Reorg Blog

Fourth-quarter earnings season got underway in Europe under a cloud of sluggish business activity and delays in Covid-19 vaccinations across the continent. Travel and associated industries have reported tough periods - exemplified by Heathrow, once Europe’s busiest airport, saying this week that 2020 was the toughest year in its history - while companies in other sectors, including retail and automotive, posted better-than-expected results. Investors are nevertheless optimistic about the reopening of travel in the coming months with aviation and leisure debt already being lifted on positive noises from governments. Next week Jaishree Kalia, Reorg’s Managing Editor of EMEA Middle Market,...

Each episode of Reorg’s weekly podcast series, released Friday afternoons, features a look back at highlights and top stories from the previous week and a preview of what's to come in the week ahead, followed by a deep dive on issues and companies in the distressed and high-yield space. This week, Peter Washkowitz, head of Americas Covenants, takes a deep dive into the impact of equity issuances, IPOs and SPACs on companies’ flexibility under debt documents.  The deep dive talks through how proceeds from equity issuances and cash contributions flow through debt documents and how those amounts could potentially significantly...

Update 1: Codere's liquidity shortfall is estimated at £146M-£180M with £200M of new super senior money alongside partial equitization of SSNs leading to a 50% reinstatement, 70% SSN recovery under base case and 56% in low case. Click through and request a trial to read the full update here: https://reorg.com/cash-flow-model-codere-liquidity-shortfall-estimated-to-be-e146m-e180m/  Starting negotiations for a new round of debt talks with bondholders due to liquidity pressure from Covid-19 restrictions, Spanish gaming company Codere is working with Houlihan Lokey and Clifford Chance. The group’s bondholders are working with PJT Partners and Milbank. The advisors are focusing on new money needs and on how much...