Paul M. Basta
Professional Profile
Paul Basta is a partner in the Restructuring Group of Kirkland & Ellis LLP. He represents debtors, creditors and investors in restructuring distressed companies. Mr. Basta has been recognized as a leading lawyer in Chambers USA, America's Leading Lawyers for Business every year from 2006-2009. The 2008 edition noted him as having "one of the best analytical minds on the street" and being "hard working, intuitive and a great communicator." The 2007 guide described him as "competent and strong, with the ability to jump into anything and make sense of it," and the 2006 guide described him as an "up-and-coming" lawyer recommended for his "keen intellect and loyal client following."
Mr. Basta is currently representing TOUSA, Inc. and Hawaiian Telcom in their chapter 11 cases, as well as Charter Communications, the third largest cable operator in the United States, in its prearranged bankruptcy. Mr. Basta also recently represented Leiner Health and Kimball Hill Homes in their chapter 11 cases, American Color Graphics in its proposed transaction with Vertis, Inc., Sun Capital in connection with Mervyns, and Lehman Brothers private equity real estate funds in connection with the bankruptcy of Lehman Brothers.
Some of Mr. Basta's other significant debtor representations have included Autocam Corporation, Dura Automotive Systems, Global Crossing Ltd., Acterna Corporation, Rhythms NetConnections and Footstar. Mr. Basta has also represented Citigroup, Credit Suisse, Lehman Brothers and numerous other financial institutions and funds in connection with in-court and out-of-court restructurings.
Mr. Basta was selected by Turnarounds & Workouts in 2008 as an "Outstanding Restructuring Lawyer" and in 2002 and 2003 as an "Outstanding Young Bankruptcy Lawyer." Mr. Basta was also selected as one of The Best Lawyers in America from 2007-2010. In 2006 and 2007, he was recognized by Super Lawyers as a New York Super Lawyer. He was also named by Crain’s New York Business as one of the 40 "Young Rising Stars" in New York in its January 2003 issue.
Representative Matters
Automotive Restructurings
Autocam Corporation – Represented auto supplier in consensual out-of-court restructuring.
Dura Automotive Systems – Represented Dura Automotive in its chapter 11 reorganization.
Telecommunications Restructurings
Hawaiian Telcom Communications – Representing the state of Hawaii's incumbent telecommunications provider, which filed for chapter 11 protection in December 2008. Hawaiian Telcom offers a variety of telecommunications products and services, including local and long distance services, managed services, high speed Internet, and wireless services.
Global Crossing – Coordinated massive restructuring of global communications enterprise consisting of over 80 affiliated debtors operating in 27 countries and more than 200 major cities worldwide. Implemented sale to Singapore buyer through chapter 11 plan of reorganization.
Acterna Corporation – Led chapter 11 reorganization of billion dollar maker of telecommunications testing equipment through pre-arranged chapter 11 case that lasted less than six months. Coordinated sale of non-core businesses in chapter 11.
Rhythms NetConnections – Represented rapidly deteriorating dsl provider in chapter 11 restructuring and sold business to Worldcom through a section 363 bankruptcy sale.
ChoiceOne Communications – Represented competitive local exchange carrier in 60-day prepackaged chapter 11 restructuring.
Allegiance – Represented Qwest Communications as stalking horse bidder to Allegiance Communications, a competitive local exchange carrier.
Verado Communications – Represented competitive local exchange carrier in wind down of its business operations.
Nextwave Telecommunications – Served as corporate and corporate finance counsel to owner of wireless licenses and coordinated multiple financings, the sale of licenses to Cingular and the transfer of licenses to Verizon through a chapter 11 plan of reorganization.
Excite@Home – Represented bondholders of Excite@Home in chapter 11 case of owner of high-speed cable-modem technology.
American Cellular – Represented Lehman Brothers in connection with consensual out-of-court restructuring of wireless company.
Healthcare Restructurings
Sun Healthcare Group, Inc. – Represented company and hundreds of its affiliated companies that formed one of the largest providers of long-term subacute and respitory healthcare services in the United States. Assisted in the renegotiation of hundreds of leases and developed consensual plan of reorganization.
Greater Southeast Community Hospital Corporation – Represented receivables lender to Washington, DC hospital and successfully litigated validity of lender's security interest.
PHP Healthcare Corporation – Represented rapidly deteriorating healthcare provider in its chapter 11 wind down.
Olympus Healthcare – Represented healthcare provider in out-of-court restructuring.
Derivatives/Mortgage Lenders
Lehman Brothers –Represent numerous counterparties in connection with the bankruptcy of Lehman Brothers.
New Century, American Home, C-Bass – Represented Citigroup as lender and counterparty to various repurchase agreements.
Criimi Mae – Represented Citigroup as counterparty to repurchase agreements regarding mortgage-backed securities in chapter 11 case of Criimi Mae.
FSA – Assisted in constructing multi-lateral trading program of derivative contracts.
Pegasus Gold Corporation – Represented Dresdner Bank in chapter 11 case of gold company and assisted in enforcement of derivative contracts.
Prepackaged and Prearranged Chapter 11 Cases and Out-of-Court Restructurings
Charter Communications, Inc. – Representing the fourth largest cable operator in the United States in its prearranged bankruptcy that will reduce debt by approximately $8 billion.
Autocam Corporation – Represented auto parts manufacturer in consensual out-of-court recapitalization of the company.
American Color Graphics – Represented printing company in proposed merger with Vertis to be implemented through a pre-packaged chapter 11 case.
Tecumseh Products Company – Represented the company, a leading manufacturer of engines, compressors, and related products, in a series of restructuring and sales transactions.
The Grand Union Company – Represented the company, one of the largest supermarket chains in the country, in 60 day pre-packaged chapter 11 case and, subsequently, in the wind down of its business operations.
ChoiceOne Communications – Represented competitive local exchange carrier in 60-day prepackaged chapter 11 restructuring.
2 Broadway Associates – Implemented pre-packaged chapter 11 case for single purpose entity owning the 2 Broadway office tower in New York.
Ziff-Davis Media – Represented bondholders in consensual restructuring accomplished through an exchange offer.
DIP, Exit and Other Financings
Service Merchandise – Represented Citigroup as provider of debtor-in-possession financing to Service Merchandise.
Friedmans Jewelers – Represented Citigroup as provider of debtor-in-possession financing to Friedmans Jewelers.
RCN – Represented Credit Suisse as bidder for exit financing for RCN.
Anchor Glass – Represented Credit Suisse as provider of exit financing to Anchor Glass, a Florida-based manufacturer of glass products.
Healthsouth – Represented Credit Suisse as agent for various lenders to Healthsouth and successfully negotiated for an early out-of-court payout in full of their loan with a premium.
Traditional Chapter 11 Cases
TOUSA, Inc. – Representing the company, a leading homebuilder and financial services provider, and its subsidiaries in connection with restructuring liabilities arising out of litigation involving a joint venture.
Mervyns – Representing Sun Capital as stockholder and lender to Mervyns, a large retailer.
Kimball Hill – Represented homebuilder in chapter 11 case.
Leiner Health – Represented vitamin supplier in chapter 11 proceeding and in connection with proposed sale of its business.
Dura Automotive Systems – Represented Dura Automotive in its chapter 11 reorganization.
Global Crossing – Coordinated massive restructuring of global communications enterprise consisting of over 80 affiliated debtors operating in 27 countries and more than 200 major cities worldwide. Implemented sale to Singapore buyer through chapter 11 plan of reorganization.
Footstar – Represented Footstar and thousands of its store corporations in complicated multi-year restructuring. Restructuring involved the immediate shut down of the Just-for-Feet store chain, the sale of the Footaction chain to Foot Locker for $300 million and the reorganization around the company's Kmart shoe business. The company successfully emerged following litigation with Kmart and paid all creditors in full with a significant recovery to stockholders.
Mirant Corp. – Represented Lehman Brothers as agent to various lenders to a subsidiary of Mirant in connection with Mirant's chapter 11 case. Mirant is one of the nation's largest energy companies.
Olympia & York Companies (USA) – Assisted in the representation of the U.S. operations of Paul Reichmann's United States real estate enterprise which entailed restructuring numerous New York properties with billions of dollars in debt, including the World Financial Center, over a five year period.
Marvel Entertainment Group, Inc. – Assisted in the representation of Marvel Entertainment, one of the nation's largest comic and media companies, in its chapter 11 reorganization.
Other Distinctions
English Teacher, Beijing Aeronautics Institute, Beijing, China, September 1988 - June 1989
Judicial Clerk for the Honorable Florence K. Murray, Rhode Island Supreme Court, September 1992 - August 1993
Publications
For Subprime Lenders - A Primer on the Bankruptcy Code, Daily Bankruptcy Review, March 28, 2007 (co-author)
Acquisition of A "Troubled" Business: Bankruptcy and Reorganization Issues, Winter, 1999, (co-author)
Pre-Chapter 11 Planning: The Dynamics of Survival From The Perspective of the Debtor and Its Bank Creditors, September 1998 (updated 2006), (co-author)
That "Scumbled Area": Ethical Issues Facing Bankruptcy Professionals, Weil, Gotshal & Manges, 1997, (co-author)
Hot Topics in Business Bankruptcies: Venue in Corporate Cases: DIP Financing: Going Out of Business Sales and Ethical Issues, Georgetown University Law Center Continuing Legal Education, August 1997, (co-author)
An Introduction to the Bankruptcy Code, Winter 1997, (co-author)
Limiting the Scope of the New Value Exception, Weil, Gotshal & Manges Bankruptcy Bulletin, April 1997
Treatment of Partnerships in Bankruptcy, Weil, Gotshal & Manges Bankruptcy Bulletin, January 1996
Avoiding Fraudulent Transfers, January 1994, (co-author)
Derivatives
Enforceability of Derivatives in Troubled Situations, September 1994, (co-author)
The Treatment of Derivatives under the Bankruptcy Code, 402 PLI/Real 231, April-June 1994 (updated 2006), (co-author)
Claims Trading
Trading in Claims: Treatment of Purchases by Insiders, New York Law Journal, January 21, 1999, (co-author)
Trading in Debt Securities: Bankruptcy and Securities Laws Implications, Chapter in Weil, Gotshal & Manges' "Reorganizing Failing Businesses," 1998 (updated 2006), (co-author)
Trading in Claims, Weil, Gotshal & Manges Bankruptcy Bulletin, October 1997, (co-author)
Bondholder's Claim is Not Automatically Assigned to Subsequent Purchaser, Weil, Gotshal & Manges Bankruptcy Bulletin, September 1996
National Bankruptcy Review Commission Materials
Enforceability of Prepetition Waivers of the Automatic Stay, Memorandum to National Bankruptcy Review Commission, March 21, 1997, (co-author)
Discharge or Release of Third Parties Under The Bankruptcy Code, Memorandum to National Bankruptcy Review Commission, October 31, 1996, (co-author)
Seminars
American Color Graphics Case Study: The First-Ever Double Pre-Packaged Merger Bankruptcy Executed Through Chapter 11, Distressed Debt Investing and Risk Management's Navigating the Post-Subprime World, September 17, 2008
Homebuilders Part II: TOUSA, Renaissance American Management’s 11th Annual Corporate Reorganizations Conference, June 20, 2008
Troubled Hedge Fund Liquidations, Tenth Annual New York City Bankruptcy Conference, May 12, 2008
The Practical Impact of the Credit Crunch, 12th Annual AlixPartners Conference, April 16-18, 2008
Complex Financial Restructuring Program, 15th Annual Southwest Bankruptcy Conference, September 6-8, 2007
Update on Autos and Auto Suppliers, Renaissance American Management’s 10th Annual Corporate Reorganizations Conference, June 22, 2007
Second v. Third Circuit Precedents, American Bankruptcy Institute 7th Annual New York City Bankruptcy Conference, May 9, 2005
Telecommunications
Overview, Tension Between Bankruptcy and Regulatory Regimes, 4th Annual Telecommunications Law Conference, October 2001
