(Bloomberg) — At the least seven massive firms filed for Chapter 11 chapter safety in lower than 48 hours, a breakneck tempo of restructurings that included once-hot digital-broadcaster Vice Media LLC and KKR & Co.-backed Envision Healthcare Corp.
Most Learn from Bloomberg
That’s the biggest variety of filings on report throughout a two-day interval since at the very least 2008, in line with Bloomberg-compiled information on firms with at the very least $50 million of liabilities. And it comes as two Federal Reserve officers signaled that they favor a pause of their aggressive monetary-tightening marketing campaign amid the continued fallout in credit score markets.
Companies throughout each sector are combating larger curiosity prices — making it more difficult to refinance loans and bonds — whereas company executives are drawing extra scrutiny from traders and collectors.
The weekend additionally noticed filings from dwelling safety firm Monitronics Worldwide Inc., chemical producer Venator Supplies Plc, oil producer Cox Working LLC, hearth safety agency Kidde-Fenwal Inc. and biotechnology firm Athenex Inc.
For Vice Media, the submitting marks a dramatic fall from its standing as a media darling. The corporate secured a $450 million funding from personal fairness agency TPG in 2017, which valued the agency at $5.7 billion — a startling determine for a newcomer. Journalism has been a simple goal for advertisers’ cost-cutting plans in an unsure economic system.
For others, like Venator and Monitronics, the breaking level got here amid looming debt maturities within the subsequent few years.
Listed below are extra particulars on the wave of current filings:
Vice Media
Vice listed each belongings and liabilities within the vary of greater than $500 million to as a lot as $1 billion in a Chapter 11 petition filed in Southern District of New York. The corporate struck a deal to promote itself to collectors together with Fortress Funding Group, Soros Fund Administration and Monroe Capital. The deal, which can see the traders buying its belongings for $225 million and assume vital liabilities, permits for rival bidders to emerge.
Monitronics
Monitronics, which had greater than $1 billion in debt coming due in 2024, stated earlier this month that it deliberate to start out a Chapter 11 chapter to assist implement its restructuring. The corporate stated it might minimize its debt by $500 million beneath the pre-arranged and partially prepackaged plan.
The Dallas-based agency beforehand filed for chapter again in 2019, with a plan that gave management to collectors and allowed it to slash near $1 billion in debt. The corporate listed $1 billion to $10 billion in estimated belongings and the identical vary for liabilities in its petition filed within the Southern District of Texas.
Envision Healthcare
Envision, a medical staffing firm backed by KKR, had been in talks about restructuring choices after it skipped a bond coupon fee due in mid-April.
The corporate raised greater than $1 billion in recent money simply final yr, but it surely has nonetheless been struggling to make good on its debt obligations within the face of a better curiosity burden and wage inflation. It filed within the Southern District of Texas, itemizing each belongings and liabilities within the vary of $1 billion to $10 billion.
Venator Supplies
Pigment maker Venator’s upcoming debt maturities included a roughly $350 million first-lien time period mortgage due in August 2024 and round $600 million of notes due in 2025. In February, the corporate commented on difficult macroeconomic situations, and stated it had lowered spending and deliberate to chop stock. It listed each belongings and liabilities within the vary of greater than $1 billion to $10 billion in a petition filed in Southern Texas.
Cox Working
Cox, a intently held oil producer, had been trying to achieve an settlement with its collectors on lowering or deferring funds to avert submitting for chapter, individuals conversant in data had informed Bloomberg earlier this month. The corporate has estimated liabilities and belongings of $100 million to $500 million every, it stated in a submitting.
Athenex
Pharmaceutical firm Athenex stated it had reached settlement with its lenders to maneuver ahead with an expedited gross sales technique of its belongings throughout its major companies, which is anticipated to conclude by July 1. The corporate has $100 to $500 million in estimated liabilities. In a press release, the corporate blamed regulatory hurdles tied to a brand new drug, together with “difficult biotech markets and the troublesome financial atmosphere” for its downfall.
Kidde-Fenwal
Industrial hearth safety and suppression firm Kidde-Fenwal stated it would search choices together with a sale of the corporate as a going concern. The corporate has $1 billion to $10 billion in estimated liabilities, and filed after mounting litigation associated to “perpetually chemical compounds.” A unit of the corporate offered firefighting foam containing the chemical compounds from 2007 to 2013 and has been named in additional than 4,000 lawsuits, in line with a press release.
–With help from Paula Seligson.
(Updates with further particulars all through.)
Most Learn from Bloomberg Businessweek
©2023 Bloomberg L.P.