August 13, 2020

Milbank Advises Lender on Fastest-Confirmed Prepackaged Plan in Southern District of Texas


Milbank LLP advised leading global investment firm HPS Investment Partners, LLC (“HPS”) as first lien agent and the largest first lien lender in connection with the chapter 11 bankruptcy proceedings of in-store media solutions company Mood Media (“Mood”). Mood filed for bankruptcy protection on July 30 and the company’s prepackaged bankruptcy plan was approved in less than 24 hours, marking the fastest-ever confirmation of a prepackaged plan in the US Bankruptcy Court for the Southern District of Texas. Mood also has the fastest chapter 11 proceeding, at less than 31 hours from filing to emergence. 

Mood began restructuring discussions with HPS and other stakeholders in March to address the coronavirus pandemic’s impact on business operations and related market trends, among other factors. After four months of discussions, the debtors and stakeholders reached a completely consensual restructuring agreement designed to allow Mood to reorganize and emerge from bankruptcy with sufficient liquidity and capital resources to continue business operations and satisfy obligations. 

The prepackaged plan, which took effect on July 31, will significantly deleverage Mood, reducing its debt by over $400 million and its forecasted annual interest expense by over $50 million. The plan will cancel outstanding claims and equity interests and convert first lien claims into new equity to the holders. General unsecured creditors are to be paid in full as part of the consensual deal.

The Milbank team was led by Financial Restructuring Group Leader Dennis Dunne and Direct Lending Practice Leader Albert Pisa, and included Financial Restructuring special counsel Mary Doheny and associates Justin Cunningham and Kathrine Gutierrez, Alternative Investments partner John Britton and associates Carolyn Carpenter and James Gaskill; Corporate partner Scott Golenbock, special counsel Iliana Ongun and associates Connor Adams and Alex Wang; Tax partners Max Goodman and Andrew Walker; and Executive Compensation and Employee Benefits partner Mike Shah and associate Kelly Bartley.