This report summarizes the treatment of secured debt claims in excess of USD 5m that were held by direct lenders during in-court restructuring processes in the US. The data, which was pulled from Debtwire’s Restructuring Database (click here for access), includes 205 instruments that have already been restructured via a Chapter 11 process, are currently in a Chapter 7 process, or have completed a Chapter 7 since the start of 2018.

Here are the takeaways:

• The 205 instruments stemmed from 145 cases, including 108 Chapter 11s and 37 Chapter 7s. Of the Chapter 7 cases, 18 of them stemmed from Chapter 11 cases that were converted.
• The debt instruments were held by 130 direct lenders. CIT Group, MidCap Financial Services, and White Oak Capital Advisors, were each involved in five bankruptcy cases, more than any other lenders.
• In terms of the dollar amount of secured claims restructured, GSO Capital Partners was first with USD 853m, followed by Deerfield Management with USD 622m and KKR with USD 570m.
• Among the secured claims that were restructured via Chapter 11s, the most likely outcome was the creditors received a cash payment or liquidation proceeds that were less than the full value of their claims, which was what happened to 32% of claims by dollar value. For example, Bainbridge Uinta – an oil & gas exploration and production company – completed its Chapter 11 in June 2021 with prepetition lender White Oak Capital Advisors receiving a USD 41.8m cash payment from the proceeds of an asset sale in order to satisfy their claims stemming from its USD 61.9m prepetition secured term loan facility.

Click here to download the report