Latest news with #Chapter15
Miami Herald
28-05-2025
- Business
- Miami Herald
Popular internet provider files for Chapter 11 bankruptcy
The technology sector has not been immune to bankruptcy, as several companies have either filed for Chapter 11 protection or are considering filing a petition. Struggling semiconductor supplier Wolfspeed is the latest major technology company to consider filing for bankruptcy, sources familiar with the matter told the Wall Street Journal on May 20. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Durham, N.C., tech company is reportedly pursuing a prepackaged Chapter 11 plan in the coming weeks after out-of-court debt restructuring attempts failed. Related: Huge trucking company files for Chapter 11 bankruptcy In April, banking-as-a-service start-up, Solid, which at one time called itself the Amazon Web Services of fintech, filed for Chapter 11 protection in Delaware after failing to secure an additional round of funding. And now, struggling business internet provider Everstream Solutions LLC has filed for Chapter 11 bankruptcy protection, seeking a sale of its assets, facing a potential default on over $1 billion in prepetition credit agreements. The Cleveland-based provider of connectivity services, communications solutions, and network security for businesses in 13 states in the Midwest and Northeast and Washington, D.C., listed $500 million to $1 billion in assets and $1 billion to $10 billion in liabilities, including $1.06 billion in funded secured debt, in its petition filed on May 28. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy Its largest unsecured creditors include Crown Castle, owed over $1.45 million in trade debt; Illuminating Co., owed over $1 million in trade debt; and Northern Lights Locating & Inspection Inc., owed over $881,000. The debtor blamed significant capital expenditures to expand its fiber network, unanticipated operational losses, industry headwinds, and unsustainable debt obligations for causing its financial distress that required a Chapter 11 filing. Related: Troubled radio station company files for Chapter 15 bankruptcy Everstream, which is 99% owned by non-debtor Midwest Fiber Intermediate US LP, hired restructuring advisers in April 2023, facing limited liquidity and a risk of default, according to a declaration by Chief Restructuring Officer Justin Schmaltz. The debtor launched recapitalization transactions to amend its credit agreements in October 2023, secured equity contributions, and sought a sales process for assets in Illinois, Missouri, and Pennsylvania. The sale process had not closed in April 2024 when it began a review of strategic alternatives, as its 2023 recapitalization cash had diminished, and it faced another risk of default, according to the declaration. The company began seeking a sale of all of its assets in September 2024, while a sale of its Illinois and Missouri assets closed in May 2025. A subsidiary of Bluebird Network LLC submitted a stalking-horse bid for debtor Midwest Fiber Holdings LP, which is listed as Everstream's ultimate owner, for $285 million on May 22. The debtor closed and will wind down its Pennsylvania operations. The debtor is also seeking approval of up to $186 million in debtor-in-possession financing, which includes $55 million in new money to fund its bankruptcy case. The bankruptcy case timeline calls for an auction for the debtor's assets to be held on July 17, a sale hearing set for Aug. 1, a confirmation hearing for the case on Oct. 30 if the stalking-horse bid is successful, or on Nov. 14 if not, and an effective date for the confirmation of the bankruptcy plan by March 26, 2026. Everstream was founded in 2014 and expanded through company growth and acquisitions from 2016-2022. The company generated over $135 million in revenue in 2022, over $148 million in 2023, and $156 million in 2024. The debtor operates in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, West Virginia, Wisconsin, and the District of Columbia. Related: Key healthcare company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
22-05-2025
- Business
- Miami Herald
Bankrupt retail chain closing 100s of store locations
The drugstore retail sector has faced hundreds of store closings over the last four years, as retailers close underperforming stores and sometimes dump locations in bankruptcy filings. Huge drugstore chain CVS (CVS) in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024. Don't miss the move: Subscribe to TheStreet's free daily newsletter The company said it would consider several factors before closing a store, such as maintaining access to pharmacy services, local market dynamics, population shifts, a community's store density, and ensuring there are other geographic access points to meet the needs of the community. Related: Troubled radio station company files for Chapter 15 bankruptcy Drugstore chain Walgreens, which operates about 8,600 stores, in 2024 said it would close 1,200 underperforming stores over a three-year period, with 500 closings planned in fiscal year 2025, as part of its out-of-court restructuring plan. The retailer, which in March agreed to be sold to private equity firm Sycamore Partners, said it would close locations with negative cash flows, underperforming stores where it owns locations, and ones with lease expirations coming due in the next few years to reduce the impact of dark rent. A more recent report said that the drugstore chain might close even more stores, possibly one-quarter of its locations. Last year, several small drugstore chains filed for bankruptcy, including Eastern Kentucky-based Rx Discount Pharmacy, which operated about seven pharmacy and healthcare businesses. The pharmacy chain on May 1, 2024, filed for Chapter 11 bankruptcy, but did not specify a reason for filing bankruptcy in its petition. Also, CL Cressler Inc., the owner of seven Medicine Shoppe Pharmacy stores located in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 bankruptcy to reorganize its debts. And now a huge drugstore chain that has filed for bankruptcy twice in the last two years is closing more drugstore chain Rite Aid, which filed for Chapter 11 protection a second time on May 5 as New Rite Aid LLC, has filed notices of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey, seeking approval to close 210 stores and liquidate their assets. Related: Another popular pizza dining chain files Chapter 11 bankruptcy Rite Aid filed its first notice with the court on May 9 to close 47 locations in nine states, including California (19), Pennsylvania (8), New York (5), Oregon (4), Connecticut (3), New Hampshire (3), New Jersey (2), Washington (2), and Massachusetts (1). More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The drugstore chain filed a second notice on May 9 to close 68 additional locations in seven states, including Pennsylvania (44), Oregon (8), Washington (6), Virginia (4), California (2), New Hampshire (2), and New York (2). Rite Aid on May 16 filed a third notice to close 95 additional stores in six states, including Pennsylvania (81), California (4), Oregon (4), Maryland (3), Delaware (1) and Virginia (1). The retailer will likely file several more additional store closing notices before its bankruptcy case closes, as it is expected to close all of its stores, estimated at about 1,240. Judge Michael B. Kaplan signed an interim order on May 9 approving initial and additional location closings. Objections to any closings must be received by the court by May 30, with a final hearing to approve all closings on June 6. Rite Aid also won approval on May 21 to sell prescription files from 625 of its stores in 15 states to CVS. The company also sold 64 Rite Aid stores in Idaho, Oregon and Washington to CVS. The drugstore chain, which operated about 1,240 stores, also won approval to sell prescriptions at other locations to Walgreens, Albertsons, Kroger, Giant Eagle and others. Related: Popular gun ammunition dealer files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
22-05-2025
- Business
- Miami Herald
Historic college suffers financial collapse after bankruptcy
For those of us who attended college, there's often a feeling of pride and nostalgia around our alma mater, as it served as the bridge between our youth and our adult lives. While it's not for everyone, many people deeply enjoy going to college reunions and seeing old friends and teachers, catching up, and looking back on fond memories. It can also be deeply rewarding to learn how our old contacts have changed over time. Don't be surprised if you feel a glow of pride when you learn that the girl who sat behind you in algebra now has her Ph.D., or that guy on your soccer team has since joined Manchester United. Don't miss the move: Subscribe to TheStreet's free daily newsletter Many people often feel that the college they attended is a key part of who they are, helping to shape their lives in a significant way. It's part of the reason going back after 20 years away can be meaningful for so many. Related: Troubled radio station company files for Chapter 15 bankruptcy However, not all colleges remain the same after we leave. A sad story has emerged about a historic private school that served an important sector of the population in Oklahoma, and both staff and students are mourning the loss. Image source: Bacone College Facebook Bacone College, originally chartered by the Muskogee (Creek) Nation in 1881, will be forced to follow an order on May 22 to "turn over all keys and control" of the school by 11 a.m. This news comes almost a year after Bacone originally tried to declare Chapter 11 bankruptcy in June 2024. However, U.S. trustee Ilene Lashinsky, who was assigned to the bankruptcy case, argued that untoward financial activity had taken place at the historic institution and made a motion that the bankruptcy be shifted to Chapter 7. Lashinsky's filing called the college's actions "gross mismanagement of the estate." Related: Key healthcare company files for Chapter 11 bankruptcy In the filing, Lashinsky explains that a payment of $16,500 was made by the college to the Small Business Administration to pay a loan owed by Leslie Hannah. Hannah became president of Bacone in April 2024, indicating that Hannah used the college's funds to pay his SBA debt. According to Hannah, he got an SBA loan in the amount of $15,000 before the college filed for bankruptcy to pay the college's payroll. But Hannah and the SBA were not listed among his creditors when the college filed for bankruptcy. In 2023, an auction was planned to help pay off some of the school's debt from a lawsuit, but the auction was then canceled. In its 144-year history, Bacone served a large number of American Indian students with a focus on what it calls a "quality, holistic, liberal art, educational experience." Bacone also frequently provided financial aid for its students via grants, such as the $95,000 contributed from the National Society Daughters of the American Revolution in 2020. Amanda Swope, the Director of Tribal Policy & Partnerships with the City of Tulsa, told KTUL in an interview that she's sad to hear the news about this historic school. "It's certainly unfortunate. You know, not only it takes away an option from students and people in the rural part of Oklahoma that are seeking higher education, but, you know, Bacone was really such a mecca and a well-known university in Indian Country, and for Native students in particular," said Swope. Related: Struggling airline restructures debt, plans to exit bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
21-05-2025
- Business
- Miami Herald
Troubled radio station company files for Chapter 15 bankruptcy
The radio broadcast industry has continued its struggles since iHeartRadio, the nation's largest radio station chain, filed for Chapter 11 bankruptcy in 2018, handing control of the network to its lenders in exchange for $10 billion in debt. Next, Audacy, the second-largest radio station owner in the country, on Jan. 5, 2024, filed for Chapter 11 bankruptcy, seeking to reduce its debt from $1.9 billion to $350 million and hand ownership of the company to its bondholders. Don't miss the move: Subscribe to TheStreet's free daily newsletter "The perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending," the company's CEO David Field, said at the time. Related: Popular radio network files for Chapter 11 bankruptcy Audacy was known as Entercom Communications in 1968 when it was founded by Joseph Field, the father of David Field. The company bought CBS Radio and its 117 stations in 2017, before changing its name to Audacy in 2021. After the top two radio station chains filed for bankruptcy, several smaller radio station owners followed their lead and filed for bankruptcy protection. High Plains Radio Network, which operated 18 radio stations in Texas, New Mexico, Colorado, Oklahoma, Mississippi, and Arkansas, filed for bankruptcy in March 2024. Then, online music streaming service AccuRadio filed for Chapter 11 bankruptcy protection on May 14, 2025, after reaching an impasse in negotiations with SoundExchange in seeking a lawsuit settlement over royalties owed for its services, according to a company statement. And now, distressed radio station operator Local First Media Group Inc. and six affiliates, which were placed into receivership in Canada on Feb. 21, 2025, filed for Chapter 15 bankruptcy protection, seeking recognition as a foreign main proceeding to protect their assets in the U.S. Related: Key healthcare company files for Chapter 11 bankruptcy The receiver for the Canada-based radio station companies filed its Chapter 15 petition on May 13 in the U.S. Bankruptcy Court for the Eastern District of Texas, seeking court protections to prevent the debtors' stakeholders from commencing or continuing actions in U.S. courts that would interfere with the receiver's Canadian case. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The Chapter 15 filing invokes an automatic stay on any court proceedings against the debtors while the case proceeds in Canada. The six other debtors in the case are Local First Properties Inc., BTC USA Holdings Management Inc., Local First Properties USA Inc., Alaska Broadcast Communications Inc., Broadcast 2 Podcast Inc., and Frontier Media LLC. The debtor's receiver, FTI Consulting Canada, was appointed by receivership order by the Court of King's Bench of Alberta in Calgary with similar rights as a trustee in a U.S. Chapter 7 liquidation case. The receiver plans to sell the debtors' assets through a Canadian court proceeding to settle debts owed to creditors. The debtors owe about $8.2 million on a secured loan to creditor ATB Financial, which is based in Alberta, on which the debtors defaulted in November 2023, according to court papers. The debtors subsequently defaulted on a forbearance agreement in August 2024 and another in January 2025. The debtors operate three studios with cell towers and an additional cell tower site in Alaska, a studio with cell tower and two additional cell tower sites in Texas, and a cell tower site in Arkansas. The owners of the debtors include Alberta-based Woodruff Media Inc. and Creator Capital Corp., which are not debtors in the Canadian proceeding or the Chapter 15 cases. Together, they own 90% of Local First Media, according to court papers. Related: Another major trucking company files Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Wire
15-05-2025
- Business
- Business Wire
Li-Cycle Obtains Creditor Protection Under CCAA and Chapter 15
TORONTO--(BUSINESS WIRE)-- Li-Cycle Holdings Corp. (OTCQX: LICYF) ('Li-Cycle' or the 'Company'), a leading global lithium-ion battery resource recovery company, today announced that the Company and its subsidiaries in North America (collectively, the 'Li-Cycle Group') have sought and obtained from the Ontario Superior Court of Justice (the 'Court') an order (the "Initial Order") providing them with creditor protection pursuant to Canada's Companies' Creditors Arrangement Act (the "CCAA"). As part of the Initial Order, the Court ordered, among other things, a stay of proceedings in favor of the Li-Cycle Group for an initial period to and including May 22, 2025 (the "Stay Period") and the appointment of Alvarez & Marsal Canada Inc. as monitor of the Li-Cycle Group during the CCAA proceedings (in such capacity, the "Monitor") to assist the Company with its restructuring efforts and to report to the Court. The Company's U.S. subsidiaries (including Li-Cycle Inc., which owns the Company's Spokes in Arizona, Alabama and New York, and Li-Cycle North America Hub, Inc., which owns the Company's Rochester Hub project) have commenced proceedings before the United States Bankruptcy Court for the Southern District of New York (the 'U.S. Bankruptcy Court') under Chapter 15 of the U.S. Bankruptcy Code ('Chapter 15 Proceedings') for recognition of the CCAA proceedings as a 'foreign main proceeding.' The U.S. Bankruptcy Court has imposed a broad stay, for the benefit of the Company's U.S. subsidiaries, barring the commencement of legal action, the enforcement of remedies, any act to obtain possession of their property in the United States or to exercise control over such property, and other similar conduct. As part of the CCAA proceedings, the Li-Cycle Group expects to conduct a court-supervised sale and investment solicitation process (the 'SISP'), which will be a continuation of its previously disclosed efforts to seek buyers for its business or its assets. The Li-Cycle Group has entered into a term sheet with an affiliate of Glencore Canada Corporation ('Glencore'), the Company's largest secured creditor, for a DIP Facility. The DIP Facility consists of a credit facility of up to a maximum principal amount of $10.5 million which is expected to be used to finance Li-Cycle's working capital requirements, including for the continued operation of its Germany Spoke, and to implement the restructuring contemplated in the CCAA proceedings, such as the pursuit of the SISP. The DIP Facility remains subject to approval by the CCAA Court. Additionally, the Li-Cycle Group has entered into an equity and asset 'stalking horse' purchase agreement (the 'Stalking Horse Agreement') with Glencore. Glencore has agreed to a 'stalking horse' credit bid for at least $40 million for certain of Li-Cycle's subsidiaries and assets, including its Arizona Spoke, Alabama Spoke, New York Spoke, Germany Spoke, Rochester Hub project, and its intellectual property, as well as assumption of certain of its liabilities. The Stalking Horse Agreement remains subject to approval by the CCAA Court. The Company's Germany Spoke is expected to have sufficient working capital (including through the DIP Facility) to continue operating during the CCAA proceedings. Li-Cycle is undertaking efforts to wind down certain of its European subsidiaries, with the exception of its operating businesses in Switzerland and Germany. The Company will also be winding down its subsidiaries in Asia. As a result of the CCAA Proceedings, an event of default has occurred under Li-Cycle's loan agreement with the U.S. Department of Energy ('DOE'). Li-Cycle has not drawn down any funds under the DOE loan facility, as the Company has not satisfied the conditions precedent for the first advance. The CCAA Proceedings have also caused an event of default under the Company's convertible notes, which are held by Glencore and Wood River Capital, LLC ('Wood River Capital'). Wood River Capital now would have, in the absence of the stay of proceedings, the right to require the redemption of its convertible notes. The event of default under the Company's convertible notes held by Glencore has resulted in an automatic acceleration such that the principal, interest and any make-whole premium due thereunder have become immediately due and payable. As previously disclosed, the Company has been actively reducing its cost structure and seeking financing and strategic alternatives to fund its business. However, following a thorough review and after careful consideration of all available alternatives and in consultation with legal and financial advisors, the Company's Board of Directors, following receipt of the recommendation of the Company's Special Committee of independent directors, determined that it was in the best interests of the Company to commence the CCAA proceedings, with a view to pursuing the SISP and implementing one or more transactions with respect to its business and assets. The Company's Board of Directors and management will remain responsible for the day-to-day operations of the Company under the general oversight of the Monitor during the CCAA proceedings. The Initial Order provides the Company with, among other things, relief from certain reporting obligations under securities legislation. As a result of the commencement of Chapter 15 Proceedings, the Company will no longer qualify to trade on the OTCQX® Best Market and will be moved to the OTC Pink Markets effective May 15, 2025. At the 'comeback' hearing before the CCAA Court on May 22, 2025, the Li-Cycle Group intends to seek, among other things, approval of the DIP Facility, the SISP and the Stalking Horse Agreement as a 'stalking horse' credit bid in the SISP and an extension of the Stay Period until a subsequent date to be determined. Additional information regarding the CCAA proceedings is available on the Monitor's website at or by calling Alvarez & Marsal at 1-844-864-9548, or by emailing at LiCycle@ Documents relating to the restructuring process such as the Initial Order, the Monitor's reports to the Court, as well as other Court orders and documents shall also be published and made available on the Monitor's website. About Li-Cycle Holdings Corp. Li-Cycle (OTCQX: LICYF) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle's mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. Forward-Looking Statements Certain statements contained in this press release may be considered 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as 'believe', 'may', 'will', 'continue', 'anticipate', 'intend', 'expect', 'should', 'would', 'could', 'plan', 'potential', 'future', 'target' or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: the expected court-supervised sale and investment solicitation process; the expected use of the DIP Facility; the expectation that the Company's Germany Spoke will have sufficient working capital (including through the DIP Facility) to continue operating during the CCAA proceedings; Li-Cycle undertaking efforts to wind down certain of its European subsidiaries, with the exception of its operating businesses in Switzerland and Germany; the Company winding down its subsidiaries in Asia; the transfer of the quotation of the Company's common shares to the OTC Pink Markets effective May 15, 2025; the terms of any resulting transactions with any such buyers of Li-Cycle's business or its assets, including the Stalking Horse Agreement with Glencore; and what the Company intends to seek at the 'comeback' hearing before the CCAA Court on May 22, 2025, including an extension of the Stay Period until a subsequent date to be determined. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the working capital of the Company's operating businesses in Switzerland and Germany. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle's current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the risks and uncertainties related to Li-Cycle's business are described in greater detail in the section titled "Part I - Item 1A. Risk Factors" and 'Part II - Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation' in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement. Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle's assessments as of any date subsequent to the date of this press release.
