TURNAROUND, BANKRUPTCY & LEGAL

TURNAROUND

Sponsored

Sponsored

Winter Harbor Appoints Three to Senior Directors, Senior Manager

Winter Harbor appointed Jeffrey Horine and Jordan Meyers to senior director and Steven Sadowski to senior manager.

BANKRUPTCY

Barclays Agents Up to $155MM DIP for CTI Foods

Barclays Bank and Wells Fargo are providing an $80 million ABL revolver and a $75 million term loan to support the restructuring of CTI Foods.

Gordon Brothers to Oversee Shopko Liquidation Process

Shopko was unable to find a buyer for its go-forward business as a going concern. Gordon Brothers will oversee the liquidation process.

Nine West Emerges from Chapter 11 with Exit Financing From Wells, GS

Nine West Holdings emerged from Chapter 11. Wells Fargo and Goldman Sachs provided more than $100 million in go-forward liquidity to support its operations and future growth initiatives.

Barclays Agents $1.9B DIP Facility to Support Ditech 

Ditech will pursue a recapitalization that deleverages its capital structure by extinguishing over $800 million in corporate debt. Barclays agented a $1.98 million DIP facility to support the transaction.

Gymboree Receives $30MM DIP Financing from Goldman Sachs

Gymboree filed for Chapter 11 and entered an asset purchase agreement with Special Situations Investing Group. Goldman Sachs Specialty Lending and SSIG agreed to provide $30 million in DIP financing.

WSFS Bank to Agent $25MM in DIP Financing for Payless

The Payless board of directors authorized the company to seek court approval of up to $25 million in debtor-in-possession financing. WSFS Bank will act as administrative agent and collateral agent on the financing.

LEGAL

Marble Ridge Demands Return of MyTheresa Assets from Troubled Retailer Neiman Marcus

DEBT INVESTMENT FIRM MARBLE RIDGE CAPITAL sent a letter to the Neiman Marcus board of directors in light of the credit default swap market indicating a greater than 80% probability of default immediately following Neiman’s March 1st announcement of its “Final Proposal,” according to recent Bloomberg estimates.

Much of the tension between Neiman Marcus and Marble Ridge stems from the retailer’s transfer of the MyTheresa business to its European subsidiaries, which Marble Ridge believes was done deliberately to protect it from domestic creditors. The “Final Proposal” was meant to address some of the unresolved issues stemming from the MyTheresa move.

The letter accuses the Neiman Marcus board of creating perverse incentives for securities holders to benefit from the company’s failure.

The letter subsequently demands the board “must take corrective action and undo this devil’s bargain to ensure that no one stands to benefit from the company’s failure, return 100% of the valuable MyTheresa assets to the company [and] appoint a separate and independent governing body that is capable of making independent decisions affecting the company in order to remove the pervasive conflicts of interest that have enabled a massive stripping of assets.”


Wells Fargo CEO Testifies on Company Reforms Before Skeptical Congress

Wells Fargo CEO and President Tim Sloan testified before the House Financial Services Committee, asserting Wells Fargo has become a better bank through ongoing operational reforms.

Hubbard Joins CIT as General Counsel

CIT Group named James R. Hubbard its general counsel and corporate secretary. Hubbard will join CIT’s executive management committee and report to Chairwoman and CEO Ellen R. Alemany.

Blank Rome Hires Restructuring Partners in New York

Mitchell M. Brand and Harris J. Diamond have joined Blank Romºe as partners in the Finance, Restructuring, and Bankruptcy group in the firm’s New York office.