Bankrupcty Debrief for the Week of June 11th


New MACH Gen seeks quick restructuring with prepackaged plan

New MACH Gen, owner and manager of three natural gas-fired electric generating facilities, filed for chapter 11 with a prepackaged restructuring plan. The company aims to have a quick trip through chapter 11, with emergence targeted for the second half of 2018.

The plan, outlined in a restructuring support agreement entered with the first-lien lender and equity owner, proposes that New MACH Gen will transfer ownership of its Harquahala facility to the first-lien lender in exchange for a reduction of about $150 million of its debt as well as amend and extend the first-lien credit facility. The equity owner will provide additional capital to New MACH Gen to fund business operations

Prior to filing, 100% of the first-lien lenders voted in favor of the plan.

As of the filing, the company lists outstanding funded debt of roughly $700 million, comprising $490 million of first-lien loan claims and $166.5 million of first-lien revolver claims, among others. The facilities were completely drawn at the time of the filing.

New MACH Gen’s parent company, Old MACH Gen, was purchased in 2015 by Talen Energy for about $1.175 billion but is not a debtor in the case.

Read CFO John Chesser’s declaration in support of the first-day motions here. 

View the chapter 11 petition here. 


ABT Molecular falls into chapter 11

ABT Molecular, manufacturer and distributor of the world’s only small-footprint biomarker generator, filed for chapter 11 after difficult financial conditions that left it with a net loss of $5.5 million that exceeded total sales of $5.4 million in 2017. Additionally, the company listed a net book value of only $2.5 million for the business against $30.5m in liabilities.

ABT Molecular does not have a firm direction for the case yet but indicates it would either target an adjusting of the balance sheet or sell the business.

As of the filing, the funded debt included two secured term loans agented by SWK Funding and multiple unsecured loans from two shareholders, Intersouth Partners VII and Ronald Nutt. More specifically $9.683 million outstanding under the first-lien term loan, $16.161m under the second-lien term loan, $1.136m of Intersouth notes, $1.879 of Nutt notes and $180,000 of trade debt.

Read CEO and President Peter Kingma’s declaration in support of the first-day motions here.

View the chapter 11 petition here. 


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