Financial Restructuring

We can meet the complex needs of investment funds and other creditors in every phase of distressed investing, including out-of-court restructuring transactions, navigating bankruptcies (including bankruptcy acquisitions, debt restructurings, loan-to-own strategies, and debtor-in-possession and exit financings), real estate, capital structure analysis, and trading issues. Our broad experience in the investment management industry and in developing and implementing the structures and products analyzed by distressed investors allows us to provide insightful representation. We also advise consortiums and syndicates in joint investments and are experienced in defining, negotiating, and navigating those relationships and the resulting complex governance and tax issues. Our attorneys have the deep experience required to negotiate and document distressed or par trades, including reliance on “big boy” letters.

Our attorneys have significant experience in complex out-of-court transactions, such as debt or operational restructurings, refinancings, workouts, recapitalizations, acquisitions, and divestitures. Bankruptcy may be the best means for restructuring a company that has significant labor, pension, or environmental concerns or that requires significant contractual concessions or terminations. However, an out-of-court solution is often a more cost-effective and lower-risk alternative. We assist in determining whether an out-of-court restructuring is viable by analyzing the capital structure and existing creditor, intercreditor, and inter-lender relationships. If an out-of-court restructuring is possible, we provide comprehensive advice on every aspect of the restructuring process, including structuring the transaction; managing corporate governance and securities law issues; negotiating amendments, consent solicitations and exchange offers; and advising on related tax implications.

We have extensive experience representing debtors-in-possession, creditors, committees, and investors in all aspects of U.S. and international bankruptcy proceedings. Our representations span companies seeking to reorganize under chapter 11 of the Bankruptcy Code, buyers and sellers in Section 363 sales (as a “stalking horse bidder” or as an auction participant), companies considering acquisitions by way of sponsored or stand-alone reorganization plans, and lenders. The depth of our experience in navigating the risks and opportunities associated with distressed debtors allows us to take the lead—often on accelerated timelines—in structuring, negotiating, and managing reorganizations, acquisitions, and financing transactions in bankruptcy cases.

Our team regularly assists in the structuring of debt finance transactions, especially in transactions involving complex intercreditor and subordination issues. We routinely represent institutional and non-traditional lenders in connection with the restructuring and enforcement of debt obligations, including use of cash collateral, obtaining relief from the automatic stay, and contested plan confirmation hearings. We are also experienced in advising lenders in connection with debtor-in-possession loans and exit facilities.

We have extensive experience representing debtors from initial stages of financial distress through, and including, exit from a successful restructuring or reorganization. Our team has most recently provided extensive company-side representation and guidance through complex restructurings in the healthcare, transportation, retail, and entertainment industries.

Our attorneys regularly assist creditor-clients in various aspects of municipal restructurings, both in and out of court. Such representations involve some of the largest municipal cases to date, including the chapter 9 cases of the city of Detroit and Jefferson County, Alabama, and the PROMESA cases for Puerto Rico. These matters included restructuring and enforcement of debt obligations, as well as related litigation.

We have extensive experience in various aspects of international insolvency and restructuring, including those involving the laws of countries in Europe, as well as Canada, the Cayman Islands, and others.

We have represented trustees, examiners, creditors’ committees, and other parties in investigations, bankruptcy adversary proceedings, and other litigation related to distressed businesses. These matters include claims of fraud, dishonesty, incompetence, misconduct, mismanagement, breach of fiduciary duty, Ponzi schemes, fraudulent transfers, and bankruptcy avoidance claims. 

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