Bankruptcy and Financial Restructuring

Recent Bankruptcy Filings

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 postpetition 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, Illinios-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 reports $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 equityholders.  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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