News from BankruptcyData.com
Exide Technologies Plan Effective
Exide Technologies' Fourth Amended Plan of Reorganization became effective and the Company emerged from Chapter 11 protection. The Court confirmed the Fourth Amended Plan on March 27, 2015. According to a corporate release, "Exide emerges with a stronger balance sheet and a focused strategy. In particular, under the Plan, Exide has emerged from Chapter 11 with reduced debt obligations, a reorganized capital structure, and resources to allow for further investments in its global businesses. The Company has reduced its debt by approximately $600 million; received approximately $165 million through its rights offering; and closed on its $200 million exit financing arranged by Bank of America, N.A., PNC Capital Markets, LLC, and BMO Capital Markets Corp. to fund its working capital needs." Robert M. Caruso, Exide's Technologies' president and C.E.O., comments, "With an extensive financial and ongoing operational restructuring, we have a solid foundation to implement our business plan and continue manufacturing and marketing our premier lines of stored electrical energy products and services for our customers around the world." Caruso will continue to serve as president and C.E.O. of Exide Technologies on an interim basis until a new C.E.O. is appointed. This lead acid battery producer filed for Chapter 11 protection on June 10, 2013, listing $2.2 billion in pre-petition assets.
NII Holdings Notice of Dismissal Filed, Case Caption Change Sought
NII Holdings filed with the U.S. Bankruptcy Court a notice of dismissal of Nextel International (Uruguay)'s Chapter 11 case in connection with the closing of its sale. The Company subsequently filed an ex parte motion for an order authorizing a change of case caption upon closing of that sale. The motion explains, "The Purchase Agreement requires the Debtors to dismiss Nextel International's chapter 11 case, and the Sale Order authorizes and directs the Debtors to 'take any and all actions necessary or appropriate' to effectuate the Purchase Agreement….Once Nextel International's chapter 11 case is dismissed, these rules require that the jointly administered case caption in these Chapter 11 Cases be amended to reflect that Nextel International is no longer a named debtor in these Chapter 11 Cases." The Court established May 7, 2015 as the final date by which responses to this motion must be filed.
Endeavour International Procedures Approval Sought
Endeavour International filed with the U.S. Bankruptcy Court a motion for sale of property, the sale of substantially all of the Debtors' U.S. Assets free and clear of liens, under Section 363(f), for (i) an order approving (a) bid procedures, including procedures for selection of stalking horse purchasers, (b) procedures for the assumption and assignment of certain executory contracts and unexpired leases and related notices, (c) notice of auction, stalking horse hearing and sale hearing and (d) related relief and (ii) an order (a) approving the sale of substantially all of the Debtors' assets free and clear of all liens, claims, encumbrances and other interests, pursuant to Bankruptcy Code Sections 105, 363(B), (F) and (M), (b) approving the assumption, assignment and sale of certain executory contracts and unexpired leases pursuant, to Bankruptcy Code Sections 363 and 365, and related cure amounts and (c) granting related relief. The motion explains, "The Debtors have prepared a form asset purchase agreement, which will be provided to all prospective bidders (each, a Potential Bidder) in connection with a marketing process for the Assets. Potential Bidders will be required to submit to the Debtors an executed Asset Purchase Agreement (a Modified Asset Purchase Agreement) reflecting the terms upon which the Potential Bidder would seek to effect a purchase of the Assets and the assumption of certain liabilities as soon as is practicable, but no later than August 4, 2015 (the 'Bid Deadline')….Any and all Potential Bidders interested in becoming a Stalking Horse Purchaser must submit a Qualified Bid by June 22, 2015.....The Debtors shall make a determination regarding whether a bid is a Qualified Bid and shall notify bidders whether their bids have been determined to be Qualified Bids by no later than August 7, 2015." The Court scheduled a May 20, 2015 hearing to consider these procedures, with objections due by May 13, 2015.
GT Advanced Technologies Amended Commitment Letter Approval Sought
GT Advanced Technologies (GTAT) filed with the U.S. Bankruptcy Court a motion for an order, pursuant to Bankruptcy Code Sections 363(B) and 503(B) and Bankruptcy Rule 6004(H), authorizing the Company to enter into amendment to its commitment letter with noteholders in connection with debtor-in-possession financing. The motion explains, "Following entry of the Commitment Letter Order, GTAT and the Backstop Lenders have been working diligently to document the DIP financing contemplated by the Existing Commitment Letter. As this Court is aware, GTAT has also been working on a number of intercompany issues - including between GT Advanced Technologies Limited ('GT Hong Kong') and the other Debtors as it concerns the sale of advanced sapphire furnaces ('ASF Furnaces') and other assets, and certain issues arising under prepetition agreements between the entities.5 Because these intercompany issues have material implications on the contemplated DIP financing, GTAT has been in extensive discussions with counsel to the Backstop Lenders (as well as counsel to the Committee) to seek a consensual resolution of these matters....However, because no consensual resolution on these issues has been reached at this time, GT and the Backstop Lenders have entered into Second Amendment pursuant to which the deadlines set forth in the Existing Commitment Letter will be extended by one month in exchange for the payment of an additional put option premium in the amount of 1.04% of the DIP facility (as further described in the Second Amendment, the 'Extension Put Option Premium')."
3dfx Interactive Notice to Convert Filed
William A. Brandt, Jr., 3dfx Interactive's Chapter 11 trustee, filed with the U.S. Bankruptcy Court a notice of intention to convert the Chapter 11 case to Chapter 7. Documents filed with the Court explain, "The Trustee has now substantially administered the Debtor's estate, including resolving litigation against the Debtor's former officers and directors, and resolving many smaller litigations concerning transfers made to trade creditors of STB Systems, Inc., a former wholly owned subsidiary of the Debtor. The Trustee also pursued fraudulent transfer litigation against nVidia Corporation…related to the prepetition sale of the Debtor's assets….With the consent of the United States Trustee and The Official Committee of Unsecured Creditors, the Trustee now seeks to convert the Debtor's case to chapter 7."