Financial Restructuring

• The Official Committee of Unsecured Creditors, the fiduciary appointed to protect the interests of LATAM Airlines’ unsecured creditors, in connection with a Chapter 11 case.
• Ad hoc group of secured and unsecured bondholders of GOL Linhas Aéreas Inteligentes S.A. in connection with its recently concluded US$1.6 billion combined liability management and new capital financing transaction, one of the largest completed liability management and comprehensive refinancing transactions in both the airline industry and the emerging markets.
• Ad hoc group of crossover prepetition and DIP term lenders of Instant Brands Acquisition Holdings Inc.
• The PREPA Ad Hoc Group formed in connection with the Title III reorganization of the Puerto Rico Electric Power Authority (PREPA), one of several debtors in the Commonwealth of Puerto Rico Title III cases and related litigation.
• Redwood Capital Management in connection with liability management exercises by At Home Group, a leading home decor retail chain, including the issuance of $200 million of secured bonds and an exchange of approximately $450 million in unsecured bonds into secured bonds.
• State Farm in connection with its US$2.5 billion insurance subrogation claim arising from the California Wildfires in the Chapter 11 bankruptcy of PG&E Corporation.
• Ad Hoc Group in connection with a potential restructuring of Samarco Mineração S.A., a Brazil-based mining company, and its indebtedness.
• Ad Hoc Committee of TerraForm Power Noteholders in connection with the structuring, negotiation, and documentation of a consent solicitation by TerraForm Power to the holders of its 5.875% Senior Notes due 2023 and 6.125% Senior Notes due 2025.
• Ad Hoc Noteholders Group in connection with the US$19 billion restructuring (Brazil’s largest-ever bankruptcy filing) of Oi S.A., Brazil’s leading telecommunications service provider formerly known as Brasil Telecom S.A.
• Ad Hoc Noteholders Group in the highly contested cross-border restructuring of US$1.6 billion in defaulted notes issued by Vitro S.A.B. de C.V., Mexico's largest glass manufacturer. Dechert was counsel to the noteholders in connection with Vitro’s concurso filing in Mexico, related cases in Dallas, Texas, and litigation in the New York Supreme Court. The Financial Times in 2013 chose Dechert as one of the “top U.S. innovative law firms” for its “standout” work as lead counsel for the noteholders group in this matter.
• Peaje Investments LLC, a special purpose vehicle managed by a prominent hedge fund and the largest holder of “unwrapped” special revenue bonds issued by the Puerto Rico Highways & Transportation Authority (PRHTA), in connection with all aspects of the Commonwealth of Puerto Rico’s debt restructuring.
• Aurelius Capital Management, LP, and Alden Global Capital LLC, the largest Noteholders of OAS, S.A., one of the largest Brazilian engineering and construction companies, and its affiliates, in connection with a Chapter 15 case in the Southern District of New York, currently in insolvency proceedings in Brazil and the British Virgin Islands.
• RCS Capital Corporation and its subsidiaries in connection with Chapter 11 cases filed in the Bankruptcy Court for the District of Delaware.

U.S. and overseas businesses call upon Dechert to advise on cross-border restructurings. We have represented clients in restructurings and insolvency proceedings in Brazil, Ukraine and the Czech Republic, among many other countries.

When needed, the financial restructuring lawyers collaborate with other Dechert lawyers to support collateral aspects of restructurings, including mergers and acquisitions and leveraged finance. Our lawyers also work with crisis managers and investment banks and other financial advisors with whom they have longstanding working relationships.

Dechert’s financial restructuring lawyers are experienced in restructurings and other distressed company and asset matters in emerging markets. Our work includes bankruptcy and insolvency proceedings and out-of-court restructurings, financings and multinational debtor/creditor litigation involving parties and legal venues in Mexico, Brazil, Chile, Puerto Rico, Argentina, Latvia, Ukraine and the Czech Republic, among other countries.

The practice is especially active in restructurings and distressed asset transactions in Latin America. In recent years, Latin America experienced a wave of debt restructurings, and Dechert played key roles in a number of them, including in the cross-border restructurings of LATAM Airlines, GOL Linhas Aéreas Inteligentes S.A., Avianca Holdings, Oi S.A. of Brazil, OAS, S.A. of Brazil and Vitro S.A.B. de C.V. of Mexico. Many global law firms advising on cross-border matters involving a Latin American party encounter difficulties because of complicated regulations developed long before the internationalization of the capital markets. The Legal 500 Latin America notes one of the biggest advantages of Dechert’s practice is that it includes “lawyers of different nationalities, so that they can better apply the law from the perspective of origin of their clients. Likewise, they have a comprehensive work approach, in that they not only satisfy the legal need, but also protect the interest of each client.”  For more than three decades, though, Dechert has represented clients in all manner of transactions in Latin American markets and understands the regulatory structures in place as well as dispute resolution practices throughout the region. 

The group represents major parties in interest in many of the most significant and highly publicized U.S. bankruptcies and restructurings. Past matters include the representation of the debtor in RCS Capital Corporation; the noteholders in Terraform Power, Logan’s Roadhouse and Modular Space Corporation; the county in Macomb County in the City of Detroit; and the successful plan proponent in Scotia Pacific and Pacific Lumber. 

No other firm has more experience advising on the restructuring and reorganization of defaulted commercial mortgage-backed securities (CMBS) loans than Dechert. The firm represented two of the largest creditors in two of the largest CMBS bankruptcies of the past several years – Innkeepers USA Trust and MSR Resorts. 

Dechert’s skillful litigators achieve success at trial and before appellate courts. The cases are complex, many of which are highly contested Chapter 11 and Chapter 15 cases. We represent parties in disputes in connection with U.S. and cross-border reorganizations, restructurings, liquidations, indentures and disputed claim settlements. The litigation team has been recognized by the industry for its excellence. For example, the Financial Times in 2013 chose Dechert as one of the “top U.S. innovative law firms” for its “standout” work as lead counsel for an ad hoc noteholders group in the highly contested cross-border US$1.6 billion restructuring of defaulted notes issued by Vitro S.A.B. de C.V., Mexico's largest glass manufacturer.

Dechert lawyers advise acquirers of the securities of distressed businesses through: debt for equity exchanges; waivers, amendments and forbearances; recapitalizations; consensual and non-consensual restructurings; analyzing legal and structural issues and investment considerations; and claims trading in distressed enterprises.

Dechert advises acquirers of distressed businesses throughout the life cycle of the transaction. In the early stages, we issue letters of intent, perform due diligence, negotiate fees and obtain bidding and successor liability protections. We continue guiding the client every step of the way, including applying to the bankruptcy court for approval of documentation and closing purchase and sale transactions.

For private equity, hedge and investment funds raising money and investing in distressed debt and equity, the team brings together the firm’s corporate, finance and litigation lawyers to navigate complex regulatory issues. These include antitrust and competition regulation, employee benefits and ERISA matters, environmental compliance, securities laws and tax issues. We also help arrange distressed debt and equity financing and create alternative investment vehicles.