We advised an ad hoc group of secured noteholders in connection with Incora’s chapter 11 proceedings

Davis Polk advised an ad hoc group of first-lien noteholders in connection with the chapter 11 restructuring of Incora.

On December 27, 2024, the Bankruptcy Court confirmed Incora’s consensual plan of reorganization, approving the comprehensive restructuring supported by the ad hoc group, as well as all other major case constituents. The confirmed plan of reorganization provides for, among other things, (i) the issuance and distribution of approximately 98.4% of the new common equity and $420 million in new convertible takeback notes on account of Incora’s first-lien secured notes, (ii) the exchange of $300 million superpriority debtor-in-possession financing claims into new secured exit notes, (iii) a $100 million new investment funded by members of the ad hoc group and other creditors to provide fund distributions and provide working capital for reorganized Incora in the form of new secured exit notes and (iv) the distribution of approximately 1.6% of the new common equity and $7.5 million on account of unsecured claims. Incora emerged from chapter 11 on January 31, 2025.

Incora is a leading provider of comprehensive supply chain management services to the global aerospace industry and other industries, including industrial manufacturing, marine, pharmaceutical and beyond. Incora incorporates itself into customers’ businesses, managing all aspects of supply chain from procurement and inventory management to logistics and on-site customer services. Incora is headquartered in Fort Worth, Texas, with a global footprint that includes 68 locations in 17 countries and more than 3,800 employees.

The Davis Polk restructuring team included partners Damian S. Schaible and Angela M. Libby, counsel Stephanie Massman and associates Katharine Somers, Jonathan (Zhenyang) He and Trevor D. Jones. Partner Elliot Moskowitz and counsel Matthew Cormack provided litigation advice. Partner Paul S. Scrivano and counsel Jacob S. Kleinman provided corporate advice. The finance team included partners David J. Kennedy and Kenneth J. Steinberg and associates Chinelo Krystal Okonkwo and Elizabeth N. Hadley. Counsel Brian Hecht provided capital markets advice. Partner Lucy W. Farr and associates Bradford Sherman and Caleb E. Smith provided tax advice. The financial institutions team included partner Paul D. Marquardt and associate Kendall Howell. Members of the Davis Polk team are based in the New York, Northern California and Washington DC offices.

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