Distressed M&A & Reorganization in Bankruptcy

Overview

When companies file for chapter 11, this can create opportunities for investors/creditors to acquire the debtor’s assets and/or for the debtor to sell its assets as part of a reorganization. However, each of these approaches brings its own set of complications on the way to satisfying the many constituencies involved. 

Our bankruptcy and restructuring attorneys represent secured and unsecured creditors, financial institutions, private equity, hedge funds, and strategic investors in purchasing assets and businesses of distressed companies. We work with our clients to identify the best approach to maximizing the value of their investment either by the acquisition of assets through section 363 or the partial sale and reorganization of the business.

The number of interested parties can be significant and are often in competition with one another so we work with our clients to manage the purchase, sale, and trading of debt claims. Since chapter 11 can be an expensive and lengthy process, we make sure that all aspects of the transaction are handled efficiently, keeping in mind the objectives of our clients. We evaluate the various purchase options, conduct due diligence, evaluate strategic bid options, and review any plans for reorganization.

We have deep experience across most industry sectors including aviation, retail, manufacturing, and real estate, among others, and perform all related corporate tax analyses, structuring, and documentation.

How We Can Help

We provide the following services for our clients: 

  • business structure evaluation
  • build creditor consensus
  • conduct dispute resolution
  • assess core and non-core assets
  • assess value of secured properties
  • DIP credit facility
  • “exit” financing
  • debt for equity swaps
  • establish claim priority
  • reorganization planning
  • enforcement of security agreements

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

  • Counsel in a series of acquisitions of a distressed middle market food processors, analyzing and mitigating insolvency risks, including in connection with follow-on seller winddowns/restructurings.
  • Linens N Things - Counsel to financial services firm in connection with a section 363 joint venture bid for the purposes of liquidating merchandise of a home goods retailer.
  • Gridway Energy Holdings - Counsel to a leading hedge fund in connection with its successful section 363 acquisition of a major provider of electricity and natural gas.
  • Northeast Biofuels - Counsel to biofuels company in its reorganization efforts including, without limitation, its section 363 sale process which ultimately resulted in the sale of all of its assets to a national oil refiner.
  • Vitale Enterprises - Counsel to grocery store chain Foodtown Supermarkets in its Chapter 11 case, where assets sold in value maximizing section 363 sale.
  • Berks Behavioral Health - Counsel to section 363 acquirer in connection with hospital facility acquisition.
  • 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.
  • Holliston Mills - Counsel to the secured lender/acquirer in a successful section 363 acquisition of substantially all of the assets of the nation's largest domestic value-added producer of coated cloth materials for book covers and other industrial products.
  • Telscape - Counsel to acquirer of Mexican cellular system in its Chapter 11.
  • Comdisco - Counsel to successful purchaser in hotly contested acquisition of disaster recovery business for $825 million.