Distressed Assets

Global Practice

As a result of the recent economic downturn, both opportunity and crisis has manifested itself for a number of those in the private equity community. Our Private Equity Practice was founded by attorneys who have shepherded clients through all phases of the business cycle, and structured transactions and products to either take advantage of the opportunities created by a downturn, or seek an exit from a less than desirable asset. As such, our team members work with distressed assets through their entire life cycle, acquisition to exit.

This type of representation can include the following:

  • Assessing the quality of assets and claims from a legal perspective
  • Quickly addressing questions related to the structuring and execution of bridge, rescue and exit financings, including DIP financings, forbearance and waiver arrangements and other types of workouts
  • The exercise of remedial remedies, including puts, asset foreclosures and other dispositions
  • Development of specialized hedge and other private equity funds designed to aggregate investor capital for the purpose of rolling up distressed assets
  • Acquisition and disposition of distressed debt and other claims, including corporate debt and structured finance securities (e.g., CDOs, SIVs, RMBS, CMBS and ABS), trade and other claims
  • Addressing issues associated with tax and regulatory compliance

Members of our Private Equity Practice demonstrate highly unique and extensive knowledge of national and international loan markets, and global syndicated debt markets and the debt trading industry specifically. Practitioners within our Private Equity Practice regularly handle all forms of financing transactions. These include domestic and multi-national debt facilities asset-based and cash flow debt facilities multiple structured debt products, investment fund subscription line loan facilities, and some of the largest syndicated loan facilities in the market.

Our Private Equity Practice includes a dedicated team of practitioners that handle sophisticated debt trading matters for some of the largest financial institutions and investments funds in the world. This focused group, coupled with our vast financing experience, has allowed us to develop something unique in the industry: an efficient, productive, and diligent process of collaborating with and assisting our clients on all issues related to investing in debt, including the origination, acquisition, sale and trading of such debt. Whether our clients are executing a “loan to own” strategy or serving as the middle-man in a high volume loan brokering model, Haynes and Boone is able to provide common-sense counsel and analyses of credit facilities, security documents, indentures and subordination agreements to help clients meet compressed timelines.

Our team members are among a small group of lawyers nationwide that has been intimately involved in the secondary loan trading markets since the early development of the Loan Syndications and Trading Association (“LSTA”) and the Loan Market Association (“LMA”). Our lawyers have closed thousands of secondary market trades worth billions of dollars on behalf of our clients, including the purchase and sale of syndicated distressed, par and near par loans and trade claims.

We have represented investment banks, commercial banks, CLOs, CDO, hedge funds, and retail funds engaged in purchases and sales of domestic and foreign troubled loans (distressed debt transactions), par debt and trade claims. We regularly work on difficult debt assignment, participation, sub-participation and swap transactions and analyze credit agreements, equity and debt structures and bankruptcy law for their impact on the liquidity and marketability of specific debt.

With one of the largest workout practices in the country, our finance team together with our bankruptcy team, represent a wide range of creditors, both in out-of-court restructurings and in bankruptcy court. These clients rely on us in every step of a reorganization effort, including structuring the terms of financing. Our lawyers work with financial institutions that become lenders to debtors-in-possession, secure return of assets in foreclosure transactions, and structure court-approved repayment schedules. Unsecured creditors, including trade creditors, landlords, and lessors, also look to Haynes and Boone as their advocate in restructuring, and we work to secure the optimum payment to them, pursuing every option from reorganization to liquidation of the debtor.

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