“The company thought by keeping everyone negotiating and having a consensual plan that they could save much more in value, but they really misjudged how upset the first-lien lenders would be,” Thornton said.
Talks between the lender committees that were trying to protect their holdings in a negotiated bankruptcy fell apart after Fidelity failed to show up at an Oct. 28 meeting at Kirkland & Ellis LLP’s offices on Manhattan’s Lexington Avenue, said the people, who asked not to be identified without authorization to speak publicly.
Identified in regulatory filings as a “significant creditor” in the confidential talks, Fidelity was seen by the debtholders as a party that could help bring the disparate groups together after eight months of negotiations, one of the people said. Talks rescheduled for later that week failed to gain traction.
