Yesterday was a day I've been waiting on for a long time: EFH (finally!) filed for bankruptcy in Delaware. Our coverage of the litany of filings of dockets has been amazingly comprehensive - we have written 7 stories that the buy side, sell side, advisory and legal communities have been using to stay up to date on the case. Further, our traffic was the highest it's ever been yesterday and hundreds of people in the market are using our docket alerting system to stay up to date with what's going on in the case. RSA gets filed? Our users are the first to see it. Brown Rudnick files an objection five minutes after the filing? We are the first to write it up.
To give you a sense of our coverage, here's a reproduction of our story yesterday on the EFIH DIP that has been proposed on the case. For more information on Reorg Research or to request a trial, you can visit our site here: Reorg Research
EFIH DIP Proposed in Tandem with Makewhole Settlement Offers
For the first lien: a tender offer to settling first-lien holders whereby such holders can tender their claims for a 105% of par (inclusive of applicable fees). The payout for this settlement is in "EFIH First Lien DIP Roll-Up Claims" under the new first lien DIP facility. Separately, the debtors will litigate the make whole issue against those holders that do not participate in the settlement tender offer.For the second lien: the debtors will separately propose a second-lien refinancing and make-whole settlement funded by the proceeds of the as-yet-unproposed second-lien DIP facility. Pursuant to the second lien settlement, prepetition creditors who agree, other than Fidelity, will get principal and accrued prepetition interest in cash plus 50% of their pro rata make-whole claim. The motion notes that certain second-lien holders have agreed to forgo cash for their make-whole payments, instead taking a share of the second-lien DIP. Fidelity gets the same principal plus accrued treatment, but is also entitled to a one-time payment of $11.25 million plus the "right to receive up to $500 million (plus fees) of its payment under the EFIH Second Lien Settlement in the form of EFIH First Lien DIP Roll-Up Notes."