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Bankruptcy & Restructuring

Our nationally recognized Tier 1 team of insolvency and restructuring practitioners operates at the forefront of the largest and most complex multinational restructurings and insolvencies. In what would otherwise be unknown territory for clients, we serve as their GPS in any market situation. Our real-time responsiveness, geographic reach and global understanding of the intricacies of the bankruptcy, restructuring and credit trading & investing landscape provide clients across sectors and around the world with a surer route to achieving the best possible outcome for their unique situation.

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The Numbers: Our Accomplishments

  • $1.2 billion Value of structured construction loan receivables facility that was repaid in full to our clients.
  • 30+ Years of experience advising clients in the Bankruptcy & Restructuring arena.
  • 40+ Lawyers dedicated solely to restructuring and insolvency work

Capabilities: How We Do It

  • Unparalleled creditor- and debtor-side experience: longstanding relationships with some of the world’s leading lenders, investors, managers, institutions, equity sponsors, portfolio companies and indenture trustees.
  • Multidisciplinary approach that offers one-stop shop for the full range of insolvency, restructuring, special situations and distressed investing activities.
    • Creditors’ rights enforcement
    • Debt restructurings
    • Derivative Transactions
    • Structured Vehicles
    • M&A (in/out of court)
    • Loan workouts
    • DIP Financings
    • Complex, cross-border insolvencies
    • Foreign jurisdiction
    • Portfolio transfers
    • Pre-trade analysis
    • Expedited settlement
  • Broad experience in key economic sectors: airline, including automotive, cable/telecommunications, consumer products, energy/infrastructure, food services, health care, insurance, manufacturing, media, pharmaceutical, real estate, retail, shipping, steel, textile and transportation.
  • 4Kids Entertainment: Represented 4Kids in its successful Chapter 11 case. A critical factor in the outcome was our representation of 4Kids in a “bet-the-company” litigation with a group of licensors over control of 4Kids’ most valuable asset—its license to the popular Japanese anime property Yu-Gi-Oh!. 4Kids prevailed at trial and, following the court’s ruling, negotiated a favorable recovery on its affirmative counterclaims. Once the litigation was resolved, 4Kids conducted a complex, multiparty auction that formed the basis for the sale of 4Kids’ licensing and operating assets to separate purchasers in a unique joint sale transaction. 

    With the proceeds of the litigation settlement and sale, 4Kids confirmed a plan of reorganization that paid all creditors in full, kept shareholders in place, and preserved approximately $100 million in NOLs. This successful result is in stark contrast to expectations at the start of the case that there was likely to be no recovery by creditors or shareholders. 4Kids reorganized around its remaining business, now operating as 4Licensing Corporation, and emerged from bankruptcy in 2014.
  • Barclays Bank PLC | Matter: Global Outsourcing and Data Management Company
    Represented steering committee of senior lenders and Barclays in its capacity as administrative agent, under a $795 million First Lien Credit Agreement extended to a global outsourcing and data management company. Representing the agent and the first-lien steering committee in restructuring negotiations implementing a sale of a significant division of the borrower and a priority financing sub-facility to facilitate the sale. The borrower is an international provider of business process outsourcing solutions, primarily focused on accounts receivable management and customer relationship management.
  • Barclays Bank PLC and KeyBank National Association | Matter: Preferred Proppants LLC
    Represented Barclays and KeyBank as the administrative agents under the $630 million credit agreement of Preferred Proppants and the restructuring of $565 million in first- and second-lien loans that preceded it. Radnor, Pennsylvania-based Preferred Proppants LLC is one of North America’s largest producers of frac sand and proppant materials used predominantly for oil and gas drilling. Its network of mines has the capacity to produce more than 9 billion pounds of sand every year.

    At the end of 3Q13, Preferred Proppants considered a range of options for its liquidity squeeze, including a bankruptcy filing and strategic alternatives, such as finding a suitor, as the company evaluated DIP needs. Given the company’s tight liquidity and high leverage, though, any potential sale would likely be implemented via a stakeholder unfriendly Section 363 sale. Working diligently and constructively, the parties entered into a forbearance agreement in September 2013 with an eye on a potential restructuring. In 2Q14, $565 million in first- and second-lien loans were restructured, resulting in Moody’s revising Preferred Proppants’ ratings outlook from negative to stable. In this matter, we created innovative solutions to address complex tax, governance and corporate issues and a novel alternative asset disposition strategy was developed. During the summer of 2014, faced with an impending restructuring that would be adverse to Preferred Proppants’ owner, the company refinanced the credit facility and the entire lender group paid in full.
    • Turnarounds & Workouts named this client restructuring to its list of top 12 ““Successful Restructurings of 2014.”
  • Deutsche Bank Trust Company Americas | Matter: IAP Worldwide Services
    Widely viewed as one of the leading restructurings involving the defense industry, our insolvency and national security lawyers actively represented a steering committee of senior lenders and Deutsche Bank in its capacity of administrative agent under a $359 million first-lien credit agreement extended to IAP, a provider of services to the US government in the defense industry. The IAP restructuring was particularly noteworthy as it was the first debt-for-equity restructuring transaction of a defense contractor. The restructuring also required the approval of all creditor and equity holders given the borrower’s inability to obtain protection under the Bankruptcy Code. We obtained consensus among lender groups with widely differing interests and investment theses, and developed innovative non-bankruptcy mechanisms to obtain unanimous lender consent to the transaction. The team is actively representing the agent and first-lien steering committee (Eaton Vance, Invesco, Oppenheimer and Credit Suisse Asset Management) in ongoing restructuring negotiations with the borrower, the equity sponsor, Cerberus Capital Management, and lenders under a $137 million second-lien facility.
    • Turnarounds & Workouts named this client restructuring to its list of top 12 ““Successful Restructurings of 2014.”
  • Family of Funds | Matter: Energy Future Holdings Corp.
    Represented a family of funds with significant debt positions in the chapter 11 bankruptcy proceeding of Energy Future Holdings Corp.
  • KeyBank National Association | Matter: Allen Systems Group Inc.
    Represented as the administrative agent under the senior secured amended and restated credit agreement—which provided term loan and revolving commitments in the aggregate amount of $240 million to Florida-based borrower Allen Systems, a Delaware incorporated IT and business cloud computing software solutions provider—and as a lender under the unsecured term loan agreement. KeyBank and a steering committee of lenders led a restructuring of the outstanding obligations, which resulted in payment in full of the lenders’ claims.