Category: Bankruptcy Updates

Kodak Files for Chapter 11; Citigroup to Provide DIP Loan

Eastman Kodak has filed for bankruptcy protection in the U.S. Bankruptcy Court in the Southern District of New York. The company listed approximately $5.1 billion in assets and about $6.8 billion in debt. Kodak has entered an agreement with Citigroup to provide a $950 million DIP loan.

Trailer Bridge Reaches Agreement With Noteholders

Trailer Bridge has reached an agreement with its major noteholders and submitted a restructuring plan to the U.S. Bankruptcy Court for the Middle District of Florida on January 14, 2012. If the plan is approved, the company will seek to emerge from Chapter 11 by the end of March 2012.

Hostess Receives Interim Approval to Use DIP Loan

The Wall Street Journal reported that Hostess Brands has received approval from Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York to use $35 million of the $75 million debtor-in-possession loan it obtained from its first lien lenders led by Silver Point Capital.

A&P to Close 14 Stores as Part of Turnaround Strategy

The Great Atlantic & Pacific Tea Company (A&P) announced that it has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval to close 14 stores in four states as the company prepares to emerge from Chapter 11.

Friendly’s Emerges From Chapter 11 in Three Months

Friendly Ice Cream and its subsidiaries announced that the company has emerged from Chapter 11 by consummating the sale of its business to Friendly’s Ice Cream and its subsidiaries. The company said with the emergence it had to shutter another 37 restaurants.

WSJ: Hostess Preparing to File for Chapter 11 Again

The Wall Street Journal has reported that Hostess Brands is again preparing to file for Chapter 11 bankruptcy and it could be as soon as this week. The company is seeking about $75 million in DIP financing from Monarch Alternative Capital, Silver Point Capital and others.