Today's economy is rife with change. That change is no more prevalent than in the
restructuring world, where every day brings news of the continued decline of an
entire industry (think airlines or auto parts) or the sudden collapse of a
one-time high-flyer (think Enron or Refco). As many of the most astute investors have now realized, with these changes
come opportunities. Lots of
opportunities.
ST&G's distressed M&A practice is
devoted to helping our clients take advantage of the enormous opportunities that
exist in the restructuring world. We
have helped clients acquire asset from troubled companies, and guided
clients through the acquisition of significant positions in debt securities
that were then used to acquire post-restructuring control of a target
company. From due diligence to
documentation to obtaining court approval, we guide our clients every step of
the way through these complex transactions.
Case
in point: In
the Hawaiian Airlines bankruptcy, ST&G client Ranch Capital wanted
to recapitalize and restructure the airline. ST&G first
assisted Ranch Capital and the investment vehicle it formed in
acquiring equity in the airline's parent company. Then, using its
equity position, Ranch and ST&G were able to drive the subsequent
restructuring of the airline, including negotiating beneficial
modifications of
aircraft leases and collective bargaining agreements, and successfully
litigating the contested confirmation of a chapter 11 plan
sponsored by
our client. At the end of the
day, general unsecured creditors received 100 cents on the dollar,
and the
publicly traded shares of the holding company retained meaningful
value.
The court overseeing the proceedings observed that "[t]he outcome of
this
case is exceptional."
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