June 1, 2026 - Miyoshi America, Spirit Airlines, Trinseo

This episode covers key developments in three major restructuring and bankruptcy cases:

Miyoshi America advances what it describes as a first-of-its-kind prepackaged talc bankruptcy plan, using Section 524(g) to channel present and future talc claims into a trust funded primarily by its Japanese parent, with more than 99% support from voting talc claimants and no nonconsensual third-party releases.

Spirit Airlines seeks approval of bidding procedures to auction its remaining assets following the cessation of flight operations, including valuable LaGuardia slots, its corporate campus, flight simulators, spare engines, and the Free Spirit loyalty program, setting the stage for a multi-track sale process designed to maximize recoveries.

And Trinseo, a global specialty chemicals manufacturer, files a prepackaged Chapter 11 backed by creditors holding roughly 78% of its funded debt, aiming to eliminate approximately $2 billion in debt, fund a $450 million equity rights offering, and emerge with general unsecured creditors paid in full despite an expected confirmation fight from a holdout creditor group.

💡 From innovative mass-tort restructuring strategies and airline asset auctions to multibillion-dollar balance sheet overhauls, this episode examines how companies are using Chapter 11 to address complex liabilities, monetize assets, and reshape capital structures in an increasingly challenging economic environment.

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Transcript

Intro

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Welcome to Stretto's Restructuring Report, a podcast featuring notable stories curated by professionals and powered by Stretto Intelligence. Join us each week for highlights, updates, and news impacting restructuring professionals. And dig deeper into research and analysis online using Research Suite by Stretto. Now enhance by AI to make it easier for professionals to find, review, and understand information that matters most. Visit researchsuite.strato.com to learn more.

Miyoshi America

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Up first, Del Monte Foods has a confirmed Chapter 11 plan, but a group of minority secured lenders is fighting to undo it. On May 22nd, 2026, the bankruptcy court in New Jersey confirmed the packaged food company's plan. Five days later, the minority group filed a notice of appeal and an emergency motion to freeze the plan while that appeal proceeds. The appeal traces back to the financing that reshaped the case. A $247 million roll-up converted the majority lender group's claims into priority financing claims and primed the minority group, which had begun on equal footing. The majority group also received plan releases and the right to appoint directors. The minority group received none of that, yet was placed in the same voting class. That single fact drives nearly every objection. On classification, the minority group argues the plan gerrymandered the class by combining two differently situated lender camps to manufacture an accepting vote. On equal treatment, it points to the releases the majority received and it did not. On voting, it argues the majority group's votes should not count because that group voted under the influence of benefits the minority never shared. And on Cramdown, it challenges a split in which its senior class recovers nothing, while a junior class of unsecured creditors receives $8 million. Running alongside all of it is an unresolved superpriority claim of at least $25 million. Next, Miyoshi America, a specialty cosmetics ingredient maker, has brought a Talc bankruptcy plan to the Southern District

Spirit Airlines

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of Texas that the company describes as a first of its kind. The plan uses section 524G of the bankruptcy code to channel present and future Talc personal injury claims into a dedicated trust. What makes it unusual is the packaging. Creditor votes were solicited before the petition was ever filed, and the talc class voted to accept by more than 99%. The structure stands out in other ways. The trust is funded almost entirely by the company's Japanese parent and not by choice on the market's part. The company's banker contacted roughly 17 financial institutions about financing and found no actionable interest, which left the parent as the only realistic source of capital. The parent's headline contribution is a $19 million cash payment, plus a $1 million note that is small in dollars but structurally important. The note is secured by a lien on a majority of the reorganized company's equity, so a payment default would let the trust take control of the business. The plan is also consensual by design. It contains no non-consensual third-party releases. And because the parent is not the debtor, it must independently qualify for protection under the channeling injunction, which the plan supports on three separate grounds. Two contingencies remain before an effective date, a modified plan addressing U.S. trustee feedback and district court affirmance of the injunction, which the bankruptcy court cannot grant alone. Moving along, Spirit Airlines, having ceased flying earlier this month, is now asking a court to approve the

Trinseo

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process for selling off what remains of the business. On May 27, 2026, the debtors filed a bidding procedures motion in the Southern District of New York, covering substantially all of their remaining valuable assets. The hearing is set for June 10th, with objections due June 3rd. The marketed assets fall into three groups, and that grouping drives the structure. First are the airline's takeoff and landing slots at LaGuardia. Second is the corporate campus, which includes a hangar, an office complex, a training center, and a residential building. Third is the operating estate, ground service equipment, spare engines, flight simulators, and the Free Spirit Loyalty Program. The proposal splits these into three bidding tracks, routed into two auctions, one on July 9th for the slots and operating assets, and one on July 22nd for the campus. Stocking horse bids are authorized but not required, and only for offers of at least $25 million, with breakup fees capped at 3% and expense reimbursement capped at $500,000. The procedures also build information walls, anticipating that a secured lender group could itself become a buyer. One legal question stands out on the campus. The ground lesser holds a right of first refusal, which the debtors argue operates as an unenforceable restraint on assignment under the bankruptcy code. How the court treats that argument may determine whether the highest bid is the winning bid. And finally, Trinzio, a global specialty chemical manufacturer,

Outro

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filed pre-packaged Chapter 11 petitions in the Southern District of Texas on May 25th and 26th, 2026. The company entered court already holding the support it needed. Holders of approximately 78% of its roughly $2.9 billion funded debt had signed a restructuring support agreement. The plan is a balance sheet reset rather than an operational one. It contemplates cutting roughly $2 billion of funded debt, backstops a $450 million equity rights offering, funds the cases with new money, and leaves every general unsecured creditor unimpaired and paid in full. The operating business is designed to run without interruption. One creditor stands apart. Castle Knight Management, which holds 2028 term loans and second lien notes, declined to sign the agreement and has said it will object to confirmation. The reason becomes clear in the recoveries. Trinzio's debt sits in two separate collateral silos, and position in the silo, not seniority in the abstract, determines recovery. The class Castle Knight sits in is projected to recover between 2 and 9%, while a higher class recovers between 60 and 78%. That gap is the backdrop for a contested confirmation. The case also carries an Irish dimension. Because the parent is incorporated in Ireland, canceling its equity requires an ancillary Irish proceeding, which is why the outside date for the plan to take effect runs to November 21st, 2026.

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That's it for this week's restructuring report. For more case summaries, court updates, and bankruptcy insights, subscribe wherever you get your podcast. If you're a restructuring professional, let Stretto help you stay informed, stay compliant, and stay ahead. Visit Stredo.com for more info.