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On November 18, 2010, a BABC manufacturing client (majority-owned by a BABC private equity client) completed a complicated recapitalization transaction. As part of the recapitalization, the manufacturing client refinanced its existing senior facility with a new $60 million senior asset-based facility, restructured $42 million in subordinated mezzanine debt, and issued a new $2.5 million round of preferred equity. The new senior loan is secured by real and personal property located at 7 manufacturing facilities in 4 states. Contentious intercreditor negotiations, environmental issues, underfunded pension plans, foreign subsidiaries, and 9 different borrowing entities kept things interesting. John Myers (finance matters) and Jeff Buschmann (equity matters) led the BABC team, with assistance from John Murdock, Gordon Nichols, Chris Parker, Matt Mattingly, Johanna Jumper, and Mary Ward.
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Represented J.A. Jones, Inc. and 57 of its subsidiaries in Chapter 11 cases before the bankruptcy court in Charlotte, NC. Within 11 months of the bankruptcy filing, we obtained confirmation of two Chapter 11 plans that ratified a dozen major asset transactions and numerous smaller sales. The process netted over $1 billion in total consideration, eliminated another $1 billion in contingent liabilities under Jones’ surety bonds and saved the jobs of over 97 percent of its 7,000 employees.
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Represented Birmingham Steel Corporation, a publicly traded company, and several of its affiliates in Chapter 11 proceedings before the bankruptcy court in Delaware. Creditor claims totaled more than $1 billion. We obtained confirmation of a Chapter 11 plan that involved the sale of the debtors’ assets to Nucor Steel for over $615 million and provided a significant return to shareholders despite the company’s insolvency. Confirmation occurred approximately 100 days after the bankruptcy filing.
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Represented the nonprofit hospital Carraway Methodist Health Systems and several of its affiliates in Chapter 11 proceedings before the bankruptcy court in Birmingham, Ala. Creditor claims totaled over $140 million. Approximately seven weeks after the filing date, we obtained court approval of the sale of substantially all the debtors’ assets, which preserved more than 1,000 local jobs. Within approximately eight months of the bankruptcy filing, we obtained confirmation of a Chapter 11 plan of liquidation.
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Served as Chapter 11 counsel to Globe Manufacturing, the nation’s largest independent producer of spandex, with operations in Alabama, New York, and Massachusetts. We handled the sale of the company to an Italian buyer and obtained confirmation of a plan involving more than $400 million in creditor claims.
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Represented Vulcan in buying the major eastern assets of U.S. Aggregates out of bankruptcy in Nevada.
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Represented a public utility in a $43 million adversary proceeding filed by Enron Corporation with respect to forward contracts and swap agreements, resulting in a $12.5 million net recovery for the public utility on related counter-claims.
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Chapter 15 bankruptcy counsel for the foreign representative of a debtor in an administration proceeding in Bristol; obtained entry of order provisionally imposing the automatic stay pursuant to Bankruptcy Code Section 1519(a); obtained entry of order of an order recognizing the foreign administration proceeding as foreign main proceeding over the objections of a United States based creditor.
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