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 assets 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 "the outcome of this case is exceptional."
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