Boston Medical Center — Representation of Boston Medical Center, one of the oldest and most renowned nonprofit hospital systems in the U.S. (BMC), in its successful acquisition of two Boston-area safety net hospitals, Good Samaritan and St. Elizabeth’s, from bankrupt Steward Healthcare System LLC. The transaction was approved by the U.S. Bankruptcy Court for the Southern District of Texas and closed on October 1, 2024.
Maxeon Solar Technologies, Ltd. — Representation of Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN), a leading manufacturer of premium solar technology based in Singapore, on a comprehensive restructuring of its capital structure and infusion of up to $200 million in new financing in a deal supported by a significant number of the company’s key stakeholders. Per the terms of the transaction, Maxeon’s largest shareholder and secured lender, TCL Zhonghuan Renewable Energy Technology Co. Ltd. (“TZE”) will purchase $97.5 million in new super senior secured convertible notes due in 2027 and make a $100 million equity investment upon receipt of certain regulatory approvals. The holders of the company’s 2025 unsecured convertible notes will exchange their notes into $200 million in new second lien convertible bonds due in 2028, $137.2 million of which must be converted into equity upon TZE's equity investment. The transaction materially reduces the company’s funded debt and provides the company with liquidity for its working capital requirements and strategic investments while remaining a public company.
Rite Aid Corporation — Representation of Rite Aid Corporation (“Rite Aid”) and 119 of its affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the District of New Jersey. Rite Aid entered its Chapter 11 cases with $3.45 billion in debtor-in possession financing. Following months of negotiations including court-ordered mediation with all of Rite Aid’s key stakeholders, as well as several bet-the-company disputes and obtaining an additional $75 million in debtor-in-possession financing later in the cases, Rite Aid was able to delever its balance sheet by approximately $2 billion through a recapitalization transaction with its senior secured noteholders and resolve more than $2.5 billion in pending and threatened litigation. Rite Aid emerged from Chapter 11 on August 30, 2024 with $2.975 billion in committed exit financing, a new go-forward supply contract with McKesson (Rite Aid’s largest vendor and the provider of 98% of Rite Aid’s just-in-time prescriptions), settlement agreements or controlled substance injunctive terms with the Department of Justice and 15 states in which Rite Aid conducts business, and a leaner, more efficient real estate footprint.
