Guaranty Financial Group Inc Chapter 11

Representation of Guaranty Financial Group Inc. ("GFG") and three of its affiliates in their complex Chapter 11 cases in the Northern District of Texas. Through its subsidiaries, GFG formerly owned Guaranty Bank, which operated more than 100 bank branches in Texas and California and, at one time, had consolidated assets of more than $16 billion. The Office of Thrift Supervision appointed the FDIC as receiver for Guaranty Bank in August 2009, resulting in the second largest bank failure of 2009 and the tenth largest in American history. This Chapter 11 case required the firm to formulate a plan for the distribution of GFG's assets to GFG's creditors, including GFG's $305 million Trust Preferred Security Holders. The complexity of the case was heightened by the heavy involvement of the FDIC, which asserted multi-billion dollar claims against the Debtors' estates. The firm negotiated a global settlement among GFG, the FDIC, and GFG's Trust Preferred Holders, and in May 2011, a plan of liquidation for GFG and its affiliates was confirmed resolving claims against the debtors in excess of $2.4 billion.