/raid1/www/Hosts/bankrupt/TCRLA_Public/210827.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, August 27, 2021, Vol. 22, No. 166
Headlines
A R G E N T I N A
LA RIOJA PROVINCE: Reaches Deal to Amend 9.750% of 2025 Notes
B E R M U D A
NABORS INDUSTRIES: Discloses Second Quarter 2021 Results
B R A Z I L
USJ ACUCAR E ALCOOL: Gets Consents From Holders of 2023 Notes
C A Y M A N I S L A N D S
BCP VII JADE: Moody's Affirms B3 CFR & Alters Outlook to Stable
P U E R T O R I C O
ALEX AND ANI: Unsecured Creditors to Recover 0% in Joint Plan
L'OCCITANE INC: Court Confirms U.S. Affiliate's Chapter 11 Plan
L'OCCITANE INC: Exiting Chapter 11 by End of August
T R I N I D A D A N D T O B A G O
CARIBBEAN CEMENT: Forms Committee to Develop Dividend Policy
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A R G E N T I N A
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LA RIOJA PROVINCE: Reaches Deal to Amend 9.750% of 2025 Notes
-------------------------------------------------------------
The Province of La Rioja (the "Province") disclosed it has reached
an agreement in principle with an ad hoc group of bondholders
represented by VR Advisory Services Ltd and Sandglass Capital
Advisors LLC (the "Ad Hoc Group") and with GoldenTree Asset
Management LP ("GoldenTree" and, together with the Ad Hoc Group,
the "Holders"), for the Holders to support a proposal to amend the
Province's 9.750% Notes due 2025 (the "Notes"). The Ad Hoc Group
and GoldenTree collectively hold approximately 63.7% of the
US$300,000,000 principal amount of the Notes. The formal launch of
the consent solicitation process to amend the Notes is expected to
occur on or about August 31, 2021, subject to obtaining certain
governmental approvals and the completion of consent solicitation
documentation. The Province cannot assure that such approvals and
documents will be obtained or finalized as expected or that the
consent solicitation, once formally launched, will be successful.
The consummation of the consent solicitation will be subject, among
other things, to execution of definitive documentation and
satisfaction of customary conditions (including a minimum
participation of holders of more than 75% of the outstanding
principal amount of the Notes). After giving effect to the
restructuring of the Notes on the settlement date, each holder of
U.S.$1,000 in principal amount of the Notes shall hold U.S.$1,000
in principal amount of amended Notes. The terms of the Notes will
be amended as set forth on Annex A.
100% of the accrued and unpaid interest through (and including)
August 23, 2021 and outstanding under the Notes as of the
settlement of the transaction ("PDI") will be allocated to the
eligible holders that consent to the amendments, ratable to the
principal amount of Notes they hold and as to which the consent is
given, in the following manner: (i) 58% (minus the Transaction
Expenses (as defined below)) in cash at settlement of the
transaction and (ii) 42% in the form of additional Notes. Holders
who do not participate or do not consent in the consent
solicitation will not receive any PDI on the Notes.
Subject to the effectiveness of the amendments and settlement of
the other elements of the consent solicitation on the agreed terms,
the Holders have agreed to withdraw their claim seeking a judgment
against the Province filed in the United States District Court for
the Southern District of New York.
If the consent solicitation is successfully consummated, the terms
of the amended Notes are expected to provide the Province with
relief by way of reducing its debt service obligations and
extending the maturity profile of the Notes. The Province will
adjust certain aspects of the documentation for the Notes to
address proposals submitted by members of the creditor community
that seek to strengthen the effectiveness of the contractual
framework as a basis for the resolution of sovereign debt
restructurings, in line with the enhancements introduced by the
Republic of Argentina and other Argentine provinces following the
restructuring of their own debt securities in 2020 and earlier in
2021. Finally, a one-off payment on account of expenses incurred
by the Ad Hoc Group in an amount of US$600,000 (the "Transaction
Fee") will be deducted from the cash consideration to be received
by the consenting holders upon settlement of the transaction and
paid to the account of Quinn Emanuel Urquhart & Sullivan, LLP as
will be set forth in the final documentation.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2020, S&P Global Ratings lowered its long-term issuer
credit and issue-level ratings on the province of La Rioja to 'CC'
from 'CCC-'. The outlook is negative.
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B E R M U D A
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NABORS INDUSTRIES: Discloses Second Quarter 2021 Results
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Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR)
reported second quarter 2021 operating revenues of $489 million,
compared to operating revenues of $461 million in the first quarter
of 2021. The net loss from continuing operations attributable to
Nabors common shareholders for the quarter was $196 million, or
$26.59 per share. The second quarter results included charges of
$81 million comprised mainly of an impairment of assets in Canada,
related to the pending sale of our Canada drilling rigs, and a tax
reserve for contingencies in our International segment. This
compares to a loss from continuing operations of $141 million, or
$20.16 per share in the prior quarter. Excluding the above unusual
items in the second quarter, the net loss improved by $26 million,
primarily reflecting higher adjusted EBITDA, and lower depreciation
and income tax expense. Second quarter adjusted EBITDA was $117
million, compared to $108 million in the first quarter.
Anthony G. Petrello, Nabors Chairman, CEO and President, commented,
"Our second quarter results validate our strategy as we made
concrete progress on our goals. All of our segments performed well.
Second quarter adjusted EBITDA was 9% higher than the first
quarter, and above our expectations. We benefitted from continued
activity increases in U.S. and International markets. Sequential
improvements were achieved in our Drilling Solutions business, as
well as Rig Technologies, which recorded its highest performance in
the last year.
"We had another outstanding quarter in terms of free cash flow
generation, which drove further progress in cutting our debt.
"During the second quarter, global oil prices increased steadily.
Oilfield activity responded, and in particular in our drilling
markets. The Lower 48 land drilling market grew by 16% on average
in the second quarter. Activity also strengthened in our major
international markets, notably for Nabors, in Saudi Arabia and
Latin America. With the strength in commodity markets since the
pandemic lows, we expect continued increases in drilling activity
both in the U.S. and internationally. In tandem with improved
utilization, we also expect pricing to increase in the second half
of 2021."
Consolidated and Segment Results
The U.S. Drilling segment reported $59.8 million in adjusted EBITDA
for the second quarter of 2021, a 2% increase from the prior
quarter. For the quarter, Nabors' average Lower 48 rig count, at
64, increased by more than seven rigs, or 13%. Average daily
margins in the Lower 48 were $7,017, as rigs were added at current
market rates. The U.S. Drilling segment's rig count currently
stands at 72, with 67 rigs in the Lower 48. Based on the Company's
current outlook, the third quarter average Lower 48 rig count is
expected to increase by four to six rigs over the second quarter
average. Nabors expects third quarter Lower 48 drilling margins in
line with the second quarter level. For the third quarter, for the
U.S. Offshore and Alaska operations, the Company expects adjusted
EBITDA similar to the second quarter.
International Drilling adjusted EBITDA increased sequentially by
14%, to $71.3 million. The rig count averaged 68 rigs, a 5%
increase from the first quarter. This improvement was driven
primarily by new contracts in Colombia and the resumption of
drilling rigs that had been temporarily idled in Saudi Arabia.
Average margin per day was $13,420, an increase of more than $500,
driven by improved performance in Saudi Arabia and more generally
in the Eastern Hemisphere.
The third quarter outlook for the International segment includes a
slight decline in rig count, and daily margins in line with the
second quarter. This change in rig count reflects idle time as one
of the Company's rigs moves between customers and an additional rig
moves between platforms to accommodate the client's change in
activity profile.
In Drilling Solutions, adjusted EBITDA of $12.8 million increased
by 12% compared to the previous quarter, due to stronger activity
across all service lines. The main contributors to the improvement
were performance drilling software and casing running services. The
Company expects third quarter Drilling Solutions adjusted EBITDA to
increase versus the second quarter.
In the Rig Technologies segment, second quarter adjusted EBITDA was
$2.0 million, an improvement of $2.6 million compared to the first
quarter. The increase was mainly due to a better sales mix of
repairs and capital equipment. The Company expects third quarter
adjusted EBITDA for Rig Technologies above the second quarter
level.
Canada Drilling reported second quarter adjusted EBITDA of $3.0
million, reflecting the usual seasonal reduction in activity. The
previously announced sale of the Canada drilling assets is expected
to close around the end of July.
Free Cash Flow and Capital Discipline
Free cash flow, defined as net cash provided by operating
activities less net cash used by investing activities, as presented
in the Company's cash flow statement, totaled $68 million in the
second quarter after funding capital expenditures of $77 million.
The Company improved total debt by $76 million during the second
quarter and improved net debt, defined as total debt less cash,
cash equivalents and short-term investments, by $58 million. For
the full year, capital expenditures are expected to total
approximately $300 million, including roughly $100 million funded
by SANAD, to support the SANAD rig newbuild program.
William Restrepo, Nabors CFO, stated, "The improving commodity
markets are favorable for oilfield activity. We have seen clients
become increasingly selective in their vendors, favoring those that
can deliver high performance with advanced drilling and information
solutions, combined with best in class safety results. We believe
our fleet capabilities combined with our smart app portfolio
continue to be industry leading.
"We have seen a strong activity response by our client base to the
improvement in commodity prices over the past year. The Lower 48
appears poised to strengthen further, especially among private and
smaller operators. We are optimistic for growth in our
International markets later in 2021.
"Our commitment to capital discipline was once again demonstrated
by strong free cash flow generation. With our cash flow
performance, we have funded the global operation, including the
newbuild rigs for SANAD, while improving our net debt. We recently
launched an innovative delivering transaction with the issuance of
warrants to shareholders. We believe the exercise of these warrants
will be one more milestone in our progress towards a strong capital
structure."
Mr. Petrello concluded, "The second quarter results exceeded our
expectations. We made solid progress on our twin goals to generate
free cash flow and reduce net debt. Our improving operating
performance and timely asset sales demonstrate our commitment to
optimizing our capital allocation and improving our leverage.
"Our commitment to ESG and Sustainability continues. We recently
improved our performance in both Environmental and Social score
metrics, and are working to advance these efforts further.
"We made additional progress on our initiatives in the energy
transition. We are making investments in geothermal companies with
potentially disruptive technology. We also signed agreements that
give us access to technologies in fuel efficiency and emissions
reduction, as well as carbon capture. These efforts are in addition
to our own internal initiatives focused on power management and
energy storage.
"In parallel, we are pressing our leadership position further in
the automation and digitalization of the well construction process.
We are determined to continue delivering and realizing value with
our advanced solutions.
"For the second half of 2021, we expect further improvement in
oilfield industry fundamentals, notwithstanding the challenges
posed by the COVID Delta variant. With our outstanding workforce,
global fleet capability that is second to none, and our growing
technology portfolio, we believe we will make even more progress on
our financial goals this year."
About Nabors Industries
Nabors Industries is a leading provider of advanced technology for
the energy industry. With operations in approximately 20 countries,
Nabors has established a global network of people, technology and
equipment to deploy solutions that deliver safe, efficient and
sustainable energy production.
As reported in the Troubled Company Reporter - Latin America on
Aug. 20, 2021, Egan-Jones Ratings Company, on August 10, 2021,
maintained its 'CCC-' foreign currency and local currency senior
unsecured ratings on debt issued by Nabors Industries Ltd. EJR also
maintained its 'C' rating on commercial paper issued by the
Company.
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B R A Z I L
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USJ ACUCAR E ALCOOL: Gets Consents From Holders of 2023 Notes
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U.S.J. - Acucar e Alcool S.A. (the "Company"), a leading sugar and
ethanol producer in the Center-South region of Brazil, received the
required consents from the holders of the 9.875%/10.500% Senior
Secured PIK Toggle Notes due 2023 issued by the Company (the
"Notes") for the adoption of certain proposed amendments as set
forth below (the "Proposed Amendments") to the indenture governing
the Notes (the "Indenture"), in connection with the previously
announced consent from holders of the Notes (the "Consent
Solicitation").
The Proposed Amendments seek primarily to amend certain collateral
and security provisions in the Indenture in order to increase the
viability of a more comprehensive restructuring of the Notes in
accordance with the Restructuring Support Agreement entered into on
June 8, 2021, with the Ad Hoc Group of bondholders (collectively,
the "Ad Hoc Group"). The Proposed Amendments also seek to authorize
the payment of certain costs and expenses incurred in connection
with the Ad Hoc Group's advisors negotiation of the Proposed
Amendment.
Holders of the Notes are referred to the consent solicitation
statement of the Company, dated July 27, 2021, as amended (the
"Consent Solicitation Statement") for the detailed terms and
conditions of the Consent Solicitation with respect to the Notes.
The Consent Solicitation Statement contains important information
that holders of Notes should carefully read before any decision is
made with respect to the Consent Solicitation. Terms not defined in
this press release shall have the meaning ascribed to them in the
Consent Solicitation Statement.
The Consent Solicitation expired at 5:00 p.m. (New York City time)
on August 10, 2021 (the "Expiration Date"). The Consent
Solicitation was made solely by means of the Consent Solicitation
Statement. As of the Expiration Date, the Company received consents
from the holders of a at least 66-2/3% in aggregate principal
amount of the outstanding Notes with respect to particular
amendments contained in the Consent Solicitation, and a majority of
holders in aggregate principal amount of outstanding Notes with
respect to certain provisions addressing payments to professionals
(not including any Notes that are owned by the Issuer or any of its
Affiliates) (in each case, the "Requisite Consents"). Promptly
following the Expiration Date, the Company, the Subsidiary
Guarantors party thereto, the Trustee and Collateral Agent executed
the first supplemental indenture to the Indenture to implement the
Proposed Amendments (the "Supplemental Indenture").
Only holders of record of the Notes (or their duly designated
proxies) as of 5:00 p.m. (New York City time) on August 10, 2021
(the "Record Date") were entitled to consent to the Proposed
Amendments pursuant to the Consent Solicitation.
Any questions or requests for assistance or for copies of the
Consent Solicitation Statement or related documents may be directed
to the Information and Tabulation Agent at its telephone number set
forth below.
The Information and Tabulation Agent for the Consent Solicitation
is:
D.F. King & Co., Inc.
Toll Free: +1 (866) 620-2536
All Others Call: +1 (212) 269-5550
E-mail: usj@dfking.com
As reported in the Troubled Company Reporter-Latin America on Aug.
23, 2021, Fitch Ratings has downgraded U.S.J. - Acucar e Alcool
S.A.'s (USJ) Long-Term Foreign and Local Currency Issuer Default
Ratings to 'D' from 'RD' (Restricted Default) and its National
Scale Rating to 'D(bra)' from 'RD(bra)'. Fitch has also affirmed
USJ's senior unsecured notes due 2019 (USD8.7 million) and 2021
(USD3.9 million) at 'C'/'RR6' and USJ's senior secured notes due
2023 (USD272 million) at 'C'/'RR4'. Simultaneously, Fitch has
withdrawn the ratings.
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C A Y M A N I S L A N D S
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BCP VII JADE: Moody's Affirms B3 CFR & Alters Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed BCP VII Jade Holdco (Cayman)
Ltd's (Cerdia or the company) corporate family rating at B3 and its
probability of default rating at B3-PD. Concurrently, Moody's has
affirmed at B3 the outstanding equivalent $595 million of senior
secured term loans B due in May 2023 (split in a $ and EUR tranche)
and also has assigned the B3 rating to EUR65 million senior secured
first-lien revolving credit facility due in May 2023 raised by Jade
Germany GmbH, a direct subsidiary of Cerdia. The outlook of both
entities has been changed to stable from negative.
"The stabilization of the outlook on all of Cerdia's ratings
reflects the maturity extension of its EUR65 million RCF maturity
to May 2023 from previously May 2022 and relatively good operating
performance in H1 2021." said Janko Lukac, Moody's Vice President
and Senior Analyst. "At the same time Cerdia's very high albeit
declining Moody's adj. leverage of about 7.0x gross debt/EBITDA
expected by Moody's for year end 2021 and the structurally
declining end market for tobacco position the rating weakly in the
B3 rating category." The rating factors in the expectation that the
2023 debt maturities will be proactively addressed well in
advance.
RATINGS RATIONALE
The B3 CFR reflects the company's (i) established position in the
global but small filter tow industry, which is consolidated and
protected by high entry barriers; (ii) vertically integrated
business model, with in-house production of flakes required to
manufacture filter tows; (iii) highly predictable end user tobacco
market, with good revenue visibility based on multi-year customer
contracts; and (iv) high company adjusted EBITDA margins of around
25% in 2020 and low capex requirements, translating into solid free
cash flows.
These positives are balanced by the company's (i) small size, with
2020 revenues of $473 million, and very narrow product portfolio
focused on filter tow and acetate flakes, which supply an end
market that is in a structural decline (tobacco); (ii) high
customer concentration, with top four key accounts representing
c.61% of Cerdia's volumes; (iii) high operational concentration,
given most of filter tow is produced at the Freiburg site in
Germany; (iv) the industry's inherent exposure to price pressure in
future, as a result of the consolidated structure of the customer
base and the ongoing secular decline in volumes and (v) the
company's highly leveraged capital structure and upcoming
refinancing needs in 2023.
RATIONALE FOR THE OUTLOOK
The outlook change to stable reflects the maturity extention of
Cerdia's RCF to May 2023, on which the company is reliant to
finance swings in its working capital and cash outflows due to the
closure of its Rousillon facility in France. The amendment provides
Cerdia with additional time to work on the refinancing of its
capital structure as its senior secured term loan B matures in May
2023. Furthermore, it considers Cerdia's high leverage at 8.1x by
end of June 2021 which Moody's expects to decline and to remain
below 7.0x throughout the next 12 -18 months, mainly driven by
material cost savings from the closure of its Roussillon facility
in 2020. In Moody's view Cerdia will need to continuously improve
efficiency in order to offset cost inflation and pressure on its
global tobacco end market where cigarettes volumes decline by more
than 2% annually.
At the same time, Moody's notes that Cerdia is the smallest
competitor in an oligopolistic and structurally declining industry.
Hence, it might be difficult for Cerdia to remain cost competitive
in the future given its lower economies of scale compared to its
competitors as it only operates four plants and has already
achieved material cost reductions over the past three years.
LIQUIDITY
Cerdia's liquidity is adequate, with $33 million cash on balance
sheet at end of June 2021 and taking into account that its EUR65
million (equivalent of $77 million) RCF, of which about $8.4
million are drawn by end of June 2021, comes due in May 2023. For
2021, Moody's expects about EUR5 million - EUR10 million of
negative free cash flow. Moody's have assumed $32 million cash out
due to the Roussillon closure, capex of $27 million and broadly
stable working capital. Moody's does not anticipate any dividend or
other distributions to shareholders throughout the rating horizon.
The RCF has a springing net leverage financial maintenance covenant
of 5.8x, only tested if the facility is utilized for more than 35%
(excluding letter of credits). Moody's expect Cerdia to remain in
compliance with its covenant, if it were be tested until the RCF
matures in May 2023.
ESG CONSIDERATIONS
Moody's consider Cerdia's end market exposure to the tobacco
industry as a social risk, including potential regulatory changes
that could reduce demand for cigarettes and, therefore, filter
tows, as well as the risk related to the ability and willingness of
that and financial investors to refinance its debt maturities when
due. Furthermore, Moody's notice that a large part of Cerdia's
workforce is unionized, which could affect the company's ability to
further restructure its cost base.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Although an upgrade is unlikely given the exposure of the company
to a market in structural decline, positive rating pressure could
materialize if Cerdia: (i) meaningfully diversifies its product
offering; (ii) reduces leverage to well below 6.0x adj. debt/EBITDA
on a sustained basis; and (iii) improves its liquidity by
refinancing its RCF and long term debt well ahead of maturity.
Downgrade pressure on the rating could arise if the cost saving
program fails to offset the decline in volumes and prices as
evidenced by (i) EBITDA margins declining below twenties (ii),
leverage not declining below 7.0x adj. debt / EBITDA over the next
12- 18 months, (iii) a weakening of the group's liquidity as
evidenced by negative free cash flows, a weakening under the
covenant headroom or an unsuccessful refinancing of the senior
secured term loan B and RCF one year ahead of its maturity.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Manufacturing
Methodology published in March 2020.
COMPANY PROFILE
Cerdia is a leading supplier of cellulose acetate filter tow, a
critical component used by tobacco companies for cigarette filters,
with net sales of $473 million in 2020. Acetate filter tow
represented more than 93% of 2020 revenues, with the rest split
between acetate flakes mainly used for cigarette filters (2%) and
sale from other products and services (6%). Cerdia's four plants
are located in Germany, Russia, Brazil and the US. The company was
spun-off rom Solvay SA (Baa2 stable), which sold it to private
equity fund Blackstone via an LBO deal 2017.
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P U E R T O R I C O
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ALEX AND ANI: Unsecured Creditors to Recover 0% in Joint Plan
-------------------------------------------------------------
Alex and Ani, LLC and its Debtor Affiliates submitted a Disclosure
Statement for the First Amended Joint Plan of Reorganization dated
August 23, 2021.
The Plan contemplates a restructuring of the Debtors through either
(a) the implementation of a stand-alone restructuring (the
"Stand-Alone Restructuring") or (b) an orderly sale of all or
substantially all of the Debtors' assets via a Sale Transaction.
Class 2 consists of Other Priority Claims with $466,249 amount of
claims and 100% estimated recovery. Each holder of an Allowed Other
Priority Claim will receive payment in full in Cash of such
holder's Allowed Other Priority Claim or such other treatment in a
manner consistent with section 1129(a)(9) of the Bankruptcy Code.
Class 3 consists of Secured Credit Facility Secured Claims with
$127,812,649 amount of claims and with 44.67 - 52.26% estimated
recovery. Each holder of an Allowed Secured Credit Facility Secured
Claim will receive its Pro Rata share of: (i) if the Stand-Alone
Restructuring is consummated, 100 percent of the New Common Equity;
or (ii)if the Sale Transaction is consummated, the Sale Proceeds
Recovery.
Class 4 consists of Go-Forward Vendor Claims with $1,274,385 amount
of claims and with 19.62% estimated recovery. Each holder of an
Allowed Go-Forward Vendor Claim shall receive its Pro Rata share of
the Go-Forward Vendor Claim Recovery.
Class 5 consists of General Unsecured Claims with $24,974,714 -
176,150,476 amount of claims and with 0 - 0% estimated recovery.
Each holder of an Allowed General Unsecured Claim shall receive a
complete waiver and release of any and all claims, Causes of
Action, and other rights against the holders of Allowed Class 5
Claims based on claims pursuant to chapter 5 of the Bankruptcy Code
or under similar or related state or federal statutes and common
law including fraudulent transfer laws from the Debtors, the
Reorganized Debtors, and their Estates, in each case on behalf of
themselves and their respective successors, assigns, and
representatives, and any and all other entities who may purport to
assert any Cause of Action, directly or derivatively, by, through,
for, or because of the foregoing entities, subject to and in
accordance with Article VIII of the Plan (such treatment, the
"General Unsecured Claims Treatment").
If the Stand-Alone Restructuring occurs, the Plan and distributions
will be funded by the following sources of Cash and consideration:
(a) Cash on hand, (b) the issuance and distribution of New Common
Equity, (c) proceeds from the Exit Facility, and (d) proceeds from
all Causes of Action not settled, released, discharged, enjoined,
or exculpated under the Plan or otherwise on or prior to the
Effective Date.
If the Sale Transaction occurs, the Plan and distributions
thereunder will be funded by the following sources of Cash and
consideration: (a) Cash on hand; and (b) the Sale Proceeds.
September 7, 2021 at 10:00 a.m. is the date at which the Debtors
will conduct an Auction. September 14, 2021 at 4:00 p.m. is the
deadline by which objections to the Sale Transaction must be filed.
September 22, 2021 at 1:00 p.m. is the hearing at which the Court
will consider approval of the Sale Transaction.
The Debtors recommend that all holders of Claims entitled to vote
accept the Plan by returning their ballots no later than September
14, 2021, at 4:00 p.m.
The Bankruptcy Court has scheduled the Confirmation Hearing for
September 22, 2021, at 1:00 p.m. Objections to Confirmation of the
Plan must be filed and served no later than September 14, 2021, at
4:00 p.m.
A full-text copy of the Disclosure Statement dated Aug. 23, 2021,
is available at https://bit.ly/2XLxCZX from Kurtzman Carson
Consultants LLC, the claims agent.
Proposed Co-Counsel to the Debtors:
Joshua A. Sussberg, P.C.
Allyson B. Smith
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
- and -
Alexandra Schwarzman
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, Illinois 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
- and -
Domenic E. Pacitti
Michael W. Yurkewicz
KLEHR HARRISON HARVEY BRANZBURG LLP
919 North Market Street, Suite 1000
Wilmington, Delaware 19801
Telephone: (302) 426-1189
Facsimile: (302) 426-9193
-and-
Facsimile: (302) 426-9193
KLEHR HARRISON HARVEY BRANZBURG LLP
1835 Market Street, Suite 1400
Philadelphia, Pennsylvania 19103
Telephone: (215) 569-3007
Facsimile: (215) 568-6603
About Alex and Ani LLC
Founded in 2004 by Carolyn Rafaelian, Alex and Ani has become a
premier jewelry brand, quickly gaining popularity because of the
novel and customizable nature of its signature expandable wire
bracelet. Alex and Ani has been headquartered in East Greenwich,
Rhode Island since 2014. Since opening its first retail store in
Newport, Rhode Island in 2009, Alex and Ani has expanded to over
100 retail store locations across the United States, Canada, and
Puerto Rico. On the Web: HTTP://www.alexandani.com/
Alex and Ani LLC and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-10918) on June 9, 2021. In its
petition, Alex and Ani listed assets and liabilities of $100
million to $500 million each.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Klehr Harrison Harvey Branzburg LLP as local bankruptcy
counsel; and Portage Point Partners, LLC, as financial advisors and
investment bankers. Kurtzman Carson Consultants LLC is the notice
and claims agent.
L'OCCITANE INC: Court Confirms U.S. Affiliate's Chapter 11 Plan
---------------------------------------------------------------
Law360 reports that a New Jersey bankruptcy judge,
August 24, 2021, confirmed a Chapter 11 plan for the U.S. affiliate
of French cosmetics company L'Occitane that will allow the retailer
to continue operating with a smaller boutique footprint in response
to waning store traffic and surging online sales.
Citing sluggish store traffic compounded by the COVID-19 pandemic,
the New York City-based debtor entered bankruptcy court Jan. 26
with 166 boutiques, and the plan will leave it with 133 stores
under reworked lease terms, court records show. The plan, confirmed
by U. S. Bankruptcy Judge Michael B. Kaplan, is funded by cash and
an unsecured exit loan.
About L'Occitane Inc.
New York-based L'Occitane, Inc. -- http://www.loccitane.com/-- is
a national retail chain that sells and promotes the internationally
renowned "L'OCCITANE en Provence" beauty and well-being products
brand in the United States through boutiques in 36 states and its
website. After opening its first boutique in the U.S. in 1996, the
Company presently operates 166 boutiques in 36 states and Puerto
Rico.
Founded by Olivier Baussan more than 40 years ago,
Switzerland-based L'OCCITANE en Provence captures the true art de
vivre of Provence, offering a sensorial immersion in the natural
beauty and lifestyle of the South of France. From the texture of
L'OCCITANE products to the scent, each skincare, body care, and
fragrance formula promises pleasure through beauty and well-being
-- a moment rich in enjoyment and discovery that goes beyond
tangible benefits to create a different experience of Provence.
On Jan. 26, 2021, L'Occitane, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 21-10632). The Debtor estimated $100
million to $500 million in assets and liabilities as of the
bankruptcy filing. International operations are not part of the
Chapter 11 filing.
The Hon. Michael B. Kaplan is the case judge.
Fox Rothschild LLP is serving as the Company's legal counsel, RK
Consultants LLC is serving as financial advisor, and Hilco Real
Estate, LLC is serving as real estate advisor to the Company.
Stretto is the claims agent, maintaining the page
https://cases.stretto.com/LOccitane
L'OCCITANE INC: Exiting Chapter 11 by End of August
---------------------------------------------------
L'Occitane, Inc., a leading retailer in the U.S. of beauty and
well-being products rich in natural and organic ingredients that
preserves and celebrates the traditions of Provence, announced Aug.
25, 2021, that it has successfully completed the restructuring of
its U.S. lease portfolio, creating a sustainable store platform for
the long term. The optimized footprint includes 133 L'OCCITANE en
Provence boutiques, providing the Company with a robust, go-forward
brick-and-mortar presence to best serve customers across multiple
channels.
The Company [on Aug. 25] received approval of its Plan of
Reorganization from the United States Bankruptcy Court for the
District of New Jersey, positioning L'Occitane to emerge at month's
end from the Chapter 11 process commenced in January to implement
the store footprint optimization. Jointly proposed by the Company
and the official committee of its unsecured creditors, the Plan
provides for full recovery on the allowed claims of all creditors.
"Today's achievement is an exciting and important step for the
continued success of the iconic L'OCCITANE en Provence brand in the
U.S.," said Yann Tanini, Managing Director of L'Occitane North
America. "With our boutique footprint now right-sized, we are in a
strong position to continue delivering the extraordinary L'OCCITANE
beauty experience and one-of-a-kind products that our customers
know and love. We thank our employees, customers, suppliers, and
landlords for their support, collaboration, and trust, enabling us
to move through this process efficiently and reach this positive
outcome."
Mr. Tanini added, "As we advanced our restructuring process, our
team has remained focused on enhancing our offerings for our loyal
clients, finding new, innovative ways to connect one-on-one,
leverage technology, and further expand the personalized, inclusive
service that is a hallmark of our culture. We also have continued
our efforts to make beauty more sustainable and eco-conscious, true
to our brand's heritage and our long-standing commitment to making
a favorable impact in our communities. Altogether, these
transformational steps have best prepared our business to thrive
for years to come, and we are thrilled about the opportunitie
ahead."
Additional information about L'Occitane's lease portfolio
restructuring, including Court filings, is available at
https://cases.stretto.com/LOccitane.
About L'Occitane Inc.
New York-based L'Occitane, Inc. -- http://www.loccitane.com/-- is
a national retail chain that sells and promotes the internationally
renowned "L'OCCITANE en Provence" beauty and well-being products
brand in the United States through boutiques in 36 states and its
website. After opening its first boutique in the U.S. in 1996, the
Company presently operates 166 boutiques in 36 states and Puerto
Rico.
Founded by Olivier Baussan more than 40 years ago,
Switzerland-based L'OCCITANE en Provence captures the true art de
vivre of Provence, offering a sensorial immersion in the natural
beauty and lifestyle of the South of France. From the texture of
L'OCCITANE products to the scent, each skincare, body care, and
fragrance formula promises pleasure through beauty and well-being
-- a moment rich in enjoyment and discovery that goes beyond
tangible benefits to create a different experience of Provence.
On Jan. 26, 2021, L'Occitane, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 21-10632). The Debtor estimated $100
million to $500 million in assets and liabilities as of the
bankruptcy filing. International operations are not part of the
Chapter 11 filing.
The Hon. Michael B. Kaplan is the case judge.
Fox Rothschild LLP is serving as the Company's legal counsel, RK
Consultants LLC is serving as financial advisor, and Hilco Real
Estate, LLC is serving as real estate advisor to the Company.
Stretto is the claims agent, maintaining the page
https://cases.stretto.com/LOccitane
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CARIBBEAN CEMENT: Forms Committee to Develop Dividend Policy
------------------------------------------------------------
RJR News reports that Caribbean Cement Company Limited has formed a
committee that is mandated to develop a dividend policy for the
company to pay out dividends to shareholders.
Shareholders will be asked to approve the policy in a vote once it
is drafted, according to RJR News.
No timelines were specified.
Caribbean Cement has faced criticism in the past from shareholders,
who have cited the inequity of the company paying out monies to
parent company Trinidad Cement Limited through an operating lease
arrangement, while minority owners got no returns via dividends,
the report notes.
About Caribbean Airlines
Caribbean Airlines Limited - http://www.caribbean-airlines.com/-
provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic. The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since
May 2020. In September 2020, the airline related it will be taking
cost-cutting measures to help keep it afloat. The measures, which
was to affect some 1,700 employees, included salary deductions,
no-pay leaves and lay-offs.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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