Practices: Corporate Restructuring and Distressed Transactions

Every distressed situation is unique and requires expertise from different areas of the law. Sometimes a client needs representation in a traditional bankruptcy setting. Other times the client requires a transactional-based approach to a distressed situation with the aim of “getting a deal done.” The bottom line objective remains the same: to create or preserve value in a distressed situation.

Unlike our traditional bankruptcy practice, the Corporate Restructuring group brings a largely transaction-oriented approach to the table. The Corporate Restructuring group primarily assists clients on matters and transactions that involve bankruptcy or insolvency issues, in- and out-of-court restructurings, workouts, and buying and selling distressed assets. Our attorneys have extensive knowledge of insolvency, bankruptcy, private equity and corporate issues that often arise in a distressed scenario. The group is led by a partner who has traditional bankruptcy experience and who also has hands-on, client-side experience.

Our attorneys have represented parties on all sides of restructurings, distressed transactions and related matters. Clients include private equity funds, borrowers, lenders, creditors, distressed debt traders, directors, shareholders, bondholders, management teams and key employees from companies in a broad range of industries.

A Multi-Disciplinary Approach

The group consists of attorneys representing a cross-section of legal expertise including corporate, private equity, bankruptcy, litigation, and real estate. Our group is nimble and designed to quickly assess the client’s goals; analyze the distressed situation; develop a strategy to achieve the desired outcome; and execute aggressively. When special expertise is needed—such as knowledge of employee benefits, healthcare, labor, or intellectual property law—the restructuring team works with attorneys from the appropriate U&H practice groups.

Pre-Bankruptcy: Workout Consulting

Successful pre-bankruptcy efforts to work out or restructure debts can help avoid the costs and risks associated with a traditional bankruptcy filing. Our attorneys work with banks and other lenders to negotiate workouts, restructure transactions, and document the deals needed to avoid costly and unpredictable litigation and/or bankruptcy. We also advise directors, shareholders and management teams regarding fiduciary duties and other issues when facing liquidity and other issues in the “zone of insolvency.”

Loan Restructurings

Our attorneys are highly experienced in amending, restructuring and refinancing loans between lenders (senior and mezzanine) and borrowers, and can represent clients on either side of such transactions.

Distressed Acquisitions and Dispositions

Distressed transactions are a central focus of our Corporate Restructurings practice. We frequently represent corporations, private equity groups, financial institutions, and other clients in buying or selling assets in and out of bankruptcy, including transactions in connection with UCC sales, assignments for the benefit of creditors and other liquidating proceedings.

Claims Trading and Distressed Investments

Lawyers in our Corporate Restructuring group are experienced in representing investors and traders in troubled and bankrupt companies. This includes providing analysis of an entity’s debt structure, inter-creditor agreements, and security documents to identify practical ways to maximize leverage to achieve the investor’s goals. In addition, we have represented purchasers and sellers of bank claims and other private securities.

Other Aspects of Distressed Transactions

Because our firm offers a full range of practice areas, we can assist our clients with virtually all tangential issues that can affect a distressed transaction or restructuring. These include negotiating key employment, retention and severance agreements in pre- and post-bankruptcy situations; advising clients on regulatory issues such as ERISA, environmental laws, tax issues, and antitrust considerations; and even arbitrating and mediating disputes between parties in distressed situations.