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THL-Backed Fortna Opens Restructuring Talks; Charter Challenges Dish Bankruptcy Plan
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Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, July 10. In today's briefing, THL Partners-backed supply-chain software provider Fortna has entered formal negotiations with its lenders to restructure over $1.5 billion in debt amid a severe liquidity crunch and high interest burden, sources told WSJ Pro Bankruptcy. And Charter Communications challenged Dish Wireless's Chapter 11 restructuring plan, arguing that Dish's sudden abandonment of their 5G partnership leaves Charter with massive potential damages as a major unsecured creditor while those claims are forced into an accelerated bankruptcy process.
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Fortna’s technology helps companies automate and manage warehouses and distribution logistics. Photo: Waldo Swiegers/Bloomberg News
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THL-Backed Fortna Begins Restructuring Talks on $1.5 Billion Debt
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Supply-chain software and services provider Fortna has started negotiating with creditors to restructure more than $1.5 billion in debt, according to people with knowledge of the matter.
THL Partners-backed Fortna’s lenders, represented by law firm Gibson Dunn & Crutcher, have formally begun discussing options for a debt restructuring, including a liability management exercise, the people said.
The debt talks come in the midst of a liquidity crunch as Fortna has been burning cash because of a heavy debt load and a high interest burden, according to an S&P Global report in December.
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Spectrum filed an arbitration against Dish last Tuesday, the same day as the chapter 11 filing by Dish Wireless and Dish DBS. Photo: Paul Sakuma/Associated Press
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Charter Communications Battles Dish’s Restructuring Plan Following 5G Failure
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Charter Communications came out swinging at the restructuring plan filed by Dish Wireless, claiming that it is being forced to suffer huge potential damages under a rushed bankruptcy process.
Charter, which is commonly known by its brand name Spectrum, had agreed to provide services for the build-out of Dish’s 5G network. Dish abandoned the 5G project following difficulties with the Federal Communications Commission, breaching its agreement with Spectrum and leaving Spectrum as a major unsecured creditor in the Dish bankruptcy proceedings.
Spectrum filed an arbitration against Dish last Tuesday, the same day as the chapter 11 filing by Dish Wireless and Dish DBS. On Wednesday, Spectrum said it was never contacted about the restructuring plan or provided with sufficient, timely information, bankruptcy court papers show.
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Trucks drive through the Port of Oakland in California. Photo: Justin Sullivan/Getty Images
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STG Logistics Emerges from Bankruptcy With $1 Billion Less Debt
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STG Logistics has successfully exited chapter 11.
The Columbus, Ohio-based logistics-service provider’ reduced roughly $1 billion in funded debt in a 90% reduction of its balance sheet. Funds managed by Fortress Investment Group, Fidelity and Invesco took control of the reorganized business.
STG filed for bankruptcy on in January as it faced a legal battle with some lenders alleging that the company and its majority creditors violated the rights of its minority lenders when they were excluded from a liability management transaction in 2024.
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