Workouts, Restructuring and Distressed Debt

Our attorneys regularly represent international, national and regional lenders, borrowers and lessors in connection with working out and restructuring a broad range of complex leasing transactions, asset-based loans, vehicle floor plan loans, and other types of secured and unsecured credit facilities, inside and outside of bankruptcy. We work closely with each client to formulate a carefully tailored strategy that meets the client’s goals in a cost-efficient manner. Our clients are active in a host of industries, including aviation, manufacturing, government contracting, telecommunications, technology, software and real estate.

We are well versed in issues that extend beyond Chapter 11 cases, having also handled assignments for the benefit of creditors, operating Chapter 7 cases and composition plans.

A recent trend is to use bankruptcy to facilitate business transactions or to use a plan of reorganization to reduce the size of the business. As part of our integrated financial restructuring and insolvency practice — which also includes attorneys from our finance, corporate, real estate, intellectual property, tax, and labor and employment teams — our financial restructuring and insolvency and finance attorneys are uniquely suited to handle these types of matters.

Distressed Debt

  • Representing the New York branch of a foreign bank in connection with a workout of an asset based loan with an international luxury jewelry company.
  • Representing a national bank in workouts of commercial real estate loans across the United States.
  • Advised a nonprofit hospital system and its board of directors in connection with an out of court restructuring and asset sale.
  • Advised a private real estate investment and development firm in connection with the purchase of distressed commercial real estate loans from a national bank.
  • Represented a lender in several successful workouts of vehicle floor plan loans with loan amounts ranging from $5 million to $25 million.

Non Real Estate Workouts & Restructuring Experience

  • Negotiated the consensual return to the lessor client of six leased aircrafts from an insolvent charter service and documented the agreement in consent orders entered in a state court writ of possession action.
  • Resolution through a consensual Chapter 11 plan of a shareholder dispute involving a corporation that services intermodal shipping containers.
  • Negotiated discounted payoff agreement for national bank with secured claim exceeding $4 million, with provisions for immediate entry of pre-negotiated judgment upon default under agreement.
  • Represented a lender in a successful workout and 363 sale for an asset-based line of credit of $12 million.
  • Represented an international government contractor in the modification and restructuring of a $200 million syndicated revolving-credit and term-loan facility.
  • Implemented inter-creditor agreements among secured creditors and vital suppliers to Georgia convenience store chain so as to avoid bankruptcy and enable pay-down of debt through gradual sale of excess assets.

Real Estate Lending Workout & Restructuring Experience

  • Represented an agent with respect to 11 defaulted furniture, fixtures and equipment (FF&E) and real estate loans to a restaurateur, totaling more than $20 million. Representation included state court action, bankruptcy, foreclosure and asset sales.
  • Represented a borrower group in connection with negotiations, bankruptcy and, ultimately, a consensual restructure related to two loans totaling $44.5 million, which were secured by a hotel and a shopping mall.
  • Represented an agent with respect to the origination and workout of a construction loan for, and foreclosure and sale of, a branded whole- and fractional-ownership resort.
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