According to Bloomberg, Norwegian Air Shuttle ASA has asked its creditors to convert a portion of the approximately $4 billion they are owed into equity to allow the company to access approximately $290 million worth of loan guarantees offered by the Norwegian government. [Bloomberg; Apr. 9, 2020]
Law360 reports that recent, historic oil and gas price drops may make prepackaged chapter 11 bankruptcy a less viable option for distressed industry members. [Law360; Apr. 9. 2020]
The Wall Street Journal reports that the COVID-19 pandemic is injecting risk into the DIP credit market. The reporters note that while DIP financing has traditionally been a low risk and lucrative business for banks and asset managers, such lenders may face additional risk as debtors face increased market volatility and a more limited market for exit financing. [WSJ; Apr. 8, 2020]
Judge Robert Kwan of the United States Bankruptcy Court for the Central District of California recently ruled that, in light of the COVID-19 public health emergency, an examination of a debtor under Federal Rule of Bankruptcy Procedure 2004 was a nonessential gathering in an order denying a creditor’s motion for such an examination without prejudice. [U.S.B.C. C.D. Cal.; Mar. 17. 2020]