Bankruptcy & Corporate Reorganizations

The Finn Dixon & Herling Bankruptcy and Corporate Reorganizations practice is a fully integrated, cross-disciplinary practice group.  We approach each matter individually and may involve lawyers from our litigation, private equity, debt financing, M&A, employee benefits and tax teams, depending on the circumstances.

As part of this cross-disciplinary approach, we have extensive experience across a wide variety of industries and have handled matters across the United States, including but not limited to in New York, Delaware, California, Florida, Illinois, Kentucky, Massachusetts, Mississippi, North Carolina, Ohio and Oklahoma.

Private Equity

Our Bankruptcy and Corporate Reorganizations practice represents private equity clients in all aspects of transactions with and related to distressed companies.  These matters include representing private equity clients in opportunistic acquisitions of distressed companies, in the negotiation and implementation of global solutions for recapitalizing over-leveraged portfolio companies, and in maximizing value – and minimizing exposure – from distressed investments.  Representative matters include:

  • Counsel for a private equity firm in the chapter 11 bankruptcy case of its portfolio company in Oklahoma.  The confirmed plan in that case resulted in the preservation of substantial value for equity with no further capital contribution
  • Counsel for private equity client in the out-of-court workout of its distressed portfolio company.  The workout resulted in the preservation of a substantial majority equity position in the portfolio company with no further capital contribution
  • Counsel for the equity sponsors of a multi-national late-stage biopharmaceuticals company in its bankruptcy case in Massachusetts.  The case resulted in substantial returns for equity
  • Counsel for an equity fund in the wind-up of a portfolio company through a combination of domestic and foreign receiverships, an assignment for the benefit of creditors, and ordinary course dissolution proceedings

Lenders

Our Bankruptcy and Corporate Reorganizations practice represents lenders at all levels of the capital structure.  The group represents DIP lenders, senior secured lenders, second lien lenders, and mezzanine lenders, whether as agents or participating lenders.  Representative matters include:

  • Counsel for a major institutional lender in connection with its participation in a two-tranche, $50 million DIP facility in the Bankruptcy Court for the District of Delaware
  • Counsel for a major institutional lender in connection with its participation in a senior secured loan to a company in a bankruptcy case in Texas
  • Counsel for a major Irish bank with respect to aggregate loans of more than €200 million in a bankruptcy case in the District of Connecticut
  • Counsel for a major financial institution in connection with the diligence of a potential multi-million dollar investment
  • Counsel for the second lien lender in a Chapter 11 case in Delaware, including through successful confirmation of a plan of reorganization pursuant to which it emerged as the majority owner and debt holder of the reorganized company

M&A

Our Bankruptcy and Corporate Reorganizations group represents participants in all forms of distressed sales and acquisitions, including in sales consummated pursuant to section 363 of the Bankruptcy Code, Article 9 of the Uniform Commercial Code, receiverships and assignments for the benefit of creditors.  Representative matters include:

  • Counsel for the buyer in a $165 million strategic acquisition pursuant to section 363 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware
  • Counsel for the buyer in the strategic acquisition of intellectual property lines from an assignment for the benefit of creditors in Massachusetts
  • Counsel for the buyer in a strategic acquisition of an e-commerce platform from a chapter 7 debtor in the Northern District of Illinois
  • Counsel for a lender consummating a “friendly foreclosure” sale of a company’s assets pursuant to Article 9 of the Uniform Commercial Code

Litigation

Our Bankruptcy and Corporate Reorganizations group participates in all levels of litigation surrounding distressed companies, including claims relating to fiduciary duties, fraudulent conveyances, and preferences, whether brought in bankruptcy court, state court, or federal district court.  Our professionals represent both commercial and individual defendants in connection with bankruptcies or otherwise distressed companies.  Representative matters include:

  • Counsel for a financial institution in the successful defense of several actions against it in the District Court for the District of Massachusetts and in the Bankruptcy Court for the District of Massachusetts, including the appeal of such successful defense up through the First Circuit Court of Appeals, and in the successful prosecution of a multi-million dollar claim against the estate
  • Counsel for a French company in successfully seeking the dismissal of a preference action brought in the Bankruptcy Court for the District of Delaware
  • Counsel for the agent for a $300 million syndicated senior secured facility, including in the successful defense of a proposed non-consensual priming DIP facility and a multi-million dollar preference action seeking to avoid a substantial portion of the agent's security package

Additional Clients

Our Bankruptcy and Corporate Reorganizations practice represents substantially all other participants in any distressed circumstance.  Our professionals have represented boards of directors with respect to fiduciary duties, individual companies with respect to the bankruptcy of corporate relatives, and various institutions and individuals with respect to claims against and by distressed companies.  Representative matters include:

  • Counsel for a major constituency in the bankruptcy cases of Colt Defense LLC, and the successful reorganization of Colt and the de-leveraging of more than $400 million in debt on its balance sheet
  • Counsel for the largest creditor in a bankruptcy case in the District of Delaware, in its individual capacity and as the chairman of the official committee of unsecured creditors
  • Counsel for an Idaho based company with respect to the pending bankruptcy cases of its direct and indirect parent companies
  • Counsel for various companies with respect to the filing and defense of proofs of claim in various bankruptcy cases