cases and Creditor Disputes
  7. CLO Considerations for Distressed Investors
  8. Diebold Nixdorf: Can Significant Unencumbered Assets Overcome Massive Maturity Wall?
  9. Talen Energy Chapter 11 Filing
  10. The Texas Two-Step: LTL J&J Chapter 11 and Likely Future Filings
  11. Samarco – Testing Brazil’s Bankruptcy Reform
  12. Loan Market Trends in 2021 from Americas Covenants
  13. No Surprises Act Rollout: Implementation and Litigation Challenges Ahead

If you would like to be panelist on our upcoming webinars, please contact marketing@reorg.com, and if you would like to be notified for the upcoming webinars, sign up for Reorg on the Record.

Request a trial here.

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Fri Dec 23, 2022 4:11 pm Distressed Debt  High Yield Bonds

In this column, Reorg editors and reporters take turns writing about trends in high yield, distressed debt, restructuring and bankruptcy in major Asian markets including China, South Asia and Southeast Asia. Any opinions or other views expressed in this column are the author’s own and do not necessarily reflect the opinions or views of Reorg or its owners. Send any question or concern you may have to asiaeditorial@reorg.com.

Metals-to-mining company Vedanta Resources Ltd. (VRL) needs to come up with a quick, smart and sustainable solution to tackle its large and closely spaced debt maturities, estimated at about $4 billion for the next fiscal year. Bondholders have been pressuring VRL since July 2021, demanding that it pare its debt using dividends from Indian opcos which have benefited from the rally in zinc and aluminium prices.

But Vedanta is well known for structuring astute last-minute deals to keep its refinancing game on, and is yet again keeping investors on edge, as they await the big reveal on its plans to meet debt obligations which are rapidly closing in. The difference this time is that investors have begun questioning Vedanta’s ability to make timely decisions, and to understand and manage the complex deal negotiations needed to arrange funding from multiple sources at the same time as it deals with high-level management changes.

Significantly, the company has been missing windows available to de-lever using dividends.

In July 2021, without discussions with its bondholders, Vedanta sought to raise the debt cap from $3.6 billion to $5 billion at step-down subsidiaries Twinstar Holdings Ltd. and Welter Trading so that it could raise additional debt for refinancing. Bondholders pushed back on the proposal, which would have led to dilution of collateral, and instead the company cut its debt using dividends.

The $1.7 billion dividend received last fiscal year, upstreamed from Vedanta’s Indian listco Vedanta Ltd. (VDL), did go towards debt servicing, including interest payments. But debt was not ultimately pared as Vedanta simultaneously took on additional debt to purchase a further 14.6% stake in VDL through a voluntary open offer, to plug dividend leakage to public shareholders.

The company has stated that it has reduced debt due in fiscal year 2023 by $1.4 billion. But to boost investor confidence it needs to announce a chunky dividend to pare its debt sufficiently in one go to avoid any near-term repayment stress. That would simultaneously prove management’s credibility and its intent to de-lever. Vedanta’s management, though, still seem keen to reserve the dividend strategy for a later date, and are instead focused on raising bank loans to meet refinancing needs.

The problem with that strategy is that the company’s reputation among lenders took a beating after its corporate family and senior unsecured bond ratings were downgraded by Moody’s on Oct. 31. Again, Vedanta has to take the blame for digressing from its deleveraging plans at the last minute, after it decided not to proceed with a tender offer in October for its $400 million 8% bonds due April 2023 and $500 million 7.125% bonds due May 2023.

Moody’s in an Aug. 3 report had flagged a downgrade risk if Vedanta Resources was unable to arrange long-term funds to refinance its bonds due 2023 by Oct. 31, and the company told multiple investors it was considering a tender offer for the due 2023s by mid to end-October. Instead, it decided to use around $250 million in low-cost loans from state-owned banks to repay upcoming bank debt, resulting in an immediate downgrade from Moody’s.

The damage post the downgrade might have been more limited had Vedanta not gone ahead and discontinued its ratings engagement with Moody’s. This has resulted in bank lenders conducting additional due diligence, causing delays in closures of needed loan financings.

The tender offer required $300 million to $400 million, which could have easily come from dividends and prevented a hit on both Vedanta’s credit rating and its perception in the market. The events should teach Vedanta’s management that a strategy of constantly cutting corners is penny wise but pound foolish.

The need to present a consistent and sustainable strategy to investors is more important against the backdrop of recent high-profile changes in Vedanta’s finance team. In April 2021, Vedanta’s CFO GR Arun Kumar left, after eight years with the group during which he led deals including the merger of Vedanta Ltd. and Cairn India. More recently, in November, Vedanta appointed Anupam Jindal as its new treasury head. Jindal previously served as CFO at Sterlite Technologies Ltd. Jindal replaces Divya Goyal who had been Head, Treasury and Corporate Finance at the group, as reported.

Developing a deep relationship and maintaining constant communication with investors is vital to Vedanta, given its heavy reliance on bond debt. Investors now face the need to build new connections with key personnel at the firm due to management churn, and new incumbents need to show that they understand the company’s working over the decades.

Vedanta can steer through its debt maturities until March 2023 without a hiccup. Its trouble might begin if it is unable to close the loans with the state-owned banks as anticipated.

There are still a few steps it can take to get cash to meet its debt repayments. One is the sale of its steel business, but Vedanta has stated that it does not want to sell at this moment. Second, the company could consider selling a stake in VDL, but given the effort Vedanta Resources has taken to boost its stake in VDL to plug cash leakage, dilution of its equity holding again is unlikely to be a favored option.

For now, Vedanta needs to liaise with its banks more effectively to ensure a robust loan pipeline is in place to supplement dividends from opcos, and tackle upcoming debt maturities. Keeping its bondholders updated on its plans – and not diverging from them at the last minute – would bolster investor confidence. Metal prices are still favorable, though commodities move in cycles, and are always susceptible to external shocks.

Bearing that in mind, the company should try and make use of dividends as much as possible to bring down its debt. Most importantly, Vedanta should stop trying to cut corners and wait for a favorable window to deleverage. With few easy options on the table, the time to act is now.

–Malvika Joshi, India Editor

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