Alex Xiao, David Samikkannu, Jingzhi Dai Discuss RAINY (Restructuring Asians in New York), AAPI and Distressed Debt Hot Topics

By Harvard Zhang

In celebration of AAPI Heritage Month, Octus interviewed Alex Xiao of Gibson Dunn, David Samikkannu of AlixPartners, and Jingzhi “JD” Dai of Jefferies Group, who along with others co-founded an organization called Restructuring Asians in New York, or RAINY.

RAINY first emerged as dinners with a few friends. It has turned into a listserv of more than 200 people and quarterly events each with 50 to 70 attendees. In five years, RAINY may become like the United Jewish Appeal or International Women’s Insolvency & Restructuring Confederation for restructuring and credit professionals with an Asian heritage.

The three RAINY co-founders were inspired by their own firms’ support for AAPI as well as their personal heroes. Terminal value, the yin and yang of how liability management exercises have evolved, and how to turn around a business effectively in an industry that has been disrupted are on the top of their minds right now.

“RAINY is a community – a forum for exchanging ideas, a platform for mentorship and professional development, and a harbor of comfort for AAPI professionals who, on a group call, may quietly find themselves looking up another Asian name and wondering how that person got here, and why we shouldn’t get to know one another,” Dai, a managing director at Jefferies Group, said.

“Many Asian professionals are doing excellent work across restructuring and credit investing, but there was not really a forum that brought that community together. RAINY helps fill that gap,” said Xiao, an associate in Gibson Dunn’s business restructuring and reorganization group. “We are in a very relationship-driven industry, and community matters.”

AlixPartners’ employee resource group Asian Leadership, Insights & Growth Network, or ALIGN, provides networking opportunities and professional development workshops, and strives to address biases and stereotypes, according to Samikkannu, a partner at AlixPartners.

“ALIGN has been an extremely successful and growing group within our firm,” Samikkannu said. “Someone recently asked me if I felt any limitations at my company based on my background. I realize I am very fortunate because my immediate response was ‘no,’ and I am very grateful and proud to be at AlixPartners for more than 10 years.”

Similarly, Jefferies’ J-Asia group and its long-standing Chinese New Year party for the restructuring industry,as well as Gibson Dunn’s support of AAPI causes (for example, the firm was a founding member of The Alliance for Asian American Justice) encouraged Dai and Xiao to pursue RAINY.

Looking ahead, RAINY leaders would like the group to become an official nonprofit organization to allow for fundraising to support more events, mentorship programs and outreach to younger generations, Xiao said.

“This work is well on its way, and we have already received a good level of interest of financial support from RAINY members, which is another showcase of folks’ genuine connection to this community,” Xiao said. “Longer term, RAINY should become a community that can help inspire people. One idea we have discussed is creating an interview series with senior professionals in our community for them to share their stories, career paths, lessons learned, and advice with more junior professionals.”

In terms of restructuring topics that they find the most fascinating, Samikkannu said he believes that “the ability to pivot a business model while repackaging underlying strengths to sell a restructuring plan or comprehensive turnaround will become increasingly important as strictly cutting costs or resizing the balance sheet may not be sufficient.”

Dai said that he finds the Taoist philosophy of yin and yang particularly compelling – the idea that everything eventually shifts once it reaches an extreme, as he reflects on the evolution of LME from 1.0 to 2.0, the fatigue, the return of the good old-fashioned amend-and-extend, and the inevitable reemergence of “economic reallocation.”

Xiao said he is fascinated by the terminal value question heading into a significant 2028 and 2029 maturity wall in the age of AI. The difficulty in underwriting a business creates a need for restructuring professionals to think creatively about capital structures, creditor alignment and solutions that can bridge companies through a period of uncertainty, he said.

If you would like to learn more about RAINY, a podcast with its key members can be found HERE. Those who identify as AAPI in the leveraged finance, distressed debt and restructuring industries and are interested in joining RAINY can find the private group HERE on LinkedIn or reach out to Xiao, Samikkannu, or Dai.

Topical Stressed/Distressed Situations

LIV Golf

LIV Golf is in discussions with investment banks including Ducera Partners to map out its financial future and explore capital-raising options as reports indicate the Saudi Public Investment Fund, or PIF, is expected to stop funding the league beyond 2026, with a wind-down or liquidation possible if sufficient capital cannot be secured.

The PIF has invested approximately $5 billion into the league since its 2021 inception, but with Saudi oil exports sharply reduced following the effective closure of the Strait of Hormuz, the PIF may invoke force majeure to cut off funding, several marquee players including Brooks Koepka and Patrick Reed have already returned to the PGA Tour. Octus’ coverage of LIV Golf is HERE.

ION Platform

ION Platform revenue increased 7% year over year in the first quarter of 2026 to $607.3 million while adjusted EBITDA rose 27% to $405 million compared with the previous year. The company has repurchased approximately $200 million of its bonds year to date, capitalizing on lower prices following an AI-driven software selloff.

Despite the positive earnings momentum, concerns remain about the impact of AI disruptions on future earnings and the company’s ability to manage its $1.1 billion debt maturing in 2028. The company anticipates generating $650 million in free cash flow next year to help pay down debt. Octus’ coverage of ION Platform is HERE.

Jeld-Wen

Jeld-Wen is facing a maturity wall in 2027 to 2028 amid weak demand in its end markets, and we believe that the potential exists for an out-of-court restructuring of the company’s balance sheet.

Octus believes that the potential threat of an aggressive liability management exercise, given Jeld-Wen’s flexible credit documents, could serve as a strong incentive for holders of its term loan and 2027 notes to agree to extend their maturities on negotiated terms, assuming they still believe in the potential of the business. Octus’ coverage of Jeld-Wen is HERE.

Spirit Airlines

Lenders holding more than 50% of Spirit Airlines’ enhanced equipment trust certificates held discussions with law firm Milbank as the ultra-low-cost carrier’s efforts to secure $500 million in U.S. government rescue financing hit an impasse, and the company is simultaneously exploring a potential liquidation. Subsequent media reports highlight that the company is “preparing to cease operations.” Fuel price spikes driven by the Iran war have added to the company’s operational headwinds and hampered its ability to exit bankruptcy. Octus’ coverage of Spirit Airlines is HERE.

Medallia

Lenders to Medallia have hired Alvarez & Marsal to assist with restructuring the Thoma Bravo-backed customer experience platform’s capital structure, as lenders including Blackstone prepare to equitize a portion of their debt. A&M will serve as financial due diligence advisor and prepare a diligence report, which is a common step in change-of-control situations. Medallia is advised by Kirkland & Ellis, while lenders are represented by Latham & Watkins. Octus’ coverage of Medallia is HERE.

Lumen Technologies

Bondholders of Qwest Corp., a Lumen Technologies subsidiary, have organized with Davis Polk to push back on the terms of an exchange offer for $1.6 billion in Qwest notes due 2056 and 2057. The ad hoc group’s holdings approach a majority of the notes that are subject to the tender offers and the group is discussing a cooperation agreement. The 2056 notes fell to a three-month low of 17.1/17.9 bid/ask following the announcement. Octus’ coverage of Lumen Technologies is HERE.

CDK Global

An ad hoc group of minority creditors represented by Cadwalader, Wickersham & Taft scheduled a call to explore options after the group was not treated as initial parties under the cooperation agreement organized by a separate lender group advised by Gibson Dunn and Houlihan Lokey.

The co-op caps initial party participation at 13.5% of total debt, a threshold the steerco reported was filled shortly after it was announced, and creates a two-tiered creditor dynamic with meaningfully different trading levels: Steerco paper on the 8% first lien notes was quoted at 62/64, initial party paper at 60/62 and non-co-op paper at 54/57.

The Brookfield Business Partners-backed auto dealership software provider is working with Weil Gotshal and PJT Partners to evaluate balance-sheet options, including a LME, against a capital structure carrying $5.6 billion in total debt at 6.7x gross leverage. Octus’ coverage of CDK Global is HERE.

Algoma Steel

A bondholder group in Algoma Steel, the Canadian integrated steelmaker that recently completed its transition to electric arc furnace production, is working with Akin Gump as the company faces mounting pressure from U.S. tariffs that have effectively shut off cross-border steel shipments.

In late March, the company guided to first-quarter adjusted EBITDA of negative 25 million Canadian dollars to negative CAD 35 million for the period ended March 31, and its 9.125% notes due 2029 last traded at 92.9 after bottoming at 79 in October 2025. Algoma received CAD 500 million in financing from the governments of Canada and Ontario in September to support its liquidity amid the tariff headwinds. Octus’ coverage of Algoma Steel is HERE.

Cast & Crew

Cast & Crew, the EQT-backed entertainment industry payroll processor, has hired Moelis as investment banker to help it consider its options amid ongoing performance woes. The company is considering selling its Backstage Holdings subsidiary, an online talent marketplace acquired in 2022, to shore up liquidity as the company’s $1.4 billion first lien term loan due 2028 has slid from the 60s in January to the 40s. An ad hoc lender group advised by Davis Polk and Houlihan Lokey has signed a cooperation agreement as headwinds mount. Octus’ coverage of Cast & Crew is HERE.

STG Logistics Inc.

At a status conference on April 27, the STG Logistics debtors announced that they reached a “global settlement” resolving minority lenders Axos and Siemens’ litigation over the company’s 2024 LME. Counsel said the debtors will pay the minority lenders $12 million to drop their adversary proceeding against participating lenders as well as a related state court action, and pay the minority lenders’ investment banker B. Riley the lesser of the firm’s actual expenses through April 26 and $275,000. The settlement paves the way for a consensual confirmation hearing on May 18, STG said. Octus’ coverage of STG is HERE.

QVC Group. / QVC Inc.

On April 27, a group of preferred equityholders filed an emergency motion for the appointment of an official equity committee in the QVC Group chapter 11 cases. The movants – Cygnus Capital and two individuals – say the prepack plan would wipe out hundreds of millions of dollars in value that rightfully belong to them. On April 29, a separate preferred equity group advised by Glenn Agre Bergman & Fuentes joined the request. Judge Alfredo Perez will hold a status conference on the motion today at 4 p.m. ET. Octus’ coverage of QVC is HERE.

Saks Global Enterprises

Judge Alfredo R. Perez approved the Saks Global debtors’ and SO5 debtors’ revised disclosure statements at uncontested hearings today, clearing the path for solicitation of their respective chapter 11 plans of reorganization and liquidation. The DS approvals followed the announcement of a global settlement among the Saks Global debtors, the ad hoc secured noteholder group and the official committee of unsecured creditors. Judge Perez set combined hearings for both sets of debtors for final DS approval and plan confirmation on June 5, at 10 a.m. ET. Octus’ coverage of Saks is HERE.

First Brands Group LLC

On April 29, the First Brands debtors filed a first plan and DS that would wind down the FBG debtors and distribute value through three liquidating trusts based on a global settlement of case issues among the debtors, the ABL lenders, the ad hoc lender group and the official committee of unsecured creditors. The DIP lenders would fund a litigation trust to prosecute estate claims, including billions of dollars in claims the debtors asserted against Onset Financial and company founder and former CEO Patrick James.

The plan was filed after chapter 11 examiner Martin De Luca released a redacted public report on April 27. The examiner finds colorable grounds for substantively consolidating the FBG debtors with the special purpose vehicle debtors and for piercing the corporate veil against company founder and former CEO Patrick James.

The examiner also says that he uncovered colorable claims against the debtors for accounting fraud based on evidence of a “criminal financial enterprise built on the maintenance of parallel books.” Octus’ coverage of First Brands Group is HERE.

FCC Reaffirms Exclusivity of Satellite MSS Spectrum Rights

The U.S. Federal Communications Commission issued an order maintaining exclusivity for incumbent mobile satellite service, or MSS, spectrum rights. By rejecting requests for additional operations in MSS bands already in use, the FCC says that it seeks to “foster a predictable regulatory environment” necessary to promote long-term investment in direct-to-device, or D2D, services.

The order rejected SpaceX’s request to add operations in the spectrum used by Globalstar, Ligado, Viasat and Iridium and dismissed similar cross-cutting requests by other satellite operators. The order clarifying MSS rights came shortly after Amazon announced a deal to acquire Globalstar. SpaceX in 2025 agreed to acquire EchoStar’s MSS rights following an FCC investigation into revoking EchoStar’s MSS licenses. Octus’ coverage is available HERE.

Supreme Court Hears Arguments in Monsanto Roundup Case

The U.S. Supreme Court heard oral argument on Bayer subsidiary Monsanto’s appeal of a Missouri appellate court’s affirmation of a $1.25 million jury award to plaintiff John Durnell for injuries stemming from his decadeslong use of Monsanto’s herbicide Roundup and exposure to glyphosate.

Bayer has said the Supreme Court case and a separate pending $7.25 billion state court settlement with non-Hodgkin lymphoma plaintiffs are “independently necessary and mutually reinforcing steps in the company’s multipronged strategy” to “contain” the Roundup litigation. Octus’ coverage of Bayer is HERE.