BYJU's Alpha and Epic! Creations — Representation of GLAS Trust Company LLC, as agent to a co-operative group of institutional lenders, in the Chapter 11 restructurings of BYJU’s Alpha, Epic! Creations, Neuron Fuel and Tangible Play. Following the discovery of extensive fraud within the BYJU’s ed-tech conglomerate, the lenders exercised remedies against BYJU’s Alpha, which commenced Chapter 11 proceedings and successfully obtained summary judgment of more than $540 million each against multiple defendants on account of fraudulent transfers. In addition, the lenders successfully commenced involuntary Chapter 11 proceedings against Epic! Creations and the other U.S. subsidiaries and obtained the appointment of a Chapter 11 trustee, ultimately resulting in $100 million of proceeds from asset sales. Related international proceedings include, among other things, involuntary insolvency proceedings against Think & Learn in India and receivership proceedings against Great Learning in Singapore.
Klöckner Pentaplast of America, Inc. — Representation of Klöckner Pentaplast of America, Inc. (Klöckner) and 24 of its affiliates in its voluntary prepackaged Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. Klöckner is a leading global supplier of essential packaging products used by local and multinational businesses across industries from food packaging to medical devices. Klöckner entered into Chapter 11 to implement a comprehensive restructuring transaction that would eliminate approximately €1.3 billion of the company’s €2.32 billion funded debt obligations with the support of certain of the company’s key stakeholders who are supporting the Chapter 11 through a restructuring supporting agreement. As part of negotiations with existing lenders, Klöckner received approval for debtor in possession financing in the amount of €984 million, including approximately €349 million of new money term loans.
Franchise Group — Representation of Franchise Group, owner and operator of franchised and franchisable businesses, in connection with its Chapter 11 restructuring. Following months of litigation, Kirkland was retained and helped Franchise Group secure a global settlement with its key stakeholders to delever its balance sheet by more than $2.4 billion and emerge from Chapter 11 with a deleveraged capital structure, enhanced liquidity, and a strengthened and simplified business model. In addition to confirming a Chapter 11 plan of reorganization, Franchise Group successfully completed a value-maximizing sale of its Vitamin Shoppe business segment.
Northvolt AB — Representation of Northvolt AB and eight of its affiliates in their Chapter 11 cases filed in the United States Bankruptcy Court for the Southern District of Texas. Northvolt is a Swedish manufacturer of electric vehicle batteries with a mission to build the world’s greenest battery. As of the petition date, Northvolt had nearly $6 billion in funded debt obligations. Northvolt filed Chapter 11 with commitments of $100 million in new money debtor-in-possession financing from a key customer and access to approximately $145 million in cash collateral from its project finance lenders.
Accuride Corporation — Representation of Accuride Corporation and 15 of its debtor affiliates in their Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. Accuride is the one of the largest and most diversified manufacturers and suppliers of wheels and wheel end components in the world. Accuride commenced its Chapter 11 cases with approximately $485.6 million in funded debt and commitments from an ad hoc group of prepetition term loan lenders to provide nearly $103 million in debtor-in-possession financing. Accuride and its term loan lenders have also agreed on the framework of a consensual restructuring transaction which will deleverage the company’s balance sheet via an equitization of the lenders’ prepetition debt.
