Bankruptcy & Restructuring News Headlines for Thursday Feb 9, 2023

Here's what we are reading this morning:

Bondholders Send Default Claim After Apollo’s Brightspeed LBO: A group of Embarq Corp. bondholders sent a notice that the phone service provider is in technical default on its notes after Apollo Global Management Inc. added $4 billion of debt to the company’s parent as part of a buyout.

FTX, Celsius Bankruptcy Cases Push Judges to Set Legal Guidance - Bloomberg: As the cryptocurrency mania raged, Congress took a hands-off approach, keeping the fast-growing industry in legal limbo as it spawned startups and drew billions of dollars from investors.

Healthcare Debt Gets Harder Look as Distress Builds and Prices Drop - Bloomberg: Healthcare companies used to be some of the safest to lend to during economic downturns, until private equity firms bought them out and larded them with debt. Now they’re some of the riskiest borrowers in the world of leveraged loans.

Lenders to Tom Gores’s Prison Phone Company Tap Advisers on Debt: A group of lenders to Aventiv Technologies LLC, a prison phone operator backed by Tom Gores’s Platinum Equity, has hired advisers as the company tries to determine how to navigate maturing debt.

Coin Cloud, a Crypto ATM Operator, Files for Bankruptcy: The company says it will either secure new financing or sell its business in chapter 11

11th Circuit Confirms That Materially Adverse Ch. 11 Plan Modifications Require a New Disclosure Statement and Resolicitation of Voting on the Plan By Affected Interest Holders | Arnall Golden Gregory LLP: In a detailed and emphatic ruling on January 5, 2023, the U.S. Court of Appeals for the 11th Circuit made it clear that if a pending Chapter 11 plan, after initial plan solicitation and voting by creditors, is modified in any way that “materially and adversely changes the treatment of any claim or interest holder who has not accepted the modification in writing” — regardless of whether the holder of the claim or interest originally voted for or against the plan — “then that claim or interest holder is entitled to a new disclosure statement and resolicitation of votes” so that it is afforded a reasonable opportunity to cast its vote again and submit any objections to the modification.

Wall Street Pushed for Bed Bath Bankruptcy Before Last-Gasp Deal (BBBY) - Bloomberg: Bed Bath & Beyond Inc. was just days away from filing a bankruptcy petition before a game-changing conference call on Friday with its increasingly impatient lenders.

Adani Group Bonds Claw Back Losses After Distressed-Debt Investors Pile In - WSJ: Distressed-debt funds are buying bonds sold by the Indian conglomerate’s companies after a big selloff encouraged them to enter the market.

Bed Bath & Beyond Meme Traders Make Hedge Fund’s Rescue Deal Possible: High trading volumes in the troubled retailer’s stock provide an opportunity for hedge fund Hudson Bay to turn a quick profit

Affirm’s stock plunges as it misses earnings, cuts 500 jobs and shutters crypto unit | TechCrunch: Buy now, pay later giant Affirm announced today that it is reducing its staff by 19%, or about 500 employees, and shutting down its crypto unit.

Core Scientific’s Equity Holders Want Their Voices Heard in Bankruptcy: Bitcoin’s price has rebounded since the December bankruptcy filing, and the crypto miner should have more funds to distribute, shareholders say.

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