Restructuring & Bankruptcy

  • Winstar Communications Trustee - Bankruptcy: Representation of the Trustee for Winstar Communications in an adversarial proceeding asserting claims of insider/voidable preference, equitable subordination and breach of contract, against Lucent Technologies. After winning at the bankruptcy court level and an initial appeal to the US District Court, we successfully argued to the US Third Circuit Court of Appeals in a case then valued at about $340 million. The Third Circuit affirmed the courts below and found that Lucent was an insider of Winstar. In so ruling, the court also upheld the Trustee's arguments regarding earmarking, new value, core versus non-core jurisdiction, right to jury trial and equitable subordination. The American Bankruptcy Institute Journal, in its April 2009 issue, featured the Third Circuit decision and wrote that the case "opens an entirely new and extensive arena in bankruptcy-preference litigation that may cause profound changes in both preference-risk assessments and creditor behavior." The case was handled by Herrick on an alternative fee basis — a capped fee through trial and a contingent fee for success.
  • Loss Mitigation: Representation of global financial institutions in mitigation issues regarding potential losses in connection with multi-billion dollar Heloc, Heloan and CDO transactions.
  • Financial Institutions - Restructurings, Workouts and Dispositions: Representation of financial institutions in restructurings, workouts, borrower bankruptcies, disposition of loans and loan portfolios and analysis and assertion of rights and remedies with regard to CDO structures and portfolio acquisitions.
  • Corporate Recapitalizations and Restructurings: Representation of special committees, CEOs, boards of directors and companies in corporate re-capitalizations or restructurings, with or without attendant bankruptcy proceedings, including restructuring, re-capitalization or disposition of telecom companies, automobile after market companies, executive office suite companies, an investment bank, a debt collection company, an electronics company, a paper mill, a plastics company, several dot coms, several domestic and foreign investment funds, management companies and family owned real estate companies.
  • Multi-Tiered Debt Restructurings: Representation of junior and senior loan participants, mezzanine lenders, senior lenders and borrowers in restructuring complex capital structure debt obligations both in and outside of bankruptcy court proceedings.
  • $1 Billion Portfolio Restructuring: Representation of developer in restructure of real estate portfolio with approximately $1 billion of senior loan and mezzanine indebtedness.
  • Activist Mezzanine Position: Representation of RXR Realty in exercising its rights in connection with its position as controlling participant in the senior mezzanine loan at One Park Avenue, resulting in RXR being paid close to par value for an out of the money, heavily discounted purchase less than a year earlier.
  • Boymelgreen - Africa-Israel Joint Venture Divorce: Representation of Boymelgreen Family LLC and related entities in a complex "divorce" from Africa-Israel Investments involving a real estate portfolio worth hundreds of millions of dollars.
  • Foreign Lender - Loan Restructuring: Representation of a foreign insurance company in the restructuring of a $150 million mezzanine loan to an investment fund, including recapitalization of certain fund platforms and the sale of certain fund assets.
  • German Funds Restructuring: Restructuring of multi-tiered, affiliated German syndication funds acquiring assets throughout the U.S.
  • Private Equity Restructuring: Representation of a private equity/preferred shareholder in restructuring the debt of its holding company and domestic and foreign operating subsidiaries.