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 notes 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.”
  • 2014-2017 Chambers USA recognized the Firm for Bankruptcy/Restructuring both nationally and regionally in Delaware and Pennsylvania.
  • Our bankruptcy practice ranked at the top of The American Lawyer’s Corporate Scoreboard in 2011.
  • 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.

  • Kaiser Gypsum, counsel to creditors’ committee of gypsum manufacturer (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).
  • MediCor, counsel to creditors’ committee of medical device company with international operations, where company had been beneficiary of massive fraud, brokering value maximizing settlement with first lien and fiduciary for plaintiffs and creating significant dividend (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).
  • Mortgage Lenders Network USA, Inc., counsel to creditors’ committee in sub-prime mortgage lender Chapter 11 (Wilmington, DE).
  • Marco Polo Seatrade, B.V. et al., counsel to unsecured creditors’ committee in international shipping line Chapter 11 (New York, NY).
  • Movida Communications, counsel to creditors' committee in telecom reseller Chapter 11 (Wilmington, DE).
  • Pittsburgh Canfield Corp. (Wheeling Pittsburgh Steel Corp.), counsel to creditors’ committee of steel manufacturer in the only successful steel reorganization (Youngstown, OH).

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.

  • 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).
  • Today’s Man, counsel to debtor in reorganization of men’s superstore retail chain Chapter 11 case (Wilmington, Delaware).
  • Vitale Enterprises, Inc. (Foodtown Supermarkets), counsel to debtor supermarket chain in Chapter 11 reorganization (Newark, New Jersey).
  • 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).
  • Lykes Lines, special litigation counsel to steamship line in its Chapter 11, managing complex tort exposure and providing insurance advices (Tampa, FL).

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.

  • 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).
  • Adelphia Communications, counsel to institutional pre-petition lender in multibillion-dollar Chapter 11 case (New York City).
  • USA Living, counsel to agent on a $60 million secured facility in the USA Discounters, Ltd. Chapter 11 cases (Wilmington, DE). 
  • Brooklyn Hospital Center and Caledonian Health Center Inc., counsel to debtor-in-possession lender in hospital system Chapter 11 (New York City).
  • Kmart, counsel to major creditor and preference defendant in mega national retail chain Chapter 11 case (Chicago, Illinois).
  • Solutia, Inc., counsel to major trade creditor and supplier in Chapter 11 cases of global chemical-based materials company (New York City).
  • VeraSun Energy Company, co-counsel to DIP lender to major ethanol producer (Wilmington, DE). 
  • Adams Produce, counsel to secured lender in Chapter 11 of regional produce distributor (Birmingham, AL).
  • Tropicana Entertainment, co-counsel to prepetition agent and DIP lender which provided $1.3 billion loan facility for confirmed Chapter 11 case (Wilmington, DE). 

Purchasers

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

  • NextWave, counsel to highest successful bidder of auctioned licenses in connection with Chapter 11 cases of wireless internet access and voice data services company (White Plains, NY).
  • Comdisco, counsel to successful purchaser in hotly contested acquisition of disaster recovery business for $825 million (Chicago, Illinois).
  • Risk Management Alternatives, Inc., counsel to successful purchaser in $140 million asset acquisition (Youngstown, Ohio).
  • Southern Healthcare, counsel to successful bidder of nursing home out of Chapter 11 case of larger healthcare provider (Baton Rouge, LA).
  • Norstan Apparel Shops, counsel to purchaser of over 100 stores nationwide from Chapter 11, thereby doubling purchasers’ store locations (New York City).
  • 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).
  • PC Landing, counsel to stalking horse bidder in acquisition of trans-Pacific cable system and subsequent litigation (Wilmington, Delaware).
  • Pittsburgh Penguins, counsel to potential acquirer in Chapter 11 case of NHL franchise (Pittsburgh, PA).
  • 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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