Children’s Place files for Chapter 11 to effectuate sale

BY Fraser Tennant

In the wake of major losses and falling sales, New ‌Jersey-based clothing retailer Children’s Place has voluntarily filed petitions for Chapter 11 bankruptcy protection.

Reporting assets of $742.3m and liabilities of $881.3m as ​of 1 August 2026, the company and ‌13 of its affiliates sought protection from creditors in the Newark, New Jersey bankruptcy court. The company is also seeking recognition of the US Chapter 11 proceedings in Canada to include its Canadian assets and operations in the sale process.

In order to maximise value for all stakeholders, the company intends to file a motion requesting approval of a competitive marketing and sale process – designed to elicit the highest or otherwise best bid for the company’s assets with the goal of continuing the company’s business as a going concern and preserving the value of its brands.

The company is requesting parties to submit bids by 9 December 2026, and expects to complete the court-supervised sale process by the end of December 2026. Its stores and e-commerce sites remain open and continue to serve customers.

“This process marks an important step in our efforts to secure the best path forward for The Children’s Place,” said Rudy Morando, co-chief restructuring officer at Children’s Place. “For nearly 60 years, Children’s Place has supported growing families with apparel that customers have come to know and love.”

One of the only pure-play children’s specialty retailers in North America with an omni-channel presence, Children’s Place designs, contracts to manufacture and sells fashionable, high-quality, head to toe outfits predominantly at value prices, primarily under its proprietary brands: ‘The Children’s Place’ and ‘Gymboree’.

To fund its value-maximising restructuring process and go-forward operations, the company plans to enter into a new term loan facility provided by its existing secured lenders.

Subject to court approval, the company intends to continue its ongoing inventory sales across its store fleet designed to enhance liquidity and maintain operational flexibility, while providing families with access to deep discounts on fashionable, high-quality, head to toe outfits.

“We recognise the significance of this development for our employees, customers, vendors and other partners, and we are committed to conducting an efficient and transparent sale process,” added Mr Morando. “In the meantime, we remain focused on serving the families who have trusted Children’s Place for generations.”

News: Clothing retailer Children's Place files for bankruptcy, to seek sale

NRG sells power generation assets for $4bn

BY Richard Summerfield

NRG Energy Inc. has agreed to sell six natural gas generation assets to New York-based independent power company LS Power, for a purchase price of $4bn in cash, subject to working capital and other closing adjustments.

The sale is expected to close in the second quarter of 2027, subject to customary closing conditions and regulatory approvals.

The six assets represent 4.9 GW of generation across the New York Independent System Operator (Ravenswood), ISO-New England (Ocean State Power and Wallingford) and Electric Reliability Council of Texas (ERCOT) (Jack County, Johnson County and R.W. Miller).

Proceeds from the transaction will be used to support NRG’s 2027 pro forma capital allocation plan of $3bn of share repurchases across 2026 and 2027, including an incremental $1bn expected to begin before the end of the fourth quarter of 2026. Upon closing of the asset sale, NRG plans an additional $2bn of debt reduction to maintain the company’s current leverage profile, bringing total planned 2027 debt reduction to $3bn. The remaining proceeds will be reserved to fund either contracted growth investments or additional debt reduction.

Upon completion of the deal with LS Power, NRG will own and operate 20 GW of generation capacity, including 10 GW of generation in the ERCOT territory. The company said that by 2028, another 1.1 GW is expected to be operational in ERCOT through the company’s remaining two Texas Energy Fund projects.

“We are unlocking substantial value from a select group of assets, while maintaining a robust generation footprint in PJM and ERCOT that provides reliable, affordable power for our customers,” said Robert Gaudette, president and chief executive of NRG. “This transaction will strengthen our balance sheet, support increased share repurchases and preserve flexibility to invest in growth opportunities with compelling returns. It demonstrates our commitment to disciplined capital allocation and creates long-term value for shareholders.”

“Significant investment in firm, dispatchable power remains essential to grid reliability, and facilities that are already built, permitted, and interconnected deliver that power today,” said Paul Segal, chief executive of LS Power. “Firm power underpins our all-of-the-above approach, including renewables and distributed energy resources. Expanding LS Power's generation footprint in the Texas, Northeast, and New York markets, where we have deep experience developing and operating a range of energy infrastructure assets, creates opportunities to support historic levels of power demand growth.”

According to LS Power, the acquisition from NRG, combined with the company’s pending acquisition of about 4.4 GW in generation capacity from Constellation, will expand the group’s gas-fired generation fleet from 2.2 GW to 11.5 GW. LS Power also owns a variety of renewable energy assets, including solar, wind, hydro and battery energy storage, in a portfolio that will now exceed 19 GW of capacity.

The $4bn deal is not the first time the two companies have done business together. In 2025, NRG acquired LS Power’s natural gas generation facilities and a commercial and industrial virtual power plant platform portfolio in a cash and common stock deal valued at approximately $12bn.

News: NRG Energy to sell six power plants to LS Power for $4 billion

Mercer International files for Chapter 11 bankruptcy protection

BY Richard Summerfield

Canadian pulp manufacturer Mercer International Inc. has filed for Chapter 11 bankruptcy as part of a restructuring and recapitalisation deal that will slash its debt and bring in approximately $400m of new money.

The company, along with Mercer International (Texas) LLC, has entered a non-operating voluntary Chapter 11 prepackaged case in the US Bankruptcy Court for the Southern District of Texas. Completion of the recapitalisation is subject to customary conditions, including any requisite regulatory approvals, and the company is optimistic that it will be able to conclude this expedited Chapter 11 process by the end of 2026.

According to a statement announcing the recapitalisation deal, the agreement will see approximately $1.1bn of the company’s senior notes exchanged for equity, reducing existing senior note debt by approximately 88 percent, with minimal cash interest requirements over the first two years following emergence, and no bond maturities until 2031. The recapitalisation will eliminate approximately $96m of annual cash interest on the senior notes.

The company will also benefit from substantial new capital and liquidity, with $400m of new money being secured through a rights offering of new senior secured notes 100 percent backstopped by certain members of the ad hoc group of noteholders to provide significant liquidity to support Mercer’s operations post-emergence.

Going forward, existing shareholders will receive approximately 8.5 percent of the new common stock and 3.5 percent of the new convertible preferred stock of the reorganised company.

Mercer’s restructuring deal has support from holders of more than 87 percent of the outstanding principal amount of Mercer’s senior notes and a majority of the outstanding shares of its common stock.

According to Mercer, the company and its operating businesses will continue to operate in the ordinary course of business during the restructuring process. Its customers will continue to be served, vendors and unsecured claims will be paid in the ordinary course, and employee wages and benefits will continue without interruption

“This transaction is a decisive step forward for Mercer and is the result of constructive and arm’s-length negotiations between Mercer and key stakeholder groups,” said Juan Carlos Bueno, president and chief executive of Mercer. “With the support of the majority of our noteholders and shareholders, we are putting in place a much stronger balance sheet and the liquidity to navigate current pulp and lumber market and geopolitical conditions. Upon emergence, we will be better positioned to invest in, and grow, our business.

“This is a balance sheet recapitalization only. Our mills in Germany, Canada and the United States are operating as usual, and we expect to continue to meet our commitments to customers, suppliers and employees in the ordinary course,” he added.

Mr Bueno also thanked the company’s employees for their dedication and hard work, as well as its customers, suppliers, community partners, noteholders and shareholders for their continued support and confidence in Mercer’s future. He said this backing demonstrated faith in the company’s people, long-term strategy and portfolio of pulp, lumber and mass timber products, and expressed confidence that Mercer would complete the process efficiently and emerge as a stronger business.

News: Mercer International to file prepackaged Chapter 11, swap $1.1 billion of notes for equity

ADT acquired by Thrive Holdings in $7.6bn deal

BY Fraser Tennant

In a $7.6bn deal that takes the residential security firm private, ADT has been acquired by Thrive Holdings, a permanent capital holding company focused on investing in established businesses and advancing their capabilities through technology.

Under the terms of the all-cash transaction, ADT shareholders will receive $10 for each share they own – a per share price representing a premium of 52.1 percent to its 30-day volume-weighted average share price ending on 27 October 2026.

Financing commitments for the transaction have been solely provided by funds managed by affiliates of Apollo Global Management, Inc.

The transaction – which has been unanimously approved by the ADT board of directors – combines ADT’s more than 150 years of security experience, nationwide service network and customer trust with Thrive Holdings’ long-term capital and engineering capabilities.

Currently, more than 75 businesses across accounting, IT services and the built environment are part of Thrive Holdings. Following the closing of the transaction, ADT will form the foundation of Thrive Holdings’ smart home security business.

“ADT is pleased to enter into this transaction, which recognises the value built by our more than 12,000 employees and delivers an attractive cash premium to our stockholders,” said Jim DeVries, chairman, president and chief executive of ADT. “Our leadership in security is based on a legacy of trust, longstanding customer relationships and the dedication of our employees.”

Thrive Holdings intends to support ADT’s management in pursuing long-term growth through continued investment in the company’s people, products and services. Thrive Holdings’ engineering teams will work alongside ADT’s professionals to identify opportunities for technology to enhance the company’s products and services and help its teams support customers more effectively.

“ADT has spent generations showing up for people when it matters most,” said Kareem Zaki, a partner at Thrive Holdings. “We intend to build on that foundation by strengthening ADT’s technology and product capabilities, with the capital and patience to invest over decades. Our ambition is to help ADT’s teams better serve customers and offer a seamless service with more actionable information for the professionals responding.”

The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions, including approval by ADT’s stockholders and receipt of US antitrust approval. The transaction is not subject to a financing condition.

Mr DeVries said: “With Thrive Holdings’ long-term capital and technology expertise, ADT will gain new opportunities to accelerate innovation, enhance the customer experience and bring greater peace of mind to even more homes and businesses.”

News: Home security firm ADT to be taken private by Thrive Holdings for $7.6 billion

RiverStreet files for Chapter 11 bankruptcy

BY Fraser Tennant

RiverStreet, a telecommunications and broadband services provider based in Virginia, has filed for Chapter 11 bankruptcy protection to facilitate an asset purchase agreement (APA) with funds managed by Oaktree Capital Management. 

The bankruptcy filing encompasses 21 entities, including RiverStreet Communications, RiverStreet Networks, RiverStreet Wireless, and several regional telephone and communications companies.

The new ownership is expected to significantly strengthen RiverStreet’s financial foundation and provide additional resources to support its long-term success, allowing the company to continue to provide reliable telecommunications and broadband services to all its customers without interruption.

Additionally, RiverStreet is currently implementing a modified build plan that refocuses its operations on its existing customers and footprint. Under this plan, RiverStreet maintains its current networks and intends to finish new builds that are nearing completion.

At the same time, the company – which serves customers in more than 67 counties in three states, primarily in North Carolina and Virginia – intends to transition certain unfinished expansion projects to other qualified broadband providers.

“The APA with Oaktree and the actions we are taking today are intended to ensure that this mission continues for years to come,” said Eric Cramer, president and chief executive of RiverStreet. “The board of directors and management team carefully considered a range of options before making this decision.”

To support the company during the court-supervised proceedings, RiverStreet has appointed Stuart Kaufman as chief restructuring officer. Mr Kaufman is a senior managing director at Areté Partners, LLC with more than three decades of financial restructuring experience and deep financial and operational expertise.

“We are confident that this is the best path for RiverStreet and our key stakeholders, including our customers and the communities where we live and work,” he continued. “We look forward to completing this process and entering a new phase as a stronger rural broadband provider with new owners, substantially less debt, and greater financial flexibility.”

In connection with the court-supervised sale process, RiverStreet has received a commitment for approximately $20m in new financing from its existing lender, CoBank, ACB. Upon court approval, this new financing, together with cash generated from ongoing operations, will support the company’s operations throughout the Chapter 11 proceedings.

Evan Kramer, senior vice president at Oaktree, added: “We look forward to building on RiverStreet’s strengths while remaining true to its mission as a leading rural telecommunications and broadband provider.”

News: RiverStreet Communications: $480 Million Awarded, $188 Million Received