Hello again, folks, and welcome to this week’s Re/Re/Recap. It’s been nice to take some time off, but the world of restructuring waits for nobody. I’m sure you’ve found other ways to stay informed.
Are banks just, chilling out?
Bloomberg told me this past week that 2020’s bankruptcies are actually down on a year-over-year basis, when you collapse cases to the single parent entities. The “wave” of bankruptcies we were bracing for isn’t really happening… yet…
Give us a shout if you have a perspective on this — I know my lawyer friends are jamming and my banker friends are booked up (with M&A?!) so let me know if you think we’re past the storm of filings or if it’s still on the horizon.
What it might mean: as companies have been quick to cut costs and preserve liquidity as best they can during the global pandemic, lenders too might be cutting their debtors some slack.
“Force majeure” anyone?
True Religion gets court approval on reorg plan
Earlier this week, the retailer, best known for its jeans, received court approval for its reorganization plan, under which most of its equity will be handed to its lenders.
This was the second time True Religion has gone through bankruptcy — the first time being in 2017 — and hopes to rebound with a slimmer operating footprint after negotiating with landlords and lenders.
SPG and Brookfield may be close to a winning JCPenney bid
In JCP Case developments this past week, Judge Jones scheduled a bid for December 2020, which could see the joint effort bid by SPG and Brookfield confirmed for a sale.
Aurelius Capital (which holds 5.6% of the debtor-in-possession claim and 19.6% of the first-tier debt) is pushing back on the SPG/Brookfield bid, claiming it proposes an operating structure that wouldn’t be in the company’s best interest.
JCPenney entered bankruptcy in May.
Misc.
Figueroa Mountain Brewery files for chapter 11, ready to bring on new investment.
No qualified bidders show up at California Pizza Kitchen’s auction, meaning the company will likely be handed over to its lenders.
The biggest franchisor of Golden Corrals files for Chapter 11.