Charles B. Sterrett

Ligado Networks LLC: Representation of an ad hoc group of crossholders of more than $4 billion in principal amount of debt and equity in Ligado Networks LLC (Ligado), a leading satellite communications company, in Ligado’s prearranged Chapter 11 case filed in the U.S. Bankruptcy Court for the District of Delaware (the Bankruptcy Court). Ligado filed for bankruptcy with a restructuring support agreement (RSA) in place that is supported by holders of nearly 90% of the company’s $7.8 billion of aggregate funded indebtedness and a significant portion of its equity. The RSA provides for the conversion of existing debt into new preferred equity, the preservation of the existing interests in the capital structure below the new preferred equity, a commercial agreement with AST SpaceMobile Inc. in respect of spectrum usage rights, and the preservation of Ligado’s $39 billion takings claim against the U.S. government. In addition, the Bankruptcy Court approved a $940 million multidraw debtor-in-possession credit facility funded in part by the ad hoc group of crossholders that provides Ligado with access to new money financing and will refinance certain of Ligado’s existing debt.

Magenta Buyer (dba Trellix and Skyhigh Security), a leader in delivering cybersecurity solutions and best-in-class technology to customers, in a complex liability management transaction that included a recapitalization and exchange of existing secured debt. Through the transaction, Magenta Buyer obtained $400 million of new liquidity in the form of super senior first-out term loans. Additionally, the transaction offered all existing first lien and second lien lenders a series of debt exchange opportunities, capturing over $628 million in debt discount. The lender group overwhelmingly supported the transaction, with a 99.9% participation rate among lenders.

Express, Inc. and certain of its affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. Express is a forty-year old iconic fashion brand headquartered in Columbus, Ohio with 600 stores across the United States and partnerships spanning the globe. In addition to the Express brand, the Bonobos and UpWest retail banners are included in the Chapter 11 cases. Express is a publicly traded company with over $1 billion of liabilities as of the petition date.

SmileDirectClub, Inc. and eight of its affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. SmileDirect is an industry leader in telehealth-driven clear aligner therapy with approximately $900 million in funded debt. Through its Chapter 11 cases, the Company obtained access to up to $80 million of debtor-in-possession financing and will seek to implement a going concern transaction following a comprehensive marketing process.

U.S. Renal Care in its successful refinancing and deleveraging transactions. U.S. Renal Care is the nation's largest privately held and fastest growing kidney care provider with a network of over 400 clinics and 200 home programs. The liability management transaction significantly reduced the Company's debt, lowered its annual interest expense by approximately 20 percent, and raised $328 million in new capital to enhance future growth. The transaction also extended the maturities of the Company’s debt by two years.

Whittaker, Clark & Daniels, Inc. and its debtor affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the District of New Jersey. Whittaker was a leading producer of talc and other industrial compounds. Whittaker filed its Chapter 11 cases with the goal of equitably and efficiently resolve all valid current and future tort claims asserted against Whittaker and its debtor affiliates.

Bed Bath & Beyond, Inc. and 73 of its affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the District of New Jersey. Bed Bath & Beyond, then the largest home goods retailer in the United States, offered everything from bed linens to cookware to home organization, baby care and more. Through its Chapter 11 case, Bed Bath & Beyond conducted a value maximizing sale transaction for substantially all of its intellectual property assets and an orderly wind down of its business pursuant to a consensual Chapter 11 plan.

Aearo Technologies LLC and its debtor affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Indiana. Aearo Technologies is a market leader in the energy control space, providing custom noise, vibration, thermal, and shock protection solutions to the aerospace, commercial vehicle, heavy equipment, and electronics industries. Aearo Technologies and its non-Debtor parent 3M are defendants in the largest multi-district litigation in history, with over 230,000 personal injury claims filed related to certain historical Aearo products.

Nordic Aviation Capital Designated Activity Company and its subsidiaries in connection with their prearranged Chapter 11 cases in the U.S. Bankruptcy Court for the Eastern District of Virginia. NAC, an Irish company, is the largest regional aircraft lessor in the world with more than 475 aircraft. With over $7.7 billion of liabilities, NAC was the largest Chapter 11 filing in 2021.  

Washington Prime Group Inc. and eighty-eight of its affiliates (“WPG”) in their prearranged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. WPG owns, develops, and manages retail real estate across the United States, including enclosed and open air retail properties, with a portfolio comprising material interests in 102 shopping centers across the United States. As of the petition date, WPG had approximately $3.9 billion of funded debt.  

National Bank of Canada as debtor-in-possession lender in the Chapter 15 cases of The Aldo Group Inc. in the United States Bankruptcy Court for the District of Delaware. Aldo is a global leader in footwear fashion apparel with operations in over 100 countries.

Intelsat S.A. and its debtor-affiliates—operator of the world’s largest satellite fleet and connectivity infrastructure—in connection with their Chapter 11 cases in the United States Bankruptcy Court for the Eastern District of Virginia. With approximately $15 billion in liabilities at the time of filing, and posing complex intercompany issues and novel issues of regulatory and foreign law, Intelsat was one of the largest and most complex restructurings of 2020 and 2021. Intelsat filed with $1 billion in committed DIP financing, which it subsequently refinanced and expanded up to $1.5 billion during its Chapter 11 cases. During their Chapter 11 cases, Intelsat purchased Gogo Inc.’s commercial aviation business, including its software platform and network management infrastructure, for approximately $400 million in a relatively unprecedented transaction for a Chapter 11 debtor. After extensive multiparty and cross-silo negotiations and successful mediation efforts, Intelsat obtained confirmation of its plan of reorganization on a fully-consensual basis and emerged from Chapter 11 with nearly $7 billion in new exit financing and a deleveraged capital structure.

Cirque du Soleil, the world’s premier live entertainment media company based in Quebec, Canada, in its Chapter 15 proceedings in the United States to recognize proceedings commenced in Canada under the Companies’ Creditors Arrangement Act (CCAA). Prior to filing for bankruptcy, Cirque du Soleil entered into a stalking horse asset purchase agreement with its sponsors for the sale of substantially all company assets. Cirque du Soleil intends to use the insolvency process to run a competitive sale and bidding process under the supervision of the Canadian Court to maximize enterprise value. Over the past 36 years, Cirque du Soleil conceptualized, produced, and presented shows to more than 180 million spectators, in approximately 450 cities across 90 countries in 6 continents.

J. C. Penney Company, Inc. and 17 of its affiliates in their pre-arranged Chapter 11 cases. JCPenney, an iconic American retail staple tracing its roots back to 1902, includes private brands such as Liz Claiborne, St. John’s Bay, Stafford, and Arizona Jean Co. JCPenney employs more than 85,000 people, manages a massive supply chain with nearly 3,000 vendors and eleven domestic shipping facilities, and operates approximately 850 stores in the United States and Puerto Rico, in addition to a substantial e-commerce business. With approximately $4.9 billion in debt, JCPenney entered bankruptcy with a Restructuring Support Agreement that carries broad first lien stakeholder support and is expected to substantially de-lever the company’s balance sheet.

Pier 1 Imports, Inc. and its subsidiaries in their Chapter 11 cases in the United States Bankruptcy Court for the Eastern District of Virginia. Pier 1 is a publicly-traded omnichannel retailer specializing in home furnishings and décor with 923 stores in the United States and Canada.

One Call Corporation, a leader in ancillary services for the workers’ compensation industry, in a successful out-of-court recapitalization that reduced One Call’s debt through a consensual equitization of nearly $1 billion of junior debt, reduced its annual interest expense by approximately $90 million, and eliminated all near-term maturities. The restructuring was facilitated by a $375 million investment led by existing lenders KKR and GSO Capital Partners.