Hearthside Restructures $2 Billion Debt Post Chapter 11 Exit
Deal News | Mar 31, 2025 | Ropes & Gray
Hearthside Food Solutions has successfully completed a financial restructuring process, reducing its funded debt by approximately $2 billion. The company emerged from Chapter 11 bankruptcy with about $600 million in liquidity, supported by a $200 million Equity Rights Offering and a $190 million asset-backed loan facility. The restructuring was completed with the legal guidance of Ropes & Gray, notably involving business restructuring partners Natasha Hwangpo, Ryan Preston Dahl, and Matt Roose. This enhanced financial position post-restructuring allows Hearthside to stabilize its operations and prioritize strategic growth.
Sectors
- Food Manufacturing
- Legal Services
- Financial Restructuring
Geography
- United States – Hearthside Food Solutions is based in the United States, and the restructuring occurred under U.S. bankruptcy laws.
Industry
- Food Manufacturing – Hearthside Food Solutions operates within the food manufacturing industry, providing processed food products to a variety of clients.
- Legal Services – Ropes & Gray provided business restructuring legal services to Hearthside during its restructuring process.
- Financial Restructuring – The article discusses the financial restructuring of Hearthside Food Solutions, indicating a focus on adjusting and stabilizing its financial framework.
Financials
- $2 billion – The amount of funded debt eliminated by Hearthside's restructuring plan.
- $600 million – Total liquidity with which Hearthside emerges post-restructuring.
- $200 million – New funding through an Equity Rights Offering as part of the restructuring.
- $190 million – Additional capital from a new asset-backed loan facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hearthside Food Solutions | Target Company | Company | A large contract manufacturer and the largest private bakery in the U.S., known for producing granola bars, snack foods, and other bakery products. |
| Ropes & Gray | Legal Advisor | Company | A global law firm providing legal services in business restructuring and other advisory capacities. |