Loan Restructurings & Workouts

A large portion of our practice involves the representation of agents, lender groups and individual lenders in the out-of-court restructuring, refinancing and repayment of loans, conversion of debt to equity and acceptance of collateral in satisfaction of debt.

We have represented creditors in workouts involving financially troubled companies in a wide spectrum of industries, including companies in the automotive, commodities, energy, real estate and real estate construction, health care, art dealership, airline, aircraft and equipment leasing, manufacturing, retailing, mining, commercial fishing, school construction, radio broadcasting, equipment supply, publishing, entertainment and advertising industries. Much of our restructuring work has involved syndicated loan transactions, including project finance loans, asset and mortgage backed securitizations, collateralized debt obligations, failed leveraged buyouts and roll-ups and the refinancing of senior debt facilities. More specifically, our out of court workout experience includes the following:

Our recent representations include:

Energy company restructurings

out-of-court workouts of loans to domestic and international oil and gas producers and companies in the oilfield services industry including the restructuring of reserve based secured loans.

Travel company restructuring

restructuring of a travel company through an out-of-court uptiering financing transaction.

Hedge fund liquidation

liquidation of a hedge fund through a bespoke process mediated by a former bankruptcy judge that resulted in repayment of counterparty claims arising out of terminated swap transactions without a bankruptcy filing.

Hedge fund restructuring

restructuring of the debt of a hedge fund including a syndicated facility secured by equity interests in operating companies and assignment of advisory and investment management agreements.

Project finance and infrastructure restructurings

restructuring of troubled project finance loans secured by power plants, ethanol plants, methane projects, alternative energy projects, copper and gold mines, port management and parking facilities. On several of these restructurings, we represented lenders in converting debt to equity and forming entities to take ownership of the projects.

Law firm restructuring

the workout of a loan secured by the accounts receivable of an AmLaw 50 law firm.

Mining company restructurings

out-of-court restructurings of troubled loan and commodity and FX hedging obligations of a Canadian operator of a gold mine in Brazil and operators of copper mines in Arizona and Mexico.

Real estate restructurings

the workout and restructuring of  multiple loans secured by three office buildings in Manhattan; the workout and restructuring of a loan secured by a condominium development in Miami; the restructuring of a loan secured by a portfolio of commercial buildings in Sacramento; the restructuring of a loan secured by three parcels of land and transferable development rights designated for governmental service agency buildings; the workout and repayment of several defaulted loans to a group of affiliated borrowers secured by golf courses and mixed-use developments; and the workout of a $300 million warehouse line of credit secured by more than 50 loans to landowners and developers.

Swap and hedge agreements

the representation of a financial institution with billions of dollars in claims against several hedge funds arising out of the termination of their swaps during the Covid-19 pandemic; workout of exposure on credit default swaps to Ambac, Syncora, Bluepoint, MBIA, CIFG, FGIC, and ACA; the restructuring of interest rate swap agreements held by three financial institutions with the owner of a power generating facility in Arkansas; the workout of the exposure of a group of financial institutions under commodities hedges with the owner of a copper mine under construction in Mexico.

Commodities broker restructuring

the workout of margin debt owed by a member of the Chicago Mercantile Exchange.

Latin American restructurings

the workout of a loan to Cerro Negro, an oil and gas company owned by the government of Venezuela; insolvency proceedings involving Tribasa, Grupo Acerero del Norte, and Czarnikow Rionda; and the workout of loans to a Brazilian food manufacturer and a Brazilian soybean exporter.

Shipping industry restructurings

the workout of syndicated loan facilities secured by containerships, other types of shipping vessels, and assignments of operating charters.

Municipality restructurings

the restructuring of bond debt secured by buildings owned by a California municipality and of certificates of participation issued to fund pension liabilities of the City of Detroit.