LIABILITIES SUBJECT TO COMPROMISE

3 Months Ended

Mar. 31, 2024

Liabilities Subject to Compromise [Abstract]

As discussed in Note 1, "Nature of Business and Operations", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the Company's accompanying unaudited condensed consolidated balance sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at March 31, 2024 consisted of the following:


(in thousands)	March 31, 2024
Accounts payable, accrued expenses, other liabilities and deferred taxes	$	78,778
Service Fund Liability	70,119
Due to Seller	48,240
Debt subject to compromise	1,233,159
Accrued interest on debt subject to compromise	28,778
Tax receivable agreement liability	261,114
Total	$	1,720,188

Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change.

REORGANIZATION ITEMS, NET

Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying unaudited condensed consolidated statement of operations for the three months ended March 31, 2024 and are summarized below:


(in thousands)	March 31, 2024
Write-off of debt issuance cost related to debt subject to compromise	$	75,776
Debtor-in-possession refinancing costs	37,909
Professional fees and other bankruptcy related costs	20,197
Write-off of lease liabilities	(52,834)
Tax receivable agreement liability	261,114
Interest income on surplus cash invested	(251)
Reorganization items, net	$	341,911

Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Payments of $4.6 million related to professional fees and $4.2 million related to Debtor-in-possession refinancing costs have been presented as cash outflows from operating activities and financing activities, respectively in the Company's unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2024.

As of March 31, 2024, $15.6 million of professional fees included in Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the Company's accompanying unaudited condensed consolidated balance sheet.