On November 4, 2019, our client Jack Cooper Investments, Inc. (“Jack Cooper”) and an affiliate of Solus Alternative Asset Management LP (“Solus”) closed the sale transaction contemplated by their previously signed asset purchase agreement (the “APA”), pursuant to which Solus acquired substantially all of the U.S. and Canadian assets of Jack Cooper in an auction sale pursuant to U.S. Bankruptcy Code Section 363. The aggregate purchase price under the APA was approximately $425 million.
The APA was entered into in connection with a pre-negotiated restructuring of Jack Cooper under Chapter 11 of the U.S. Bankruptcy Code and pursuant to a sale order entered on October 11, 2019 by the United States Bankruptcy Court for the Northern District of Georgia.
In connection with the restructuring, Jack Cooper also secured two debtor-in-possession (DIP) credit facilities to provide financing during bankruptcy, as follows: (i) a $15 million term junior secured multi draw term loan facility from its junior term loan lenders (including Solus) under its prepetition credit agreement agented by Wilmington Trust, which was credit bid in connection with the closing under the APA, which was credit bid at closing, and (ii) an $85 million senior secured superpriority asset-based revolving lending facility agented by Wells Fargo Capital Finance, which was refinanced at closing into a revolving credit facility to support the business on a go-forward basis. Jack Cooper also refinanced its existing first lien term loan facility at closing.
Jack Cooper is a large, technology-focused, diversified transportation and logistics enterprise with operations across North America. Solus is a privately held, SEC-registered investment advisor specializing in investing in event-driven, distressed and special situation opportunities.