Peter Washkowitz, Head of Americas Covenants team, discusses topics such as redemptions in the primary market, call protection, Dutch auctions, open market purchases of term loans, make whole payments, equity clawbacks, change of control provisions, and covenant analysis for primary investors.
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Quick takeaways
The podcast discusses various topics in high yield distress and bankruptcy, including the Moby Rico litigation, Carlson Travel's prepackaged plan, the Ultra MegaHold dispute, and Puerto Rico's delay in voting on GEO Bonneville.
The episode provides insights into covenant analysis for primary investors, covering subjects such as call protection, make whole payments, change of control provisions, and covenant analysis.
Deep dives
Summary of the podcast episode
The podcast episode provides a roundup of various topics in the field of high yield distress and bankruptcy. It covers the Moby Rico litigation, Carlson Travel's prepackaged plan, the Ultra MegaHold dispute, and Puerto Rico's delay in voting on GEO Bonneville. The episode also features a deep dive into covenant analysis for primary investors, exploring subjects such as call protection, makehold payments, change of control provisions, and covenant analysis for primary investors. Overall, the episode offers insights and updates on current developments in the high yield and bankruptcy sectors.
Moby SPA lawsuit and restraining order
Italian ferry company Moby SPA has sued Antonella D'Amello Morgan Stanley and Morgan Stanley employees Massimo Piazzi and Dove Helel Drazin for allegedly acquiring control of Moby's bonds at a discount using inside information. Moby's restraining order request was withdrawn, but both sides presented arguments for and against dismissal of the Rico and state tortures interference claims.
Carlson Travel's prepackaged plan
Business Travel Management Company Carlson Travel Inc. has released its prepackaged plan aimed at reducing its debt. The plan involves deleveraging the company's balance sheet and distributing new money to certain claims. Carlson Travel intends to seek bankruptcy court protection in Texas with the goal of an expedited hearing for the plan and disclosure statement. Cross-row groups have agreed to backstop new money and provide additional equity capital.
Appeal of Ultra MegaHold dispute and Puerto Rico's delay
The Fifth Circuit Court of Appeals heard arguments regarding Ultra-Petroleum's bankruptcy case, focusing on the make-hole premium and contract rate of post-petition interest. Meanwhile, Puerto Rico's House Speaker announced a delay in legislative action to authorize new general obligation bonds, pending written guarantees from the oversight board regarding pension cuts, municipal resources, and funding for the University of Puerto Rico.
On this week’s podcast we replay our Covenants 101 webinar where Peter Washkowitz, head of our Americas Covenants team, discussed redemptions and the primary market as well as call protection, Dutch auctions and open market purchases of term loans, make whole payments, equity clawbacks and redemptions of high-yield bonds, change of control under bank debt and bonds and Covenant analysis for primary investors.
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