Bankruptcy and Financial Restructuring

Recent Bankruptcy Filings

AD1 Urban Palm Bay LLC
January 22, 2023

A Hollywood, Florida-based company, along with 12 affiliates, filed for Chapter 11 protection on January 22, 2023, in the Bankruptcy Court for the District of Delaware (Case No. 23-10074). The Debtors are reporting up to $50 million to $100 million in assets and up to $100 million to $500 million in liabilities.

GigaMonster Networks LLC
January 16, 2023

A Marietta, Georgia-based company, known for developing and deploying universal access networks in multi-family and commercial real estate properties, plus four affiliates, filed for Chapter 11 protection on January 16, 2023, in the Bankruptcy Court for the District of Delaware (Case No. 23-10051). The Debtors are reporting $50 million to $100 million in both assets and liabilities. 

The first-day declaration states that the Debtors filed for Chapter 11 in order to hold “one or more sales of their assets.” The bankruptcy case would be funded by $5.8 million in DIP financing from M/C Partners VIII LP as both agent and lender. Bel Air Internet LLC and Everywhere Wireless LLC will serve as the stalking horse for a “significant portion of the Debtors’ operating assets” for $14 million. Currently, the sale timeline proposes a bid deadline of February 24th, an auction on February 28th, and a sale hearing on March 2nd.

Performance Powersports Group Holdings Inc.
January 16, 2023

A Tempe, Arizona-based manufacturer and distributor of outdoor sports equipment, and three affiliates filed for Chapter 11 protection on January 16, 2023 in the Bankruptcy Court for the District of Delaware (Case No. 23-10048). The Debtors are reporting $100 million to $500 million in both assets and liabilities. 

Currently, the Debtors have a DIP financing term sheet commitment from Tankas Funding VI LLC and use of cash collateral from Twin Brook Capital Partners LLC. The DIP lender intends to enter into an asset purchase agreement with the Debtors for an undisclosed amount, which is subject to the proposed bid procedures.

Tricida Inc.
January 11, 2023

A San Francisco, California-based clinical-stage biopharmaceutical company, which focuses on chronic kidney disease, filed for Chapter 11 protection on January 11, 2023, in the Bankruptcy Court for the District of Delaware (Case No. 23-10024).  The Debtor is reporting $93.9 million in assets and $230 million in liabilities.

The Debtor entered into an RSA with the support of more than 80% of convertible noteholders. According to the RSA,  "Consenting Noteholders are required to vote in favor of the Plan provided, among other things, that (a) Tricida meets certain milestones set forth in the RSA term sheet (the ‘Milestones’); (b) Tricida operates in accordance with the approved budget, subject to a permitted variance; and (c) the Consenting Noteholders have certain consultation rights, including with respect to any sale of the assets.” Additionally, the RSA will allow the following for claims: "[H]olders of allowed general unsecured claims, along with the claims of the Convertible Noteholders, will be paid their pro rata right to recovery in cash on the effective date of the Plan. These claims will additionally have the right to a later true-up payment from the Liquidating Trust. De minimis claims of less than $7,500 will receive fifty percent (50%) of the allowed amount of their claim in cash on the effective date, subject to an aggregate recovery amount for such claims of $60,000. Finally, disputed general unsecured claims and the Patheon rejection claim shall receive pro rata distributions from the Liquidating Trust at the time the size of their claims are determined and allowed."

The Debtor intends to run a sale process, which will lead to the confirmation of a liquidation plan by mid-April.  At this time, a stalking horse bidder has not been named. The proposed timeline of the sale includes a bid deadline of February 10, 2023, an auction on February 15, 2023, a sale hearing on February 21, 2023, and the closing to take place by February 24, 2023.

Currently, the Debtor’s prepetition capital structure includes around $200 million owed under 3.5% convertible senior notes due in 2027, plus more than $140 million in general unsecured debt, which consists “primarily of contract termination damages asserted by Patheon in its December 19, 2022 letter and accounts payable to various trade creditors, utility providers, and Tricida’s landlord."

FB Debt Financing Guarantor LLC
January 12, 2023

FORMA Brands and several affiliates filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on January 12, 2023 (Case No. 23-10025).  The Debtors estimate they have between $500 million to $1 billion in both assets and liabilities. 

FB Debt Financing Guarantor LLC entered into a stalking horse agreement with an entity controlled by Jefferies Finance, which is the agent under FORMA Brands’ prepetition secured debt, along with funds managed by Cerberus Capital Management and FB Intermediate Holdings.  The stalking horse entity will obtain almost all assets and assume some liabilities of FORMA Brands.  According to a press release, those assets contain "FORMA Brands' wholesale operations, online platforms, and international Morphe retail stores." The stalking horse entity committed to providing $33 million in DIP financing to support the bankruptcy cases through the sale process.  Currently, the Debtors seek approval of $16.2 in DIP financing on an interim basis.

According to the DIP motion, the Debtors' main debt obligations, totaling around $868 million, consist of a Prepetition First Lien Credit Agreement, Sponsor PIK Secured Notes and the Sponsor PIK Unsecured Notes.

American Virtual Cloud Technologies Inc.
January 11, 2023

An Atlanta, Georgia cloud-based business communication services company, and affiliates AVCtechnologies USA Inc. and Kandy Communications LLC, filed for Chapter 11 protection on January 11, 2023, in the Bankruptcy Court for the District of Delaware (Case No. 23-10020). The Debtors are reporting they have $31.1 million in assets and $13.6 million in liabilities.

DCL Holdings USA Inc.
December 20, 2022

A Toronto-based supplier of color pigments and dispersions for the coatings, plastics and ink industries, filed for Chapter 11 protection on December 20, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11319). The Debtor is reporting $100 million to $500 million in both assets and liabilities.  According to the resolutions attached to the voluntary petition, Wells Fargo Bank will act as the DIP financing agent.

AIG Financial Products Corp.
December 14, 2022

AIG Financial Products Corp. filed for Chapter 11 protection on December 14, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11309).  The Debtor is reporting $100 million to $500 million in assets and $10 billion to $50 billion in liabilities.

Quanergy Systems Inc.
December 13, 2022

A Sunnyvale, California-based company that focuses on designing, developing, and marketing Light Detection and Ranging ("LiDAR") sensors and 3D perception software solutions filed for Chapter 11 protection on December 13, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11305). The Debtor is reporting $10 million to $50 million in both assets and liabilities. 

The first-day declaration states that the Debtor has $25 million in unsecured debt, but no funded secured debt.  The Debtor currently has $9 million in cash to fund the Chapter 11 case and implement a postpetition sale process.  The Debtor proposes the sale process to have an end date of February 3, 2023, since it does not have DIP financing funding the proceedings.  At the moment, there is no anticipated stalking horse, however, the proposed bid procedures allow for such a selection by January 13, 2023, plus it allows for bidding on specific portions of the business.  

Sears Authorized Hometown Stores LLC
December 12, 2022

A Hoffman Estates, Illinois-based retailer that sells home appliances, hardware, tools, and lawn and garden equipment filed for Chapter 11 protection on December 12, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11303), along with Sear Hometown Stores Inc. The Debtors are reporting they have $10 million to $50 million in assets and $50 million to $100 million in liabilities.

According to the first-day declaration, the Debtors state the reasons for the Chapter 11 filing are based on “(i) stem losses; (ii) orderly liquidate their inventory at the stores through inventory liquidation sales; (iii) provide some order and control over the sale process and their Dealer network; (iv) provide a forum for resolving their disputes with Transform; and (v) provide a forum for resolving any disputes or issues with their Dealers.”

As of December 9, 2022, the Debtors currently owe PNC Bank a $22.7 million first lien revolving credit facility and $15 million second lien loan from Transform Management.  The Debtors approximate they owe Transform around $3 million under a services agreement. The Debtors intend to seek approval to enter into a consulting agreement with Tiger Capital Group, LLC, B. Riley Retail Solutions, LLC and SB360 Capital Partners, LLC, in order to “promptly begin inventory sales.”

Clovis Oncology
December 11, 2022

A Boulder, Colorado-based biopharmaceutical company, filed for Chapter 11 protection on December 11, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11292). The Debtors are reporting $319.2 million in assets and $754.6 million in liabilities. The Debtors recently revealed that they would not have adequate liquidity to continue business beyond January 2023.

The Debtors state they obtained a multi-draw DIP financing facility commitment for up to $75 million. The DIP financing provides the Debtors with adequate liquidity to continue to operate in the normal course of business, plus meeting its obligations “while executing on the sales process.”  The Debtors also revealed they entered into a prepetition stalking horse agreement with Novartis Innovative Therapies AG, for the purchase all of the Debtors' rights to its pipeline clinical candidate, FAP-2286.  However, this sale must be approved by the court, plus a section 363 sale process, and with the expiration of the Hart-Scott-Rodino, or HSR, antitrust waiting period and additional customary closing conditions.

The Debtors filed a bid procedures motion to approve one or more sales of its assets. In addition, bid procedures motion also seeks approval of the stalking horse agreement with Novartis, plus bid protections which include a $6 million breakup fee and a $2 million expense reimbursement.

Medly Health Inc.
December 9, 2022

A Boulder, Colorado-based digital pharmacy, plus over 30 affiliates, filed for Chapter 11 protection on December 9, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11257).  The Debtor reports they have $100 million to $500 million in both assets and liabilities.  The Chapter 11 filing was based on the debtor losing anticipated financing plus discovering accounting irregularities by the debtor's founders.

Medly intends to run a sale process for its Pharmaca business, which it acquired in 2021, and to close the only four remaining digital pharmacy stores after the sale of all of the business’ prescription lists.  MedPharmaca Holdings Inc., will serve as the stalking horse for the Pharmaca assets, with a cash bid of $18.5 million, which is subject to adjustments, including the acquisition of all claims and retained litigation.  The pending litigation includes potential fraud and breach of fiduciary duty claims against the company’s founders.

Since the Debtors do not have adequate cash, the Chapter 11 would be funded by $8 million in new-money DIP financing from the existing secured lender, TriplePoint Capital, which would consensually prime all prepetition secured debt.

Orbit Energy & Power LLC
December 6, 2022

A Wenonah, New Jersey-based company that provides solar power, energy services, water treatment, heating and cooling, plus home improvement services, filed for Chapter 11 protection on December 6, 2022, in the Bankruptcy Court for the District of New Jersey (Case No. 22-19628). The Debtors are reporting that they have $1 million to $10 million in assets and $10 million to $50 million in liabilities.

Winc Inc.
November 30, 2022

A Santa Monica, California-based alcoholic beverage producer, filed for Chapter 11 protection on November 30, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11238), along with its affiliates, BWSC LLC and Winc Lost Poet LLC.  Winc Inc. reports they have $50.3 million in assets and $36.8 million in liabilities.

Winc Inc. entered into a confidential, non-binding agreement with a potential stalking horse bidder for almost all of their assets. The resolutions, which were attached to the petition, allow the Debtors to “continue the marketing for sale of the Companies’ assets and pursue negotiations with any interested parties regarding one or more sales of such assets pursuant to section 363 of the Bankruptcy Code or otherwise,” as well as give it the authority to sign an asset purchase agreement with Project Crush Acquisition Corp LLC. The debtors plan to file a DIP Financing Motion.

Reverse Mortgage Funding LLC
November 30, 2022

A Bloomfield, New Jersey-based reverse mortgage originator, filed for Chapter 11 protection on November 30, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11224).  The Debtor is reporting $10 billion to $50 billion in both assets and liabilities.

On November 29, 2022, the Debtor laid of 80% of all staff members after a decision to "pause" all of their mortgage originations.  The Debtor stated the reasoning behind this decision was due to interest rate hikes and macroeconomic volatility, which made it impossible for the Debtor to continue its origination work.

The Debtor currently has a DIP financing agreement with BNGL Parent LLC.

BlockFi Inc.
November 28, 2022

BlockFi Inc., a New Jersey-based provider of crypto exchange services, and eight of its affiliates filed for Chapter 11 protection on November 28, 2022, in the Bankruptcy Court for the District of New Jersey (Case No. 22-19361). The Debtors state both their assets and liabilities range from $1 billion to $10 billion.

The Chapter 11 filing was anticipated after BlockFi halted client withdrawals the day before FTX Group filed for bankruptcy. BlockFi issued a press release on November 28th, with Mark Renzi, of Berkeley Research Group, BlockFi’s financial advisor, stating that after the “collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company."

The Debtors filed a Chapter 11 plan, which provides for both a pursuit of an asset sale or a stand-alone restructuring. If a sale occurs, distributions would be funded by cash on hand, sale proceeds, and those proceeds from retained causes of action.  If a stand-alone restructuring occurs, account-holder claims would receive a pro-rata share of cash, at the applicable debtor, plus 100% of new common stock in the reorganized BlockFi Inc., with the option to increase their stock shares by exchanging cash or vice versa.

Taronis Fuels, Inc.
November 11, 2022

An Arizona-based manufacturer and distributor of industrial, medical, specialty and beverage gases,  filed for Chapter 11 protection on November 11, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11121), along with numerous affiliates.  Taronis states they have $10 million to $50 million in both assets and liabilities. The Debtors state that they may obtain the use of cash collateral plus postpetition financing, and also pursue a sale of a majority of their assets.

Fast Radius Inc.
November 7, 2022

A Chicago-based cloud manufacturing and digital supply chain company filed for Chapter 11 protection on November 7, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11051). The Debtors report around $69 million in assets and around $55 million in liabilities. The Debtors believe the prepetition lenders will allow use of cash collateral in order to continue business, which will generate revenue, fund the administrative costs of the bankruptcy, and pursue a sale.  The Debtors filed a bid procedures motion in order to sell almost all of their assets, without a current stalking horse.  The Debtors have $23.8 million in funded debt and $6 million in trade debt.  The Debtors state they currently have around $6.2 million in "available cash." The Debtors anticipate holding an Auction on December 7, 2022, a sale hearing on December 9, 2022, and have a target closing date of December 12, 2022.

Cediprof Inc.
November 4, 2022

A Caguas, Puerto Rico-based pharmaceutical company filed for Chapter 11 protection on Friday, November 4, 2022,  in the Bankruptcy Court for the District of Puerto Rico (Case No. 22-03198). The debtor states they have $29.2 million in assets and $33.7 million in liabilities. The prepetition capital structure shows $3.2 million in secured debt, mainly held by Oriental Bank, and $30.5 million in general unsecured debt.

Vesta Holdings LLC
October 30, 2022

A Mongomeryville, Pennsylvania-based provider of wealth advisory, risk management, and insurance brokerage services, filed for Chapter 11 protection on October 30, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-11019). The company's affiliates, Summit Risk Advisors LLC and Dunham Insurance Agency LLC, also filed for Chapter 11 protection.  Vesta Holdings LLC reports $100 million to $500 million in both assets and liabilities.

According to the First Day Declaration, the Debtors' prepetition capital structure includes $126.7 million of funded debt, plus secured debt from Alter Domus (US) LLC. The Debtors are planning a sale of almost all of their assets, which includes Summit Risk Advisors LLC's insurance brokerage business, with the current secured lenders as the stalking horse.  On September 13, 2022, the secured lenders provided $3.8 million to the Debtors, and have agreed to a $38 million DIP financing facility. The Debtors anticipate the Sale Hearing to take place on January 18, 2023.  The Debtors also plan to file a Chapter 11 plan shortly.

PhaseBio Pharmaceuticals Inc.
October 23, 2022

A Malvern, Pennsylvania-based biopharmaceutical company filed for Chapter 11 protection on October 23, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10995). The Debtor reports $10 million to $50 million in both assets and liabilities.

The Debtor is currently going through litigation with SFJ Pharmaceuticals, its co-development partner, over the development program of bentracimab.  As a result of filing for Chapter 11 protection, the Debtor “intends to seek an expedited ruling from the Court resolving its ongoing dispute with SFJ.”  The Debtor plans on running a sale process for the program assets of bentracimab, which is known as a “novel reversal agent” for the antiplatelet drug ticagrelor.  Ticagrelor is marketed and sold by AstraZeneca under the brand name Brilinta.

In connection with this sale process, an asset purchase agreement for bentracimab is expected to be executed shortly by an unnamed stalking horse, which was approved by the Debtor's board before the filing of the Chapter 11 petition.  The stalking horse would (i) pay the Debtor a cash payment of $40 million upfront, (ii) pay the Debtor $60 million in cash upon the achievement of certain regulatory milestones related to bentracimab, (iii) satisfy cure amounts in connection with the assumption and assignment of designated executory contracts and leases, (iv) assume agreed-upon liabilities, and (v) provide cash consideration to be paid upon the Debtor's entry into and due performance under a transition services agreement.

The Debtor also obtained a commitment from a senior secured super-priority DIP loan, as well as a security agreement from JMB Capital Partners Lending.  JMP will provide $15 million in DIP financing, which is intended to provide the Debtor with adequate liquidity to continue its business uninterrupted, fund the Chapter 11 case, which includes the sale of the Debtor's assets, and continue to meet operational and financial obligations. The DIP financing includes both $5.9 million in new money, plus a $9.1 million roll-up of prepetition obligations.

Custom Alloy Corp.
October 13, 2022

A High Bridge, New Jersey-based manufacturer of specialty metals, filed for Chapter 11 protection on Thursday, October 13, 2022, in the Bankruptcy Court for the District of New Jersey (Case No. 22-18143). The Debtors report $10 million to $50 million in assets and $50 million to $100 million in liabilities.

Vital Pharmaceuticals Inc.
October 10, 2022

A Weston, Florida-based energy drink manufacturer, known for creating Bang Energy drinks, filed for Chapter 11 protection on Monday, October 10, 2022, in the Bankruptcy Court for the Southern District of Florida (Case No. 22-17842). The Debtors filed for automatic stay protection while in the middle of litigation judgments from Orange Bang, Monster Energy, and Pepsico.  These judgments are in excess of hundreds of millions of dollars.  The Debtors obtained $100 million in DIP financing from existing lenders, which also allows for a roll-up of around $355 million.  The Debtor's goal of filing for Chapter 11 protection is to execute the launch of their new distribution network, which they contend is a "critical juncture in the Company’s business cycle."

Claim Jumper Acquisition Company LLC
October 3, 2022

A North Versailles, Pennsylvania-based operator of restaurants filed for Chapter 11 protection on October 3, 2022,  in the Bankruptcy Court for the Western District of Pennsylvania (22-21941).  The Debtors' restaurants include Claim Jumper Steakhouse & Bar, Joe’s Crab Shack, Brick House Tavern + Tap, and Nashville Hot Chicken Shack. The debtors are reporting up to $10 million in assets and up to $50 million in liabilities.

Kabbage Inc.
October 3, 2022

An Atlanta, Georgia-based servicer of Paycheck Protection Program (PPP) loans, filed for Chapter 11 protection on October 3, 2022, in the Bankruptcy Court for the District of Delaware (22-10952). The Debtors are reporting between $500 million to $1 billion in both assets and liabilities. The Debtors contend they plan to liquidate their estates through two potential options.  The choice of those options depends on whether or not the Debtors can reach an agreement with Customers Bank or the Federal Reserve Bank of San Francisco. The Debtors are also dealing with a class action lawsuit, which was filed by PPP borrowers.  Those borrowers allege that the Debtors did not properly process their loan forgiveness applications.  Additionally, there is also a dispute with American Express regarding a transition services agreement that is related to an asset sale.

Pipeline Health System LLC
October 2, 2022

A Los Angeles, California-based healthcare business plus 32 affiliates filed for Chapter 11 protection on October 2, 2022, in the Bankruptcy Court for the Southern District of Texas (22-90291). The Debtors own and operate hospitals and healthcare businesses. The Debtors are reporting $500 million to $1 billion in both assets and liabilities. The Debtors state there will be post-petition financing under "a multi-draw superpriority senior secured priming DIP term loan facility" in addition to using cash collateral from prepetition secured parties. A plan of reorganization has already been negotiated with term loan lenders.

Phoenix Services Topco, LLC
September 28, 2022

Phoenix Services International and several affiliates filed for Chapter 11 protection on September 28, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10906).  The Debtor is a  provider of on-site steel mill services. The Debtor has between $500 million to $1 billion in both assets and liabilities. The DIP Agent is Wilmington Savings Fund Society, FSB. The DIP motion states that the Debtor obtained a "$50 million new money multiple-draw secured term loan financed by an ad hoc group of first lien lenders that includes a $150 million roll up of prepetition debt."  The Debtor anticipates entry of a final DIP order within 30 days.

Mariner Health Central Inc.
September 19, 2022

Mariner Health Central Inc., and its affiliates Parkview Operating Company LP and Parkview Holding Co. GP LLC  filed for Chapter 11 protection on September 19, 2022 in the Bankruptcy Court for the District of Delaware (Case No. 22-10877). The Debtors operate over 20 skilled nursing facilities in the country. The Debtors report $1 million to $10 million in assets and $10 million to $50 million in liabilities. The most prominent factor for filing for chapter 11 protection is due to the entry of a judgment of $4.5 million in compensatory damages and over $9 million in punitive damages against the Debtors (except for Parkview Holding Co. GP LLC, which was not named as a defendant). While the Debtors are currently trying to seek a consensual resolution of this judgment, they are actively pursuing reorganization and a sale.  There is currently no DIP financing commitment, however the Debtors are open to negotiating with any potential DIP lenders.  The Debtors anticipate the filing of plan within the next 30 days.

Olympia Sports Acquisitions LLC
September 11, 2022

An Auburn, Maine-based sporting goods retail chain filed for Chapter 11 protection on September 11, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10853). The Debtor reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. The Debtor seeks liquidation and desires to hold going-out-of-business sales. The Debtor plans to close all 35 remaining retail stores by the end of this month.

Allena Pharmaceuticals, Inc.
September 5, 2022

Allena Pharmaceuticals, Inc. is a clinical biopharmaceutical company whose work includes discovering, developing and commercializing oral biological therapeutics to treat people with rare and severe metabolic and kidney disorders, filed for Chapter 11 protection on September 5, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10842).  The company reports between $10 – 50 million in assets and $1 - $10 million in liabilities.

Clarus Therapeutics Holdings Inc.
September 5, 2022

A Northbrook, Illinois-based pharmaceutical company focused on the commercialization of JATENZO® (testosterone undecanoate), filed for Chapter 11 protection on September 5, 2022, in the Bankruptcy Court for the District of Delaware, along with affiliate Clarus Therapeutics Inc. (Case No. 22-10845). The Debtors report $48.9 million in assets and $62 million in liabilities.  The Debtors plan to seek approval of bidding procedures in the next few weeks and have also "negotiated with the Indenture Trustee and the Noteholders for the consensual use of cash collateral in accordance with an Approved Budget, which will provide the funding runway necessary for the Debtors to complete a sale or other restructuring transaction.”

NewAge Inc.
August 30, 2022

A Midvale, Utah-based developer, seller and distributor of health and nutritional products sold mostly through a sales network of brand partners, filed for Chapter 11 protection on August 30, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10819).  As of December 31, 2021, the Debtor reports $310.9 million in assets and $149.4 million in liabilities.  The Debtor is setting up a sale for the majority of all of its assets.  John Wadsworth agreed to serve as the stalking horse, as well as the DIP Lender through DIP Financing LLC, of which he is a principal.

Lumileds
August 29, 2022

A Netherlands-based manufacturer of lighting solutions, as well as multiple affiliates, filed for Chapter 11 bankruptcy protection on August 29, 2022, in United States Bankruptcy Court for the Southern District of New York (Case No. 22-11155).  The Debtors report $50 million to $100 million in assets and $100 million to $500 million in liabilities.  The Debtors entered into a restructuring support agreement with an ad hoc group of first lien note claims and all of the company’s sponsors.  As a result of the RSA, the debtors would obtain $400 million in exit financing and the prepetition lenders would take control of the company. The debtors began soliciting votes on August 27 with the goal of exiting chapter 11 in approximately 60 days.

Level Four Orthotics & Prosthetics Inc.
August 29, 2022

A Winter Park, Florida-based provider of custom prosthetics, orthotics, and cranial remolding products filed for Chapter 11 protection on August 29, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10807).  The company is reporting between $10 million to $50 million in both assets and liabilities. The Debtors filed to pursue a sale process with a stalking horse, Bionic Prosthetics and Orthotics Group LLC.  The purchase price listed is $3.25 million, including "reimbursement for any deposits and pre-paid expenses related to assumed contracts, plus an adjustment for work in progress based on performance after the closing estimated in the amount of $360,000 payable over time."

Packable Holdings LLC
August 28, 2022

A Hauppauge, New York-based privately owned e-commerce company that operates as a third-party seller of health, beauty and other consumer products, filed for Chapter 11 protection on August 28, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10797). The company is reporting $100 million to $500 million in both assets and liabilities. The Debtor is seeking to sell its assets, which includes inventory, furniture, fixtures, and equipment, in order to wind down.  The Debtor plans to fund the case through the consensual use of cash collateral, in addition to funding from a third-party investor. The Debtors’ prepetition capital structure includes approximately $271 million in funded debt.

Carestream Health Inc.
August 23, 2022

A Rochester, New York-based provider of medical imaging and non-destructive testing products, and several affiliates, filed a prepackaged Chapter 11 on Tuesday, August 23, 2022, in Delaware (Case No. 22-10778).  The company reports $1 billion to $10 billion in both assets and liabilities.  A restructuring support agreement was entered into on August 21, 2022, with prepetition lenders who hold first and second lien claims and also certain equity holders.  The supporting lenders in the RSA include members from an ad hoc group of crossover holders of both first and second-lien debt.

ExpressJet Airlines LLC
August 23, 2022

A College Park, Georgia-based regional airline, filed for Chapter 11 protection on August 23, 2022, in the Bankruptcy Court for the District of Delaware (Case No. 22-10787). The company reports $10 million to $50 million in both assets and liabilities. The Debtor seeks to liquidate its assets at auction, which includes both new and used commercial aircraft parts.  There is a collective bargaining agreement with the Air Line Pilots Associates, which lists about 1,300 furloughed pilots who can be recalled to fly at any moment due to the current pilot shortage.  Additionally, the Debtor holds an FAA-issued operating certificate, which they intend to also sell.  The Debtor is not seeking DIP financing and states it requests $1 million in cash, monthly to prosecute the chapter 11 case.

Endo International PLC
August 16, 2022

A Dublin-based pharmaceutical manufacturer, and dozens of affiliates filed petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (Case No. 22-22549).  The Debtors report $1 billion to $10 billion in assets and $1 billion to $10 billion in liabilities.  A restructuring support agreement with an ad hoc group of first lien lenders and noteholders contemplates a section 363 sale of substantially all of the Debtors’ assets for a $6 billion credit bid plus the assumption of certain liabilities. Among other things, the transaction contemplates that the purchaser will establish voluntary trusts, to be funded with $550 million over 10 years, whereby future proceeds will be set aside for certain opioid claims.

Porzio, Bromberg and Newman, P.C. has offices in New York, New Jersey, Delaware, Pennsylvania, Massachusetts and Puerto Rico.  It is posting this alert for informational purposes only and does not represent the above-referenced debtors. 

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