BAST AMRON LLP’s Post

Auto lender Vroom, Inc. (Nasdaq: VRM), said it is seeking Chapter 11 protection with a prepackaged plan that would restructure $290 million of unsecured bonds into equity.   Under the Plan, bondholders will get 92.94% of the stock of the reorganized company while existing shareholders will get the remaining shares.  Unsecured creditors will recover 100 cents on the dollar.   Porter Hedges LLP is serving as bankruptcy counsel, Latham & Watkins LLP is serving as special corporate counsel, Stout Risius Ross, LLC is serving as financial advisor to Vroom.   Vroom's operating units are United Auto Credit Corporation (UACC), CarStory, LLC (CarStory), and Vroom Automotive, LLC. Vroom had $1.124 billion in assets against $1.119 billion in liabilities as of Sept. 30, 2024. The company reported a $128.6 million loss on $153.2 million of revenue for nine months ended Sept. 30, 2024.

On June 11, 2024, Coach USA and several dozen affiliated companies filed for chapter 11 bankruptcy protection. If you are commuting to work aboard a Coach USA or Community Coach bus, don't worry (too much) -- the companies do not plan to go out of business. The bankruptcy estates want to reorganize, and sell some assets and bus lines. What led to this? The COVID-19 pandemic hurt bus ridership--think of all the people who stopped going to the office every day--and the companies never fully recovered. The bankruptcy filings will impact lenders, vendors and many other creditors. Some creditors need to take action quickly to protect their claims. For example, a parts supplier may have grounds to assert a "reclamation claim," which might make the difference between payment in full versus pennies on the dollar. Will it be a wild ride? Stay tuned.

Subchapter 5 has become an increasingly popular vehicle for businesses and business owners to restructure their debts and obtain a fresh start. Subchapter 5 is an effective way for business owners to escape the lasting grip of personal guarantees that continue to haunt them. There are many similarities between Subchapter 5 and Chapter 13, most notably, both chapters require a debtor to pay his or her creditors a portion of their disposable income over a period of time, typically 5 years. One of the added benefits of a bankruptcy filing is that it often enables the debtor to "strip down" a car loan, reducing the debt to the current value of the vehicle. My good friend and colleague, Edward Port, pointed out to me an interesting difference between the two chapters. In Chapter 13, one cannot strip down a loan for a car that was acquired in the past 910 days (around 2 and 1/2 years). Interestingly, this same prohibition does not exist in Subchapter 5. This distinction could be significant to someone, like me, who purchased a new car during the post-Covid era when there was a shortage of new cars. I paid through the nose for a car that now costs only a fraction of the price 18 months ago. That's today's bankruptcy tidbit! #knowledgeispower #law #bankruptcy #business #chapter11.

The WSJ reported earlier that appliance maker Robertshaw, which owes $833MM to secured lenders and $37MM to vendors and services suppliers filed for bankruptcy as it seeks to cut debt by roughly $670 million and resolve lender litigation. It is currently proposing restructuring agreement to be acquired by a group that includes secured lenders subject to offers of other prospective buyers. It is now reported that it filed Chapter 11 bankruptcy. https://lnkd.in/gvipR5ap #bankruptcy #landlords #retail #chapter11 #chapter7 #reorganization #creditorsrights #debtorcreditorsrights #landlordtenantmatters #landlordtenants #ceosanddirectors #ceosandofficers #officersanddirectors

Today's #KnowledgeBank webinar to discuss the Leasehold and Freehold Reform Act has just kicked off with Darren Coleran Bolt Burdon

Coach USA's bankruptcy process is nearing its conclusion, with key transactions approved and asset sales underway. Discover the latest updates on their restructuring efforts here: https://lnkd.in/gW8JtkBn #BusOperator #IndustryNews #Bankruptcy

Coach USA's bankruptcy process is nearing its conclusion, with key transactions approved and asset sales underway. Discover the latest updates on their restructuring efforts here: https://lnkd.in/gW8JtkBn #BusOperator #IndustryNews #Bankruptcy

Absent of a sudden free-fall, a distressed company typically would attempt to find buyers for its assets prior to approving a bankruptcy filing, and then file with a stalking horse bidder in tow, with a fully negotiated sale contract already agreed. Find out why that may no longer be the case: https://ow.ly/9A4g50Qvx2B #ClearyRestructuringInsights #bankruptcy #restructuring

452 Bankruptcy Filings through the first 8 months of the year, with a surge of 63 filed in August – S&P Global. Our corporate restructuring group had a busy August & apparently, we're not alone. Bankruptcy filings in the U.S. surged in August, reaching their highest level for the first 8 months of the year since 2020, with 63 new filings compared to 49 in July (see in the comments below S&P Global article). Companies continue to use the chapter 11 process to sell certain assets (business divisions) or substantially all their assets on an expedited basis. Two examples: SunPower Corp • Filed for chapter 11 on August 5 • Already obtained Bankruptcy Court approval of a stalking horse bidder for SunPower's Blue Raven Solar LLC business • Has been conducting auctions to sell its other assets, announcing this week various winning bidders Avon Products, Inc. • Filed for chapter 11 on August 12 (with certain US subsidiaries) • Two days later filed a motion seeking approval of a sale process to sell substantially all of their assets • The Committee filed an objection to that sale motion this week With maturity dates for many main street loans coming due over the next year, I expect this trend to continue for small and mid-sized businesses. If you need some guidance, please DM me. #BankruptcyFilings #CorporateRestructuring #Chapter11

Simpson Thacher advised the ad hoc group of term loan lenders to Cineworld, in connection with the successful completion of a comprehensive restructuring of its U.K. group. The transaction, implemented using interlocking restructuring plans in the High Courts of England & Wales, sees the right-sizing of the U.K. group’s lease estate and a recapitalisation of the U.K. group’s balance sheet (including a significant equity injection from the U.S. group). Cineworld, which operates cinemas in ten countries (including in the U.S. and the U.K.), has faced significant challenges in recent years – including the impact of government-enforced lockdowns during the Covid-19 pandemic, and the slowdown in the movie industry following industrial action in Hollywood in 2023. This restructuring transaction follows Cineworld’s 2023 Chapter 11 plan, which provided much needed liquidity and substantially right-sized both its debt stack and its U.S. leases. The Simpson Thacher team includes James Watson, Thomas Wilson and Chloe Potter (Restructuring).