Reorg Blog

If you’re not familiar with BSPV-Plano LLC, the company was organized to develop, construct, own, finance and operate a senior living community in Texas called The Bridgemoor at Plano. BSPV-Plano filed for chapter 11 protection on March 1, but construction is not scheduled to complete until this summer. Discussions about how to handle a shortfall of funds to finish construction have not been formalized into a forbearance agreement. Which would yield the highest recovery for bondholders and other creditors – completion of the project or sale? To get the full debt analysis and background, read the full story.

Introduction written from London by Mario Oliviero, Managing Director, International Credit ||  The tragedy of the Russian invasion of Ukraine has thrown European sub-investment grade markets into a new reality. Primary markets are shut to new deals and secondary is rife with volatility. Russia’s economy may be smaller than Italy’s but its progressive isolation from the World economy is going to impact European economies and debt issuers both directly - companies with trade relationships with Russia/Ukraine, and indirectly - supply chain disruptions commodity prices. An increase in commodities prices will impact consumers, bar any Central bank/government extraordinary intervention overall demand will...

This week we take a look at Vyaire Medical, Intrado, Diamond Sports Group and the No Surprises Act. Click here to listen: https://soundcloud.com/reorg-radio/reorg-podcast-march-4-2022 Also featuring an interview with Evan Wallach, president and CEO of Global AirFinance Services Inc., an advisor to institutional investors and aircraft leasing companies, discussing how the legal ramifications of the Russian sanctions interact with aviation asset-backed securities. Editor’s Note: Each episode of Reorg’s weekly podcast series features a look back at highlights and top stories from the week in review and a preview of what’s to come in the week ahead, followed by a deep dive on...

In February, China rolled out a nationwide policy for escrow pre-sales accounts as reported -- while details are lacking, some of the mooted new measures are expected to ease the short-term liquidity pressure for Chinese real estate developers by standardising pre-sales escrow account supervisory practices and improving the flexibility of the use of pre-sales funds. In this update, Reorg highlights and compares the relevant regulatory constraints in China’s top 10 cities by GDP that affect a real estate development’s working capital intensity and therefore its developer’s liquidity. Background, Existing Policies Chinese real estate developers are required to deposit pre-sales proceeds...

Written by Stephen Aldred, managing editor, Asia Core Credit | Current volatility in high-yield bond prices of Chinese real estate developers points to a loss of trust in information sources the market previously used to gauge the truth. It’s the natural result of a steady stream of previously undisclosed private notes and guarantees, revelations of defective capital structures and resignations of auditors. But more fundamental to the problem is companies themselves being economical with the truth. Zhenro Properties is the latest developer to execute a U-turn on previous public guidance. The strong suspicion is it won’t be the last. Logically,...

Written by Rob Schach, Editor, Europe || The European leveraged finance market started the year where it had left off in 2021, with solid volumes in January as issuers tapped into continued undimmed demand. Even ESG black sheep cigarette filter manufacturer Cerdia managed to pull off a tricky refi. But the mounting realization that inflation won’t be moderating any time soon, heavy high-yield outflows and Russia on the brink of a second invasion of Ukraine brought an end to the party. By the end of January market jitters caused issuers to sweeten terms, and at the beginning of February deals...