Walter Investment Management Corp. entered into a restructuring support agreement with senior lenders holding more than 50% of loans and/or commitments outstanding under a credit agreement dated Dec. 19, 2013.
The restructuring support agreement stipulates that the credit agreement will extend to June 2022. The restructuring support agreement also includes a waiver of certain events of default under the credit agreement, including those arising as a result of the restatement of certain of the company's financial statements because of an error in the calculation of the valuation allowance on its deferred tax asset balances.
Additionally, the restructuring support agreement has a provision to amend the credit agreement to make certain changes to the mandatory prepayment arrangements and negative covenants.
Also, more than 50% of the holders of the company's 7.875% senior notes due 2021 agreed to waive any event of default existing under their purchase as a result of the restatement.
The company intends to use good faith efforts to negotiate a restructuring support agreement with holders of a sufficient holding of the senior notes in the next 30 days.
In connection with the restructuring, Weil Gotshal & Manges LLP serves as legal counsel, Houlihan Lokey acts as investment banking debt restructuring adviser and Alvarez & Marsal North America LLC is financial adviser to Walter Investment Management.