The American Bankruptcy Institute reports that California Pizza Kitchen Inc. is seeking an out-of-court debt restructuring in an effort to avoid a chapter 11 bankruptcy. The company is reportedly seeking a $30 million bridge loan to allow it to work towards a debt restructuring over the next six months. Prior to the COVID-19 pandemic, California Pizza Kitchen had engaged Guggenheim in sale efforts, which reportedly resulted in five bids. [ABI; Apr. 24, 2020]
The Wall Street Journal reports that J.C. Penney Co. Inc. is engaging with its lenders regarding bankruptcy funding, which could result in a DIP facility valued at between $800 million to $1 billion. [WSJ; Apr. 24, 2020]
Reuters reports that recent, continuing decreases in worldwide fuel demand and oil prices are “well below what companies and advisors had modeled in worst-case scenarios” and will likely to lead to a significant number of restructuring efforts across the energy industry. [Reuters; Apr. 23, 2020]
Speedcast International Ltd., a Sydney, Australia-based satellite communications company, filed for chapter 11 bankruptcy in the Southern District of Texas on Thursday, April 23, 2020, reports Bloomberg. Falling oil prices and the halting of operations in the cruise industry placed substantial financial strain on many of the Speedcast’s largest customers, contributing to the company’s financial distress. [Bloomberg; Apr. 23, 2020]