Representation of Majority Secured Lender in Chapter 11 Case - Manufacturer of Tissue Products
Haynes and Boone Team:
Mendoza, Mary Simmons
, Sharry, Janice V.
Services: Bankruptcy and Business Restructuring
, Bankruptcy and Insolvency Litigation
, Debtor-in-Possession Lender
, Distressed Mergers and Acquisitions
, Indenture Trustees, Successor Trustees and Secured Creditors
, Restructuring, Workouts, and Recapitalizations
, Private Equity and Hedge Funds
Represented the majority secured lender in the Chapter 11 case, filed on Newark, New Jersey, of a leading manufacturer of tissue products, with a strong presence in the Northeast. The original plan called for keeping the old equity in place and refinancing its secured debt of approximately $135 million. When it became evident that the company was not going to be able to refinance the secured indebtedness and the plan process had broken down, Haynes and Boone successfully drove a process in which the secured lenders converted a portion of their second lien debt into 100 percent of the new equity in reorganized manufacturer, via an auction and sales process. Our lawyers had to address numerous obstacles to exit Chapter 11, including intense but successful negotiations with labor unions, federal and state environmental agencies, the creditors committee and old equity.