TSL Express Daily News
The Secured Lender
SFNet's 80th Annual Convention Issue
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Top 5 Apps for Organizing
Mar 7, 2019If you’re like most of us, we try to stay organized in business and life, but it gets increasingly complicated…
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The Importance of Stretching
Mar 7, 2019Every personal trainer and athletic coach I have ever worked with has stressed the importance of stretching. When working out…
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SFNet's 40 Under 40 Award Winners Panel Recap
Mar 6, 2019Moderator: Samantha Alexander, regional underwriting manager, Wells Fargo Capital Finance’s Corporate Asset Based Lending group and 2016 CFA 40 Under…
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SFNet's Inaugural YoPro Leadership Summit
Mar 6, 2019The Secured Finance Network brought together the next generation of commercial finance leaders for a full day of learning and…
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It’s a Marathon, Not a Sprint
Aug 22, 2018I was recently invited to participate in an executive panel to answer questions from a credit training class comprised of...
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It’s Not Too Late – Five Member Benefits to Cash In On Now
Aug 1, 2018As we hit the half way mark on calendar year 2018, it is a good time to take stock and…
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It’s Time To Break Up With Your Phone
Jul 18, 2018Do I have your attention? Let’s be honest here: do you have the attention span to read this article? Compared…
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Lien Management – What You Need to Know
Jun 6, 2018UCC filing is the cornerstone of all loans and every lien portfolio...
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Potential Impacts of Blockchain on Commercial Lending
Jan 15, 2018By Raja Sengupta, Executive Vice President and General Manager, Wolters Kluwer’s Lien Solutions When it comes to the rising importance…
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How to be a Good Leader
Dec 5, 2017I know what you’re thinking…another article about how to be a good leader? The short answer is yes…but this time,…
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Fintech and Due Diligence – Disruptors and Established Firms Evolve
Oct 30, 2017The fintech sector has gone through a number of manifestations in the past two decades.
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A Commercial Banker’s Tickler Transition Plan
Oct 18, 2017Just do a keyword search for “bank tickler,” and you’ll quickly realize that banks are still heavily reliant on manual…
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Understanding and Developing Your Personal Brand: Four Steps to a More Intentional Career Progression
Sep 5, 2017It is imperative for individuals to have a general idea about their future career aspirations, just as companies should have clearly defined strategies.
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Selecting a Technology Vendor: 3 Questions to Ask
Jul 5, 2017As with anything else at your bank, selecting a technology vendor can be a challenging decision. Users from across different…
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Why Back-Office Lending Automation Enhances Customer Satisfaction
Apr 25, 2017Every bank strives to keep its customers happy. Of course, some institutions are better at achieving this goal than…
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The Lost Art of the Loan Purchase
Mar 2, 2017Purchasing a loan directly from a bank whether at par or discount is a not-often-used technique that is easily…
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Audit Prep: Why a Paperless Approach Makes Sense
Feb 15, 2017How much time does your financial institution spend preparing for audits? We recently surveyed 187 community banks, and the results…
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Back Office Support Services: Helping you approve more clients
Feb 7, 2017How many times have you come across a potential client who’s financials are either not up to date, not accurate,…
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“All Assets” is the Key When Drafting UCC-1 Financing Statement Collateral Descriptions
Jan 30, 2017Even when prepared by outside or in-house counsel, many lenders pay close attention to draft UCC financing statements before they…
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Paper Loan Files: Does Your Bank Know the True Cost?
Jan 12, 2017Sure, there’s a tangible cost associated with deploying an electronic loan imaging system. Software, support, and scanning hardware are just…
November 25, 2024
Source: Businesswire
Enters into Restructuring Support Agreement to significantly reinforce financial foundation through elimination of approximately $1.9 billion of debt and infusion of approximately $200 million of new equity capital at exit
Files voluntary petitions for prearranged Chapter 11 cases to effectuate value-maximizing transaction
Secures commitment for approximately $300 million of debtor-in-possession financing including $150 million of new money to maintain full continuity of operations throughout the process and accelerate the Company’s growth trajectory
November 22, 2024 01:25 PM Eastern Standard Time
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--H-Food Holdings LLC and certain of its affiliates (“Hearthside” or the “Company”), a leading food contract manufacturer, today announced that it has entered into a global Restructuring Support Agreement (“RSA”) with its key stakeholders that will right size the balance sheet, infuse the business with significant equity capital, and position the Company for significant long-term growth. To consummate the transactions contemplated under the RSA, the Company has filed voluntary petitions for prearranged Chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas (the “Court”).
This restructuring will allow Hearthside to eliminate more than $1.9 billion of its debt and secure $200 million of new equity capital at exit, which will position Hearthside to best serve its customer base and position it for long-term growth.
“Today’s announcement marks an incredibly important step forward for Hearthside, our valued customers, and our dedicated team as we continue to transform our business for the future,” said Darlene Nicosia, Chief Executive Officer of Hearthside. “With a sustainable capital structure and a significant infusion of new capital to fund our long-term plan, we will be well-equipped to enhance our leadership in the food manufacturing industry as we drive continued innovation and growth. We have taken decisive action across our company to put our past challenges behind us, and are encouraged by the improvement we have already seen in our employee engagement, organizational culture, and ability to deliver best-in-class, quality products and services that our customers can depend on.”
Importantly, the Company enters this process with widespread support throughout its capital structure, including significant majorities of its first lien lenders, second lien lenders, and unsecured noteholders, as well as its equity holders. Hearthside has filed a number of customary “First Day Motions” with the Court to facilitate a smooth transition into Chapter 11 and operate without disruption during the process, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring obligations to vendors.
To fund operations without disruption during the Chapter 11 cases, Hearthside has filed a motion seeking approval of $300 million of debtor-in-possession (“DIP”) financing, including $150 million of new money from existing lenders. Following Court approval, the Company anticipates this financing will provide ample liquidity to support its operations during the Chapter 11 process.
The Company intends to move through this process quickly and emerge from Chapter 11 in the first quarter of 2025. The Company’s Interbake Canada operations are not part of the Chapter 11 filing.
Additional information regarding the Chapter 11 process is available at https://cases.ra.kroll.com/HFS. Stakeholders with questions can contact the Company’s claims agent, Kroll, by calling (888) 510-7189 (U.S. and Canada toll free) or +1 (646) 937-7810 (International) or emailing HFSinfo@ra.kroll.com.
Advisors
Ropes & Gray LLP and Porter Hedges LLP are serving as legal advisors, Evercore Group L.L.C. is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company.
About Hearthside
Headquartered in Downers Grove, Illinois, Hearthside Food Solutions is the leading contract manufacturer and producer of baked foods, snacks, and nutrition bars, and a full-service provider of food packaging services for many of the world’s premier brands. The company is also the industry’s largest private bakery. Hearthside’s production network includes 28 facilities, with a workforce of approximately 12,100. In 2018 Hearthside was acquired by Charlesbank Capital Partners and Partners Group. For more information on Hearthside Food Solutions, please visit www.hearthsidefoods.com.
Contacts
Media
C Street Advisory Group
Hearthside@thecstreet.com
Files voluntary petitions for prearranged Chapter 11 cases to effectuate value-maximizing transaction
Secures commitment for approximately $300 million of debtor-in-possession financing including $150 million of new money to maintain full continuity of operations throughout the process and accelerate the Company’s growth trajectory
November 22, 2024 01:25 PM Eastern Standard Time
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--H-Food Holdings LLC and certain of its affiliates (“Hearthside” or the “Company”), a leading food contract manufacturer, today announced that it has entered into a global Restructuring Support Agreement (“RSA”) with its key stakeholders that will right size the balance sheet, infuse the business with significant equity capital, and position the Company for significant long-term growth. To consummate the transactions contemplated under the RSA, the Company has filed voluntary petitions for prearranged Chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas (the “Court”).
This restructuring will allow Hearthside to eliminate more than $1.9 billion of its debt and secure $200 million of new equity capital at exit, which will position Hearthside to best serve its customer base and position it for long-term growth.
“Today’s announcement marks an incredibly important step forward for Hearthside, our valued customers, and our dedicated team as we continue to transform our business for the future,” said Darlene Nicosia, Chief Executive Officer of Hearthside. “With a sustainable capital structure and a significant infusion of new capital to fund our long-term plan, we will be well-equipped to enhance our leadership in the food manufacturing industry as we drive continued innovation and growth. We have taken decisive action across our company to put our past challenges behind us, and are encouraged by the improvement we have already seen in our employee engagement, organizational culture, and ability to deliver best-in-class, quality products and services that our customers can depend on.”
Importantly, the Company enters this process with widespread support throughout its capital structure, including significant majorities of its first lien lenders, second lien lenders, and unsecured noteholders, as well as its equity holders. Hearthside has filed a number of customary “First Day Motions” with the Court to facilitate a smooth transition into Chapter 11 and operate without disruption during the process, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring obligations to vendors.
To fund operations without disruption during the Chapter 11 cases, Hearthside has filed a motion seeking approval of $300 million of debtor-in-possession (“DIP”) financing, including $150 million of new money from existing lenders. Following Court approval, the Company anticipates this financing will provide ample liquidity to support its operations during the Chapter 11 process.
The Company intends to move through this process quickly and emerge from Chapter 11 in the first quarter of 2025. The Company’s Interbake Canada operations are not part of the Chapter 11 filing.
Additional information regarding the Chapter 11 process is available at https://cases.ra.kroll.com/HFS. Stakeholders with questions can contact the Company’s claims agent, Kroll, by calling (888) 510-7189 (U.S. and Canada toll free) or +1 (646) 937-7810 (International) or emailing HFSinfo@ra.kroll.com.
Advisors
Ropes & Gray LLP and Porter Hedges LLP are serving as legal advisors, Evercore Group L.L.C. is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company.
About Hearthside
Headquartered in Downers Grove, Illinois, Hearthside Food Solutions is the leading contract manufacturer and producer of baked foods, snacks, and nutrition bars, and a full-service provider of food packaging services for many of the world’s premier brands. The company is also the industry’s largest private bakery. Hearthside’s production network includes 28 facilities, with a workforce of approximately 12,100. In 2018 Hearthside was acquired by Charlesbank Capital Partners and Partners Group. For more information on Hearthside Food Solutions, please visit www.hearthsidefoods.com.
Contacts
Media
C Street Advisory Group
Hearthside@thecstreet.com