Bankruptcy Debrief for the Week of February 19th

Tops grocery chain aims to clean up balance sheet in chapter 11
Supermarket chain Tops Markets filed chapter 11 in the Southern District of New York with goals of deleveraging the balance sheet, ensuring supply agreements and leases are on the best available terms and engaging with unions to ensure the long-term stability of its employment agreements.
Employing over 14,000 people in 169 stores, the supermarket will continue operations uninterrupted, and the company aims to emerge from bankruptcy with a leaner capital structure.
As of the filling, the company cites roughly $715 million of funded debt, including $560 million of senior secured notes and $112 million from a credit facility with Bank of America. At the end of 2017, the company listed total assets of $977 million and total liabilities of $1.176 billion with an annual revenue of $2.494 billion.
A portion of the senior secured noteholders are providing a $125 million debtor-in-possession loan, and Bank of America is providing a $140 million asset-based lending facility to fund the company during the bankruptcy process.
Read the Declaration of Michael Buenzow, Chief Restructuring Officer, in support of the first-day motions. 
Read the Chapter 11 Petition.


Lucky Dragon casino can’t catch a break, files chapter 11 to hold auction for business
Las Vegas casino Lucky Dragon filed for chapter 11 in Nevada less than a year and a half after opening in November 2016. The casino marketed itself as the first authentic Asian lifestyle experience but failed to pull in high rollers to its less-than-prime location off the Las Vegas Strip.
Lucky Dragon’s capital structure comprises roughly $48.877 million in loans from Snow Covered Capital and $89.5 million raised by 179 foreign investors as part of the Immigrant Investor Program, which helps foreigners gain U.S. residency by investing over $500,000 into a business creating U.S. jobs. According to a filing, the casino was valued at $143 million near the end of 2017.
The casino was unable to make payments on the loan to Snow Covered Capital, and on November 1 a notice of default was served with a foreclosure sale date set of February 22. Lucky Dragon filed chapter 11 prior to the foreclosure sale date to preserve the state of the business and to facilitate a quick auction to pay lender Snow Covered Capital in full and provide a cash influx to allow the business to re-energize and become profitable in the near future.  
Read Declaration of Bing O’Peek, VP of Finance, in support of the first-day motions.
Read Chapter 11 Petition.


Fieldwood Energy finds itself underwater with debt, targets restructuring and acquisition of assets
Houston-based oil and gas acquisition and development company Fieldwood Energy filed chapter 11 to implement a pre-arranged plan to reduce overall debt by about $1.6bn and raise $525 million in new equity offerings to acquire all deepwater oil and gas assets of Noble Energy.
The company has widespread support of secured lenders and the private equity sponsor Rivertone that was outlined in a restructuring support agreement entered between the parties prior to the filing.
Fieldwood is aiming for a quick two-month chapter 11 process and to emerge from bankruptcy as larger company with less debt, while preserving as much value of their assets, reputation and business relationships.
Read Declaration of G.M. McCarroll, President and Chief Executive Officer, in support of the first-day motions.
Read the Chapter 11 Petition.
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