TURNAROUND, BANKRUPTCY & LEGAL

TURNAROUND

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SPONSORED

FTI Consulting Adds Five to U.S. Business Transformation Practice

FTI Consulting added five new U.S.-based professionals to its Business Transformation practice and expanded the practice to China with the appointment of Senior Managing Director Bill He as practice leader in Shanghai. The recent hires included Jiva Jagtap, Kurt Eichhorn, Greg Kuhn, John Singel and James Wolf.

LEGAL

Wells Fargo Pays $575MM to Settle Claims Over Retail Practices

Wells Fargo agreed to pay $575 million to settle civil claims with all 50 state Attorneys General and the District of Columbia over its previous problematic retail sales practices, auto collateral protection insurance and guaranteed asset/auto protection and mortgage interest rate lock matters.

Duane Morris Names Six Attorneys to Partnership

Duane Morris promoted six associates and special counsel to the firm’s partnership in the Business Reorganization and Financial Restructuring Practice Group, the Corporate Practice Group and the Trial Practice Group. Those partners included Catherine Beideman Heitzenrater, Tracy L. Schovain, Katherine D. Brodie Meghan DiPerna, Melissa S. Geller and Sean P. McConnell.

BANKRUPTCY

ESL Winning Bidder in Sears Bankruptcy Auction

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SPONSORED

ESL Investments was selected as the winning bidder in the court-supervised bankruptcy auction of Sears Holdings. ESL will acquire substantially all of the company’s assets, including the “Go Forward Stores,” on a going-concern basis for approximately $5.2 billion.

Gymboree Declares Bankruptcy, Receives DIP Financing from Goldman Sachs

Children’s specialty retailer Gymboree voluntarily filed for relief under Chapter 11, while its Canadian subsidiary seeks protection under the Bankruptcy and Insolvency Act of Canada. Goldman Sachs Specialty Lending and SSIG agreed to provide $30 million in DIP financing to support the company through its asset sale process, with SSIG serving as a stalking horse bidder. 

Barclays Agents $1.9B DIP Facility to Support Ditech Chapter 11 Process

Mortgage loan originator and servicer Ditech entered into an RSA with certain lenders holding more than 75% of the company’s term loans. To facilitate the RSA, Ditech filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Barclays will act as administrative agent on $1.9 billion in DIP financing to support the Chapter 11 process. 

Payless Again Files for Chapter 11, Ankura to Advise on Restructuring

Shoe retailer Payless voluntarily filed for relief under Chapter 11 for the second time in 18 months. Ankura Consulting Group will serve as the company’s restructuring advisor through this additional bankruptcy process. 

Great American, Tiger, Hilco, Gordon Bros. to Lead Gymboree Liquidation

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A consortium consisting of Great American Group, Tiger Capital Group, Hilco Merchant Resources and Gordon Brothers will lead the liquidation of all Gymboree and Crazy 8 stores in the U.S. and Canada in the wake of Gymboree’s bankruptcy filing.

Wells Fargo Agents $480MM DIP Funding to Support Shopko Restructuring

Regional general merchandise retailer Shopko and its subsidiaries filed voluntary petitions for a court-supervised financial restructuring under Chapter 11. Certain Shopko pre-petition secured lenders, led by Wells Fargo as administrative agent, will provide up to $80 million in DIP financing to help the company through the restructuring process.

BofA, Others to Provide $5.5MM DIP Facilities to PG&E

Bank of America, JPMorgan Chase Bank, Barclays Bank and Citigroup Global Markets agreed to provide $5.5 billion in senior secured super-priority DIP credit facilities to support PG&E through its bankruptcy process. The troubled utility company filed for bankruptcy protection in the wake of legal liabilities related to the 2017 and 2018 Northern California wildfires.

Citizens Provides $35MM New Financing for FULLBEAUTY Chapter 11 Exit

Plus-size beauty brand FULLBEAUTY Brands successfully emerged from its Chapter 11 restructuring with approximately $35 million in new financing after eliminating approximately $900 million of debt. The asset-based loan was provided by Citizens Bank.

Phoenix Advises New England Motor Freight on Chapter 11 Process

New England Motor Freight voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark. Phoenix Management Services will serve as the company’s restructuring advisor through the bankruptcy process.

Court Approves Aegean Marine RSA, $535MM in DIP Financing

Aegean Marine Petroleum Network received approval from the U.S. Bankruptcy Court for the Southern District of New York for its revised final motion related to $535 million in DIP financing provided by subsidiaries of Mercuria Energy Group and agented by ABN AMRO.