Most Successful Restructurings of 2017
In its annual report on the bankruptcy industry, Turnarounds & Workouts recognized Kirkland & Ellis as debtor counsel for 10 of the 24 most successful restructurings of 2017: Ameriforge Group Inc., Avaya Inc., Caesars Entertainment Operating Co. Inc., GenOn Energy Inc., Goodman Networks Inc., Gymboree Corp., Linn Energy, LLC, Payless Holdings LLC, Rue21 Inc. and Ultra Petroleum Corp.
Ameriforge Group Inc.
Counsel to debtor included Kirkland restructuring partners James Sprayregen, Edward Sassower and William Guerrieri. “The prepackaged plan of reorganization was unanimously accepted by all voting creditors and resulted in the deleveraging of Ameriforge’s balance sheet by approximately $680 million (over 90% of its funded debt).”
Avaya Inc.
Counsel to debtor included Kirkland restructuring partners James Sprayregen, Jonathan Henes, Patrick Nash and Robert Britton. “With more than $8 billion of debt, Avaya… explored M&A and balance sheet alternatives amid struggles related to its transition from a hardware-based operator to a software provider [and] emerged from bankruptcy on Dec. 15, 2017.”
Caesars Entertainment Operating Co. Inc.
Counsel to debtor included Kirkland restructuring partners James Sprayregen, Nicole Greenblatt, David Seligman and Joe Graham. “Described by the court as a ‘monumental achievement,’ the [approved] plan reflects a complex financial restructuring of CEOC’s approximately $18 billion capital structure and resolves one of the most contentious and high-profile Chapter 11 cases in recent history.”
GenOn Energy Inc.
Counsel to debtor included Kirkland restructuring partners James Sprayregen, David Seligman, Steven Serajeddini and Benjamin Winger. “GenOn entered Chapter 11… with approximately $2.5 billion of funded debt and approximately $1 billion of leveraged lease-related debt. As stated by Judge David Jones at confirmation, ‘I simply have the privilege of presiding over cases that are staffed by simply the best of the best in the country.’”
Goodman Networks Inc.
Counsel to debtor included Kirkland restructuring partners Joshua Sussberg, Patrick Nash and Joe Graham. “Goodman Networks Incorporated and its subsidiaries successfully emerged from Chapter 11 after consummating its prepackaged plan of reorganization… reduc[ing] its funded debt obligations by more than $212.5 million.”
Gymboree Corp.
Counsel to debtor included Kirkland restructuring partners James Sprayregen, Joshua Sussberg, Anup Sathy and Steven Serajeddini. “Gymboree maintained approximately $1.1 billion of prepetition debt that it sought to restructure through its pre-negotiated Chapter 11 proceeding… and obtained confirmation of its plan of reorganization in under 90 days.”
Linn Energy, LLC
Counsel to debtor included Kirkland restructuring partners James Sprayregen and Stephen Hessler. “Linn successfully restructured approximately $8 billion of funded indebtedness… At the confirmation hearing, Chief Judge David Jones noted that ‘the company wouldn’t continue today but for the skill set and the brain power that’s in this room.’”
Payless Holdings LLC
Counsel to U.S. debtor included Kirkland restructuring partners James Sprayregen, Nicole Greenblatt and Will Guerrieri. “Payless used Chapter 11 to exit unprofitable store locations and implement a prearranged restructuring plan supported by two-thirds of its lenders, reducing its approximately $830 million in funded debt by nearly 50 percent.”
Rue21 Inc.
Counsel to debtor included Kirkland restructuring partners Jonathan Henes, Nicole Greenblatt and Robert Britton. “At [the time of filing], Rue21’s balance sheet included approximately $800 million of funded debt versus $54 million of EBITDA in 2016… Rue’s Chapter 11 effectuated a consensual debt-to-equity conversion with its secured lenders.”
Counsel to debtor included Kirkland restructuring partners James Sprayregen, David Seligman, Christopher Greco and Gregory Pesce, and associate Matthew Fagen. “Ultra was the largest E&P company that had filed for bankruptcy protection in Texas year-to-date, with debts exceeding $3.9 billion… Ultra’s confirmed plan provides for the full satisfaction of all allowed claims… [and] notably, Ultra was able to resolve all objections to confirmation of its proposed plan and, following a subsequent lengthy hearing, resolved a dispute regarding the proposed $6 billion valuation under the plan’s unique toggle mechanism.”
