Bondoro Insights: Weekly Docket Update

This Week's Key Filings

Karyopharm Therapeutics Inc.

• Case Summary
  • Karyopharm Therapeutics filed for Chapter 11 after missing payments on its term loan and second-lien notes, part of approximately $390 million of secured funded debt. The company attributes its distress to revenue that never covered its operations, research and debt service, and to 2026 Phase 3 readouts that fell short of expectations. It is pursuing a prepackaged plan to combine with Ayrmid, the parent of Gamida Cell, under which its funded-debt creditors would receive a majority of the combined company's equity, subject to a court-supervised market test. The plan has the support of all its funded-debt creditors, and the cases would be funded by a proposed DIP facility of up to $110 million from its first lien lenders, including $55 million of new money.
• Plan Terms
  • Karyopharm's prepackaged plan contemplates a merger with Ayrmid. Holders of DIP roll-up, 1L term loan, and 1.5L and 2L secured notes claims, plus any DIP new money claims not repaid in cash, will receive 100% of reorganized equity, to be exchanged in the merger for 55.0% of the combined NewCo, subject to dilution, plus contingent value rights. NewCo will take an up to $135.0 million exit term loan, refinancing up to $50.0 million of DIP new money claims. Approximately $113.5 million in revenue interest financing claims will convert into a five-year, 3.0% unsecured royalty on selinexor net revenues. General unsecured claims are unimpaired and existing equity is canceled. With required funded debt party consent (and royalty investor consent where the RSA requires it), the Debtors may instead pursue a sale if the winning bid provides at least approximately $335.4 million in net proceeds at closing, pays any bid protections in cash and funds the wind-down budget.
• DIP Terms
  • Karyopharm Therapeutics filed a motion seeking approval of an up to $110 million superpriority priming DIP term loan facility from participating prepetition first lien lenders, made up of $55 million of first-out new money, split between a $25 million initial draw upon interim approval and a $30 million delayed draw upon final approval, and up to $55 million of second-out loans rolling up prepetition first lien debt on a dollar-for-dollar basis. The new money and roll-up loans carry SOFR+9% and SOFR+12.25% PIK interest, respectively, subject to a 3% SOFR floor, and mature no later than May 1, 2027.
• Bidding Procedures Summary
  • Karyopharm Therapeutics filed an emergency motion seeking approval of bidding procedures for a potential sale of all or substantially all of its assets, with the Ayrmid merger as the stalking horse bid. Ayrmid is majority-owned by funds managed by Highbridge, which also holds first lien term loans and 2028 and 2029 notes and is a member of the ad hoc group of lenders and noteholders. To qualify, a competing bid must provide at least $335.4 million in net proceeds, pay general unsecured claims in full, cover Ayrmid's bid protections, and fund a wind-down budget. Under the proposed schedule, bids are due Dec. 16, with an auction on Dec. 21 if at least one qualified bid other than Ayrmid's is received; otherwise, the Ayrmid merger proceeds under the plan. At a Nov. 30 hearing, the Debtors will seek approval of a break-up fee of 3% of a $311.4 million base (approximately $9.3 million) and an expense reimbursement capped at 1% of that base.

Cerca Trova Restaurant Group Holdings, Inc.

• Case Summary
  • Cerca Trova Restaurant Group Holdings, Inc., which does business as Out West Restaurant Group, and four affiliates, which operate 61 Outback Steakhouse restaurants across five states, filed for Chapter 11 with approximately $319.9 million of secured obligations under a credit facility that matured unpaid in 2022, citing declining guest traffic and rising labor and food costs. The Debtors seek a going-concern sale of substantially all of their restaurant assets to their franchisor, a Bloomin' Brands subsidiary, under a stalking horse bid of $26.3 million in cash plus assumed liabilities, and would fund the sale process with cash collateral and a proposed interest-free DIP facility of up to $5.5 million from the franchisor.
• DIP Terms
  • Cerca Trova and its affiliated Debtors filed a motion seeking interim and final approval of a $5.5 million new-money, zero-interest revolving DIP facility from Outback Steakhouse of Florida, the stalking horse buyer, which with its affiliates is the Debtors' franchisor. The facility is a contingent liquidity backstop for a sale anchored by a $26.3 million cash purchase price, against approximately $319.9 million of prepetition secured debt. $2.5 million would be available upon entry of the interim order, draws are limited to shortfalls below a $2 million minimum liquidity amount, and the milestones call for a sale closing by Jan. 4, 2027.
• Bidding Procedures / APA Summary
  • Cerca Trova and its affiliated Debtors filed a motion to establish bidding procedures for a sale of substantially all of the restaurants' assets, with franchisor and proposed DIP lender Outback Steakhouse of Florida, a Bloomin' Brands affiliate, serving as stalking horse bidder for at least $26.3 million in cash plus assumed liabilities and cure costs, with a $790,000 break-up fee, ahead of a proposed Dec. 8 bid deadline, Dec. 11 auction and Dec. 15 sale hearing.

Redeemer Health

• Case Summary
  • Redeemer Health, a Catholic health care and social services system serving southeastern Pennsylvania and neighboring areas of New Jersey, and certain affiliates filed for Chapter 11 after lacking the liquidity to make a September 2026 bond payment. Holy Redeemer Hospital and its physician network have lost $31.6 million to $48.9 million a year over the past five years, losses the debtors attribute to the hospital's scale, competition from larger hospital systems and a declining local market. The debtors plan to sell or close the hospital and reorganize their post-acute and life care operations, funding the cases with their board-designated endowment, operating revenues and proposed use of cash collateral.

FuturHealth, Inc.

• Case Summary
  • FuturHealth, a direct-to-consumer weight-management platform, filed for Chapter 11 in Delaware citing liquidity strain from, among other causes, an iHeartMedia advertising agreement that failed to deliver expected returns; a shift away from compounded GLP-1 medications, partly driven by litigation with Novo Nordisk over the marketing of compounded semaglutide; and a suit by Goglia Nutrition, an entity partly owned by the Debtor's founders, that impaired its ability to raise capital, particularly after the district court denied the Debtor's motion to compel arbitration. The Debtor is pursuing a court-supervised sale while also evaluating a stand-alone reorganization, funded by a proposed DIP facility of up to $5 million from Twelve Bridge Capital.
• DIP Terms
  • FuturHealth filed a motion seeking interim and final approval of a $5 million new-money priming DIP facility from Twelve Bridge Capital, with $1.5 million available upon entry of the interim order and the remaining $3.5 million conditioned on the final order and an executed, lender-acceptable stalking-horse asset purchase agreement that remains in effect. The facility is priced at 14% PIK interest, a $500,000 commitment fee, a 5% funding fee on each draw and a 7% exit fee on outstanding principal plus capitalized PIK interest; under an Oct. 30 amendment, the second $250,000 of the commitment fee falls to $150,000 and the funding fee on later draws to 4% if a qualifying stalking-horse agreement is signed within 21 days of the petition date. The facility matures no later than 120 days after the petition date.

ZOM Holding, Inc.

• Case Summary
  • ZOM Holding, Inc., which does business as ZOM Living, and two subsidiaries filed Chapter 11 after a $308.6 million Arizona state-court judgment in favor of Gray Services and Gray Development over a non-circumvention agreement. ZOM Holding, Inc. is appealing the judgment, and Gray is seeking to enforce it in Florida. The Debtors plan a court-supervised sale of substantially all of their assets, with ZOM Holding, LP, ZOM Holding, Inc.'s prepetition secured lender, as the expected stalking horse bidder and proposed provider of a new-money DIP facility of up to approximately $6.5 million.
• DIP Terms
  • ZOM Holding, Inc. and its two debtor subsidiaries filed an emergency motion seeking interim and final approval of a $10.3 million priming DIP facility for ZOM Holding, Inc. from its prepetition secured lender, ZOM Holding, LP, with which it shares some indirect equityholders. The facility consists of $6.51 million of new money and a $3.83 million roll-up of prepetition secured debt upon entry of the final order. The new money includes a $5.01 million initial commitment, of which $1.53 million is available on an interim basis, and up to $1.5 million of incremental commitments reserved for debtor professional fees. The facility bears interest at Term SOFR plus 2.50% paid in kind and requires a sale of substantially all assets to be approved within 120 days and closed within 150 days of the petition date.

Cumberland Coal Corporation

• Bidding Procedures Summary
  • Cumberland Coal and co-debtor Cumberland Coal Investments obtained approval of bidding procedures to sell substantially all assets, designating DIP lender CC Reclaim as stalking horse bidder, without bid protections, on a credit bid of the DIP obligations plus assumed liabilities, under which it would take over the debtors' coal mining permits for reclamation and permit compliance. Competing bids are due Dec. 7, ahead of a Dec. 10 auction and Dec. 16 sale hearing, and must exceed the DIP obligations by at least $50,000 and, alone or combined with other bids, take all permits, meet reclamation bonding requirements and pay the DIP obligations in full in cash at closing.
• DIP Terms
  • Cumberland Coal obtained interim approval for a $1 million senior secured, all-new-money DIP facility from stalking horse bidder CC Reclaim. The facility was upsized by $200,000, from $800,000, and the amount available on an interim basis increased to $475,000, after the Debtors learned postpetition of an emergency issue with a turbine pump at the Osaka mine. The additional $200,000 is to be used under the budget as amended to include the pump repair, expected to cost $44,000 to $200,000. The DIP bears 8% interest, and sale milestones require an auction by Dec. 10 and sale consummation by Dec. 18.

FIHPNP LLC

• DIP Terms
  • The Brightline debtors received final approval of $257.7 million of 10% PIK senior secured DIP notes issued by their non-debtor operating company, Brightline Trains Florida, and provided by Assured Guaranty and members of three ad hoc creditor groups. The notes carry an 8% PIK commitment premium, mature no later than Sept. 24, 2027, and are supported by priming liens on debtor parent BLTF Holdings' pledged collateral and capped affiliate guarantees. Part of the DIP proceeds funds the repurchase in full of the prepetition 7.5% bridge notes, excluding their original issue discount.

Republic National Distributing Company, LLC

• Plan Terms
  • Republic National Distributing's confirmed liquidating plan vests estate assets in wind-down debtors run by a plan administrator and moves the D&O policies, avoidance actions and the estate's other unreleased litigation claims, other than the business-transaction and sale-related claims kept by the wind-down debtors, into a litigation trust. The DIP and prepetition lenders take 30% of trust recoveries until they are paid in full, counting their collateral proceeds, and the remainder goes to general unsecured creditors. The plan centers on an Equityholder Settlement with two equityholder groups, New BG Distribution Partners and the National Distributing Company entities, which also hold RNDC's second-lien loans. The groups pay $50.25 million in cash and waive their second-lien and certain deferred compensation claims, plus the New BG group's owner-note claims, in exchange for releases of claims not covered by D&O insurance. The plan also implements a Global Settlement with the DIP and prepetition lenders and the creditors' committee, which funds $20 million in cash to the trust for general unsecured creditors, comprising $5 million carved out of the equityholder payment and $15 million from the estate, outside the lenders' 30% share.

Vi-Jon, LLC

• Plan Terms
  • Vi-Jon's second amended plan of reorganization channels all present and future talc personal injury claims to a section 524(g) trust funded by a $30 million guaranteed cash contribution from non-debtor affiliate Emprise Group, 25% of which is allocated to a sub-trust for retailers' indirect talc claims. The trust will also receive a $1 million non-interest-bearing note from the reorganized debtor secured by 50.1% of its equity, talc insurance rights, and preserved claims arising from the 2020 ESOP transaction against the Berkshire Partners entities and John Brunner. In exchange for the $30 million trust contribution and a further $7 million to pay or reserve for administrative and professional claims and fund a $100,000 general unsecured creditor pool, Emprise and its affiliates will receive a material set of the debtor's assets and a release of all estate claims against them.

RiverStreet Communications of Virginia, Inc.

• Bidding Procedures Summary
  • RiverStreet Communications filed a motion to establish bidding procedures for the sale of substantially all their assets with a stalking horse bid from OCM RiverStreet Holdings, an entity formed by Oaktree Capital Management, of $92.5 million in cash plus assumed liabilities, with proposed bid protections of a $2.775 million break-up fee and up to $1.5 million in expense reimbursement, ahead of a proposed sale hearing no later than Dec. 21.

BFG Supply Co., LLC

• DIP Terms
  • BFG Supply Co. obtained final approval of a $55 million superpriority asset-based DIP facility agented by ACF FINCO I LP. The facility rolls up the approximately $43.1 million outstanding under the prepetition ABL revolver at the petition date, first through a creeping roll-up of collections and then through a cashless conversion of the remaining balance upon entry of the final order. The DIP liens remain junior to the Ares Capital-agented term loan on its priority collateral. The final order also incorporates a settlement resolving the committee's objections to the DIP and to the sales of the company's assets to Griffin Greenhouse Supplies, American Plant Products & Services, and GMS Supply. Under the settlement, proceeds from those sales will fund a $300,000 wind-down reserve to pursue a structured dismissal and an $896,000 reserve for Section 503(b)(9) claims, and the committee's challenge period was terminated, with the committee and all other parties deemed to have waived any challenge to the prepetition lenders' claims and liens.

Pacifica of the Valley Corporation

• Plan Terms
  • Pacifica of the Valley's Chapter 11 plan implements a global settlement with the creditors' committee and prepetition and DIP lender Axios Capital Solutions, and centers on a private Section 363 sale of substantially all of its assets, including its 231-bed safety-net hospital in Sun Valley, California, to an Axios designee via a credit bid of at least $40 million. Axios's remaining claims against the estate are capped at $15 million and recoverable solely through a tiered sharing waterfall with a liquidating trust. The trust is seeded with retained estate causes of action, D&O insurance claims, PGMC interests, certain excess HQAF revenue and at least $500,000 in cash, while any Axios claims above the cap are assumed by the designee. The trust's share of net proceeds is split one-third to priority tax claims, which would be allowed at up to approximately $36.7 million under proposed settlements with taxing authorities, and two-thirds to general unsecured creditors.

American Health Associates Holdings, Inc.

• Plan Terms
  • American Health Associates' second amended plan of reorganization is funded by an exit facility from SOD Sciences of $15 million plus any SOD DIP fees, into which SOD's DIP claims roll in full satisfaction. Secured creditors City National Bank of Florida and National Biz Capital will receive cash payments of $9.75 million and $600,000, including any adequate protection payments received during the cases, against claims of approximately $10.77 million and $1.84 million, respectively. General unsecured creditors will share a $750,000 cash pool plus collections on receivables more than 120 days past due, along with the Debtors' claims against their directors and officers and the net proceeds of avoidance actions, both of which a plan administrator will pursue. Existing equity will be cancelled, and equity in reorganized American Health Associates Parent, LLC will go to the converting investor DIP noteholders, Covalent Investment Management (5%), and The CTM Group, which takes the remainder in exchange for a $100,000 new value payment.

John Fitzgibbon Memorial Hospital, Inc.

• Plan Terms
  • The joint Chapter 11 plan of John Fitzgibbon Memorial Hospital and Fitzgibbon Health Services centers around winding down the Debtors after the court-approved sale of the hospital to Strawberry Fields REIT. DIP lender UMB Bank, as trustee, receives an effective-date paydown of up to $5.0 million, with the remaining balance converting into a 90-day, 8.25% non-recourse exit note secured by a first-priority lien on the wind-down debtors' assets. The 2016 bond claims, allowed at $10,000, are paid in two $5,000 cash installments. General unsecured creditors, along with insured claimants for any uninsured deficiency, share pro rata in cash remaining after a wind-down reserve is funded. The plan also preserves the Debtors' claims against Strawberry Fields in their adversary proceeding.

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-led case summaries.

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