Herrick’s Restructuring & Finance Litigation: 2019-2020 In Review

November 18, 2020

Herrick congratulates its Restructuring & Finance Litigation Department on the success it has enjoyed over the last two years. The team, which now has 18 members and counting, has grown substantially while taking on a variety of complex litigation matters and Chapter 11 Restructurings. Below is a small sampling of our recent work.

We are very grateful to our clients that have entrusted us with such important matters, and we wish everyone a happy and safe holiday season and new year!

Representative Matters:

In re Sears Holdings Corporation, et al. (S.D.N.Y.): Serving as (i) Special Counsel to the Official Committee of Unsecured Creditors charged with investigating potential estate claims and causes of action relating to a 363 sale of intercompany company notes and certain credit default swap transactions, and (ii) Co-Counsel to the Official Committee of Unsecured Creditors in high profile litigation on behalf of debtors’ estates, seeking to recover billions of dollars of claims arising from several prepetition transfers.

AEA Middle Market Debt Funding LLC, et al. v. Marblegate Asset Management LLC, et al. (NY Sup. Ct.): Representing the administrative agent against claims for breach of credit and security agreements, conversion, conspiracy to commit conversion, and aiding and abetting breaches of fiduciary duty. In January 2019, Herrick successfully appealed, on an emergency basis, the entry of a temporary restraining order preventing the $120 million out-of-court restructuring transaction from proceeding. The TRO was vacated, and the restructuring was consummated. The litigation remains ongoing.

BlueBay Total Return Credit Fund, et al. v. Fontana, et al., No. 652782/2020 (Sup. Ct. N.Y. Cty.): Representing minority LLC member in a derivative action against majority LLC members serving on board and their affiliated lender funds asserting claims for breaches of fiduciary duty and aiding and abetting such breaches.

In re Boston Generating LLC, et al. (S.D.N.Y.): Representing numerous defendants in a fraudulent conveyance action by a liquidating trust arising from a $2 billion leveraged recapitalization. In June 2020, the bankruptcy court granted the defendants’ motion to dismiss. Herrick’s representation continues as the Trustee is appealing the bankruptcy court’s dismissal.

C.T.W. Realty Corp. (S.D.N.Y.): Representing the debtor in connection with its single asset real estate chapter 11 case involving ~$40 million in secured debt.

ICG Global Loan Fund 1 DAC, et al. v. Boardriders, Inc., et al., No. 655175/2020 (Sup. Ct. N.Y. Cty.): Representing group of minority lenders challenging a non-pro rata priming transaction among borrower, majority lenders, and equity sponsor.

In re Ample Hills (E.D.N.Y.): Representing 16 debtors operating popular retail ice-cream stores in the New York metropolitan area in a chapter 11 case, which has included selling the business as a going concern.

In re Blackhawk Mining, LLC, et al. (D. Del.): Representing Cantor Fitzgerald Securities as the administrative agent and collateral agent under an $85 million exit facility following the successful Blackhawk chapter 11 cases. Previously represented Cantor Fitzgerald as the administrative agent and the collateral agent under Blackhawk’s (i) pre-petition $660 million first lien term loan facility and (ii) $150 million DIP term loan facility in connection with the pre-packaged restructuring of approximately $1.1 billion of debt.

In re Whiting Petroleum Corporation, et al. (Bankr. S.D. Tex.): Represented indenture trustee on behalf of convertible noteholders in connection with Debtors’ Chapter 11 Restructuring in the Southern District of Texas.

In re Millennium Lab Holdings II LLC, et al. (D. Del & S.D.N.Y.): Representing reorganized debtor in contractual dispute regarding terms of loan to debtor’s liquidating trust, and successfully opposed liquidating trustee’s motion to re-open chapter 11 cases.

In re The Weinstein Company Holdings, LLC, et al. (D. Del.): Representing Bank Hapoalim as appellee following the (i) successful opposition to the motion of debtors’ licensee to reject licensing contract to sell Project Runway clothing where bank client was secured by assignment of licensing royalties, and (ii) successful prosecution of a motion to enforce performance.

For more information on this alert or other restructuring & finance litigation matters please contact us.

© 2020 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.