Business is risky. A host of reasons may cause companies to struggle and, in some cases, force a business restructuring or trigger an insolvency proceeding. For those on the unfortunate side of such situations, understanding the options available can be the difference between a second chance or shuttering operations or recouping an investment. For others, opportunities await those poised to acquire the distressed assets. Retaining a law firm with the capabilities to navigate the complexity of the laws governing business restructurings is critical.
McDermott’s restructuring and insolvency group is a global team knowledgeable in all aspects of distressed transactions. We have experience—and a veritable track record—advising the full range of interested parties, domestically and internationally, from the debtors requiring relief to the interested stakeholders lining up to recoup their positions.
What distinguishes our team is our ability to provide seamless, global counsel, particularly for complex assignments that cross borders. We understand the application of the European Insolvency Regulation and the UNCITRAL model law, along with the US chapters 11 and 15 bankruptcy laws, and the assertion and enforcement of claims in numerous jurisdictions.
We advise clients on their rights, options and opportunities, including how troubled companies can utilize the legal process for a successful business restructuring and rescue package. We are also skilled in advising creditors to ensure they receive enhanced recoveries on their investments. And lastly, we counsel the savvy observer on how best to position itself for the opportunity to acquire troubled assets.
Leading directories recognize McDermott’s offices in Germany for their ability to advise businesses extensively on all areas of law related to restructuring, reorganization, refinancing and insolvency, including matters with an international or cross-border component. Our team also helps shareholders, creditors and business partners of companies in crisis secure, pursue and enforce their interests. We have in-depth experience representing investors on the acquisition of companies before or out of insolvency, and assisting insolvency administrators in the handling of their fiduciary duties, particularly with respect to M&A processes and insolvency plan procedures, and in disputed enforcements of claims in Germany and internationally. We have advised clients in numerous industries, including the automotive, energy, health care, retail, sports, telecommunications, transportation and logistics sectors.
Health care bankruptcies are complicated, and require sophisticated advice. Drawing on our Chambers USA-recognized “Team of the Year” for health regulatory law and corporate restructuring lawyers, we provide health care clients—providers, institutional lenders and investors, and strategic buyers—with an interdisciplinary team that concentrates on distressed finance, restructuring, and merger and acquisition transactions in the highly regulated and ever-changing health care sector. Our focus is to provide practical and cost-effective advice to achieve tangible results that add value to the underlying transaction, whether a work-out, recapitalization or distressed sale transaction inside or outside of bankruptcy. We are particularly skilled in advising debtors and ad hoc and official committees in Chapter 11 health care cases.
Our global restructuring and insolvency team is skilled at representing private equity firms and their portfolio companies with the acquisition or sale of distressed assets. In particular, we provide sophisticated strategic and legal advice to navigate the peculiarities associated with asset sales in Chapter 11 and 7 bankruptcy cases, UCC Article 9 foreclosures and out-of-court restructurings. We have had success with section 363 bankruptcy sales and are skilled at pursuing stalking horse status for clients. Similarly, clients rely on our experience when acquiring assets through a debtor’s plan of reorganization in Chapter 11 bankruptcy cases.
The successor in interest to the German arm of WestLB loan portfolio in connection with numerous matters as lender, including a Connecticut-based real estate loan restructuring
Affirmative Insurance Holdings, Inc., and its subsidiaries as debtors in Chapter 11 bankruptcy proceedings
The Insolvency Administrator of O.W. Bunker Germany GmbH in German insolvency proceedings, Chapter 15 bankruptcy proceedings, and seven US district court actions involving more than $10 million of disputed funds
A Fortune 500 company with bankruptcy court litigation against an asbestos trust created pursuant to Bankruptcy Code section 524(g)
A Japanese real estate company in its restructuring and work out of an approximate $2 billion portfolio within a complex capital structure cross-collateralizing properties in the United States and Japan
Energy Future Holdings Corporation as debtor in Chapter 11 proceedings
ProNerve Holdings, LLC, a portfolio company of Waud Capital, as a debtor in Chapter 11 bankruptcy proceedings, including the successful sale of substantially all of its assets for approximately $35 million
A group of minority bondholders ($300 million in principal amount) in connection with the Brazilian insolvency proceedings of oil and gas company OGX Petroleo & Gas Participacoes SA (Recipient of the “Global Finance Deal of the Year: Restructuring (South America)” by The American Lawyer)
Signa with the acquisition of Karstadt Warenhaus, the second largest department store operator in Germany, with more than 17,000 employees and revenues exceeding €2 billion, Karstadt Sports and Karstadt Premium
W.I.S. Sicherheitsdienste GmbH & Co. KG, a security service company with more than 3,500 employees and 27 sites, on its successful out-of-court restructuring and refinancing.