Bankruptcy & Restructuring

Overview

“‘They have a strong, well-recognized practice with a deep bench. They can handle complex matters with transactional and litigation dimensions.’ Sources also say: ‘The team was outstanding in getting complex issues resolved in positive ways.’”

— Chambers USA

No business wants to experience a bankruptcy but if it’s unavoidable, the ability to restructure a company’s debt and retain its value is vital. Achieving a satisfactory outcome can be particularly complex for debtor and creditor, expensive, time consuming, and can involve any number of stakeholders. 

Our business restructuring and bankruptcy attorneys advise both creditors and debtors in a broad range of bankruptcy, reorganization, and workout matters, including related litigation and credit and business transactions. The strength and diversity of our team, coupled with our firm’s interdisciplinary structure, allows us to leverage resources and attorney insights in complementary areas. We have handled high-profile insolvency cases in a wide variety of industries, including energy, technology, manufacturing, financial services, agri-business and foodservice, insurance, retail, consumer products, healthcare, life sciences, telecommunications, aircraft and airlines, transportation, and real estate.

Distressed business environments can also provide tremendous opportunities for strategic transactions. We aim to maximize successful outcomes for our clients by taking a pragmatic approach, combining practical experience and creative strategies that address the nuances of each case. We guide clients by providing risk assessment, counsel on alternatives, structure and completion of transactions, and, when necessary, litigation. Our team handles matters throughout the United States; and is nationally recognized in New York, Wilmington, and Philadelphia.

How We Can Help 

We provide bankruptcy and restructuring counsel for the following:

  • Group creditor representations including creditors’ committees, unsecured creditors and other creditors
  • Debtors in restructuring, including Chapter 11 workouts and out-of-court restructuring (bondholder committees)
  • Investors and private equity
  • International insolvency
  • Distressed M&A  and reorganization in bankruptcy
  • Subprime lenders, mortgage lenders, warehouse lenders, and directors and officers (please see our mortgage industry services overview)
  • Secured lenders, institutional lenders, and debt-in-possession (“DIP”) lender financing
  • Asset purchasers from Chapter 11 or 7
  • Credit management

What Sets Us Apart 

  • Chambers USA noted we have a “stellar bankruptcy and restructuring team handling the full range of issues including Chapter 11 and Chapter 15 matters, as well as related bankruptcy litigation. Maintains a specialty practice advising maritime and transportation clients, and possesses significant knowledge of complex financing transactions.”
  • 2021 Chambers USA recognized the firm for Bankruptcy/Restructuring in Delaware and ranked us Band 1 in New York and Philadelphia (PA) & Surrounds.
  • Our bankruptcy practice ranked at the top of The American Lawyer’s Corporate Scoreboard.
  • Four of the team’s attorneys are fellows of the prestigious American College of Bankruptcy. One partner served as Third Circuit regent of the American College of Bankruptcy and another partner served as chairman of the American College of Bankruptcy Foundation and is a past chair of the American College of Bankruptcy.
  • Many members of the group write and lecture extensively on issues involving corporate restructuring and bankruptcy.

Experience

Creditors’ Committees

Blank Rome represents creditors’ committees of unsecured creditors in diverse bankruptcy cases.

  • Chisholm Oil & Gas, co-counsel to creditors’ committee in Chapter 11 case of oil and gas exploration and production company with approximately $517 million in prepetition debt (Wilmington, DE).
  • Welded Construction, counsel to unsecured creditors’ committee of general contractor in connection with approximately $1.7 billion of construction contracts relating to pipeline projects (Wilmington, DE).
  • Kaiser Gypsum, counsel to creditors’ committee of gypsum manufacturer in channeling 14,000 asbestos related actions to a 524(g) trust and resolving in excess of $300 million in environmental liability (Charlotte, NC).
  • Performance Sports Group, counsel to unsecured creditors’ committee in Chapter 11 bankruptcy case of manufacturer of Bauer Hockey, Easton Baseball, and other performance sports equipment and apparel, in conjunction with parallel cross border CCAA proceedings in Canada (Wilmington, DE).
  • Solyndra, counsel to the creditors' committee of a green energy developer and manufacturer having combined debt and equity obligations in excess of $1 billion including over $500 million owed to the U.S. Department of Energy (Wilmington, DE).
  • Nobex, counsel to creditors’ committee of development stage bio pharma company in value maximizing sale of assets, resolution of certain lien challenge claims and the creation of a 60% dividend for unsecured creditors (Wilmington, DE).
  • Furniture Brands, co-counsel to creditors committee and liquidating trustee in Chapter 11 of furniture producer/retailer, leveraging $280 million sale and confirming liquidating plan (Wilmington, DE).
  • Friendly’s, co-counsel to creditors' committee in the Chapter 11 of a full-service restaurant chain and ice cream manufacturer (Wilmington, DE).
  • Centaur, counsel to creditors’ committee in gaming business Chapter 11 reorganization (Wilmington, DE).
  • Marco Polo Seatrade, B.V. et al., counsel to unsecured creditors’ committee in international shipping line Chapter 11 (New York, NY).

Debtors and Restructuring

Our bankruptcy attorneys represent financially distressed companies in a variety of industries to evaluate their options, including Chapter 11 reorganization and out-of-court restructuring.

  • Ravn Air Group, co-counsel to debtor, Alaska’s largest regional air carrier, with respect to its Chapter 11 bankruptcy (Wilmington, DE).
  • USGen New England, Inc., counsel to debtor in successful billion-dollar reorganization of large electric wholesale generator in New England, providing 100%-plus-interest recovery to creditors and significant return to equity (Greenbelt, Maryland).
  • Metropolitan 885 Third Avenue Leasehold LLC, counsel to the debtor in its prepackaged Chapter 11 Plan of Reorganization for the iconic “Lipstick Building” in New York City (New York City).
  • ANC Rental (Alamo and National Car Rental), co-counsel to debtors in billion-dollar reorganization of automobile rental company (Wilmington, Delaware).
  • Allied Nevada Gold Corp., co-counsel to debtor Allied Nevada Gold Corp., a precious metals mining exploration, development and processing business in the U.S., with respect to its Chapter 11 bankruptcy and in connection with its reorganization, which is presently set to deliver value to equity (Wilmington, DE).
  • Liquid Holdings, counsel to FinTech business, which provided back room administrative services and solutions to private equity and hedge funds in its Chapter 11 (Wilmington, DE).
  • Pillowtex Corporation, co-counsel to textile company creditors’ committee in Chapter 11 cases (Wilmington, DE).
  • SM Cable, counsel to rural cable network in its Chapter 11 (Wilmington, DE).
  • Nassau Broadcasting, counsel to owner and operator of 49  radio stations in the Mid-Atlantic and New England states in its Chapter 11 (Wilmington, DE).

Secured Lenders and Select Creditor Representations

Blank Rome represents creditors with secured positions at various levels to protect and preserve their positions and maximize their recovery in Chapter 11 proceedings and out-of-court restructurings.

  • Borden Dairy, counsel to agent of senior secured lenders in the bankruptcy of Borden Dairy Co., one of the nation’s oldest and largest dairy companies, whose estimated debts and liabilities range from $100 million to $500 million (Wilmington, DE).
  • United Sporting Companies, counsel to second lien lender in connection with intercreditor issues and DIP/cash collateral issues in a case involving a gun distributor (Wilmington, DE).
  • Cashman Equipment Corporation, counsel to largest secured lender and collateral agent and security trustee for collateral held on behalf of lenders to secure $142 million debt of international barge company in its Chapter 11 case (Boston, MA).
  • Tidewater, maritime and restructuring counsel to group of holders of $500 million senior notes in connection with negotiation of covenant relief and grant of mortgages in vessel and/or vessel-owning subsidiaries (New Orleans, LA).
  • BCBG Max Azria Group, counsel to trade creditor and trademark licensee in the bankruptcy case of women’s fashion retailer (New York, NY).
  • Radio Shack, counsel to “first out” lenders in connection with $285 million DIP loan, which was approved after contest where unitranche structure tested (Wilmington, DE).
  • Southern States Cooperative, counsel to agent for bank group for consensual restructuring of $1.3 billion agricultural cooperative, reducing balance sheet liabilities by $500 million. This out-of-court restructuring was recognized by the Turnaround Management Associations as the “Mega Company Turnaround” of 2005.
  • GMX Resources/Thunderbird Resources, counsel to agent bank in respect of $50 million DIP loan and $60 million exit loan in oil and natural gas producer chapter 11 (Oklahoma City, OK).
  • USA Living, counsel to agent on a $60 million secured facility in the USA Discounters, Ltd. Chapter 11 cases (Wilmington, DE). 
  • Adams Produce, counsel to secured lender in Chapter 11 of regional produce distributor (Birmingham, AL).

Purchasers

Our attorneys represent potential purchasers interested in purchasing assets from Chapter 11 and Chapter 7 debtors.

  • CST Industries, counsel to successful purchaser of industrial tank production firm in its Chapter 11 case for $93 million (Wilmington, DE).
  • Limitless Mobile, counsel to national wireless telecommunications company in connection with the acquisition of a specific range of frequencies in the radio frequency spectrum from a regional provider of broadband and wireless telecommunications services (Wilmington, DE).
  • Parallel Energy, counsel to private investment firm in its $110 million acquisition of OK-based oil and gas driller (Wilmington, DE).
  • Comdisco, counsel to successful purchaser in hotly contested acquisition of disaster recovery business for $825 million (Chicago, Illinois).
  • Southern Healthcare, counsel to successful bidder of nursing home out of Chapter 11 case of larger healthcare provider (Baton Rouge, LA).
  • Hospital Partners of America, Inc., et al., counsel to section 363 stalking horse purchaser in connection with acquisition of controlling interest in St. Joseph Medical Center (Wilmington, DE).
  • Primorsk International Shipping, counsel to prospective purchaser of nine vessel Ice class oil tanker fleet (New York, NY).
  • NewKidCo, counsel to successful purchaser of intellectual property in video game developer/distributor Chapter 11 (New York, NY).
  • Level Propane, counsel to acquirer, a utility, in connection with propane producer’s Chapter 11 (Cleveland, OH).
  • Lechters, Inc., counsel to purchaser and assignee of substantial leases of non-residential real property from national houseware retailer (New York, NY).

Team

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