“[A]n experienced team which is frequently engaged by creditors for advice on complex, high-profile bankruptcy matters. Has notable cross-border capabilities. Sought out for its expertise in restructuring municipal debt and Chapter 11 proceedings.” – Chambers USA
Cadwalader regularly advises agents, noteholders, official creditor committees, ad hoc creditor committees and various other creditor constituencies, as well as debtors, in bankruptcy and insolvency proceedings in the U.S. and abroad. It also counsels strategic investors and market participants on bankruptcy issues related to financings and acquisitions involving distressed entities.
Debt and Claims Trading
We provide in-depth knowledge and holistic advice to clients on all aspects of secondary trading, including tax, regulatory, insolvency and special situation analysis. Our lawyers advise clients from the outset of an investment – from the initial review of credit documentation, non-performing loan portfolios, trading analysis and execution, through to debt restructuring and navigation of the various insolvency regimes throughout the U.S. and abroad.
Distressed Finance
In situations where there is a need or desire for additional liquidity for a distressed borrower, our attorneys craft practical solutions in the course of designing, negotiating and drafting rescue loans, DIP loans and Chapter 11 exit facilities, including documentation concerning complex operating and financial covenants, security and intercreditor matters.
Distressed M&A
Our leading M&A lawyers work hand-in-hand with our restructuring team to identify and evaluate distressed targets and advise on Chapter 11 plan sponsorships, Section 363 sales, schemes of arrangement and administration sales, assessing the potential tax ramifications of each option.
We also work with our debtor clients that may be in, or potentially face, stress at the earliest stages, providing preventative and defensive measures before a crisis to sustain value, manage difficult issues and avoid liability.
Distressed Structured Products
We have significant experience advising underwriters, issuers, portfolio managers and other large financial institutions in connection with the workout of distressed CLOs, structured investment vehicles and leveraged loan warehouse transactions, including both cash and synthetic structures. Our team has advised clients in the few Chapter 11 petitions filed by or against CLO vehicles, including leading litigation involving the transaction documents governing these structures.
Our financial restructuring attorneys draw on the vast experience of our securitization and asset-based finance team, who have advised issuers, underwriters and collateral managers on well over $300 billion of asset-backed securities issuances
Municipal Restructuring
Our nationally recognized municipal finance team has played a lead role in numerous precedent-setting situations involving state and local governments and non-profit tax-exempt borrowers, including advising the primary creditor in the largest-ever U.S. municipal debt restructuring.
Real Estate Restructuring
We represent many of the largest international and domestic financial institutions in their capacity as administrative agents, agents or lenders in troubled leveraged finance transactions, in super-priority and other in- and out-of-court syndicated lending transactions, and in Chapter 11 debtor-in-possession financings. Cadwalader attorneys have substantial experience in workouts involving real estate investment trusts and publicly traded real estate limited partnerships.
We are involved in all facets of bankruptcy, complex reorganizations, insolvencies, restructurings and workouts across a wide range of industries. Select experience includes representing:
Financial Services
- MBIA in connection with its exposure to two distressed CLOs that collectively issued over $4.1 billion in debt in Chapter 11 cases filed by the Zohar funds in Delaware.
- Several major financial institutions in the close-out of a large portfolio of derivative transactions with a hedge fund in liquidation following severe losses in the wake of COVID-19-related market volatility.
- Lehman Re in its Chapter 15 bankruptcy case, Bermuda wind-down and in related bankruptcy litigation.
- MBIA as a member of the official committee of unsecured creditors and the largest creditor in the Chapter 11 cases of Residential Capital.
- A major financial institution in connection with its exposures to Archegos, the family office of Sung Kook “Bill” Hwang that defaulted in March 2021 under various derivatives transactions.
- The Federal Reserve Bank of Boston in connection with the creation and implementation of the Main Street Lending Program, a $600 billion facility to aid small and medium-sized businesses affected by the COVID-19 pandemic.
- An ad hoc group of first-lien term loan lenders in connection with the out-of-court restructuring of MoneyGram International.
Municipalities
- The single largest creditor of the Commonwealth of Puerto Rico and its public corporations in restructuring proceedings under the Puerto Rico Oversight, Management, and Economic Stability Act, the largest-ever U.S. municipal debt restructuring.
- Secured creditors in the Chapter 9 cases for the City of Detroit and Jefferson County.
Energy, Logistics and Mining
- Largest shareholder of Seadrill Limited in its Chapter 11 cases, which restructured over $13 billion of indebtedness.
- A first lien swap counterparty in Energy Future Holdings’ Chapter 11 case and in related intercreditor litigation.
- A group of senior secured noteholders in successfully negotiating the restructuring of the Norwegian oil and gas exploration company
- Prepetition secured creditor and DIP lender in the Chapter 11 case for Glacial Energy and its debtor affiliates.
- The counterparty to forward purchase agreements in Veris Gold restructuring.
- LyondellBasell in securing an $8 billion DIP facility, then the largest in Chapter 11 history, in connection with its Chapter 11 reorganization.
- Ad hoc group of pass-through certificate holders in the Chapter 11 cases for Dynegy Holdings, Edison Mission Energy, AES Eastern Energy and EME Homer City.
- The official committee of unsecured creditors in the Chapter 11 cases of Mirant Americas.
- Enron as special bankruptcy counsel in its Chapter 11 case in connection with the close-out of its $60 billion trading book
- Creditors, lenders and swap counterparties in the Chapter 11 cases of, among others, Peabody Energy Corporation, Linn Energy and Breitburn Energy.
Aviation, Shipping and Transportation
- A joint venture in the Section 363 acquisition of aircraft manufacturer MD Helicopters.
- Secured creditors in Chapter 11 cases for Avianca Holdings S.A in connection with a DIP financing and subsequent equity conversion under Chapter 11 plan.
- The secured bank lenders in the reorganizations of Toisa Shipping, TBS Shipping, Marco Polo Shipping and Eagle Bulk Shipping.
- The largest junior bondholder in the restructuring of Norwegian drilling vessel owner Cecon.
- Northwest Airlines Corporation in its Chapter 11 proceedings.
- Gate Gourmet in American Airlines’ Chapter 11 case.
Healthcare
- An ad hoc group of first-lien term loan lenders in the prepackaged Chapter 11 cases of Joerns Healthcare, LLC and its affiliated debtors.
- Saint Vincent’s Catholic Medical Centers of New York and its affiliates in their Chapter 11 cases.
- Apollo Health Street in its Chapter 11 case.
- Debtor’s counsel in the prepackaged Chapter 11 restructuring of Amsterdam House Continuing Care Retirement Community, Inc.
Hospitality and Entertainment
- Senior secured lenders in the Chapter 11 cases of the Margaritaville Hotel and in the workout of loans secured by commercial real estate in New York City.
- A group of co-lenders in connection with a $1.55 billion mortgage loan exit financing in the Caesars Entertainment Chapter 11 case.
- Aron & Company in the Chapter 11 cases for NPC International.
- JPMorgan Chase Bank, N.A. in connection with the Stations Casino Chapter 11 cases as one of two mortgage lenders and their participation with Fertitta Gaming as the successful bidder on certain Stations Casino properties.
- The senior lender in the Chapter 11 cases (and DIP facility and successful credit bid for substantially all of the debtor’s assets) of CraftWorks Holdings, LLC and its subsidiaries.
- An ad hoc group of noteholders in the Chapter 11 case of CEC Entertainment (Chuck E. Cheese), a chain of American restaurants and entertainment centers.
- The largest lender in the Chapter 11 cases of Roadhouse Holding Inc. (a/k/a Logan's Roadhouse) and its affiliated debtors filed
Retail and Consumer Goods
- Rabobank as agent for the lenders to Mercon Coffee Corp. and its affiliates in their Chapter 11 cases.
- An ad hoc committee of convertible noteholders in the cross-border restructuring for the Roust Corporation.
- An ad hoc group of first-lien term loan lenders in connection with the out-of-court restructuring of Totes Isotoner Corporation.
- An ad hoc group of first-lien term loan lenders, in the prepackaged Chapter 11 cases of Fairway Group Holdings Corp. and its subsidiaries.
- A major creditor in the Chapter 11 cases of Radioshack Corporation.
- A steering committee of senior secured noteholders in the Chapter 11 restructuring of CEDC, a Poland-based vodka producer.
- An ad hoc group of first-lien term loan lenders in the Chapter 11 cases of Payless Holdings LLC and its affiliated debtors.
- A cross-over secured and unsecured term loan lender group in the Chapter 11 cases of Nine West Holdings, Inc. and its affiliated debtors.
- The sole term loan lender and DIP lender, in connection with the Chapter 11 cases of Gymboree Group, Inc. and its affiliated debtors.
- The agent and term loan lender in connection with the Chapter 11 cases of Hollander Sleep Products, Inc.
- Bay Harbour Management as stalking horse bidder in its acquisition of retail chain Steve & Barry’s.
- Bounty Brands in its restructuring in South Africa, Poland, Malta and the UK.
- A secured lender in the Chapter 11 case for high-end jewelry store Fred Leighton.
