Mississippi Bankruptcy Court Approves Global Settlement for Haynes and Boone Clients in Mississippi Phosphates Bankruptcy Case

08/03/2015

A Southern District of Mississippi court has ruled in favor of a group of lenders represented by Haynes and Boone, LLP, approving a global settlement of claims brought by the U.S. Department of Justice and others in bankruptcy proceedings involving Mississippi Phosphates Corporation and its affiliates.

The settlement favorably resolves multiple issues and direct liability of the lenders for $120 million in alleged environmental response costs. It also permits the lenders to liquidate substantially all the assets of Mississippi Phosphates Corporation free and clear of environmental liabilities that have burdened the assets for more than 40 years.

Negotiated over nine months, the settlement with the Department of Justice was opposed in court by creditors in the bankruptcy case as constituting a sub rosa plan. After a hearing, the bankruptcy court ruled in favor of the lenders on all issues.

The Haynes and Boone team was led by Lenny Parkins, a partner in our New York and Houston offices, and Houston Counsel Karl Burrer with assistance from Houston Associate Arsalan Muhammad. The trial team was supported by Austin Senior Counsel Jeff Civins, Austin Counsel Carie McKinney, Houston Partner Steve Buxbaum, and New York Partners Ken Bezozo and Sam Lichtman. Houston Associate Brent Shultz also provided assistance with debtor-in-possession financing.

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