Fortna Group has been working with Evercore as it faces pressure to shore up liquidity at a time when its debt is trading at deeply distressed levels, according to two sources familiar with the matter.

The Thomas H. Lee Partners-backed developer of warehouse automation solutions has turned to historical counsel Paul Weiss for legal advice, said the sources and a third source familiar with the matter.

Meanwhile, a minority group of lenders has mobilized with Hogan Lovells Cadwalader as counsel, said the first and a fourth source familiar with the matter. The group represents roughly USD 150m in term loan holdings, said the sources.

A majority group previously organized with Gibson Dunn and Centerview as Fortna continues to buckle under financial headwinds, Debtwire previously reported.

The majority group has reportedly been in discussions with Fortna about restructuring options, including a potential liability management exercise. Absent an out-of-court deal, the first source said they expect the company will have to restructure in court.

Fortna’s USD 1.47bn SOFR+ 550bps first lien term loan due 2029 plunged in late April after the company released earnings detailing significant capital use, as reported.

The loan was last quoted 22.9/26.8, down from 53/55.5 in late April, according to Markit.

Over a year ago, Ares provided incremental financing to Fortna that carries tighter documentation than its existing debt, raising concerns that the company could negotiate a deal directly with Ares and cut out the broader lender group, as reported.

Ares Management, Carlyle Group, Blackstone Credit, AGL and Sound Point are among the top lenders to the company, according to CLO-i data.

Fortna provides automated parcel sortation systems primarily for e-commerce and logistics customers including Amazon and UPS, with its top five accounts representing approximately 50% of total revenue.

THL merged its portfolio companies MHS Global and Fortna in 2022 under the Fortna name in a deal that combined MHS’s automation technology with Fortna’s warehouse software capabilities. Paul Weiss has advised Fortna and MHS on financing in the past.

Fortna, the sponsor, Hogan Lovells, Gibson, Evercore, and Paul Weiss did not respond to requests for comment.