Bankruptcy and Restructuring
With a sophisticated understanding of the restructuring landscape, our multidisciplinary Bankruptcy and Restructuring practice provides comprehensive services in all aspects of restructuring and insolvency proceedings from pre-workout phase through litigation, if necessary. Our team of more than 40 insolvency and restructuring practitioners, located in Washington, DC, New York, Chicago, Denver, Los Angeles, London, and Frankfurt, has been at the forefront of some of the largest and most complex multinational restructurings and insolvencies of recent past, including Paragon Offshore LLC, Arch Coal, Inc., and RadioShack.
We have developed longstanding relationships with the industry's key players and regularly represent a whole range of stakeholders, including corporate debtors, investors and asset purchasers, committees, bondholders, secured and unsecured creditors, parties dealing with distressed businesses, officers and directors, and other interested parties in corporate restructurings, bankruptcy proceedings, and related litigation throughout the United States.
Our bankruptcy lawyers are experienced litigators. We appear in trial and appellate courts throughout the United States and are often involved in precedent-setting cases. Our transactional experience is equally extensive. Our Bankruptcy and Restructuring practice has taken the lead in a number of sophisticated transactions in some of the country's largest bankruptcy cases. We have also negotiated and structured successful out-of-court restructurings, helped clients acquire distressed assets or businesses, and advised clients on their dealings with troubled companies.
In addition to the practice's substantive knowledge and experience regarding restructurings and insolvency proceedings, we frequently partner with Arnold & Porter Kaye Scholer's other practice groups, including litigation, finance, corporate and securities, tax, environmental, antitrust, real estate, intellectual property, and government contracts, to provide our clients with a full spectrum of legal services. As bankruptcy issues rarely arise in a vacuum, this multidisciplinary coordination is particularly valuable to our clients.
Our firm and its bankruptcy partners have been recognized by numerous publications as being among the leading bankruptcy and restructuring lawyers in the United States, including Chambers USA: America's Leading Business Lawyers, BTI Client Service All-Stars, The Best Lawyers in America, Legal 500 US: Corporate and Finance, Guide to the World's Leading Insolvency and Restructuring Lawyers, and other publications. Our bankruptcy partners are frequent lecturers, published authors, and widely recognized professionals.
Our experience spans virtually all sectors, including aviation; environmental; financial institutions, broker-dealer, and securities; real estate and hospitality; and healthcare. In addition, we regularly represent private equity funds in bankruptcy and restructuring matters throughout the world.
Represented Quebecor World (USA) Inc. and 52 affiliated debtors in their multi-billion dollar Chapter 11 reorganization pending in the United States Bankruptcy Court for the Southern District of New York.
Representation of term lenders and syndicate agent in Paragon Offshore, Inc. Chapter 11 proceeding involving total term, revolver and noteholder claims of approximately $2.4 billion. During the course of two separate multi-day trials, on behalf of Cortland Capital and the term loan lenders that are owed in excess of $642 million, successfully defeated confirmation of the debtors’ plan of reorganization which sought to reinstate the term loan debt. As per its press reports, the Debtor is now attempting to pursue a consensual plan of reorganization process with all stakeholders.
Representation of the ad hoc group of term lenders in the restructuring of a $1.9 billion credit facility extended to Arch Coal, Inc. Our attorneys devised a strategy to oppose an exchange offer proposed by Arch Coal with its senior noteholders that would have resulted in significant dilution of the term lenders’ position. The company and the term lenders subsequently entered into a plan support agreement and the company commenced a Chapter 11 proceeding. Arch successfully emerged from Chapter 11 as the term lenders received over 90% of the post-reorganization equity and achieved a more than par recovery following emergence.
Acted as lead restructuring counsel in the company's second Chapter 11 reorganization and its merger with America West Airlines.
Representation of Cantor Fitzgerald, as administrative agent for a $585 million senior secured asset-based uni-tranche loan facility extended to RadioShack and as DIP agent for a $285 million debtor-in-possession facility in connection with RadioShack’s Chapter 11 bankruptcy. Obtained dismissal of lawsuit commenced by junior creditors seeking disgorgement of over $125 million in payments made to the agent and the lenders.
Scope of Application
In the 2016 edition, Chambers USA noted: "The team's knowledge is unparalleled; they're the best lawyers in their practice area, and with that comes not only timeliness, but also pragmatism and business-friendly solutions." In the 2015 edition, Chambers USA commented: "The team is refreshingly results-oriented" and "[a] top-notch team when you have complicated issues that need addressing."