Moore & Van Allen Law Firm, Attorneys

Bankruptcy & Financial Restructuring

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Moore & Van Allen has one of the largest bankruptcy and restructuring groups in the region.  Our team includes seasoned litigators, accomplished negotiators and creative problem solvers.  Our size and breadth of experience makes us capable of meeting virtually any bankruptcy or restructuring need that a company or lending institution may have.

As finance lawyers, the Bankruptcy and Financial Restructuring team works closely with the firm’s Investment, Financial Services and Corporate teams to ensure that lending and corporate transactions are scrutinized from every angle.  We are actively involved in the documentation of transactions.  We have particular experience negotiating the terms of intercreditor relationships and we regularly assist clients in evaluating the bankruptcy risks associated with new financial products and transaction structures.

Finance-based representative matters include: 

  • Represented administrative agent and arranger in the negotiation and documentation of $600 million exit facility to building products company emerging from asbestos-related bankruptcy.
  • Represents two power plants in the placement of a senior loan facility.  Previously, Moore & Van Allen also represented the two power plants in a hedge transaction.
  • Represented lender in connection with workout of approximately $20 million owed by marine services company.
  • Represented agent and lenders in a large syndicated transaction for the restructuring of prepetition loan facilities, and the full roll-up of the prepetition credit facilities into a debtor-in-possession financing.
  • Represented lender of $60 million last-out tranche in European credit facility in negotiating intercreditor provisions and analyzing foreign collateral issues.
  • Represented collateral agent in formulating transaction structure and negotiating intercreditor provisions involving approximately $130 million in acquisition financing secured by foreign intellectual property.
  • Represented group of bondholders in negotiating credit documentation and intercreditor provisions for a $20 million loan to a court-appointed receiver charged with taking possession of and operating two power plants.
  • Represented holder of $35 million in secured subordinated notes in restructuring transaction resulting in noteholder taking control position of health care services provider.
  • Represented senior secured lender in $62 million credit facility to restaurant franchisee involving the negotiation of the collateral assignment of franchise rights with national franchisor.

As workout lawyers, Moore & Van Allen’s Bankruptcy and Financial Restructuring team offers experience and demonstrated success to both lenders and borrowers seeking to resolve financial challenges outside of bankruptcy.  We frequently collaborate with our lender clients to develop creative solutions for working out troubled credits, including debt-for-equity swaps and other change of control transactions designed to align the capital structure of an enterprise with economic realities.  These transactions are tailored to be tax efficient and preserve key employee, vendor, and customer relationships.  In addition, we have successfully helped numerous corporate clients restructure their obligations and avoid bankruptcy.

Representative Work-out matters include:

  • Represented secured subordinated lender in successful workout of loans to cleaning services company that culminated in the acquisition of the borrower by lender and the negotiation of $45 million in new financing for the company.
  • Represented lender in workout and refinance of approximately $23 million owed by physician practices.
  • Represented administrative agent of syndicated credit facility in successful restructuring of $115 million unsecured revolving credit facility to chemical company.  Restructure involved collateralization and resolution of intercreditor issues with private placement noteholders and facility was paid-in-full.
  • Represented borrower in successful three-year workout involving West Coast grocery store chain with approximately $25 million in senior bank debt and a host of other creditors.
  • Represented agent for bank group in workout and subsequent refinance of approximately $80 million in senior bank debt owed by automated teller machine owner/lessor.
  • Represented agent for lender syndicate in workout and ultimate full payoff of $500 million exposure to manufacturing conglomerate.
  • Represented administrative agent in syndicate to credit facility in successful restructuring and refinance of $60 million exposure to a media company, including equity investment from sponsor.
  • Represented secured lenders in the workout and refinancing of $75 million secured loan to national car dealership chain. 
  • Represented administrative agent in syndicate to credit facility in successful restructuring of exposure to a defense contractor involving sponsor investment and resolution of intercreditor issues with high-yield notes.  Facility was paid-in-full in subsequent chapter 11 bankruptcy proceeding.
  • Represented secured lenders in the workout and refinancing of $215 million secured loan to national trucking company.
  • Represented lender in large, commercial hotel foreclosure.

As bankruptcy lawyers, Moore & Van Allen’s Bankruptcy and Financial Restructuring team possesses both the transactional and litigation experience necessary to represent a wide array of clients effectively.  We have experience navigating the ever-shifting alliances among various creditor constituencies, from first-day cash collateral disputes to plan negotiations.  Our extensive representation of financial institutions makes us particularly well-suited to document and negotiate DIP and exit-financing facilities.  We also frequently assist buyers at bankruptcy auctions, parties facing assumption or rejection of leases in bankruptcy, trade creditors asserting reclamation claims or defending preference actions, and other creditors who are simply trying to understand the ramifications of a bankruptcy filing.  In addition, we periodically serve as counsel to debtors and unsecured creditors’ committees.  We have advocated for virtually every kind of creditor in bankruptcy proceedings and have represented clients in federal bankruptcy courts across the country. 

Representative Bankruptcy matters include:

Lenders
  • In re Smith Mining and Materials (Ky.).  Represented senior secured lender with $16 million of secured claims in bankruptcy case of a sand and gravel mining operation in Southern Indiana and Western Kentucky.
  • In re US Airways (Va.).  Represented agent for syndicate of lenders, including Air Transportation Stabilization Board.  Also represented a hub airport concerning the bankruptcy treatment of the airline’s gate leases, as well as other issues.
  • In re Crown Pacific (Ariz.).  Represented agent for lender syndicate with $220 million in exposure in negotiating creditors’ plan.
  • In re Transcare Corporation, et al. (N.Y.).  Represented senior secured creditor in conversion of claims into a combination of secured debt and equity in the reorganized debtors. 
  • In re Meadowcraft, Inc. (Al.).  Represented agent for lender syndicate with over $150 million of debt exposure, including negotiating confirmed refinancing chapter 11 plan.
  • In re Centennial Healthcare (Ga.).  Represented co-agent for lender syndicate with over $200 million of debt and synthetic lease exposure, including negotiating confirmed liquidating chapter 11 plan.
  • In re PWG USA, LP (S.C.).  Represented senior secured lender in transition and sale of second-tier auto supplier in non-judicial workout and involuntary bankruptcy.
Other Creditors
  • In re Hancock Fabrics, Inc., et al (Del.).  Representing lessor in matters pertaining to debtor’s assignment of real estate leases.
  • In re Dana Corp., et al. (N.Y.).  Defended supplier sued for refusal to provide trade credit to debtors.  Assisted creditors with sale of unsecured claims. 
  • In re Delphi Corporation, et al. (N.Y.).  Assisted clients with the negotiation of post-petition supply agreements with the debtors.
  • In re Athlete’s Foot LLC (N.Y.).  Representing lessor in matters pertaining to debtor’s assignment of real estate leases.
  • In re KB Toys. (Del.).  Represented lessor in matters pertaining to debtor’s assignment of real estate leases.
  • In re NEGT Energy Trading-Power, L.P. (Md.).  Continuing representation of one of the largest unsecured creditors, which is also chair of the creditors’ committee. 
  • In re Ameritex Yarn, LLC. (N.C.).  Serving as counsel for the unsecured creditors committee.
  • In re Enron (N.Y.).  Represented utility supplier and purchaser in negotiation and recovery of $9.5 million contract rejection claim.
  • In re Mirant (Texas). Represented utility in negotiation and recovery of $107,500 contract rejection claim.
  • In re Worldcom (N.Y.)  Represented counter-party in contract assumption and claim resolution.
  • In re Doyle Electrical Construction Corp. (S.C.).  Represented Chapter 7 trustee in efforts to collect accounts receivable owed to debtor.
  • In re Brakefield Construction Company, Inc. (S.C.).  Represented unsecured creditors' committee and assisted in obtaining a distribution to general unsecured creditors in excess of fifty percent (50%).

Debtors

  • In re Southaven Power, LLC (N.C.).  Serving as local counsel for debtor in its Chapter 11 reorganization.  Debtor owns an 810 megawatt natural gas generating facility.
  • In re Nobex Corp. ( Del).  Served as special counsel to debtor for sale of intellectual property and other assets.
  • In re J.A. Jones, et al. (N.C.).  Served as local counsel for large construction conglomerate in their Chapter 11 liquidation.

Buyers

  • In re Harriet & Henderson Yarns, Inc. (N.C.).  Represented the buyer in the purchase of assets from the debtor’s bankruptcy estate.
  • In re Birmingham Steel Corp. (Del).  Represented the buyer in the purchase of $600 million of assets from the debtor’s bankruptcy estate.
  • In re York Research, LP (N.Y.).  Represented limited partner in acquisition of controlling interest of alternative energy supplier. 

As litigators, we represent clients in resolving adversary proceedings and other insolvency related litigation.  We often defend parties in preference, fraudulent transfer and other avoidance actions that are commonly used by debtors against creditors that have received payments before the debtor’s bankruptcy filing.  We typically attempt resolve these matters amicably, but when circumstances require litigation, we fully and zealously defend our clients. 

Representative Litigation matters include:

  • In re Heilig-Meyers (Va).  Defended a bank group in $300 million preference litigation brought by a national retail chain, resulting in no liability for bank defendants.

We have also defended trade creditors in preference actions brought for the recovery of preferential transfers in cases such as:

  • In re Tower Automotive Group, et al. (N.Y.).  
  • In re Enron Corporation, et al. (N.Y.).   
  • In re Piccadilly Cafeterias, Inc. (Fl.). 
  • In re Oakwood Homes ( Del.). 
  • In re Pillowtex, et al. ( Del.). 
  • In re Daiseytek, et al. ( Tex.). 
  • In re Maxide Aqusition, Inc., et al. ( Del).   
  • In re Galey & Lord (N.Y., Ga.) 
  • In re Beloit Corp. (Del.)
  • In re Collins and Aikman (Mich.)
  • In re Dan River (Ga.)
  • In re Georgetown Steel (S.C.)