Leveraged Finance

Coverage of issuances, leveraged financing and recapitalizations across the US, EMEA and Asia from leveraged finance and legal experts. Our coverage includes news, data and analysis on leveraged loans, the leveraged loan and finance market as a whole, leveraged finance transactions and more.

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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Launching Americas Performing Credit Coverage
Fri Apr 14, 2023 2:54 pm Leveraged Finance  Product News

We’re excited to share that our new Americas high yield and performing credit coverage is live!

Available within Americas Core Credit, we are providing additional intelligence, analytics and research coverage of primary and secondary performing credit across the healthcare, retail, technology, energy and food products sectors.

Coverage intiations since the launch earlier this month include:

Healthcare & Life Sciences (Kyle Owusu, CFA, JD)

  • DaVita – DVA
  • Select Medical – SEM
  • Tenet – THC
  • Charles River – CRL
  • Avantor – AVTR
  • IQVia – IQV

Food Products (Jacob Bloom)

  • US Foods – USFD
  • United Natural Foods – UNFI
  • B&G Foods – BGS
  • Lamb Weston Holdings – LW
  • Post Holdings – POST

Retail & Consumer Products (Justin Spuma)

  • Coty – COTY
  • Sally Beauty – SBH
  • Asbury Automotive – ABG

Technology (Menghi Zhang, CFA)

  • PTC Inc – PTC

Energy (Scott Greenstein)

  • EnLink Midstream – ENLC
  • Equitrans Midstreams – EQM

To keep on top of all the new coverage initiations we’ll be making in the coming weeks and months, request a trial. And, if you’d like to catch up on our coverage for the first quarter of 2023, check out this recent article.

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Global Credit Spotlight

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

In this paper, access a curated selection of data-driven insights into credit situations developing around the world right now.

March 31, 2023

Reorg’s expert global team research and publish thousands of analysis and intelligence articles every year to bring clarity to investors, bankers, lawyers and consultants. We’re obsessed with providing actionable insight on the sub-investment grade credit markets.

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. If you are interested in understanding how a Reorg subscription can benefit your business, request trial access here www.reorg.com/trial.


In the U.S., 19 debtors filed for chapter 11 protection over the past two weeks, according to Reorg’s First Day Database; seven of those names came to court with liabilities in excess of $100 million. Some of the fears surrounding contagion from SVB Financial’s collapse have begun to abate, as shown by a slight uptick in primary market activity, as two bond deals and several leveraged loan transactions came to market. Nevertheless, regional banks remain a focus, and Reorg’s analyst team commenced coverage of some of the most prominent among them. The possibility of an economic slowdown remains a focus, as investors wait for signs that the Fed’s tightening program is taking effect amid expectations that the central bank will hike rates again this year as inflation remains stubbornly high. Advisor mandates are also increasing, as the impact of higher rates on floating-rate debt saps cash flows.

Fundamentals by Reorg: Reorg’s Fundamentals and ESGx analyst teams launched their debut report on Zayo this week. Our report includes the following sections: Capital Structure, Forecasts and Leverage Trajectory, Comparables and Industry Dynamics, ESG, Financial Overview, Business Overview and M&A Strategy. Access is limited to Zayo lenders, bondholders or parties under an NDA.

Citrix Systems: Bookrunners for Citrix Systems’ $3.95 billion SOFR+700 bps second lien bridge loan began talking to a select group of funds late last year about a potential takeout of the software company’s bridge loan with new paper yielding about 14%. The structure and pricing have yet to be finalized, but the banks have some time, as the bridge does not expire until October. However, in light of risks associated with the company, the yield could widen to as much as 16%. Read more on Citrix Systems.

U.S. Regional Banks: The Americas credit analyst team has initiated coverage of nine regional banks that have come into focus since the collapse of Silicon Valley Bank: Zions Bancorp, KeyCorp, BankUnited, HomeStreet Capital, SVB Financial Group, Signature Bank, First Republic, PacWest Bancorp and Western Alliance. Read more.

Shoes For Crews: A group of lenders to Shoes For Crews’ $258 million L+500 bps first lien term loan B has organized with King & Spalding, according to sources. The Boca Raton, Fla.-based provider of slip-resistant footwear for various industries, including food service, retail and industrial workers, has struggled with high leverage and weak performance during the Covid-19 pandemic.

Western Global Airlines: an Estero, Fla.-based cargo carrier, has hired Weil Gotshal, Evercore and FTI Consulting as legal counsel and financial advisors, respectively, as the company contends with tightening liquidity, a pilot shortage and operational challenges amid the slowing air cargo market. The company’s bondholders are working with Ducera Partners as financial advisor, and an upcoming $21 million coupon payment in August is in focus.

Americas Municipals

Puerto Rico Electric Power Authority: The judge overseeing the Title III restructuring of the Puerto Rico Electric Power Authority, or PREPA, delivered a critical opinion on bondholder liens ahead of a confirmation trial scheduled for July. Judge Laura Taylor Swain’s decision noted that the bondholder’s lien was limited to a $16 million sinking fund, but that bondholders of PREPA debt had recourse through an unsecured net revenue claim. Uninsured bonds traded up on the news from the high 60s to low 70s, indicating a potential settlement ahead of confirmation. Parties to the dispute have filed a joint statement outlining their views on the next steps in PREPA’s restructuring. Read more.

American Rescue Plan Act: The state of Ohio filed a petition for writ of certiorari with the U.S. Supreme Court seeking review of a November 2022 opinion by the Sixth Circuit holding that Ohio’s challenge to the offset restriction provision, or tax mandate, of the American Rescue Plan Act, or ARPA, which prevents states from using ARPA funds to directly or indirectly offset net reductions in tax revenue resulting from changes in state law, was mooted by a clarifying regulation issued by the Treasury Department.

Ohio asks the Supreme Court to answer whether federal courts still have jurisdiction to adjudicate states’ challenges to the tax mandate in light of the clarifying regulation and whether the tax mandate is unconstitutional, arguing that the provision is unconstitutionally ambiguous and coercive. In January, the Supreme Court denied a similar petition by Missouri seeking review of an Eighth Circuit determination that the state lacked standing. Read more.


In Europe, additional tier 1 bond investors are still aching from a controversial decision announced on Sunday evening, March 19, by the Swiss financial regulators to wipe out $17 billion of Credit Suisse AT1 debt as part of a merger with domestic rival UBS. The move sent shockwaves through the markets because the regulators allowed Credit Suisse shareholders, junior to AT1 creditors, to walk away from the imploding bank with a small minority equity stake, valued at $3 billion, in the new, much larger UBS – thereby disregarding the absolute priority rule. Global litigation firms are now in full swing to prepare legal challenges.

Credit Suisse: Law firms are preparing multiple litigation strategies to push back on Switzerland’s March 19 decision to write CHF 16 billion of Credit Suisse additional tier 1 debt down to zero. Quinn Emanuel and Pallas Partners are both pitching disgruntled investors, trying to build a large enough group to lead the charge in Switzerland, which, according to Pallas’ Natasha Harrison, has “annihilated its reputation as a safe haven.” Reorg’s legal analysis shows that Credit Suisse’s AT1 bond documentation does allow for the regulator to write down the subordinated debt in a non-liquidation scenario. Read more.

Deutsche Bank’s additional tier 1 notes fell 8% to 10% on March 24, the most hit in Europe, as policymakers are struggling to calm waters after the 16 billion Swiss franc ($17.4 billion) vaporization of Credit Suisse AT1s. The German lender’s shares are down 10%, while its five-year credit default swap was indicated at 302 basis points last Friday, March 24, up 18% compared with the day before. The banking sector, as well as broader markets, have fallen because of the turmoil caused by the collapse of three U.S. regional banks and the last-minute merger between Credit Suisse and UBS, in which the former’s AT1 notes were wiped out completely and its equity took a big loss but were not fully written down. Read more.

Flint Group said more than 75% of first lien debt lenders by value and 90% of second lien debt lenders have acceded to a lockup agreement for its recapitalization deal. The Luxembourg-based printing and packaging company added that it expects this level of support to enable the group to implement the transaction by way of a U.K. scheme of arrangement. The transaction will cut debt by €740 million and reduce interest costs by €75 million in financial year 2023. Lenders will provide €72 million of new liquidity and extend maturities by up to four years. The transaction would cut operating group debt by more than 50% through a partial restatement of the first lien debt, with the rest of the first and second lien pushed up into new holdco debt. Read more.

Codere: Spanish gaming company Codere, which previously restructured its debt in 2020 and 2021, said it intends to raise €100 million of super senior new money, and defer interest due under its 2026 and 2027 PIK super senior notes and principal under its 2026 PIK super senior notes. The group is using a consent solicitation to implement the key terms of the deal, requiring the consent of just 50% of each note’s tranche and in addition launching an exchange offer. The company is dealing with a significant interest burden, which is eroding its liquidity. As of the nine months ended Sept. 30, 2022, the group’s total cash interest burden amounted to €68.4 million, of which €44.3 million related to bond net cash interest payments. Including PIK interest of €61.5 million, total interest amounted to €129.9 million. Read more on Codere.

Tricor/Vistra: Investors who considered the $1.66 billion-equivalent incremental term loan B being marketed to support the merger of corporate services companies Tricor and Vistra highlighted that the company’s scale will more than double as a result of the deal. Both businesses are based in Hong Kong and have activities in Asia, however Vistra’s activities in the EMEA region and in the Americas will enable Tricor to expand its focus beyond Asia. Relatively low capex also means that free cash flow generation is strong, investors said. The deal comes with significant execution risk and large integration costs. Additionally, the two companies may have overlapping activities and clients. The dollar portion of the deal priced at SOFR/Euribor+ 475bps with a 97.5 OID.

Quark: Arcano Partners has been appointed to run the sale of Spanish consulting and engineering company Quark, sources told Reorg. The founders of Quark are looking for a new partner to continue the company’s growth and international expansion.The process is at an early stage, sources noted.


In Asia, earnings were a focus for investors. CIFI Holdings started negotiating with holders of its over RMB 2B onshore bond to cancel a put option, and Reorg began coverage of Chindata Group.

Logan Group: We dialed into a conference call held by the company’s chief restructuring officer, who told investors that Logan aims to distribute a detailed restructuring proposal to all creditors in the next few weeks, and that the terms will feature amortization payments throughout the extended period. Read more.

China Evergrande: Reorg compares key terms of recent liability management and restructuring exercises launched by Chinese real estate developers against the proposed restructuring terms under China Evergrande Group’s restructuring term sheet. Among other details, we highlight the three schemes under the plan and benchmark various terms against historical and ongoing restructurings such as the restructuring consideration, debt/equity swap terms, money terms, asset sales undertaking and credit enhancements. Read more.

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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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European Leveraged Finance Trends – How Covenants Evolved in 2022
Fri Jan 27, 2023 3:46 pm Covenants Analysis  Leveraged Finance

Our expert team will provided an overview of:

  • How the market for bond and loan covenants responded to the turbulence of 2022;
  • How investors pushed back on aggressive terms;
  • The outlook for 2023; and
  • How borrowers will use the terms of existing documentation to manage their liabilities.

Watch the replay.

See Reorg’s EMEA Covenants coverage.
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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Global Credit Highlights by Reorg

Reorg’s unique editorial approach combines legal and financial analysis with reporting for a holistic view on thousands of sub-investment grade credits from more than 100 countries.

Reorg’s editorial leadership has selected the following list of the most compelling and topical situations on distressed debt, restructuring, leveraged finance, and more across our global coverage universe. For any suggestions, please email us at questions@reorg.com.

In the Americas, markets ended the last week before Christmas in an unsettled state, with stocks falling and Treasury yields rising as market participants increasingly discounted the arrival of a recession in 2023 and the Federal Reserve’s aggressive rate hikes begin to take hold. Policymakers this week raised the fed funds rate by 50 bps compared with 75 bps at the previous four meetings; however, investors focused on the central bank’s “dot plot,” which indicated a terminal rate of 5.1% at the end of next year. The Fed’s action comes even as consumer prices have eased lower in each of the past two months; even so, companies in earnings reports are increasingly highlighting the effect of cost and labor inflation on financial results, as well as a growing tendency by consumers to reel in spending in the face of higher prices.

Highlights from Reorg’s Americas Core Credit team:

AMC Entertainment

AMC Entertainment Holdings Inc. lenders have organized again as the movie theater chain continues to burn a significant amount of cash and its liquidity runway comes into question. The company burned $278 million of cash in the third quarter, bringing its year-to-date free cash burn to $725 million. Reorg estimates pro forma liquidity of $767 million as of Sept. 30, down $1 billion from $1.8 billion at the beginning of the year. AMC’s LTM adjusted EBITDA through Sept. 30 of $191 million is only 25% of 2019 levels. Even if this number improves materially, AMC could still burn cash in 2023 unless box office performance exceeds expectations. Reorg’s AMC coverage.


Revlon is in discussions with creditors to issue new reorganized common shares and warrants, whose terms must be acceptable to BrandCo lenders, to exit its bankruptcy proceedings. No strong bids have emerged – hence a sale is not a likely path for the cosmetics retailer to emerge from chapter 11, at least from where things stand now. The company is also working on a global settlement to resolve intercreditor issues. Access Reorg’s Revlon coverage.

Party City

Party City is exploring options to boost liquidity, including upsizing its first-in, last-out facility, as the party supplies store chain burns cash because of stubbornly high helium, freight and labor costs. Certain holders of Party City’s first lien notes, including Silver Point Capital and Capital Group, have organized with Davis Polk as counsel and Lazard as financial advisor. The company has received inbounds from investors that are interested in providing financing in the form of FILO. Party City is permitted to upsize its existing ABL or FILO by $200 million under the existing credit agreement, according to Americas Covenants by Reorg. Following an amendment to the ABL agreement in July, the company had $17.1 million outstanding on the FILO tranche. Reorg’s Party City coverage.

In Europe, the leveraged loan market sprung back to life with banks offloading high-yield debt with lumpy OIDs in companies that had previously pulled issuances. Short-seller Muddy Waters launched a campaign against German real estate group Vivion questioning some of its shareholder loans and challenging its reported occupancy rates. The company responded that the report is inaccurate and flawed but that did not stop the bonds from losing 10 points to yield almost 20%.

Highlights from Reorg’s EMEA Core Credit team:


The United Kingdom-and-Germany-focused real estate group Vivion’s bonds dropped more than 10 points this week after hedge fund Muddy Waters announced a short position in the debt and released a research report focusing on doubts over some shareholder loans, the reported occupancy rates in Germany and a potential inflation of the value of the U.K. hotel portfolio. The company rejects the allegations as inaccurate. Access Reorg’s coverage of Vivion.


DOF ASA’s three-year debt restructuring process took another turn this week when shareholders in the Norwegian offshore service company voted to sack the company’s long-time board of directors and install a new team of candidates pitched by two activist shareholders opposing the company’s restructuring plan. The new chairman told Reorg that DOF will continue to pursue its in-court reconstruction plan but added that the new directors will form their own view on how to proceed. The consortium of lenders and bondholders backing the debt-for-equity swap plan immediately sent a letter reminding the company of its agreement to implement the terms agreed in June. Access Reorg’s coverage of DOF.


Global telecoms group Veon has added a number of sweeteners to its proposed English scheme of arrangement after receiving feedback from certain investors holding its $529.3 million 5.95% notes due February 2023 and $700 million 7.25% notes due April 2023 that are being extended by eight months. Veon will enhance the proposed maturity extension with an increased amendment fee of 200 bps, up from 75 bps under the Nov. 24 proposal, payable on the maturity dates of the new 2023 notes. Veon is also offering creditors a put right, requiring Veon to buy back up to $600 million of the $1.229 billion of outstanding bond principal at 101. Access Reorg’s coverage of Veon.

Over in China, the nation is headed for another Covid-19-ravaged winter, this time after China largely lifted quarantine requirements and travel restrictions in part in response to public protests. iQIYI, China’s answer to YouTube and Netflix combined, has engaged Kirkland & Ellis and Houlihan Lokey as legal and financial advisors, respectively, to explore financial options.

Highlights from Reorg’s Asia Core Credit team:


This Chinese online video platform has engaged Kirkland & Ellis and Houlihan Lokey as legal and financial advisors, respectively, to explore financial options. Access Reorg’s coverage of iQIYI.

Yuhua Education

Linklaters, financial advisor to an ad hoc group of holders of Yuhua’s HKD 2.088 billion 0.9% convertible bonds due 2024, said in a statement that the ad hoc group has exercised their rights to require early redemption of the outstanding convertible bonds on Dec. 27. The group also detailed progress and terms agreed to so far during restructuring negotiations with the company. Reorg’s coverage of Yuhua Education.

New Coverage: Goodpack

Reorg on Dec. 9 initiated coverage on Singapore-headquartered container-maker Goodpack. The KKR-backed company is close to finalizing a fully committed refinancing of its U.S. term loan B debt through an Asian bank club and a fully subordinated mezzanine piece, according to sources. Reorg’s coverage of Goodpack.

To read more intelligence articles, breaking news alerts and in-depth analyses on companies across the Americas, Asia and EMEA regions, click here.

Access all of Reorg’s coverage on thousands of distressed, stressed and performing credits: request a trial.

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China’s Regulatory Stimulus, Impact on Real Estate Sector

Since the second week of November, the Chinese government has released a slew of new policies and initiatives aimed at expanding access to financing for privately held real estate developers. Policy highlights include the so-called Second Arrow program to provide up to RMB 250 billion total financing and 16 measures from the central bank and the China Banking and Insurance Regulatory Commission for supporting real estate companies. Asia’s high-yield market rallied following the unveiling of the policies, with China real estate bonds leading the rise.

Will the new policies end China’s real estate crisis? How much will they help lift the industry out of its recession? Could this be the turning point people were hoping for? And how long will the exuberance last? In this webinar, Reorg’s China editorial team will share their take on the situation.


  • Katherine Shi, Reorg China Editor
  • Anna Zhang, Reorg Senior Reporter
  • Shasha Dai, Reorg Managing Editor, China (Moderator)

Webinar details:

When: Tuesday, Dec. 13, 5 p.m. HKT / 9 a.m. GMT
Registration: To register for the webinar, click here.

The Asia Pacific Loan Market Association (APLMA) is a supporting organization for this webinar.

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Reorg Panel Event London – Navigating the Perfect Storm
Fri Nov 11, 2022 3:06 pm Distressed Debt  High Yield Bonds  Leveraged Finance

Reorg was delighted to bring leveraged finance and restructuring professionals together again in London at Claridge’s on November 3.

Mario Oliviero welcomed guests before an exciting leveraged finance panel.

Beatrice Mavroleon moderated an expert panel ‘Double-Digit Yields – Is Primary the New Distressed?’, including Tim Ayles from Rothschild & Co, Touboul Marc from Bain Capital, Robbie Harris from HSBC, and Jerome Ingenhoff from Alcentra.

Primary markets remain shut for all but tried and tested repeat issuers, and that is unlikely to change anytime soon, the panelists agreed. It will take time for the market to fully stabilize, and for banks to start underwriting debt again under new conditions, which means it will be at least the first or second quarter of 2023 before we start to see more deal flow. However, there was a constructive window in June and July, when a couple of CLOs priced, and there has been some stabilization over the last two weeks, with several more CLOs printing.

— Panelists, Double-Digit Yields – Is Primary the New Distressed

Reorg’s Magnus Scherman moderated our second live panel ‘The Distressed Landscape – Who Goes First and How?’
Our panelists for this session were Ralf Ackermann from Searchlight Capital Partners, Lois Deasey from Weil, Gotshal & Manges LLP and Gijs de Reuver from Houlihan Lokey for an engaging discussion. Reorg subscribers can read a full overview here.

We had an excellent attendance. Thank you to everybody who registered and joined us on the day.

For more information about upcoming events and webinars, click here.

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