Braskem Idesa Files for Chapter 11 While Refinancing Pressures Mounts

We are deep into August and many of the distressed mavens who would otherwise opine on topical situations are no doubt soaking up the last bits of summer. While commentary might be sparse, the news was not. Sponsor-backed credits dominated this week’s distressed situations, with balance sheet pressure surfacing across sectors from travel and leisure to software and building products.

Even in a slow week, we saw new advisor mandates surface for two companies contending with structural pressure on their business models. LoanDepot brought on Perella Weinberg Partners as investment banker, joining previously retained legal counsel Kirkland & Ellis, to evaluate options ahead of its bond maturities in 2027 and 2028. Meanwhile, an ad hoc lender group to Gogo Inc. retained Gibson Dunn as legal advisor amid concerns over the wireless telecom provider’s market-share losses to Starlink, a worry that was underscored this week by a cut to the company’s 2026 adjusted EBITDA guidance.

The week’s lone new chapter 11 filing came from Braskem Idesa, the Mexico City-based petrochemical producer, which filed a prepackaged plan in the Southern District of Texas backed by parties holding about 79% of its prepetition secured debt, including majority equityholder Braskem SA. The plan would reduce $3.6 billion of prepetition-funded debt by more than $920 million. The debtors secured interim approval of a $409 million DIP facility from Braskem SA to fund a restart of operations at its petrochemical complex in Veracruz, Mexico.

Several long-running in-court proceedings moved toward resolution this week. A bench ruling on the confirmation of First Brands Group’s liquidation plan is expected Monday, Aug. 24, after a three-day confirmation trial earlier this month, while 777 Partners secured interim approval of a $600,000 DIP facility over the objections of a competing lender, with the fight over final case funding deferred to a Sept. 8 hearing. Genesis Healthcare reached a settlement with its major creditor constituencies, including secured lenders, its official committee of unsecured creditors and insiders, resolving litigation tied to certain debt assignments and clearing a path toward consensual plan confirmation.

On the litigation and regulatory front, Paramount Skydance asked a California federal court to require a $1.88 billion litigation bond from states opposing the combination and the Writers Guild of America to cover potential damages from delays to its Warner Bros. Discovery acquisition, with arguments set for Sept. 24. In addition, Liberty PR creditors amended their breach of contract and fraudulent transfer suit against Liberty PR, Liberty Latin America and other defendants to add new allegations tied to a May 2026 debt transaction. Separately, the Federal Communications Commission, or FCC, approved Cumulus Media’s radio license transfers, clearing the way for the broadcaster to consummate its confirmed chapter 11 plan.
 

Merlin Entertainments Group

The Blackstone-backed Merlin Entertainments has received multiple proposals from both existing and prospective creditors to manage its nearly $4 billion debt and boost its liquidity. The company is considering options, including a deal-away, amid its weakening financial performance, with its senior unsecured notes trading lower. On its call to discuss first-quarter earnings, management refrained from providing any guidance on its refinancing plans or if it might consider an option that would impair creditors. Our coverage of Merlin Entertainments Group can be found HERE.

Internet Brands

The KKR-backed software company told investors that it expects to launch a near-term debt deal to refinance its term loans. Of its roughly $5 billion in debt, a $2.9 billion term loan matures in May 2028, while a $10 million RCF is due in November. The prices for its debt had collapsed earlier owing to “SaaSpocalypse” concerns tied to AI disruption fears, although they have since recovered somewhat. Second-quarter revenue rose 5% year over year to $655 million and pro forma adjusted EBITDA rose 1% to $236 million. Octus coverage of Internet Brands is HERE.

Sophos

The Thoma Bravo-backed cybersecurity company is expected to launch an amend-and-extend via Goldman Sachs later this month, with lenders likely to seek a paydown, a wider margin, some equity or an equity contribution from the sponsor and a significantly stronger covenant package in exchange for a short maturity extension. The company has roughly $2.4 billion of loans due March 2027. Octus coverage of Sophos is HERE.

TAMKO Building Products

TAMKO Building Products’ adjusted EBITDA fell 52.6% year over year to $58.5 million in the second quarter as revenue dropped 21.5% to $326 million on market-share losses to aggressive competitors, sending the $815 million term loan due 2030 down 6 points to 94. The roofing products maker issued a $415 million first lien term loan in June to fund a $400 million dividend, of which roughly $100 million went to minority owner Carlyle Group. Octus coverage of TAMKO Building Products is HERE.

Groupe Solmax

Groupe Solmax reported a 13.5% year-over-year increase in revenue for the second quarter, which rose to $239.3 million with a 51.4% rise in adjusted EBITDA to $39.8 million, driven by strong demand and some one-time benefits. The company had $23.4 million in cash and drew $42 million on its RCF, with a cash burn of $27 million. Octus coverage of Groupe Solmax is HERE.
 

LoanDepot

The mortgage provider is working with Perella Weinberg Partners as investment banker, alongside previously reported legal advisor Kirkland & Ellis, to evaluate options for its bond maturities in 2027 and 2028. In its earnings release last week, company management noted that it is addressing bond maturities by evaluating a range of options with the support of retained advisors. Octus coverage of LoanDepot is HERE.

Gogo Inc.

An ad hoc lender group is working with Gibson Dunn as legal advisor amid concerns over market-share losses to Starlink especially in the context of the wireless telecom company’s 2028 debt maturities. Earlier this week, Gogo cut its 2026 adjusted EBITDA guidance to between $175 million and $185 million from previous guidance of $198 million to $218 million. Octus coverage of Gogo Inc. is HERE.
 

Braskem Idesa / Braskem SA

Braskem Idesa SAPI, or BAKIDE, a Mexico City-based global petrochemical company and primary supplier of polyethylene to the Mexican market, and two subsidiaries, Braskem Idesa Servicios SA de CV and Braskem Idesa Ethane LLC, filed chapter 11 in the Southern District of Texas on Aug. 17.

The debtors seek to implement a prepackaged plan based on an RSA with parties holding about 79% of the debtors’ prepetition secured debt, including majority equityholder Braskem SA, senior term loan lender Inbursa and an ad hoc group of senior secured noteholders. The plan would reduce $3.6 billion in prepetition funded debt by more than $920 million by equitizing certain claims and streamlining the company’s capital structure.

Judge Christopher Lopez granted interim approval of a $409 million DIP facility from Braskem SA at an uncontested first day hearing on Aug. 18. Interim DIP approval gives the debtors access to $230 million of $279 million of new money to restart operations at a petrochemical complex in Veracruz, Mexico, and a $103.91 million rollup of a $129.89 million bridge facility. Judge Lopez set a combined disclosure statement and plan confirmation hearing for Sept. 24. Octus’ Braskem Idesa coverage is HERE and Braskem SA coverage is HERE.
 

First Brands Group

Judge Lopez will deliver a bench ruling on confirmation of the First Brands liquidation plan next Monday, Aug. 24, at 2 p.m. ET, the debtors announced in a notice. The judge took the decision under advisement after a three-day confirmation trial, saying the ruling will be “a really detailed one.” Octus’ First Brands coverage is HERE.

777 Partners

On Thursday, Judge Edward L. Morris approved the 777 Partners debtors’ $600,000 interim DIP financing from alleged insider Advantage Capital, or A-CAP, subject to a “stripped down” interim DIP order, overruling objections from competing DIP lender Leadenhall Capital and other creditors. The ruling defers the fight over who will ultimately fund the case to the final DIP hearing after the debtors received an “economically better” financing offer from Leadenhall on yesterday morning. The final DIP hearing is scheduled for Sept 8. Octus’ 777 Partners coverage is HERE.

Genesis Healthcare

At a hearing on Aug. 19, the Genesis Healthcare debtors announced a settlement with “all major parties,” including the official committee of unsecured creditors, secured lenders Welltower and Omega, private equity owner Joel Landau and insiders WAX Dynasty Partners and MAO 22322.

The settlement would resolve the debtors and UCC’s lawsuit against WAX and MAO to avoid and subordinate their approximately $84.5 million secured term loan and $346 million unsecured notes claims stemming from debt assignments by Welltower, the debtors’ largest secured creditor and landlord, and pave the way for consensual plan confirmation, the debtors said. Octus’ Genesis Healthcare coverage is HERE.
 

Paramount Warner Bros. Suit

Paramount Skydance asked a California federal court to require 12 states and the Writers Guild of America to post a $1.88 billion litigation bond to cover damages from delays to its acquisition of Warner Bros. Discovery if the court ultimately allows it to proceed. The court will hear arguments on the bond request on Sept. 24, one week before Paramount must start paying Warner Bros. shareholders a ticking fee of $7 million per day. Paramount’s bond request comes amid efforts to pressure the plaintiff states to settle the case. Octus coverage of Paramount Skydance is HERE.

Liberty PR Creditor Suit

Liberty PR creditors filed an amended complaint in their breach of contract and fraudulent transfer suit against Liberty PR, Liberty Latin America, officers, directors and administrative agent Scotiabank. The amended complaint adds new allegations challenging Liberty PR’s May 2026 debt transactions in addition to the September 2025 drop-down transaction the plaintiffs targeted in their original March 19 complaint. Octus coverage of Liberty Latin America is HERE.

FCC Approves Cumulus Media License Transfers

On Aug. 19, the FCC issued a public notice stating that it approved the Cumulus Media debtors’ radio license transfer applications in connection with their plan of reorganization. In July, the debtors informed the bankruptcy court that they expect to consummate their confirmed chapter 11 plan and emerge “promptly upon receipt of FCC Approval.” Octus coverage of Cumulus Media is HERE.