Fracking contractor Basic Energy Services Inc. filed for bankruptcy Tuesday for the second time in five years, planning to sell itself in parts and setting up a $47.5 million conflict with its controlling shareholder, Ascribe Capital, WSJ Pro Bankruptcy reported. The Fort Worth-based company, which services oil and gas wells across nine states, said in court papers that three buyers have offered a combined $72 million for three business lines, a sum that would cover a fraction of Basic Energy’s $387.5 million in secured debt.
The creators of “South Park” have made a deal to save Casa Bonita, a Mexican restaurant and family entertainment center outside Denver that was featured in the plot of an episode of the popular cartoon show and filed bankruptcy earlier this year, WSJ Pro Bankruptcy reported. Trey Parker and Matt Stone, the show’s creators, announced they would purchase the restaurant, pending bankruptcy-court approval, during a conversation with Colorado Gov. Jared Polis, broadcast on the politician’s official Facebook account on Friday. The duo made the announcement about a week after ViacomCBS said it struck a six-year deal with Messrs. Parker and Stone for six new seasons of the TV show on Comedy Central and more than a dozen movies for Paramount+ that will reportedly earn the duo $900 million. The Mexican resort-themed restaurant is known for its 30-foot high waterfall, which cliff-divers, at times wearing gorilla-suits, regularly jump off to entertain guests. In one South Park episode, Eric Cartman, one of the show’s main characters, goes to extreme lengths to crash his on-again-off-again friend and rival Kyle’s birthday at Casa Bonita; Cartman is arrested at the end of the episode after he jumps off the waterfall. Despite the exposure Casa Bonita gained from the episode, the company behind the restaurant filed for bankruptcy protection in April, citing impacts from the COVID-19 pandemic throughout the dining industry. “We’ve come to an agreement with the owner and we bought it,” Mr. Stone said during Friday’s live conversation.
The Archdiocese of Santa Fe will be auctioning nearly 140 parcels of property next month as it seeks to settle a raft of sex abuse claims, the Associated Press reported. Church officials announced yesterday that an online auction will begin Sept. 21. Opening bids will start as low as $500 for vacant pieces of property that are spread throughout three counties in central New Mexico. Another auction is planned for November. The archdiocese filed for bankruptcy reorganization in 2018 to deal with a surge of claims. A U.S. bankruptcy judge ruled last October that lawyers for clergy sex abuse survivors can file lawsuits alleging the archdiocese fraudulently transferred millions of dollars in property and other assets to avoid bigger payouts to victims. That decision in the chapter 11 reorganization case opened the door to what could be a multimillion-dollar settlement to hundreds of victims who filed claims. It also could result in costly legal appeals that would tap funds that would otherwise be used to pay claims.
SVXR Inc., an early-stage company making automated inspection equipment for the semiconductor industry, is planning to sell itself out of bankruptcy to competitor Bruker Nano Inc. for $11.8 million and said it needs to do so quickly, WSJ Pro Bankruptcy reported. Formerly known as Silicon Valley X-Ray, privately held SVXR filed for chapter 11 Wednesday with roughly $10.5 million in debt, including $517,000 owed to the U.S. Small Business Administration and $8.2 million owed to secured bondholders. The company’s main product, the X200, allows customers to monitor and detect defects as semiconductors are being made, according to court papers. Founded in 2013, SVXR has invested heavily in its technology and has never been cash-flow positive, Chief Executive Officer Daniel Trepanier said in a Thursday court filing. He said SVXR sells the X200, data analytics tools and warranty services to “six key customers that are well-known leaders in the semiconductor fabrication industry.” SVXR has been pursuing a strategic transaction or debt refinancing for nearly a year, he said, noting that the company is in default on its secured debt obligations. The company’s backers include Samsung Venture Investment Corp. and Firsthand Technology Value Fund Inc., according to court papers filed in the U.S. Bankruptcy Court in San Jose.
Petroleum barge operator Bouchard Transportation has secured court approval to sell its two main groups of assets for a combined $245 million, Reuters reported. During a virtual hearing on Thursday, U.S. Bankruptcy Judge <b>David Jones</b> in Laredo, Texas, signed off on the two sales to Rose Cay GP LLC and JMB Capital Partners LLC. However, lawyers for Bouchard at Kirkland & Ellis, as well as its unsecured creditors’ committee, said at the hearing that they are continuing conversations with investment firm 507 Capital on an alternative restructuring proposal. Bouchard filed for bankruptcy in September 2020 with $230 million in debt as the COVID-19 pandemic worsened existing financial problems at the company that stemmed from a barge explosion in 2017. JMB is acquiring a group of vessels for $115.3 million, which consists of a combination of cash and a credit bid of its existing loan made to Bouchard earlier in the bankruptcy. Rose Cay is paying $130 million for another group of vessels. Though the Judge Jones had praise for the sale process, the bidding process prompted questions from certain creditors as well as the company’s owner, Morton Bouchard III. Morton Bouchard and his family said in court papers recently that they are concerned the sales will not bring in proceeds sufficient to provide unsecured creditors meaningful recoveries. The Bouchard family said it had spoken to 507 Capital about an alternative strategy that would set aside specifics funds for unsecured creditors but had been “rebuffed.”
The North American division of Global Brands Group Holding Ltd. filed for chapter 11 protection, putting its apparel and footwear brands up for sale with help from a $16 million bankruptcy loan, WSJ Pro Bankruptcy reported. GBG USA Inc. sells footwear and apparel wholesale to Macy’s Inc., Nordstrom Inc. and other U.S. department stores as well as warehouses, off-price retailers and Amazon.com Inc., according to court papers filed in the U.S. Bankruptcy Court in New York. GBG USA sought chapter 11 protection Thursday while planning to sell off its Ely & Walker, Airband, MagnaReady, Yarrow, b New York and Juniperunltd assets to pay down $238.4 million in bank debt. In a court filing, Chief Financial Officer Mark Caldwell said the business enters bankruptcy “running on fumes,” with no choice but to file for chapter 11 after “the catastrophic effects of the global COVID-19 pandemic, industry-specific headwinds and other liquidity constraints.” Gross sales for the 2020 fiscal year fell by 44%, he said, as consumer demand fell across the fashion industry and key customers closed stores and dialed back orders. GBG USA said it has tapped WH AQ Holdings LLC and Hilco Brands LLC as the lead bidders to acquire the company’s Aquatalia brand and business, setting a floor price of $17.3 million. Other bidders would have the chance to best that offer, which requires court approval. Global Brands Group’s brand-management and European wholesale businesses aren’t part of the chapter 11 filing and continue to maintain their usual operations. Before filing for bankruptcy, GBG USA sold off its Spyder retail operation in South Korea and the inventory and related assets of the Spyder and Frye brands, the company said.
