The Distressed Debt Alert

Centerbridge Consortium Wins Extended Stay Bankruptcy Auction

An investor consortium led by Centerbridge Partners won an auction to buy hotel chain Extended Stay Inc. out of bankruptcy for almost $4 billion, the Wall Street Journal reported.

The consortium, which included Paulsen & Co. and Blackstone Group, outbid Starwood Capital Group to win the auction.

Source: News Story

TriDimension Energy, a producer of oil and natural gas in Louisiana and Mississippi, filed for Chapter 11 bankruptcy.

The company said in statement yesterday that it's discussing its reorganization and strategic alternatives with several parties. Its options may include a potential sale of all or substantially all of its assets. TriDimension said it's secured debtor-in-possession financing to help it continue its operations and meet its working capital needs.

The company hired Stephens Inc. as its investment banker and FTI Consulting as its financial advisor during its reorganization process. Vinson & Elkins was retained as lead bankruptcy counsel.

Source: Press Release

Middle market lender Golub Capital promoted Gregory Robbins to managing director. Robbins will focus on building Golub's capital markets business, the firm said.

Golub said it also promoted Sean Coleman to managing director. He previously helped launch the company's subsidiary Golub Capital BDC Inc.

Golub also promoted Spyro Alexopoulos and Robert G. Tuchscherer to principal and Jonathan Huitink to vice president in the firm's direct lending business.

Source: Press Release

Alvarez & Marsal expanded its dispute analysis and forensic services practice in the Southeast as it hired four professionals in its Atlanta office.

The firm hired Douglas Anderson, former head of forensic technology services at Grant Thornton, and Christopher Grippa, formerly of Ernst & Young's forensic accounting and dispute practice, as managing directors.

Alvarez & Marsal also hired Tony Hounshell, formerly of FTI, as senior director, and Paul Greenspan, formerly of Ernst & Young, as a director.

Source: Press Release

North American Petroleum Corp. and Prize Petroleum, which are subsidiaries of Denver-based Petroflow Energy Ltd., filed for Chapter 11 bankruptcy.

The companies said in a statement that they will continue to operate in an ordinary manner as they work through reorganization.

Source: Press Release

The percentage of corporate bonds that are considered distressed surged to its highest level since 2009 this week as investors dumped debt of the neediest borrowers over concerns that the European financial crisis will make it difficult for them to refinance, Bloomberg reported.

Source: News Story

Sonnenschein Nath & Rosenthal, a U.S.-based law firm whose practices include bankruptcy, real estate and capital markets, said it will merge with one of the oldest United Kingdom law firms, Denton Wilde Sapte.

The combined firm will be known as SNR Denton. The new firm will have more than 1,400 lawyers and professionals in 18 countries. Sonnenschein Chairman Elliott Portnoy and Denton chief executive Howard Morris will be the firm's co-CEOs.

Source: Press Release

The Debt Exchange, a Boston-based loan sale adviser for commercial, consumer and specialty finance debt, said it's accepting bids on the sale of about $500 million in performing and non-performing commercial real estate loans on behalf of three financial institutions.

DebtX is accepting bids on five portfolios in five separate transactions in June. Bids are due June 3 on a $90 million portfolio of non-performing, income-producing properties secured by condominiums and subdivisions held by a Southern-based bank. Bids on a second transaction for $7 million in loans held by the bank are due June 16.

The adviser is accepting bids until June 8 for a $39 million portfolio of non-performing loans secured by properties in South Carolina, Florida, and Georgia that are held by a Southern financial services company.

DebtX set a June 15 deadline on bids for a $207 million portfolio of commercial real estate loans, land acquisition and development loans, commercial and industrial loans and loan participations held by a Northeastern bank. It set a June 21 deadline for another $157 million portfolio of loans held by the bank.

Source: Press Release

The law firm of Fulbright & Jaworksi named Berry D. Spears as the head of its bankruptcy and insolvency practice in Houston.

Spears moved to the Houston office from Fulbright's Austin, Texas, office earlier this year. He has been involved in the restructurings of companies in the financial, manufacturing, telecommunications, real estate, retail and oil and gas industries, Fulbright said.

Spears most recently was a part of the Fulbright team that worked with yellow-pages directory publisher Idearc Inc. in its nine-month restructuring.

Source: Press Release

Owners of the Texas Rangers Baseball Club said it will file a prepackaged Chapter 11 bankruptcy and sell the team to an investor group led by Chuck Greenberg and team president Nolan Ryan.

The sale transactions, with an aggregate value of $575 million, will include the sale of the team and its lease on Rangers Ballpark in Arlington, as well as a separate sale of land around the ballpark, the current owners Texas Rangers Baseball Partners said in a statement.

The prepackaged Chapter 11, which is supported by Major League Baseball, will provide sufficient proceeds for the Rangers' creditors to recover 100% of the debt owed by HSG Sports Group, which is guaranteed by the Rangers, as well as all other debts owed by the Rangers.

HSG Sports Group is led by Rangers majority owner Tom Hicks. HSG itself and its other primary asset, the Dallas Stars NHL hockey team, are not included in the bankruptcy.

The Rangers' owners have requested a bankruptcy hearing to be held in 45 days to confirm the sale and plan of reorganization. While the sale is pending, the team said it will continue to operate as normal, and all salaries, vendors and suppliers will be paid in full.

Major League Baseball has agree to provide debtor-in-possession financing in a new credit facility to cover all of the team's obligations while the sale is being completed.

Source: Press Release