Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, April 17. In today's briefing, QVC Group has filed for a prepackaged chapter 11 bankruptcy, entering a restructuring support agreement with key lenders to slash its funded debt by more than $5 billion. Multi-Color has secured court approval for a contested chapter 11 restructuring plan after reaching a last-minute settlement with dissenting lenders. And First Brands and its DIP lenders reached an agreement to tap $25 million from the company's liquidity that was backing the loan to fund a litigation trust.

QVC Group commenced a voluntary Chapter 11 bankruptcy as part of a restructuring support agreement.

The company said Thursday it entered into the agreement with holders who represent a significant majority of its outstanding funded debt. Under the agreement, QVC said its debt will be cut to $1.3 billion from $6.6 billion.

The TV and video retailer's prepackaged bankruptcy was filed in U.S. Bankruptcy Court for the Southern District of Texas. QVC said it aims to emerge from bankruptcy within 90 days.

The company said it is continuing to operate as usual and has enough liquidity to support the business. There are no plans for layoffs or furloughs.

QVC's international operations aren't included in the bankruptcy process, with the exception of its non-operating subsidiary in Luxembourg, it said.

The terms of the restructuring agreement provide for vendors, suppliers and third-party general unsecured creditors of the filing entities to be paid in full for all goods and services.

Multi-Color’s contested bankruptcy plan received court approval Thursday after the label maker and its private-equity owner Clayton Dubilier & Rice reached a settlement with dissenting lenders.

New Jersey Bankruptcy Judge Michael Kaplan called it a “large, complex,” and “contentious case” at the confirmation. The approval clears a path for the company to exit bankruptcy, shedding roughly $4 billion in debt along the way.

As part of a large settlement, CD&R will contribute an additional $17 million to a group of lenders, including Canyon Partners and Shenkman Capital. The deal unlocks more than $75 million for creditors, improving payout for a group of junior debtholders.

First Brands is moving towards a restructuring plan and has agreed to establish a litigation trust to pursue legal actions.

The company’s DIP lenders will fund the trust with $25 million by agreeing to decrease the required liquidity tied to the DIP loan to $25 million from $50 million, essentially giving up liquidity securing their debt to finance potential recoveries through litigation. The lenders have pivoted towards funding litigation claims after the business collapsed under mounting fraud allegations. 

First Brands’ attorneys said at a Thursday hearing that they expect to file a chapter 11 plan by the end of the month. 

–Alicia McElhaney

• You read it here first: First Brands Creditors Shift to Finance Litigation After Restructuring Talks Fail, WSJ Pro reported early March

California Senate Judiciary Committee on Tuesday approved the Private Equity Sunshine Act, which would require state pension systems to disclose their returns from alternative-investment vehicles such as private-equity and real-assets funds and compare them to the performance of public stock indexes.

Last year, the state enacted a pair of bills aiming to root out private-equity’s influence in medicine: one that forbids corporate interference in medical care, and another that expands the state’s power to review healthcare buyouts.

Ares Management is backing Clearwater PACE with a commitment of up to $300 million for a vehicle that will boost the commercial property improvement financing provider’s capacity to back investments in energy efficiency.

Last year, Moody’s Ratings warned about private-credit risks in lending to U.S. commercial property owners.

Interest rates staying higher for longer are expected to drive more borrowers to nonbank credit providers in the coming years, allowing private-credit firms to make more loans that may not meet traditional banking standards, according to Moody’s.

Share your tips, suggestions and feedback with the WSJ Pro Bankruptcy team: Alexander Gladstone; Jodi Xu Klein; Akiko Matsuda; Alicia McElhaney; Andrew Scurria; Becky Yerak. 

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