Pyxus International (NYSE: PYX) this morning announced that it and several of its subsidiaries have filed for Chapter 11 protection under the US Bankruptcy Court for the District of Delaware, as part of what it is calling a “prepackaged” case. The firms international subsidiaries, which is believed to include its Canadian cannabis operations, are said to not be included within the filing.
Specifically, the Chapter 11 filings apple to that of Alliance One International, Alliance On North America, Alliance One Specialty Products, and GSP Properties. The company has entered a restructuring support agreement with noteholders holding more than 92% of first lien notes and 67% of second lien notes, which are held against the subsidiaries.
Under the terms of the restructuring support agreement, the company will see second lien holders convert $635 million of Pyxus’ debt into equity or cash, while first lien noteholders will push the maturity date of the notes by four years.
Further, under the Chapter 11 filing, a prepackaged plan, referred to as the “prepack plan,” which contemplates that all outstanding shares of Pyxus common stock and rights to acquire common stock (i.e. options or warrants) will be cancelled. Each current holder of common stock will receive a ratable share of $1.0 million in cash, based on their current holdings. As part of receiving their portion, each shareholder must opt-in to required third party releases.
The company has also acquired a $206.7 million debtor-in-possession financing facility, which will be used to refinancing an asset-based revolver, working capital, and general corporate purposes.
The firms international subsidiaries or affiliates are said to not be affected, with operations expected to continue worldwide in the ordinary course. This is believed to include the firms Canadian FIGR Brands Inc subsidiary.
Pyxus International last traded at $2.91 on the NYSE.
Information for this briefing was found via Pyxus International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.