Energy and Petrochemical Industry
As one of the five largest law firms in Texas, Haynes and Boone has significant energy and chemical industry experience. Specifically, the firm has played a key role in a number of recent energy and petrochemical industry restructurings and bankruptcies. One of the firm's current engagements is on behalf of the secured lenders to Wellman Inc. We recently prevailed on behalf of our lender clients in litigation over the going-concern valuation of various Wellman facilities, which included petrochemical, fiber products and resin products manufacturing. We understand both the upstream supply-side issues as well as downstream customer-related issues. We also represent a senior creditor group in the highly contentious Solutia bankruptcy where we addressed enormous legacy environmental issues and their resolution in Chapter 11. We serve as national bankruptcy counsel to both ExxonMobil and Total Petroleum.
Frequently energy industry loan transactions include a hedging component. The financial distress or bankruptcy of a borrower will trigger early termination rights under the ISDA master agreement. Moreover, the Bankruptcy Code contains and complex set of derivative contract “safe harbors” that must be navigated when a swap counterparty becomes involved in a bankruptcy proceeding. Haynes and Boone has substantial experience in the unwinding of defaulted swaps and derivatives, including recently representing more than 20 parties with commodity and other hedging transactions in the Lehman Brothers bankruptcies.