acm partners restructuring recap - 4.26.15
TRANSCRIPT
ACM Partners Restructuring
RecapApril 26, 2015
1 www.acm-partners.com
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The post-recession years have been
difficult for many hotel and casino
operators, and another struggling operator
may be nearing the end. Bref HR, the
company that owns the Hard Rock Las
Vegas Hotel & Casino, has generated an
aggregate net loss of approximately $325
million over the past three years.
Additionally, the company has $762 million
in debt and has deferred interest
payments since March 2014 via a series of
forbearance agreements.
While Bref continues to pursue a
restructuring solution, auditor Deloitte &
Touche LLP has issued a going concern
warning.
Losses Mount for Hard Rock Las Vegas
www.acm-partners.com
See full story in Mergers & Acquisitions
here
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A recent UK case related to a sale of debt
on the secondary market illustrates the
challenges of assuming that the adoption
of market-standard language and terms
eliminates all ambiguities. In January
2010, Tael One Partners participated
($32MM) in a $100MM syndicated loan
facility to Finspace S.A. Tael One then
transferred $11MM of this participation to
Morgan Stanley, which in turn transferred
the $11MM participation to Spinnaker
Global Strategic Fund Limited.
The issue arose over questions of which
party had the right to a “Payment
Premium” specified in the original
Finspace S.A. facility.
The Moral of the Tael
www.acm-partners.com
See full story in Weil Restructuring Blog
here
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Cascade Investments LLC, an investment
company owned by Bill Gates, has run into
an interesting problem in seeking to
confirm a bankruptcy plan for portfolio
company Optim Energy LLC: too few
creditors.
U.S. Bankruptcy Judge Brendan Shannon
must weigh the merits of a plan of
reorganization that seeks to divide an
already small set of unsecured creditors
into two separate classes in order to
ensure the support of at least one class of
non-insider creditors.
For Bill Gates, Too Little Debt is a
Problem in Optim Case
www.acm-partners.com
See full story in Bloomberg here
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As doubts multiply that a prospective
financing deal may not be finalized, Puerto
Rico’s top finance officials have gone
public with their concerns that a
government shutdown could be imminent
as the island struggles through a liquidity
crisis.
Puerto Rico Officials Warn Government
Shutdown Imminent
www.acm-partners.com
See full story in Reuters here
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Frozen food company Gourmet has
secured a $6 million debtor-in-possession
(DIP) loan from alternative lender Siena
Lending Group. The proceeds from this
financing will be used to fund working
capital until a sale of the company can be
finalized.
Siena Closes DIP Revolver for Gourmet
www.acm-partners.com
See full story in ABF Journal here
• ACM Partners is a boutique financial advisory firm providing due
diligence, performance improvement, restructuring and turnaround
services.
• David Johnson can be contacted at:
– Email: [email protected]
– Ph: 312-505-7238
• For more information visit: www.acm-partners.com.
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About ACM Partners
www.acm-partners.com