Bankruptcy Debrief for the Week of Nov 26th


Helicopter leasing company Waypoint tries to avoid crash landing in bankruptcy court.

The world’s largest independent helicopter leasing company, Waypoint Leasing, filed for bankruptcy as part of its plan to deleverage the balance sheet and restructure the company. Waypoint entered bankruptcy court after spending months working toward the deleveraging and already began its sale process. It is targeting a quick process of an ownership change through a sale in Chapter 11.

The company said a few major factors played into the downturn of the business, including the decreased demand for oil exploration and production companies that subsequently decreased demand for helicopters. Also, Waypoint’s largest customer, CHC Helicopters, filed for Chapter 11 and resulted in a $45 million decrease in revenue for Waypoint this year because 44 helicopter leases were rejected.

Waypoint was founded in 2013 with a $375 million investment from sponsors: MSD Capital, Quantum Strategic Partners and Cartesian Capital Group. As of the filing, the sponsors still own 99% of the equity and funded debt in the amount of $1.1 billion from various secured facilities.

Read General Counsel Todd K Wolynski’s declaration in support of the first day motions.

View the Chapter 11 petition.


David’s Bridal looks to quickly transfer ownership in short Chapter 11 case.

The largest wedding dress retailer in the U.S., David’s Bridal, with over 300 stores filed a prearranged Chapter 11 case with the target of slashing $400 million of debt and transferring the majority ownership of the reorganized debtors to its senior secured creditors including Oaktree Capital Management. The plan is outlined in the Restructuring Support Agreement, which is supported by the majority of the secured lenders, unsecured noteholders and current equity holders.

David’s Bridal is hoping to keep its visit in Chapter 11 to under two months with general business operations uninterrupted. More specifically under the plan, the term loan lenders would receive just over 75% of the reorganized company, and? the unsecured noteholders would receive just under 10% of the company and the option to purchase more shares. Unsecured trade claims are proposed to be paid in full.

The entire restructuring is premised upon three exit facilities totaling around $425 million from some prepetition lenders as well as other lenders.

Read CFO and COO Joan Hilson’s declaration in support of the first day motions here.

View the Chapter 11 petition.




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