FR TNT Holdings (TNT) filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. All operations will continue as usual without interruption and TNT’s executive leadership team is expected to remain unchanged.
TNT will implement a prepackaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code. As disclosed on Aug. 3, 2020, the prepackaged plan follows on a restructuring support agreement (RSA) with the majority of holders of TNT’s first and second lien secured loans, along with other supporting parties. The prepackaged plan has the support of holders of 98.6% in principal amount of TNT’s first lien secured loans and 93.8% in principal amount of its second lien secured loans. Execution of the prepackaged plan will enable TNT to recapitalize its balance sheet with no impact to the majority of its stakeholders. TNT expects to emerge from Chapter 11 proceedings within 55 days.
TNT also secured commitments from certain of its first lien lenders for an additional $45 million debtor-in-possession financing, which, in addition to TNT’s normal operating cash flows, will help fund the process and ensure it is able to operate as usual during the Chapter 11 proceedings. Upon emergence, TNT will recapitalize and gain new liquidity in the form of a new $225 million term loan provided by the company’s first lien lenders.
This filing only includes TNT and Southway.
“For the past few years, TNT has been seeking a long-term solution that improves our capital structure in order to build a stronger and more successful financial future. This consensual transaction represents the opportunity to accomplish just that,” Michael Appling Jr., CEO of TNT, said. “Once again, we are incredibly grateful to have the support of our lenders in this process, which will allow us to emerge from the Chapter 11 process swiftly and definitively.
“This transaction builds upon the strategies we have already implemented to protect our balance sheet and counter the challenging and unprecedented business environment to ensure we can continue to deliver upon our commitments to our stakeholders. I want to thank our talented team for their focus and commitment to safety — now and always. We are looking forward to emerging from this process and continuing our work as North America’s leader in providing safe, reliable lifting services.”
TNT filed a series of “first day motions” that, once approved by the court, will allow the company to maintain its usual employee compensation and benefit programs, make payments for goods and services in the normal course, and otherwise operate its business as usual. In addition, TNT is seeking court approval of a motion that provides for payment of all trade creditors in full for goods and services delivered prior to the filing.
TNT is represented by Simpson Thacher & Bartlett and Young Conaway Stargatt & Taylor as legal co-counsel, Miller Buckfire & Co. and Stifel, Nicolaus & Co. as financial advisor and investment banker, and FTI Consulting as financial advisor.
TNT is a crane services platform that provides operated and maintained crane and lifting services.
