Steptoe's team of insolvency professionals offers complete coverage on all debtor and creditor services, both in and out of court. Our lawyers are highly regarded masters of the distress playbook. Lawyers in our Insolvency & Restructuring practice have successfully represented companies—both while at Steptoe and at prior firms—in many of the largest and most significant bankruptcy cases and out of court workouts filed over the past decade, including representations in Eddystone Rail Company, Inmarsat Group, FCS Advisors d/b/a Brevet, PG&E, Better 4 You Breakfast, Inc, JAB Energy Solutions II, LLC, Salem Harbor Power Development LLP, Verity Health System of California, Inc, Murray Energy Holdings Co, Takata, Caesar's Entertainment, Energy Future Holdings, Intellisat, Real Mex, The Walking Company, Circuit City, RCS Securities, Momentive, Lake Las Vegas, GenOn, Chrysler, AMR Corporation, TWA, US Airways, Northwest Airlines, Aloha Airlines, ION Geophysical Corp., First Republic Bank Receivership, Furie Operating Alaska, ProNerve Holdings, LLC, United Sporting Companies, Affirmative Insurance Holdings, Inc., Globe Metallurgical, Inc., Cred Inc., Centric Brands, Inc., OGX Petroleo & Gas Participacoes SA, Hanjin Shipping Co., Ltd., O.W. Bunker Germany GmbH, and Samarco Mineracao S.A.
Faced with shifting economic pressures, many companies will find themselves in a position of needing to restructure or address insolvency proceedings. Financial problems can occur for many reasons, including due to macroeconomic factors such as COVID-19, the upcoming "debt wall," or economic corrections, or company-specific issues relating to litigation, supply chain disruption, labor issues, product failures, or otherwise. The financial strain caused by one or more of these factors, impacts more than the distressed company. It also can affect the company's suppliers, customers and other entities with which it does business, particularly if they are not prepared. Preparation is an essential step in understanding options, minimizing the risks and resultant harm, and potentially taking advantage of market distress.
Whatever the challenge, we have the team to help. We assist our clients both in avoiding and planning for bankruptcy, depending on their strategic options and implementing the resultant plans. When companies consider bankruptcy, they often believe that they have limited options. However, there are multiple avenues to pursue both as an alternative to, and in conjunction with, financial distress. The earlier our team gets involved, the greater the number of available options. Through comprehensive contingency planning, we help clients face challenges and optimize their path forward rather than passively responding to others' agendas.
We also represent other parties impacted by bankruptcy filings or potential filings, including formal and informal creditors' committees, secured and unsecured creditors, equity holders, assignees, receivers and trustees in bankruptcy, and similar cases throughout the United States. Our experience also includes representing parties in distressed M&A transactions, out-of-court restructurings, and assignments for the benefit of creditors.
If we reach the litigation stage, our lawyers are skilled advocates for both plaintiffs and defendants, navigating the nuances of complex disputes. Creditors and investors often look to boards and companies for recovery on breach of duty, fraud, fraudulent transfer, preferential transfer, illegal dividend, unfair competition, data breach, and many other potential causes of action, all of which we handle routinely. Similarly, we manage distressed sale transactions for buyers and sellers, and have the tax, labor, insurance, regulatory, and other experience to handle these matters effectively.
From an industry perspective, our experience is comprehensive and includes: commercial, single family and mixed-use real estate development, retail, entertainment, technology, transportation, energy, construction, surety, railroad, satellite, hospitality, sporting goods. mass-tort, asbestos, sporting goods, and securities.
We pride ourselves on the efficient handling of our restructuring matters, from the smallest to the most impactful cases.
Noteworthy
- US News – Best Lawyers' "Best Law Firms," Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law (2020)
Representative Matters
- Represented Davey Tree Expert Co. and affiliates in the Chapter 11 bankruptcy of Pacific Gas & Energy. Davey was selected as co-chair of the Committee of Unsecured Creditors and we served on the committee as one of their representatives. Following the confirmation of the reorganization plan, we continue to represent the client in connection with litigation relative to numerous contracts between the client and Davey.
- Represent Eddystone Rail in connection with fraudulent transfer and other claims against Ferrellgas Partners, LP and other affiliates, distributor and seller of propane gas and related equipment and supplies, and the collection of a $169 million judgment against Ferrellgas Partners, LP and Bridger Logistics, LLC in connection with those claims.
- Represented Eddystone Rail in connection with the pre-packaged voluntary Chapter 11 bankruptcy filing by Ferrellgas Partners, LP during litigation. Secured very favourable plan changes that preserve its rights, pave the path to payment, and prevent discharge of any liability or judgment ultimately entered.
- Represented Newsom Designs LLC aka Wisteria Home in an Assignment for the Benefit of Creditors, including assisting client with winding up of its business, filing of all ABC documents, negotiating with creditors, and creation of the assignee and adjustment of liabilities. The case paid a very substantial dividend to creditors.
- Represented Iberdrola Energy Projects (IEP), a contractor building a new billion dollar power plant, that had their contract wrongfully terminated by the power plant operator. The client went to arbitration and won an award for $237 million, and the power plant operator commenced Chapter 11 bankruptcy proceedings. The proceedings were highly contested by IEP and ultimately were settled in their favour and the court confirmed a plan of reorganization.
- Representing Kroll and two of its principles in connection with prior bankruptcy liquidation of a mezzanine fund. The plaintiff claimed the defendants deceived him into relinquishing control of the fund and subsequently filed suit.
- Represented Orexigen Therapeutics in connection with winding down the liquidated debtor’s estate in Delaware bankruptcy court, including handling of various claim matters and avoidance actions. We have resolved two lawsuits filed against the debtor prior to the petition date that had been stayed on behalf of the post-bankruptcy receiver, one of which involved a class action concerning securities. We also liquidated claims and gathered funds for distribution to creditors.
- Represent Banco Santander Brasil in a bankruptcy case involving an airline. Our representation includes negotiations of restructuring of existing debenture, factoring, and letter of credit relationships to provide post-petition services of the same. We also are representing the client in connection with terms of the relationship under a plan of reorganization.
- Representing Hashwatt, Inc. in litigation in connection to a lawsuit filed by a waste coal mining company.
- Representing Los Angeles Apparel in litigation seeking to invalidate certain liens on properties owned by a debtor. The causes of action include avoidance of fraudulent transfers, declaratory relief, and slander of title.
- Represent a specialty lender in connection with a defaulted secured loan. We are advising the lender in negotiations to restructure the debt. When the borrower failed to negotiate in good faith or cure defaults, our representation turned to litigation where we obtained appointment of a federal receiver on an expedited basis to assume full control of borrower and its assets and oversee a sale of all the borrower's assets.
- Represent a specialty lender in an action against several parties for inter alia, conversion, breach of contractual obligations, and violations of the California Commercial and Business & Professions Codes, including but not limited to filing a complaint, obtaining ex parte relief, and having a receiver appointed.
- Represent a now-defunct retailer in defending claims of successor liability following foreclosure of secured claim.
- Advising a private equity firm regarding options to address various troubled loans, including in connection with its role as lender for a troubled loan to a creative production company. We are involved with substantial work including providing and documenting very advanced settlements, strategic and business options.
- Represented a CEO and co-founder of a designer shoe business in connection with individual Chapter 11 proceeding as debtor. A reorganization plan was secured and confirmed after several years in litigation concerning the control and ownership of a LLC.
- Represent a satellite internet service provider in connection with a potential restructuring of a satellite communications company and then in connection with the acquisition of their assets from bankruptcy and workout of other long-term contract issues with other satellite companies. We also represented the client in connection with remaining claim in the case in bankruptcy court, district court, and a court of appeals. Following the asset purchase, we continued to advise client on and renegotiated contracts associated with the acquirer of the assets and other parties in financial distress.
- Represented an entertainment production company with lease exit negotiations and financial restructuring, including discussions regarding options if negotiations failed.
- Advised foreign client regarding potential bankruptcy implications with respect to a development and manufacturing services agreement in the eventuality that the counterparty to the contract were to file for bankruptcy in the United States.
- Assisting an air-to-ground network provider with lease exit negotiations and financial restructuring, including discussions regarding options if negotiations failed such as the filing of a bankruptcy proceeding or an assignment for the benefit of creditors. We are also advising on various distresses sale initiatives.
- Represented Debtor, as special transaction counsel, on an expedited timeframe, with respect to a sale of substantially all of the assets of B4YB that is expected to result in payment in full to all creditors and return to equity. Representation began after the relationship between the secured lender and B4YB was strained and the secured lender imposed severe limitations on B4YB’s use of cash collateral for operations and imposed a six-week deadline for B4YB to sell all of its assets or be in default.
- Represent an insurance company with respect to debtors attempts to resolve asbestos liability through a under section 524(g) of the bankruptcy code, and with respect to a preliminary injunction preventing the continuation of litigation during the proceeding.
- Represent pension fund with respect to the debtors' liability arising from withdrawal from the pension plan.
- Debtor representation of online birth control and telehealth company, The Pill Club Pharmacy Holdings, et al. in its Chapter 11 bankruptcy proceedings.
- Debtor representation of turnkey aerostructure manufacturer, Fore Machine Inc., et al. in its Chapter 11 bankruptcy proceedings.
- Debtor representation of provider of acquisition equipment, software, planning and seismic processing services, and seismic data libraries to the global oil & gas industry, ION Geophysical Corp., et al. in its Chapter 11 bankruptcy proceedings.
- Represented Ad Hoc Committee of approximately 160 former employees of failed First Republic Bank seeking approximately $30 million in their capacity as participants in the Bank's deferred compensation plan in the receivership.
- Debtor representation of upstream oil & gas company operating Furie Operating Alaska in its Chapter 11 bankruptcy proceedings.
- Debtor representation of Agera Energy, a retail supplier of electricity and natural gas, in its Chapter 11 bankruptcy proceedings.
- Debtor representation of an intraoperative neurophysiological monitoring company, ProNerve Holdings, LLC in its Chapter 11 proceedings, including a successful sale of ProNerve’s assets for $35 million pursuant to Section 363 of the Bankruptcy Code.
- Debtor representation of a firearms distributor, United Sporting Companies, in its Chapter 11 bankruptcy proceedings.
- Debtor representation of Affirmative Insurance Holdings, Inc., a publicly traded insurance company, in its Chapter 11 proceedings.
- Debtor representation of Victory Memorial Hospital in its Chapter 11 bankruptcy proceedings.
- Debtor representation of The Parkway Hospital, Inc. in its Chapter 11 proceedings.
- Debtor representation of Globe Metallurgical, Inc., a manufacturer of metallurgical and chemical-grade silicon metal and silicon-based alloys in its Chapter 11 proceedings.
- Debtor representation of Western Dialysis Management Center in its Chapter 11 proceedings.
- Debtor representation of telecommunication exchange carrier, Empire One Telecommunications, Inc., in its Chapter 11 proceedings.
- Represented the official committee of unsecured creditors in cryptocurrency financial services platform Cred Inc.'s Chapter 11 cases.
- Represented the official committee of unsecured creditors in specialty metals supplier Energy Alloys Holdings, LLC's Chapter 11 cases.
- Represented the official committee of unsecured creditors in leading lifestyle brands owner and licensee Centric Brands, Inc.'s Chapter 11 cases.
- Represented the official committee of unsecured creditors in wholesale distributors of Italian specialty foods and food-related products Lisanti Foods, Inc’s Chapter 11 cases.
- Represented bondholder group holding in excess of $180 million in skilled nursing and assisted-living centers Genesis Health Ventures' Chapter 11 cases.
- Represented ad hoc bondholder group holding $300 million in principal amount in connection with the reorganization of Brazilian oil and gas company OGX Petroleo & Gas Participacoes SA, the largest restructuring in Latin America to date.
- Represented four of the world's five largest intermodal shipping container lessors in the Chapter 15 case of Hanjin Shipping Co., Ltd., and related insolvency proceedings worldwide, including Korea.
- Represented an international apparel manufacturer and retailer with approximately 1,000 store locations in connection with a potential Chapter 11 bankruptcy filing.
- Represented Japanese real estate portfolio in connection with the wind-up of all operations under state dissolution proceedings and in Chapter 11 proceedings.
- Represented international fuel bunker supplier O.W. Bunker Germany GmbH as a debtor in Chapter 15 proceedings and in connection with litigation in New York and Texas regarding unpaid fuel bunker receivables.
- Represented renewable energy investment fund in connection with the potential acquisition of $1 billion of solar energy assets in the United States under Section 363 of the Bankruptcy Code.
- Represented bidders in connection with the potential acquisition of casino and related assets in Atlantic City, New Jersey, under Section 363 of the Bankruptcy Code.
- Represented major publicly traded global media company as trade creditor in multiple bankruptcy proceedings.
- Represented Erste Abwicklungsanstalt as part of bank syndicate in connection with the reorganization of Samarco Mineracao S.A., the Brazilian mining company, following dam disaster
- Debtor's counsel in an out-of-court international restructuring of a $2 billion real estate portfolio.
- Represented secured lenders in connection with a senior secured credit facility in the amount of $306 million for the private portion of the financing of a 99-year concession for a toll road in the United States.
- Represented an $80 billion publicly traded company in connection with seeking access to sealed information filed in 13 asbestos bankruptcy cases.
- Represented foreign bank as lender in its $500 million participation in a multi-billion-dollar senior unsecured revolving credit facility with borrowers Countrywide Financial Corporation and Countrywide Home Loans, Inc., the country’s largest mortgage provider.
- Represented a lender and noteholder in several distressed credit facilities and collateralized bond offerings involving Credit-Based Asset Servicing and Securitization LLC (C-Bass) and several C-Bass affiliates as borrowers and issuers of commercial paper, including credit facilities and indentures in an aggregate amount of approximately $3 billion.
- Represented foreign bank in workout of $110 million portfolio of equity loans to builders throughout Florida, secured by assignments of the underlying notes and mortgages.
- Represented residential condominium high rise owner in restructuring of a $40 million secured credit facility.
News & Publications
Client Alerts
Wave of Defaults Expected as Main Street Lending Program Loans Come Due
February 11, 2025
Press Releases
Steptoe Expands Restructuring and Insolvency Team with Addition of Partner Tim Walsh
September 5, 2024
Press Releases
Steptoe Upholds $10.3 Million Summary Judgment on Behalf of Client Black Elk
August 14, 2024
Client Alerts
Proposed Legislation Targets "Texas Two-Step" Bankruptcy Tactic
August 2, 2024
By: Jeffrey M. Reisner, Joshua R. Taylor, Matt Carmody, Matt Carmody
Client Alerts
US Bankruptcy Court Sets Precedent in Valuing Cryptocurrency Claims
July 15, 2024
By: Jeffrey M. Reisner, Matt Carmody, Matt Carmody
Client Alerts
US Supreme Court Strikes Down the Validity of Nonconsensual Third-Party Releases in Chapter 11 Plan
June 27, 2024
By: Jeffrey M. Reisner, Joshua R. Taylor, Kerri A. Lyman, Brendan Hammond
Publications
Following a Trail of Breadcrumbs: The Challenges of Enforcing International Insolvency Cases
ThoughtLeaders 4 FIRE Magazine Issue 14 - Contentious Insolvency Edition 2023
September 25, 2023
By: Ivan Gordienko, Alex Green
Events
Webinars
Real Estate Workouts: Investors
September 24, 2024
Speakers: Lauren Azebu, James M. Carolan, Sabina Jacobs Margot, Jeffrey M. Reisner
Webinars
What’s Happening in the World of Bankruptcy
February 3, 2022
Speakers: James M. Carolan, Jeffrey M. Reisner, Joshua R. Taylor
Webinars
November 10, 2020
Speakers: James M. Carolan, Jeffrey M. Reisner, Michael Thompson, Lisa M. Zarlenga
Webinars
Distressed Asset Acquisitions: Opportunities, Challenges and Solutions
September 29, 2020
Speakers: Scott D. Fisher, Jeffrey M. Reisner
Webinars
Bankruptcy 101: End of the Road or an Opportunity to Restructure?
July 21, 2020
Speaker: Jeffrey M. Reisner