News from BankruptcyData.com
MModal Holdings Plan Effective
MModal Holdings' Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on July 21, 2014. Duncan James, MModal's chief executive officer, comments, "With renewed financial strength, MModal is firmly positioned to deliver the highest quality and most advanced clinical documentation to hospitals and physician practices. Our new capital structure will better support MModal's continued investment in delivering innovative transcription, coding and speech technology solutions, and will provide a stronger foundation to execute on our strategic plans." As previously reported, "[T]his financial restructuring will strengthen the Company's balance sheet by reducing its debt by more than 55%." This health care-related data preparer filed for Chapter 11 protection on March 20, 2014, listing $627 million in pre-petition assets.
Exide Technologies Extension Sought
Exide Technologies filed with the U.S. Bankruptcy Court a third motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including December 10, 2014, and February 10, 2015. The motion explains, "The Debtor requests this extension to allow on-going negotiation of a confirmable plan of reorganization and to garner maximum consensus around that plan....Indeed, as of the filing of this motion, the Debtor understands that the Committee is evaluating the latest plan proposal and is expecting to provide feedback To consensually resolve the Committee's limited objection to this DIP upsizing, the lenders under the DIP Facilities, including members of the UNC, agreed to eliminate the DIP milestone that would have required Exide to file an Acceptable Plan of Reorganization (as that term is defined under the credit agreement governing the DIP Facilities) by July 31, 2014 - the current date on which Exide's exclusive right to file a plan would also expire (absent the relief requested in this Motion). The elimination of this milestone provides the Company with additional flexibility to build consensus as it advances the plan process....Against this backdrop, the Debtor submits that the requested extension balances the Debtor's operational need to emerge from chapter 11 with a substantially de-leveraged balance sheet as soon as possible - which will help preserve estate value by safeguarding important customer and supplier relationships integral to the Debtor's going-concern - while also providing additional runway for a thorough negotiating process to drive toward a potentially consensual plan. The Debtor thus believes the requested exclusivity extension is entirely appropriate and should be approved by the Court."
Vertis Holdings Cash Collateral Use Approved
The U.S. Bankruptcy Court issued a third supplemental order authorizing Vertis Holdings to continue using cash collateral and granting continued adequate protection to the pre-petition term loan lenders. The order states, "The wind-down reserve amount of 'not less than $500,000 through July 31, 2014' set forth in Paragraph 1 of the second supplement is hereby deleted and replaced with (i) such amounts as may be required to pay all remaining fees, costs and expenses incident to the administration of the Cases accrued or incurred through July 31, 2014 including in accordance with the 4-week budget and (ii) an amount equal to $600,000 through the date on which cases are either dismissed or converted to cases under chapter 7 of the Bankruptcy Code (the 'Case Disposition Date') comprised of (a) $300,000 on account of professional fees and expenses incident to the cases that accrue or are incurred on or before July 31, 2014 (the 'Professional Fees Carve-Out') and (b) $300,000 set aside to fund the fees, costs and expenses incident to the administration of the cases accrued or incurred on or after August 1, 2014, including the payment of professional's fees and expenses that accrue or are incurred on or after August 1, 2014 (the 'Chapter 11 Amount')."
Exide Technologies Financing Amendments Approved
Exide Technologies announced that its lenders approved two amendments to the Company's debtor-in-possession financing facilities. The sixth amendment provides the Company with $60 million in incremental liquidity to execute its business plan and meet working capital needs for the upcoming inventory build season. The amendment also extends the maturity date of the facilities to December 31, 2014, which would be effective upon Exide Technologies' entry into a plan support agreement. The U.S. Bankruptcy Court entered an order approving the additional $60 million in liquidity to be provided under this sixth amendment, and Exide Technologies anticipates obtaining the additional funding this week. The lenders also approved a seventh amendment to the D.I.P. facility, which eliminates the date by which Exide Technologies is required to file a plan of reorganization and gives the Company additional flexibility to build consensus in completing plan negotiations.
Fisker Automotive Plan Confirmed
The U.S. Bankruptcy Court confirmed Fisker Automotive's (nka FAH Liquidating) Second Amended Joint Plan of Liquidation, filed June 4, 2014. The Plan had the support of "every voting class by an overwhelming margin, including approximately 95% of all voting creditors by number and more than 99% by value." According to documents filed with the Court, "As of the Effective Date, the existing boards of directors of the Debtors shall be dissolved without any further action required on the part of the Debtors or the Debtors' officers, directors, shareholders, and members and any all remaining officers or directors of each Debtor shall be dismissed without any further action required on the part of any such Debtor, the shareholders of such Debtor, or the officers and directors of such Debtor." In February 2014, the Court approved the Company's sale to Wanxiang America. Wanxiang's bid consisted of, among other things, (a) $126.2 million in cash; (b) $8 million of assumed liabilities arising from administrative and priority claims against the Debtors' estates, other than claims arising from the Hybrid D.I.P. facility and (c) Wanxiang's contribution of the equity consideration, generally consisting a 20% common equity interest in a Wanxiang affiliate designated to acquire the Debtors' assets. Wanxiang will also contribute certain causes of action to the liquidating trust. This privately-held electric vehicle designer and manufacturer filed for Chapter 11 protection in November 2013, listing more than $100 million in pre-petition assets.