Bankruptcy Debrief for the Week of Dec. 10th



Synergy Pharmaceuticals Files for Bankruptcy, Plans Asset Sale to Bausch Health

Biopharmaceutical company Synergy Pharmaceuticals filed for chapter 11 as part of a plan to sell substantially all of its assets to Bausch Health Companies for about $200 million in cash. Synergy Pharmaceuticals is best-known for its work in the novel gastrolienal field, with drugs such as TRULANCE. The potential sale is subject to higher offers, with Bausch acting as the stalking horse bidder to set the floor for an auction.

At the time of the filing, Synergy Pharmaceuticals had roughly $139 million of funded debt, including $110 million from a secured term loan and $19 million from 7.5% senior convertible notes maturing in 2019.

The case will be funded with a $155 million debtor in possession financing facility from the prepetition lenders, $45 million of which is new money, and $110 million as a roll-up of prepetition debt.

Read CFO Gary Gemignani’s declaration in support of the first-day motions here.

View the Chapter 11 petition here.


Checkout Holding Seeks Chapter 11 Protection After Ringing Up Debt

Checkout Holding Corp., also known as Catalina Marketing, sought chapter 11 protection in an attempt to effectuate a prearranged restructuring plan. Under the proposed plan, which has already garnered support from certain creditors, the company would shed about $1.6 billion of debt, representing about 85% of its total prepetition funded debt.

The case will be funded with a $281 million debtor-in-possession financing facility that will ultimately convert into an exit facility. The plan will essentially convert certain prepetition debt into equity in the reorganized company, which would have only the $281 million of funded debt from the DIP facility.

Catalina Marketing is targeting a quick, four-month bankruptcy case.

Read restructuring advisor Robert Del Genio’s declaration in support of first-day motions here.

View the chapter 11 petition here.


Parker Drilling Looks to Restructure Debt in Chapter 11 Reorganization

Houston-based oilfield service provider Parker Drilling filed for chapter 11 as it aims to  restructure its balance sheet with the support of creditors. Parker Drilling’s proposed plan, which is laid out in a restructuring support agreement, would drop $375 million of debt and provide new funding in the form of a $95 million equity capital infusion, $50 million debtor in possession loan and $50 million exit facility with a potential to be upsized to $100 million. All trade claims would be paid in full, in cash, and 2,500 jobs would be preserved.

As of the filing, Parker Drilling had roughly $585 million of outstanding funded debt comprising an $80 revolving credit facility, $225 million of unsecured 2020 notes and $360 million of unsecured 2022 notes.

Read Chief Restructuring Officer John Edward Menger’s declaration in support of the first-day motions.

View the chapter 11 petition here.



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