Q4 Flash Report: Energy, Retail Dominate Restructuring
Predictions in the fall that the energy and healthcare industries would be most active for out-of-court restructurings in the fourth quarter were only about half correct. Restructuring attorneys and advisers correctly predicted that oil, gas and coal related companies would be among the most active in the fourth quarter, but they missed on the healthcare industry. The list of energy company out-of-court restructurings seemed to grow with each month. Among the most signiﬁcant restructurings were coal producer Armstrong Energy Inc., Anton Oilﬁeld Services Group and EP Energy Corp.
However, not many signiﬁcant healthcare companies announced new restructurings. One signiﬁcant deal involved Humanigen Inc., the former KaloBios Pharmaceutical Inc.
A surprise to some advisers might be the number of retailers choosing out-of-court restructurings instead of Chapter 11 ﬁlings. Prior to the fourth quarter, advisers were saying it was more likely that retailers would ﬁle bankruptcy instead of restructure out of court because it was easier to restructure in court. But the list of retailers choosing out-of-court restructurings in the fourth quarter includes Charlotte Russe, 99 Cent Only Stores LLC, Bon-Ton Stores Inc., GNC Holdings Inc. and thrift store operator Evergreen AcqCo 1 LP.
Adding to the list of retail-related out-of-court restructurings were toy maker Mattel Inc. and iconic camera and ﬁlm manufacturer Eastman Kodak.