Steinhoff debt catches a bid, Proserv hires advisers, Hellas Telecom drops suit against Apax and TPG – Distressed Review - Debtwire

Steinhoff debt catches a bid, Proserv hires advisers, Hellas Telecom drops suit against Apax and TPG – Distressed Review

01 July 2022 - 01:52 pm UTC

A EUR 25m clip of Steinhoff bank debt was up for grabs in auction on 21 February. This follows a trade of a EUR 100m block of the Hemisphere International Properties’ revolving credit facility (RCF) in the mid-80s on 20 February. The market was expecting as much as EUR 600m of the troubled conglomerate’s debt to be sold.

 

Aberdeen, UK-headquartered deep-water subsea drilling services company Proserv hired Willkie Farr & Gallagher, AlixPartners and Evercore as restructuring advisers. The mandate follows stakeholders’ previous efforts to hash out a restructuring strategy with Weil Gotshal last summer when negative cash flow raised liquidity red flags. To preserve cash, the company decided to pay the interest on its second lien loan in 2016 in kind (PIK), which saved the issuer USD 10m of cash to support operating need.

 

Obrascon Huarte Lain (OHL) mandated Boston Consulting Group to restructure the company’s business, according to Spanish press reports.

 

Cerved Credit Management has signed a special servicing agreement with Monte dei Paschi’s (BMPS) master servicer Credito Fondiario to manage EUR 14.5m NPLs of the Italian bank.

 

Duro Felguera and its creditor banks, including Santander, CaixaBank, Sabadell, Bankia and BBVA, are negotiating a new proposal to save the engineering company. The banks would grant about EUR 200m through a EUR 25m capital injection and the release of EUR 170m for guarantees.

 

Sentiments inside a London ballroom full of around a hundred oil and gas executives, advisors, and bankers were fairly moderate to bullish over the trajectory of oil prices. Just over 40% of those polled by organizers at last 20 February’s portion of the International Petroleum Week conference hosted by the Energy Institute said Brent crude oil will reach the USD 60 – USD 69 per barrel range in the next 12 months. Meanwhile, a 33% contingent was even more bullish, saying they expect oil prices to hit the USD 70 – USD 79 per barrel range in the next 12 months.

 

Court News

 

In a hearing held on 19 February, Avanti Communications Group plc secured the High Court’s green light to convene holders of its 2023 notes to a meeting in which they will be invited to vote on a scheme of arrangement that aims to write off the notes in exchange for 92.5% of the company’s shares. The creditor meeting is scheduled for 20 March, while the sanction hearing is pencilled in for 26 March.

 

CLICK HERE to see Debtwire’s Legal Analysis on the Avanti scheme of arrangement.

 

On Tuesday (20 February), a High Court judge rejected the jurisdiction challenge raised by Norske Skog creditor Foxhill in its dispute with fellow bondholder Oceanwood and the trustee to the notes, Citibank N.A. London Branch. Mr Justice Mann’s decision means that the parties will have to reappear before him on Monday (26 February) to kick off the substantive hearing over an application for instructions launched by the trustee.

 

Also on 20 February, Pacific Drilling’s bankruptcy judge put off a decision on creditor demands for mediation while taking both the debtors and its creditors to task for their lack of progress in the case – a common theme in the company’s hearings of late. Judge Michael Wiles of the US Bankruptcy Court for the Southern District of New York carried creditors’ motions to compel mediation until 12 March, when the debtors’ exclusive period to file a plan will expire.

 

The joint liquidators of Hellas Telecommunications (Luxembourg) SCA II (formerly referred to as Wind Hellas) withdrew their lawsuit against former sponsors of the bankrupt telco, Apax Partners and Texas Pacific Group (TPG), today (23 February). A further hearing will be held on the week of 5 March, to deal with any other issues, including the defendants’ costs application against the liquidators.

 

In the US, M&G USA Corp has agreed to push back the auction for its Corpus Christi, Texas, assets to allow for the resolution of a lien dispute between creditor DAK Americas Inc and the official committee of unsecured creditors (UCC). The auction for the subsidiaries of Mossi & Ghisolfi had been set to go forward on 8 March, with a sale hearing to follow on 13 March.

 

On 22 February, the judge handling Oro Negro’s bankruptcy proceedings has refused a request made by the troubled Mexican oil driller to immediately issue a protection order for its five jack-up platforms. Oro Negro had requested a new injunction that orders the aseguramiento, or protection as an additional precautionary measure, adding to the injunctions currently in place in the concurso process.

 

Research

 

Second tier Scottish lender Clydesdale Bank posted a strong 8.1% YoY mortgage book’s growth, but uncertainty over UK housing market is expected to impact on the rate.

 

CLICK HERE to read our Debtwire Credit Report on Clydesdale Bank.

 

European manufacturers of wind turbines have enjoyed a series of strong years since the largest manufacturer, Vestas, flirted with bankruptcy in 2012. Last year, though, was a more challenging year, as revenue dipped for all three of the manufacturers we examine here: Vestas, Senvion and Noddex.

 

CLICK HERE to read our Debtwire Credit Report
 

 

by Antonio Vanuzzo