Bondoro Insights: Weekly Docket Update

This Week's Key Filings

Reliz Technology Group Holdings Inc.

• Case Summary
  • BlockFills has filed for Chapter 11 bankruptcy following losses from counterparty defaults (Babel Finance, AEXA, Coinsource), an adverse Celsius arbitration outcome, failed mining investments, a February 2026 crypto market crash that triggered withdrawal suspensions, and customer lawsuits with TROs that restricted operations, after out-of-court recapitalization efforts failed.

The Lycra Company LLC

• Case Summary
  • The LYCRA Company has filed for Chapter 11 bankruptcy following prolonged industry headwinds including weakened spandex demand, intensified competition from low-cost Asian manufacturers, compressed margins, an unsustainable take-or-pay supply agreement with HELM, and ongoing litigation risks in China stemming from alleged asset transfers by former shareholder Ruyi, pursuing a comprehensive balance sheet restructuring that will deleverage approximately $1.2 billion in funded debt obligations backed by $75 million in DIP financing from existing lenders.
• DIP Terms
  • The Lycra Company seeks interim approval for a $75 million super-priority DIP facility, structured as delayed-draw notes with $50 million available on interim approval and $25 million on final approval, carrying 9% PIK interest (increasing to 14% upon maturity extension), paired with a 9% equity warrant commitment premium and $10 million exit premium.
• Plan Terms
  • LYCRA Company's prepackaged Chapter 11 plan executes a comprehensive restructuring backed by an ad hoc group, whereby existing ssTL lenders ($214 million) receive 95% in new secured notes plus majority equity ownership in a reorganized UK holdco, Euro noteholders (€449 million) obtain Class A2 and A3 warrants with capped upside, and Dollar noteholders ($780 million) receive Class B warrants participating in distributions above a $120 million threshold within the Class A pool and above $480 million in the Class B pool, all facilitated by an exit notes facility of not less than $75 million.

Baker & Taylor, LLC

• Case Summary
  • Baker & Taylor has filed for Chapter 11 bankruptcy following the collapse of a strategic sale, the impact of cyberattacks and pandemic-related setbacks, and mounting litigation, pursuing an orderly wind-down of remaining assets after retiring its secured debt through prepetition asset sales.

Avenger Flight Group, LLC

• DIP Terms
  • Avenger Flight Group obtained final approval for a $43.5 million super-priority DIP facility, comprised of $14.5 million in new money and a $29 million roll-up of prepetition term loan debt with a 90-day outside maturity tied to a court-supervised asset sale process.
• Bidding Procedures Summary
  • Avenger Flight Group obtained approval of bidding procedures for a sale of substantially all assets to stalking horse bidder AFG Topco LP (an affiliate of the DIP and prepetition term loan lenders with credit bid rights), establishing a March 27 bid deadline and April 2 auction with a $500,000 minimum overbid increment, ahead of an April 7 sale hearing and April 12 closing deadline.

S & H Systems, Inc.

• DIP Terms
  • S&H Systems obtained final approval to continue post-petition financing through an existing account purchase facility with Corporate Billing (SouthState Bank), whereby advances are made against eligible accounts securing approximately $20.9 million in rolled-up prepetition debt, subject to a $400,000 professional fee carve-out and monthly budget variance monitoring with automatic termination upon variances exceeding 10% or negative cash flow projections.

Hronis, Inc.

• DIP Terms
  • Hronis obtained interim approval for a $22.3 million super-priority DIP facility from Conterra Agricultural Capital, with $10 million available on an interim basis and the balance available upon final order approval, to fund working capital and a potential sale process through a July 1, 2026 maturity date, granting the lender credit bid rights on the DIP obligations and requiring cash repayment of approximately $149 million in prepetition secured debt upon any credit bid closing.

Sailormen, Inc.

• Bidding Procedures Summary
  • Sailormen filed a motion to establish bidding procedures for a sale of substantially all assets, including 119 Popeyes Louisiana Kitchen restaurants in Florida and Georgia, authorizing the designation of a stalking horse bidder by June 1 with 2.5% break-up fee protection ahead of a June 15 auction, with qualified bids due June 11 and closing required by June 30.

Francesca's Acquisition, LLC

• APA Summary
  • Francesca's obtained approval to sell intellectual property assets including trademarks, copyrights, and customer data to Stand Out For Good for $7 million in cash, with the stalking horse bidder protected by a $210,000 break-up fee (3% of purchase price) and $150,000 expense reimbursement.

First Brands Group, LLC

• APA Summary
  • First Brands Group Holdings obtained approval to sell its Walbro business assets—including equity interests in Walbro Los Mochis and substantially all assets used in the development, manufacture, and distribution of small engine fuel systems and carburetors—to Overdrive Capital for $50 million in cash plus assumed liabilities, with Polaris Industries guaranteeing buyer payment obligations and the transfer clearing all claims, liens, encumbrances, and interests except those specifically assumed by the purchaser.

Rizo-Lopez Foods, Inc.

• APA Summary
  • Rizo-López Foods filed a motion to sell substantially all assets to Francisco Foods (a joint venture 60% owned by Valley Milk and 40% owned by entities controlled by insiders Edwin and Ivan Rizo) for $35 million in aggregate consideration—including $14.2 million cash, $5.3 million in assumed liabilities, and $15.6 million in waived prepetition claims by the Rizo parties—following a two-year marketing process, with the transaction structured to pay all secured, administrative, and priority claims in full while delivering $1 million to general unsecured creditors through the subordination of postpetition lease obligations owed to Rizo-affiliated lessors.

FAT Brands Inc.

• Bidding Procedures Summary
  • FAT Brands filed a motion to establish bidding procedures for a sale of any or all assets, proposing an April 24 bid deadline and April 28 auction overseen by a Special Committee, with the process permitting credit bids from DIP lenders and prepetition secured parties and potential stalking horse bidder designation subject to separate court approval of bid protections.

Eddie Bauer LLC

• Agency Agreement Summary
  • Eddie Bauer obtained approval to assume an agency agreement with Hilco Merchant Resources and SB360 Capital Partners to conduct store closing sales at 177 locations (40 initial stores) through April 30, 2026, with the agent earning a 2.0% base fee on merchandise sold plus additional incentive compensation based on gross recovery thresholds and a 17.5% commission on FF&E sales, all free and clear of liens with proceeds subject to existing encumbrances.
• Plan Terms
  • Eddie Bauer's plan centers on winding down operations and distributing net proceeds to ABL lenders, whereby general unsecured creditors—owed an estimated $100 million—receive a contingent recovery pool equal to the greater of $250,000 or 10% of proceeds above a 60% inventory-based threshold, though the official committee urges rejection citing inadequate value for unencumbered assets including avoidance actions while negotiations continue for improved treatment.

Spirit Aviation Holdings, Inc.

• Bidding Procedures Summary
  • Spirit Airlines obtained approval of bidding procedures for the sale of 20 Airbus A320 and A321 aircraft for an aggregate stalking horse bid of $533.5 million from CSDS Asset Management, establishing a March 25 potential bid package deadline, an April 1 qualified bid deadline requiring overbids of at least $1 million above the purchase price plus $18.5 million in bid protections, and an April 20 auction ahead of an April 23 sale hearing, with the debtor retaining the right to pursue enterprise sale proposals that would trigger payment of the bid protections and cancellation of the auction.
• Plan Terms
  • Spirit Aviation Holdings' prearranged Chapter 11 plan, backed by a restructuring support agreement with consenting DIP lenders dated March 13, 2026, facilitates a going-concern reorganization whereby prepetition secured noteholders receive a 2% equity stake (subject to management incentive plan dilution) while DIP lenders receive exit secured loans and equitization of rolled-up DIP claims, with comprehensive third-party releases granted to consenting stakeholders who do not opt out via ballot.

Razzoo's, Inc.

• Plan Terms
  • Razzoo's plan centers on a credit-bid sale of substantially all assets to DIP lender Thirty Three 97 LLC for approximately $18.8 million, whereby the transaction fully satisfied the rolled-up prepetition First Horizon Bank debt and $4 million DIP facility, with unsecured creditor recoveries channeled through a liquidating trust seeded with remaining assets and avoidance actions preserved against insiders and preference transferees identified in the debtors' statements of financial affairs.

GST, Inc.

• Plan Terms
  • GST's Chapter 11 plan advances a restructuring facilitated by a new value contribution, whereby critical athletes and vendors accepting the plan receive approximately 85% cash recoveries while the prepetition secured lender's claim is reinstated at a substantially reduced amount tied to exit financing, with dissenting or opt-out creditors channeled into a general unsecured claim fund for pro rata distributions.

STG Logistics, Inc.

• Plan Terms
  • STG Logistics' restructuring support agreement with its consenting first-out and second-out lenders contemplates either a going-concern recapitalization backed by $100 million in take-back term loans and a new revolving credit facility, whereby FLFO term lenders receive 78–86% of reorganized equity and DIP lenders receive 11.5–19.2% (varying inversely based on incremental DIP funding), while second-out lenders capture 2.5% and third-out lenders receive nothing, or alternatively a sale of all or substantially all assets (including via credit bid).

About Bondoro Insights Summaries

Our goal with Bondoro Insights is to provide you with faster, broader coverage on active Chapter 11 cases. These summaries are generated by Bondoro's proprietary AI, tuned on our historical coverage and validated against source filings. While accuracy is a priority, they are intended for immediate informational purposes, may contain errors, and are not a substitute for professional or legal advice. Please refer to the source filings for definitive information.

This AI-powered coverage is designed to supplement our comprehensive, analyst-written case summaries.

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