Jed Zobitz Speaks at the ABI’s “Insolvency 2020” Virtual Summit

On August 22, 2020, the Austria-based binderholz Group, a leading European company for solid wood products and innovative building solutions, announced it had entered into a definitive agreement to purchase substantially all the assets of the Florida‑based sawmill operator Klausner Lumber One, LLC after prevailing in an auction held on August 21, 2020 pursuant to Section 363 of the United States Bankruptcy Code. Klausner Lumber One, LLC is currently in Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. Cravath is representing binderholz Group in connection with the transaction, which closed on September 21, 2020.

Cravath represented Nestlé Holdings, Inc. in connection with its $4 billion 144A/Reg. S senior unsecured notes offering. The notes are guaranteed by Nestlé Holdings, Inc.’s parent company, Nestlé S.A., the world’s largest food and beverage company. Proceeds of the offering will be used for general corporate purposes of the Nestlé Group. The transaction closed on September 15, 2020.

Cravath represented New Fortress Energy Inc. in connection with its $1 billion 144A/Reg. S high‑yield senior secured notes offering. New Fortress Energy Inc. is a global integrated gas‑to‑power infrastructure company. The transaction closed on September 2, 2020.

On July 20, 2020, Lakeland Tours, LLC, d/b/a WorldStrides (“WorldStrides”) filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. On July 8, 2020, WorldStrides signed a Restructuring Support Agreement (“RSA”) with (i) holders of 85% of its term and revolving loans, (ii) its private equity sponsors, Eurazeo North America, as manager of funds affiliated with Eurazeo SE (“Eurazeo”) and Primavera Capital Management Ltd. (“Primavera” and together with Eurazeo, the “Sponsors”) and (iii) its consenting hedge provider. The RSA contemplates a “pre‑packaged” plan that would significantly deleverage the company. The transaction involves a $368 million debtor‑in‑possession (“DIP”) financing facility, of which $216 million consists of new money loans provided equally by the consenting lenders, on the one hand, and the Sponsors, on the other hand. At exit, the Sponsors will receive their pro rata share of 100% of the new common stock issued by the reorganized debtors.