Multi-Color Corporation — Representation of Multi-Color Corporation and 55 of its affiliates (collectively, MCC) in their prepackaged Chapter 11 proceedings filed in the United States Bankruptcy Court for the District of New Jersey. MCC is a leading global provider of prime label solutions, with more than 12,500 employees worldwide supporting prominent brands across end categories, including food and beverage, wine and spirits, home and personal care, and healthcare, among others. MCC entered Chapter 11 with the support of its key stakeholders, including an ad hoc group of secured first lien lenders holding more than 72% of first lien claims, and its equity owner, creditor, and plan sponsor, CD&R. The transactions contemplated by the restructuring support agreement will reduce MCC’s net debt from $5.9 billion to $2 billion, provide for a $889 million new common and preferred equity investment to support long-term growth and investment, capitalize the go-forward business with access to over $550 million of capital upon emergence, and leave employee and trade claims unimpaired.
Nine Energy Service, Inc. — Representation of Nine Energy Service, Inc. and nine of its affiliates (Nine Energy) on its voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Nine Energy is an oilfield services business that supplies well completion solutions for unconventional oil and gas resource extraction and development across North America and abroad. Confirmation of Nine Energy’s plan eliminated over $320 million of funded-debt obligations, left general unsecured creditors unimpaired, and provided the company with access to a new, more flexible asset-based financing facility.
Pretium Packaging, LLC — Representation of Pretium Packaging, L.L.C. (Pretium) and 9 of its affiliates in its voluntary prepackaged Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey, a first-of-its-kind expedited prepackaged case in the District. Pretium is a leading global supplier of sustainable rigid packaging solutions used by a diverse set of end markets. Pretium entered into Chapter 11 to implement a comprehensive restructuring transaction that would eliminate approximately $900 million of the company’s approximately $1.8 billion funded debt obligations with the overwhelming support of its existing lenders and Clearlake, Pretium’s equity sponsor. Pretium received approval for up to $533.5 million in debtor in possession (DIP) term loan facility and access to a $100 million DIP ABL facility, and commitments to roll such facilities into exit financing to support Pretium’s long-term growth.
Fortrex, Inc. — Representation of Fortrex, Inc., formerly known as Packers Sanitation Services Inc., a leading food safety sanitation company and previously a Blackstone portfolio company, on a comprehensive out-of-court restructuring that was supported by 100% of its lenders. In connection with the restructuring, Fortrex’s first lien term loans holders exchanged nearly $1.5 billion in existing secured debt for a pro rata share of $250 million in new take-back term loans and 100% equity ownership in Fortrex. Fortrex’s revolving lenders also extended and upsized Fortrex’s existing $54 million revolving credit facility up to $70 million. The restructuring preserved jobs for employees and positioned Fortrex for continued growth and innovation in the food safety and sanitation field.
National Resilience — Representation of National Resilience, a leading a North American contract development and manufacturing organization (CDMO), in a comprehensive out-of-court restructuring of certain lease obligations and a corresponding capital raise of $825 million of new money from Oak Hill Advisors and its co-investors. The comprehensive transactions provide National Resilience with capital to pay down existing debt and fund capital expenditures to build out manufacturing capabilities to support its diverse customer base.
Franchise Group — Representation of Franchise Group, owner and operator of franchised and franchisable businesses, in connection with its Chapter 11 restructuring. Following months of litigation, Kirkland was retained and helped Franchise Group secure a global settlement with its key stakeholders to delever its balance sheet by more than $2.4 billion and emerge from Chapter 11 with a deleveraged capital structure, enhanced liquidity, and a strengthened and simplified business model. In addition to confirming a Chapter 11 plan of reorganization, Franchise Group successfully completed a value-maximizing sale of its Vitamin Shoppe business segment.
Sunnova Energy International Inc. — Representation of Sunnova Energy International Inc. (NYSE: NOVA) and over 275 affiliates in their comprehensive restructuring of approximately $9 billion of corporate debt and securitized obligations. Sunnova is among the nation’s largest installers and servicers of residential solar systems, with approximately 440,000 residential solar customers across the country and in Puerto Rico. Sunnova also manages and services 26 securitization trusts holding $7 billion of homeowner contracts and leases. Certain of Sunnova’s corporate entities are utilizing Chapter 11 to facilitate value-maximizing transactions as part of their enterprise-wide restructuring.
Northvolt AB — Representation of Northvolt AB and eight of its affiliates in their Chapter 11 cases filed in the United States Bankruptcy Court for the Southern District of Texas. Northvolt is a Swedish manufacturer of electric vehicle batteries with a mission to build the world’s greenest battery. As of the petition date, Northvolt had nearly $6 billion in funded debt obligations. Northvolt filed Chapter 11 with commitments of $100 million in new money debtor-in-possession financing from a key customer and access to approximately $145 million in cash collateral from its project finance lenders.
