Story:
On Wednesday, Peabody said the company was working to resolve the dispute that pitted its secured lenders against unsecured creditors, including distressed debt hedge funds Aurelius and Elliott, who were seeking a larger share of Peabody's assets in the reorganization.
"The parties are working to settle the (debt) issue as part of broader negotiations regarding the plan of reorganization," Peabody spokesman Vic Svec said in an emailed statement.
Peabody expects to file its reorganization plan by mid-December and hopes to exit bankruptcy within a year of its April 2016 filing, Svec said.
The unsecured debt is still trading in the high 50s. That's a substantial
valuation hole to make up (don't forget accrued interest) before even the subordinated notes will be in the money.
5 comments:
The unsecureds are trading up in the low-mid 60's now.
They better get this agreement done on time.
Subordinated notes at 20 cents though.
http://www.kccllc.net/Peabody/document/1642529161130000000000008
Debtors seeking an extension
The Debtors and their advisors have also dedicated significant time and resources to, among other things the following:
a)Negotiating the Plan with various creditor groups, including the Debtors' lenders
party to the First Lien Credit Agreement or their successors or assigns (the "First
Lien Lenders"), and an ad hoc group of senior unsecured noteholders (the "Ad Hoc Noteholders"), an ad hoc group of noteholders for the Debtors' 10.00% senior secured notes due March 2022 (the "Second Lien Noteholders' Group"), and the committee for the unsecured creditors (the "Creditors' Committee");
Notice they aren't negotiating with the subordinated noteholders or the equity!
"Against this backdrop of achievement, a nd in recognition of the complex issues still facing the Debtors, the De btors request an order further extending the Exclusive Periods. The Debtors are engaged in active and ongoing ne gotiations with, among others, the Debtors' First Lien Lenders, Ad Hoc Noteholders, the Se cond Lien Noteholders' Group and the Creditors' Committee. The Debtors have made considerable progress in negotiating the Plan and currently intend to file the Plan by Decem ber 14, 2016. However, in an abundance of caution and in case unanticipated delays arise, the Debtors hereby seek an extension of their Exclusive Periods."
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