McDermott Represents the Official Committee of Unsecured Creditors in Chapter 11 Cases of Energy Alloy Holdings
International law firm McDermott Will & Emery represented the Official Committee of Unsecured Creditors (the Committee) in the chapter 11 cases of Energy Alloys Holdings, LLC, et al. (the Debtors), which was a privately-owned distributor and reseller of products sold into the oil and gas industry. The Debtors filed chapter 11 in September 2020 after declining business due to decreased demand for their products and the Russia-Saudi Arabia oil price war.
At the outset of the bankruptcy case, general unsecured creditors (owed approximately $38 million) were not expected to receive a recovery, due in large part to the Debtors’ assets being secured by an approximately: (i) $7 million First Lien Credit Facility; (ii) $77 million Second Lien Credit Facility; and (iii) $13 million loan on certain real property. The McDermott team successfully negotiated a carve out for unsecured creditors from the first and second lien lenders. The carve out was included in a global settlement that set the chapter 11 cases on a fast track towards confirmation.
On June 28, 2021, the United States Bankruptcy Court for the District of Delaware entered an order confirming the Debtors’ chapter 11 plan. A liquidation trust will be formed shortly to pursue certain causes of action and wind up the company’s affairs.
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