JetBlue, Braskem, Getty Images, and Optimum

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Passing along a few key restructuring and credit news from the last few days.

JetBlue's stock sank 10% to $2.65, its lowest level since going public, and its 2031 bonds fell to 40 cents on the dollar. Getty Images filed a prepackaged Chapter 11 to go private with up to $533mm from Koch, while creditors holding $272mm of Braskem finance-unit notes filed an involuntary petition. Optimum is nearing a deal that hands control to its lenders, and LSEG is buying Octus for $3.54bn.

JetBlue's poor performance this year just took a turn for the worse this Thursday. Ahead of the third quarter's earnings report, JetBlue's stock fell 10% to $2.65, the lowest level it has been at since it went public in 2002. $2mm in bonds due in 2031 plunged to trading at 40 cents on the dollar. These bonds were backed by collateral associated with the company's loyalty programs and were trading at 80 cents at the beginning of the month.

The difficulties for JetBlue come alongside higher pressure for the aviation industry as the conflict in the Middle East forces oil prices to surge. JetBlue is in a particularly poor position due to reliance on price-sensitive leisure travelers and years of losses, leading to decreased financial flexibility for the company.

Despite these difficulties, JetBlue CEO Joanna Geraghty ruled out the possibility of filing for bankruptcy in an internal memo sent in April. JetBlue representatives in July also said they expect to generate positive free cash flow in 2027 and earn at least $1 a share in 2028.

In May, Moody's Ratings downgraded JetBlue's rating one notch to Caa2 and predicted operating losses for this year and the next. JetBlue had negative free cash flow of $239mm in the second quarter, resulting from $155mm in operations and $234mm in capital expenditures.

London Stock Exchange Group has agreed to acquire Octus, formerly known as Reorg, from private equity firm Permira and management for approximately $3.54bn. The transaction marks LSEG's largest acquisition since its purchase of Refinitiv in 2019 and expands its presence in credit and private markets intelligence.

Octus provides proprietary data and analysis covering leveraged finance, distressed debt, restructuring and private credit. The platform is expected to generate more than $300mm in revenue during 2026 and serves investment banks, asset managers, law firms and financial advisers.

Permira acquired a controlling stake in Octus in 2022 at a reported valuation of approximately $1.3bn. The sale represents a significant exit for the private equity firm, while LSEG expects the acquisition to strengthen its fixed-income analytics business and expand its offerings across private credit markets.

Comcast is set to undergo the most significant transformation in its company's history, with it taking on a $1bn-plus charge in the fourth quarter. The company's third-quarter results were weighed down by losses, with overall revenue falling by 6.1% to $2.39bn. Within the third quarter, Comcast lost 144,000 domestic customers. The expected loss was around 131,000 customers. The company added just 368,000 domestic wireless lines, with analysts predicting an increase of 400,800. Despite this, the company did post strong results in its content division, partly because of gains in the streaming service Peacock and the hit movie “The Odyssey.”

Competition within the connectivity space has recently increased, with many companies now attempting to lock in customers in multiyear agreements to prevent them from moving to companies with lower prices.

As part of the restructuring plan, Comcast will cut a significant number of jobs. The reorganization is meant to give Comcast a stronger position to operate independently after it spins off the NBCUniversal businesses next year. The cuts aim to free up cash to invest in other growth opportunities.

Creditors holding approximately $272mm in Braskem America Finance's bonds have filed an involuntary Chapter 11 petition against the Brazilian petrochemical company's US financing subsidiary. The petition targets roughly $589mm of 7.125% notes due 2041 and was filed in the Southern District of New York on October 20.

The petitioning funds, FFI Fund, FYI Ltd. and Olifant Fund, allege that the subsidiary is generally failing to pay its debts as they become due. Unlike a voluntary bankruptcy filing, an involuntary petition allows creditors to seek court-supervised proceedings without the debtor's consent.

The move adds pressure to Braskem's existing efforts to restructure approximately $10.9bn in unsecured financial obligations through Brazilian extrajudicial reorganization proceedings. The petition targets the US financing subsidiary, not the entire Braskem group, and the court has not yet ordered Chapter 11 relief.

Getty Images has filed for prepackaged Chapter 11 bankruptcy in Delaware as part of a restructuring agreement that will take the visual media company private. The filing follows the collapse of its proposed $3.7bn merger with Shutterstock amid regulatory concerns, mounting debt and growing competition from AI-generated imagery.

Under the restructuring plan, the Getty family and Koch Equity Development have committed up to $533mm in equity investment. Unsecured bondholders have agreed to retire $270mm in notes, while secured lenders will extend maturities and reduce interest obligations. Koch will also provide up to $143mm in bankruptcy financing.

Following emergence, Getty family affiliates and Koch Equity Development will own 100% of the reorganized company, with existing shareholders receiving no recovery. Getty expects to complete the restructuring by year-end while maintaining normal operations throughout the proceedings.

Optimum is reaching the closing of a restructuring agreement with its lenders that will give control back to them. Lenders, including Apollo Global Management Inc., Oaktree Capital Management, and JPMorgan Chase & Co., have been trying to negotiate with controlling stakeholder Patrick Drahi on dealing with his equity stake.

Optimum's attempt to restructure its debt stack has been challenging, with the company last year accusing its lenders of antitrust behavior. In June, Optimum told creditors they were at risk of triggering more than $4bn in tax liabilities if they were forced into bankruptcy. Then, last month, the creditors sued Optimum, claiming they were siphoning value into the pockets of insiders like Drahi. Drahi owns 28% of Class A shares and 99.9% of Class B shares, giving him 90.5% of voting power.

Optimum shares fell 30% on Wednesday and are now trading down about 18% at 68 cents as of earlier today in New York. A potential deal is possible before the end of November.

Canadian satellite operator Telesat's lenders have proposed a C$3.2bn rescue package to avert a potential December debt default. The proposal includes approximately C$1.7bn in equity and C$1.5bn in debt financing, with participating lenders offering to backstop the transaction.

The financing would address upcoming maturities at Telesat's legacy satellite business while the company continues developing Lightspeed, its low-Earth-orbit network. Negotiations have been complicated by Telesat's transfer of a 62% interest in Lightspeed to a subsidiary outside certain creditors' reach.

Lenders including Silver Point Capital and Sound Point Capital Management have challenged the asset transfer in U.S. litigation. Telesat has not accepted the proposal, leaving the possibility of a contested restructuring unresolved as its December maturity approaches.

As always, I am here to help. Do not hesitate to reply to this email with any questions on recruiting, restructuring, or anything else.

Best,
Rx

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