What We’re Reading This Week [July 6, 2020]
Various creditor constituencies in the Purdue Pharma bankruptcy case have requested access to financial information concerning foreign affiliates controlled by the Sackler family, reports the Wall Street Journal. The creditors contend that this information is critical in determining the creditors’ response to the current multi-billion dollar settlement offer being made by the Sackler family in connection with Purdue Pharma’s bankruptcy case. [WSJ; July 2, 2020]
NPC International, a nationwide franchisee of fast food restaurants Pizza Hut and Wendy’s, filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, reports CNN. NPC also recently entered into a restructuring support agreement with various first lien debt holders, which is intended to reduce long-term debt and help the company improve its capital structure. [CNN; July 1, 2020]
PG&E Corporation announced its exit from chapter 11 bankruptcy on July 1, 2020 after its plan of reorganization was confirmed on June 20, 2020. Under the confirmed plan, PG&E made payments totaling $5.4 billion to wildfire victims on the plan’s effective date (i.e. July 1, 2020), with an additional $1.35 billion in payments to be made in two installments between 2021 and 2022. [PG&E; July 1, 2020]
Reporting from Market Watch indicates that Tailored Brands Inc., a retail clothing business that counts Men’s Wearhouse, Jos A. Bank, and Joseph Abboud among its brands, failed to make a $6.1 million interest payment on its 2022 senior notes that was due on July 1, 2020. As a result of the missed payment, Tailored Brands entered a 30-day grace period in which it may make its missed interest payment after which, the missed payment becomes an event of default under the 2022 senior notes. [Market Watch; July 1, 2020]
