Below is our initial take on some of the major bankruptcy-related developments from the past week:
Wells Fargo Sues to Foreclose on Standard High Line Hotel | Bloomberg News
On behalf of its creditors, Wells Fargo claimed the owner of the Standard High Line Hotel in New York failed to make payments on its loan since May 2020 and sued to seize and sell it.
S&K Take: The hospitality industry will likely be a focus of restructuring professionals in the coming months, and we are starting to see lenders being proactive in the space.
Chilean Dam Project Cites Climate Change In $2B Ch. 11 | Law360
On Wednesday, the U.S. debtor of a hydroelectric Chilean project filed for Chapter 11 protection in Delaware bankruptcy court. With over $2 billion in debt, the debtor claims changed electricity markets and global climate change lead to delays on the project.
S&K Take: The company enters bankruptcy after securing a restructuring support agreement with holders of 55% of its outstanding senior secured prepetition debt, although it remains to be seen whether that agreement will ultimately be implemented.
Judge Christopher Sontchi Retiring From Delaware Bankruptcy Bench | Bloomberg Law
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware announced he will retire on June 30, 2022.
S&K Take: Judge Sontchi has been a stalwart member of the Delaware bench since 2006. He has presided over numerous notable cases while also serving as mediator in many others, most recently in Mallinckrodt.
Intelsat Creditors Attack Bankruptcy Plan, Say Board Conflicted | Reuters
A group of noteholders urged the judge overseeing Intelsat’s bankruptcy reorganization to reject the plan of the satellite communications provider, claiming it improperly shifts the company’s value.
S&K Take: The chapter 11 cases of Intelsat have been packed with novel issues since they were filed in May of 2020. The confirmation process promises to be contentious and kicks off on December 2nd.
Riverbed Tech Wants To Erase $1B Debt In Ch. 11 | Law360
Riverbed Technology filed for Chapter 11 bankruptcy protection in Delaware bankruptcy court to get a prepackaged restructuring plan approved to clear its debt and secure new capital.
S&K Take: Judge Craig T. Goldblatt recently scheduled a confirmation hearing for the first week of December, as the debtors look to make it home for Christmas in another expedited prepack.