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Restructuring, Workouts, and Recapitalizations
Read our "Weathering the Storm" Briefings
For more than 30 years, Haynes and Boone lawyers have helped clients weather the storm of economic uncertainty. Today, to guide clients through financial crises, we have more than 60 restructuring lawyers from multiple disciplines, including 25 partners who average 20 years of legal experience. Our lawyers are helping clients navigate out-of-court workouts, restructurings, and recapitalizations. Among the types of clients we represent are debtors, lenders, trustees, and special committees.
Our experience is considerable:
Representing the agent under a syndicated loan agreement with a homebuilder, a Haynes and Boone team of finance, bankruptcy, real estate, and litigation lawyers addressed multiple challenges, including negotiating a temporary waiver to provide the borrower with time to obtain additional equity; reviewing and negotiating a complicated intercreditor agreement; preparing an analysis of potential bankruptcy issues; documenting liens on numerous real estate parcels; and advising on the risks and rewards of using a material adverse change clause in the face of the borrower’s unanticipated draw request.
Representing The Bombay Company, an international retailer with more than 400 retail outlets and an online store, our lawyers led this NYSE-listed company through its Chapter 11 proceedings and a very successful disposition that resulted in $100 million of inventory being sold for more than 110% of cost. In addition, Haynes and Boone bankruptcy and IP lawyers negotiated the sale of Bombay’s “brand” for $2 million, while retaining a 25% interest in future royalties. The significant return anticipated for unsecured creditors has become the envy of the numerous retail insolvencies that have followed.
Our lawyers served as counsel to Schlotzky’s in its Chapter 11 reorganization case. Schlotzsky’s was the owner and operator of 36 company-owned restaurants and franchised 500 additional units in the United States and 7 foreign countries. Adept at working with different sectors of the same industry, our lawyers now represent Jiffy Lube International, Inc. in the Chapter 11 proceedings of its largest franchisee, Heartland Automotive Holdings, Inc. The debtor operates more than 400 franchised Jiffy Lube service centers across the nation.
When the economic crisis of 2008 reached the doors of Florida-based WCI Communities, Inc., a builder of upscale homes and condominiums on the East Coast, Bank of America called on Haynes and Boone to represent it in a pre-bankruptcy recapitalization plan proposed by WCI that was unsuccessful due to capital market factors, and in the Chapter 11 cases of WCI and its related affiliates. The firm represents Bank of America in its capacity as administrative agent for a $500 million pre-petition revolving line of credit and as a co-agent for a $150 million syndicated debtor-in-possession lending facility.
Haynes and Boone lawyers have played a key role in a number of recent energy industry restructurings and bankruptcy cases. In the Tekoil & Gas Corporation’s pending bankruptcy, our lawyers are representing the agent for the bank group. Tekoil is an independent energy company engaged in oil and gas exploration and production. Our lawyers are serving as bankruptcy counsel to Lothian Oil, Inc. and its affiliates as it addresses a severe liquidity crisis and numerous lawsuits. During the bankruptcy, Haynes and Boone lawyers negotiated and obtained court approval on a number of compromises that settled costly litigation. We also successfully conducted public auctions of Lothian's oil and gas properties. The prices obtained for the primarily undeveloped properties far exceeded all expectations and marked a new high for sales of that type of acreage. Pursuant to the reorganization plan, unsecured creditors received payment in full and certain holders of preferred equity interests should receive a substantial distribution as well.
Haynes and Boone lawyers have also represented either debtors or various major creditor constituencies in cases including:
- Adelphia Communications Corporation
- American LaFrance, LLC
- ASARCO LLC
- ATA Airlines, Inc.
- Charter Communications, Inc.
- Delphi Corporation
- Enron Corporation
- Fedders North America, Inc.
- JHT Holdings, Inc.
- Lehman Brothers Holdings
- Lyondell Chemical Company
- Marcal Paper Mills, Inc.
- Millennium Digital Media (Broadstripe)
- Mirant Corporation
- Pilgrim’s Pride Corporation
- SemGroup, L.P.
- Spectrum Brands, Inc.
- Tekoil & Gas Corporation
- The Bombay Company
- Ultimate Electronics
- WCI Communities, Inc.
- Wellman, Inc.
With the size, depth, and experience of our core team, coupled with the resources of our full-service firm with more than 500 attorneys, Haynes and Boone is fully equipped to handle the largest and most complex out-of-court restructurings, workouts, and recapitalizations for clients from a variety of industries and sectors.