Media Mentions
2011
“Human Capital: People on the Move”
Boston Business Journal, February 17, 2011
“The Churn: Lateral Moves and Promotions in the AmLaw 100”
AmLaw Daily, February 18, 2011
Matthew Martel was mentioned for joining the Trial Practice Group of McDermott’s Boston office as a partner. Mr. Martel, formerly at another major firm, represents clients in litigation involving governance, shareholder and M&A disputes, as well as in government and self-regulatory organization investigation and enforcement.
Matthew A. Martel, Restructuring & Insolvency, Trial, White-Collar & Securities Defense
"Compliance and liability in mid-sized companies" Initiativbanking, Issue 2/2011
Uwe Goetker was interviewed concerning compliance in mid-sized companies and liability risks of the management board.
Uwe Goetker, Compliance - Germany, Corporate, Corporate - Germany, Germany, M&A - Germany, Mergers & Acquisitions, Restructuring & Insolvency, Restructuring & Insolvency - Germany
2010
“SK Hand Case to Shift to Chapter 7”
Deal Pipeline, December 28, 2010
Nathan Coco and Eric Orsic were named as counsel to Ideal Industries, which in August 2010 purchased the assets of SK Hand Tool Corp. SK had filed for Chapter 11 bankruptcy and was subsequently moved to Chapter 7 liquidation.
Nathan F. Coco, Eric Orsic, Corporate, Restructuring & Insolvency
Thomas Bean spoke to the Boston Business Journal on April 30 regarding recent bankruptcy trends in the Boston area. “What you’re seeing is smaller businesses filing [for bankruptcy],” Mr. Bean said. “Commercial real estate is going to be an area of serious concern in 2010 and 2011. There are quite a number of commercial real estate loans maturing this year and next year, and the general sense is there will be insufficient credit available to refinance many of these properties.”
Rick Mitchell was quoted by BBC World Service (26 February 2010) at the end of a radio spot concerning bankruptcy.
Richard Mitchell, Corporate, London, Restructuring & Insolvency, US Securities - London
Richard Mitchell was interviewed by the BBC’s “Business Day” (February 26) regarding the growing practice of global companies filing for bankruptcy or insolvency in the countries where it is most advantageous to do so (for example, to take advantage of “pre-packaged administration” in the UK). The practice illustrates that insolvency laws have not kept up with the global nature of business. “As finance has globalized it has effectively outrun the legal boundaries with which it grew up,” Mr. Mitchell stated. “We now have global companies with complex global financial arrangements that are confronted by quite different legal requirements in different countries, which makes the process very complicated and difficult to deal with.”
Richard Mitchell, Banking and Finance - London, Finance & Banking, London, Restructuring & Insolvency
Gary Rosenbaum and Jean LeBlanc were included in a February 22 assessment of continuing economic risk made by The Commodity Trading Advisor. The article cites a study that the two lawyers did concerning substantial recent debt for leveraged buyouts (LBOs) and mergers and acquisitions, for which the borrowers "will be facing a decidedly different environment as their 2005-2006 vintage credit facilities mature." Mr. Rosenbaum and Ms. LeBlanc say fewer refinancing options and reduced lender appetite for risk will mean that many LBO borrowers will "find themselves without any realistic refinancing prospects," which they believe will lead to defaults and bankruptcies. The lawyers say that these borrowers "need to confront the reality of today's frozen credit environment" and "meet head on the current challenges by exploring deleveraging devices and other options that will be evolving during the remainder of this restructuring cycle."
Jean B. LeBlanc, Gary B. Rosenbaum, Corporate, Finance & Banking, Restructuring & Insolvency
William Smith was quoted February 17 by The Bond Buyer concerning the bankruptcy filing by a Las Vegas monorail operator that was in default on more than $600 million in tax-exempt revenue bonds. Mr. Smith represents a client who seeks to have the bankruptcy case dismissed on the basis that the operator is a governmental entity and not eligible for Chapter 11. “Since these are governmental purpose bonds, … the bonds could only have been issued if this was an instrumentality of the state of Nevada.” Mr. Smith called the bankruptcy filing “a manufactured crisis,” and added: “There’s no particular reason why [the operator] needs to be in Chapter 11 today or in any other proceeding today. It’s not a question of whether or not its debts need to be adjusted – they will. The issue is going to be the circumstances by which they are worked out.”
William P. Smith, Corporate, Restructuring & Insolvency
2009
Nathan Coco was quoted on June 30 by Law360 in an article regarding credit default swaps that are now taking heat for adding new layers of complexity to bankruptcy proceedings and out-of-court restructurings. Mr. Coco told Law360 that while it was certainly possible that credit default swaps were changing the incentive structure for some parties, it was impossible to gauge just how big an impact the derivative transactions were having compared with a range of other common complicating factors. “There are always in restructuring situations creditors who have different interests, different motivations, who are taking different strategies in an effort to collect more. It’s part of the process,” said Mr. Coco. He continued, “If you were to get rid of credit default swaps tomorrow, you wouldn’t see a world in which all creditors hold hands with debtors and sing kumbaya.”
Nathan F. Coco, Corporate, Restructuring & Insolvency
Rick Mitchell discussed in an April 2009 International Financial Law Review article the negotiation of exchange offers by companies that need short-term cash and debt restructuring. "An exchange offer cuts through all jurisdictional conflicts because it is not a compulsory proceeding like an insolvency – it's entirely consensual," he explained. "It's super-charged cash, because you're not only reducing your debt, you're changing the terms of that debt." He added that exchange offers are likely to become more common. "We'll start to see people who are clever, and courageous in some cases, buying in at 15 cents on the dollar and selling to the company at 30."
Richard Mitchell, Banking and Finance - London, Corporate, Corporate - London, Finance & Banking, London, Restructuring & Insolvency
"UK's insolvency and restructuring regime"
International Financial Law Review, March 1, 2009
Uwe Goetker was quoted inan article regarding the UK's insolvency and restructuring regime.
Uwe Goetker, Restructuring & Insolvency
2008
Peter A. Clark was quoted in a December 13 article published by BusinessWeek regarding the possible bankruptcy filing of General Motors.
, Corporate, Restructuring & Insolvency
Thomas O. Bean was quoted in the November 21 issue of the Boston Business Journal in an article regarding a rise in personal bankruptcy filings in eastern Massachusetts. Mr. Bean noted that because high credit card debt is likely a factor in the Chapter 7 filings, retailers may experience more problems after the holiday season. "It’s just the beginning right now. I expect the number of filings to increase during the first and second quarter of next year. Consumers, who are in fear of losing their jobs, are going to be spending less," he said.
, Restructuring & Insolvency, Trial
Uwe Goetker was quoted in November 2008 in the International Financial Law Review regarding the European High Yield Association's (EHYA) proposal for a more rigid system for restructurings in the UK similar to those in Germany. Mr. Goetker pointed out that, "the UK's CVA and the fact that you can do an informal restructuring is its biggest advantage as Germany doesn't provide for out of court proceedings which can force creditors by majority vote into compromise."
Uwe Goetker, Corporate, Corporate - Germany, Corporate - London, Restructuring & Insolvency, Restructuring & Insolvency - Germany
William Smith was quoted in an October 10 article published by Bankruptcy Law360 regarding the effects of corporate board actions during a time of insolvency and the additional care needed when making decisions. Mr. Smith stated that corporate boards have essentially two lines of protection from creditors' lawsuits after a bankruptcy. First, they need to be informed about the potential impact of any decisions the company takes and secondly, they need to get outside experts to counsel them on all of these decisions. "It's not that you have to do anything differently, but you have to think harder. And the earlier that you think harder, the better," he said.
William P. Smith, Corporate, Restructuring & Insolvency
Thomas O. Bean was quoted on October 1 by Law360 in an article regarding the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which focuses on speeding up the process of declaring bankruptcy. Mr. Bean noted that the 2005 amendments make it more difficult for debtor companies to extend the time it takes them to approve resales of real estate and leases. "One of the most valuable assets in a retail bankruptcy is the lease," he noted. The amendments give debtor companies only 90 days to approve a lease, and a judge can give a company only one extension. "It forces people to make decisions faster than they should have, or that wouldn't be in the creditors' best interests," added Mr. Bean.
, Restructuring & Insolvency, Trial
Thomas Bean was quoted in a January 26 article published by the Washington Business Journal regarding an appeal involving Final Analysis Communications Services in a civil judgment against General Dynamics that is potentially worth $129 million. Mr. Bean discussed how the Final Analysis bankruptcy may be an attempt to preserve assets that could ultimately pay off the majority holder, Nader Mondolo’s creditors. "The trustee appears to be seeking to obtain proceeds from the General Dynamics judgment that would ultimately be distributed to Mondolo's creditors," he said.
Stephen Selbst was quoted in a the January issue of Hedge Funds Review regarding how hedge funds are looking toward acquired companies in the invoice factoring space as more distressed debt and bankruptcy situations are arising. Mr. Selbst discussed how management of struggling companies are under pressure to sell which is creating a wide variety of business for distressed-debt managers as well as invoice factoring companies. "(Distressed managers) want the assets in the hands of better people," he said.
2007
Howard E. Steinberg was quoted in a September 17 article by Business Week regarding the the recent trend of banks backing out of financing plans for corporate buyout, putting the deal's fate into jeopardy. The trend comes as Wall Street banks are increasingly concerned about getting stuck holding billions of dollars in buyout-related debt. "The banks may be finding it a little easier to renegotiate or walk away from the lower-profile deals," commented Mr. Steinberg. With smaller buyouts, he said, banks are less wary of hurting their reputations or relations with clients by pulling back on funding commitments.This story was also reported in Canadian Business, CNN Money, Morning Star Mutual Funds, and The Long Island Business News.
Howard E. Steinberg, Restructuring & Insolvency
Rick Mitchell was quoted in an August edition of Global Turnaround regarding the lessons to be learned from the Schefenacker restructuring. "The Schefenacker deal represents the success of consensus and common sense," he said.
Richard Mitchell, Restructuring & Insolvency
Stephen Selbst was mentioned in an August 1 article by PR Newswire regarding his participation as a speaker in the Distressed & Turnaround Investment Forum on September 24-25. This story was also reported in the Associated Press Financial News, Calibre MacroWorld, Yahoo! Finance, TickerTech.com and in the Yearbook of Experts.
Thomas O. Bean was quoted in a July 13 article published by The Boston Globe regarding Tweeter Home Entertainment Group's acceptance of a $38 million bid for assets from a New York investment firm. Tweeter had filed for bankruptcy protection a month ago and is looking to finalize the bid as early as possible if it is approved by a federal judge. "Under these circumstances it would be atypical for the court to reject the debtor's request," Mr. Bean commented.
, Restructuring & Insolvency, Trial
Rick Mitchell was quoted in a July 2 article published by Bloomberg regarding the completion of a 500 million-euro debt restructuring for Schefenacker Plc. Mr. Mitchell discussed how Schefenacker’s move from Germany to England assisted in the Chapter 15 filing. "The restructuring would have been a little bit awkward without the Chapter 15 filing. The high–yield bonds are governed under U.S. law," he said.
Richard Mitchell, Restructuring & Insolvency
Nathan Coco was mentioned in a May 5 article published by the Daily Deal regarding CPI Corp.’s offer of $100 million in order to acquire Portrait Corp. of America Inc. Mr. Coco represents CPI. This story was also reported in AFX News.
Nathan F. Coco, Restructuring & Insolvency
William Smith was mentioned in an April 23 article published by The National Law Journal regarding companies who are trying to repair their finances after their loan customers defaulted in large numbers due to subprime credit. Mr. Smith discussed how McDermott has been working with banking and hedge fund clients on how to recoup some of the funds. This story was also reported in The Recorder and in the Daily Business Review.
William P. Smith, Restructuring & Insolvency
2006
Stephen Selbst was quoted in the December 15 and 18 editions of The Deal in response to the new bankruptcy code and the recent Dana Corp ruling.
William Smith was quoted in the October 19 issue of The National Law Journal regarding his experiences with hedge funds and their strong presence in bankruptcy or restructuring proceedings. "There's more pushing and shoving," he said.
William P. Smith, Restructuring & Insolvency
Stephen Selbst was quoted by CFO.com on September 13 regarding the new bankruptcy law that makes it harder for companies working through Chapter 11 reorganization to award executives' retention bonuses. Mr. Selbst commented that to mitigate such risk some companies will search for a court circuit that has already approved a bonus plan similar to their own before filing a bonus petition.
, Corporate, Restructuring & Insolvency
Stephen Selbst was quoted on CFO.com on September 5 for his comments on the bankruptcy court ruling denying Dana Corp.'s motion to allow the company to award incentive bonuses to six top executives after filing for Chapter 11 protection in March.
, Corporate, Restructuring & Insolvency
2005
William Smith was quoted in the April 4 issue of Modern Healthcare on proposed rules in the bankruptcy bill regarding bankruptcy hospitals and nursing homes exiting from Medicare and Medicaid. Bill commented that when a hospital or nursing home bankruptcy has arisen the various court circuits have handled the situation differently. Some circuits have decided that the CMS can exclude a provider in bankruptcy from Medicare without going through the bankruptcy courts while other circuits require that bankruptcy courts be involved in the decision.
William P. Smith, Health, Restructuring & Insolvency
2002
Jared Kaplan was quoted in the December 10 issue of The Chicago Tribune commenting on United Airline's ESOPs in light of the company's bankruptcy filing. Mr. Kaplan commented that United's ESOP is unlikely to drive much change in ESOPs because "United's ESOP emerged out of a desire by pilots to get control of the company, and it didn't really even do that."
Jared Kaplan, Employee Benefits, ESOPs, Restructuring & Insolvency
Toby Kusmer was quoted in the March 1 issue of Boston Business Journal in an article addressing M&A activity in the telecom sector. Mr. Kusmer commented that "there’s some bottom-fishing right now," and many of the current deals are considered "distress" sales."
Toby H. Kusmer PC, Mergers & Acquisitions, Restructuring & Insolvency, Telecommunications
2001
David Gould was mentioned in the July 9 issue of California Law Business in regard to his recent appointment as president of the California Bankruptcy Forum.
