💥Zippidy Do Da💥
Updates: Zips Car Wash + im3NY. Filings: Global Clean Energy + Molecular Templates
Some normalcy set in this week.
Price discovery remains the dominant theme in cap markets but, in a change of course from the post “Liberation Day” trend, a handful of high yield deals launched and priced and a leveraged loan deal finally got done. The S&P 500 finished up nearly 5.6% on the week (but remains down 5.85% YTD) and the Nasdaq Composite finished up 8.3% (but remains down 9.8% YTD). Still, as many of the charts 👇 reflect, there’s still some wonkiness in markets and, literally as we write this, CNBC is reporting on some serious concern:
The PETITION team is, like most of you, in wait and see mode. In the meantime, today we dive into some new coverage and some updates on previously discussed matters. Let’s dive in.
⚡️Update: Zips Car Wash LLC⚡️
In mid-February, we covered Zips Car Wash LLC and its nine affiliates (collectively, the “debtors”), which filed chapter 11 cases on February 5, 2025 in the Northern District of Texas (Judge Larson).
The same day the petitions hit the docket, the debtors filed a chapter 11 plan (the “plan”), which provided for (i) 100% of the debtors’ reorganized equity and $375mm of take-back debt going to their prepetition term loan lenders and (ii) 100% of a bit fat 🍩 going to general unsecured creditors and pref equity holders (the latter of which consented to the outcome in exchange for the payment of some expenses).
A couple of weeks later, on February 21, 2025, the US trustee appointed an official committee of general unsecured creditors (“GUCs” and the committee, the “UCC”),* which subsequently retained four thousand lawyers at Pachulski Stang Ziehl & Jones LLP (Brad Sandler, Robert Feinstein, Alan Kornfeld, Paul Labov, Judith Elkin, Shirley Cho, Michael Warner, Maxim Litvak, Theodore Heckel) … and guess what? … the UCC wasn’t signed off on the plan’s proposed $0 for GUCs.
