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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.
ST&G's Recent Record of Success:
Hawaiian
Airlines (Honolulu, HI) – In this case, 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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