The M&A Advisor selected Kaye Scholer’s representation of Liberty Tire Recycling as its Out-of-Court Restructuring Deal of the Year (under $500 MM). The honor is part of the publication’s tenth annual M&A Advisor Turnaround Awards.
“This matter is a great illustration of the speed with which financial restructurings are being completed in this market and the clear trend toward completing these restructurings as out-of-court transactions,” says partner Tyler Nurnberg, who led the restructuring team with firm managing partner Mike Solow. “The company restructured its balance sheet in a matter of months and averted a costly cross-border proceeding.”
An interdisciplinary team of Kaye Scholer attorneys drawn from the Finance, Corporate and Bankruptcy & Restructuring groups collaborated on the successful out-of-court restructuring, which was completed in March 2015. The transaction was notable because the exchange offer and consent solicitation were completed in only seven days, with 99 percent of the noteholders participating. In addition, the transaction featured a unique “plan toggle” that would have enabled Liberty to convert the proposed out-of-court restructuring to a prepackaged chapter 11 case in the US, with a parallel proceeding in Canada, had the exchange offer not garnered the required level of support from the noteholders.
Liberty is North America’s premier provider of tire recycling services, with headquarters in Pittsburgh, PA and facilities throughout the US and Canada. It recycles a third of the scrap tires in the US, or over 141 million tires annually, and reclaims about 1.6 billion pounds of rubber for innovative eco-friendly products. Since its restructuring, Liberty has made significant capital investments in plants and equipment and continues to capitalize on new market opportunities and grow its core recycling business. The restructuring also preserved jobs for Liberty’s 1,100+ employees and their families throughout the US and Canada.
The Kaye Scholer team received substantial contributions from, among others, partners Mel Cherney, Chris Peterson (Corporate), Sheryl Gittlitz (Finance), Michael Solow, Tyler Nurnberg (Bankruptcy & Restructuring) and Laurie Abramowitz (Tax); William Lonergan (Corporate) and Irv Hepner (Real Estate); and associates Roxanne Mintz, Anna Smith, Katy Benitez (Finance), Shay Soltani, Tyler Conway, Chris Konieczny (Corporate), Seth Kleinman, Jason Ben, Elise Neveau (Bankruptcy & Restructuring) and Sarah Soloveichik (Tax).
“The award winners represent the best of the distressed investing and reorganization industry in 2015 and earned these honors by standing out in a group of very impressive candidates,” The M&A Advisor co-CEO and president David Fergusson said. “We have recognized the leading restructurings, distressed M&A transactions, firms and individuals that represent the highest levels of performance.”
The M&A Advisor Turnaround Award for our Liberty work is the most recent in a series of “best of the year” recognitions for our insolvency capabilities, which are some of the most advanced and highly sought after in the US. Last year, the insider industry report for tracking distressed businesses, Turnarounds & Workouts, chose two Kaye Scholer restructurings —IAP Worldwide Services and Preferred Proppants—for its definitive list of the 12 “Successful Restructurings of 2014.” Kaye Scholer’s restructuring of client 4Kids Entertainment was selected for the same award in 2012.
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