Distressed Mergers and Acquisitions

With increased frequency, financial restructurings are being implemented by various forms of M&A transactions. Bingham's lawyers are skilled in executing distressed M&A transactions of all types, whether they take the form of Section 363 asset sales, Chapter 11 plans, acquisitions in connection with cross-border insolvency proceedings or out-of-court transactions. We have counseled clients in many of the most complex and high-profile distressed M&A matters. Our team represents investors, financial institutions, strategic acquirers and sellers in a variety of industry sectors and in all aspects of financially distressed situations.

In addition to our transactional talent, we are adept at guiding our clients through the labyrinth of regulatory issues relevant to a distressed investment transaction, including competition and antitrust regulation, U.S. and international securities laws, taxation issues, employee benefit and ERISA matters and environmental.

Recent Engagements

Advanced Telecom Group, Inc.

Represented CyberGate Nevada LLC in its bid at auction for assets of this voice and data service provider

Bess Eaton

Represented Tim Horton’s, a subsidiary of Wendy's International, Inc., in its $42 million acquisition of the Bess Eaton Donut restaurant chain

Cenargo International Plc

Acted for a special purpose vehicle formed by creditors to purchase the assets of Cenargo International Plc (in administration)

Constellation Concepts 

Represented Tavistock Restaurants in its Section 363 acquisition of restaurant assets from this California based restaurant chain

Damovo Group SA

Acted for a special purpose vehicle formed by creditors to purchase the assets of Damovo Group SA (in administration)

Deutsche Bank Securities 

Represented Deutsche Bank in connection with its investment in a distressed electrical power generation facility in Latin America

Expanets

Represented Platinum Equity as over-bidder for telecom assets of Expanets, a subsidiary of Northwestern Energy, in a bankruptcy court-approved auction

Freedom Forge 

Represented secured lenders in sale of railway car company pursuant to a Chapter 11 reorganization plan

Furr's Supermarkets Inc. 

Represented secured lenders in Section 363 sale of supermarket chain in Chapter 11 proceedings

Galv-Pro 

Represented purchaser in the Section 363 sale of a steel plant in Chapter 11 proceedings

Globe Metallurgical, Inc. 

Represented senior secured noteholders in coordinated Article 9 sale of all the assets of this major ferroalloy manufacturer

Horizon Natural Resources Company 

Represented Glencore Finance AG and Xstrata PLC as overbidders in the Section 363 sale of the assets of this major producer of bituminous coal

Langston Holding Corporation 

Represented the equity holders of this New Jersey-based corporation in the sale of its New Jersey assets and English subsidiary under Section 363

Marathon Asset Management LLC 

Represented Marathon in connection with investments in distressed electrical transmission utilities in Latin America

Metal Castings Limited

Acted for the purchaser of the business and assets of Metal Castings Limited (in administration)

Mosaic Sales Solutions 

Represented secured lenders in the Section 363 sale of this media/marketing company in dual U.S.-Canada Chapter 11 and CCAA proceedings

Power Systems Mfg., LLC (a subsidiary of Calpine Corporation) 

Represented United Technologies Corporation as an overbidder in the Section 363 sale of the assets of an industrial gas turbine parts manufacturing business

Refco, LLC 

Represented a private-equity bidding group in the Section 363 sale of the regulated futures and commodities trading business of Refco

Republic Engineered Products 

Represented lender group as bidders in the Section 363 sale of this leading supplier of special bar quality steel  

RSL COM USA 

Represented World Change Corporation in its purchase of the assets of RSL COM USA in a Section 363 sale

Secure Systems Group 

Represented Cryptek, Inc. in purchasing substantially all of the assets of this manufacturer  of military, intelligence, homeland security, public safety and industrial products, in a Section 363 sale

Small World Toys

Represented Rivenrock Capital, successful "stalking horse," in acquisition of assets of Small World Toys in a Section 363 sale

Spaulding Composites 

Represented Metapoint Partners in the Section 363 purchase of the distressed assets of this manufacturer and fabricator of engineered composite materials and components 

Tech Pak, Inc. 

Represented a group of individuals who established a corporation to purchase the assets of Tech Pak, Inc. from General Electric Capital Corporation, Tech Pak's senior secured lender, in a sale under UCC Article 9

Verestar 

Represented Comtech Telecommunications as overbidder in the Section 363 sale of this satellite communications provider

Whistler Corporation 

Represented Catalyst Partners in the acquisition of a garage door opener business from this manufacturer of automotive, home and business products in Chapter 11 proceedings 

Woodstream Corporation 

Represented this Friend Skoler portfolio company in the acquisition of the assets of K-Feeders, Inc., in a Rhode Island state receivership, and in the acquisition of the environmentally safe garden product business of Verdant Brands, Inc., in sales under UCC Article 9 and analogous Canadian laws 

Resources

View some of our recent summaries of current developments in distressed mergers and acquisitions:

U.S. Court of Appeals for the Sixth Circuit Bolsters Free and Clear Sales Under Section 363 of the Bankruptcy Code (November 2007 Client Alert)

Assumption and Assignment - When is Assurance of Future Performance Adequate? (September 2007 Client Alert)

Granite Broadcasting: "Loan to Own" Alive and Well (August 2007 Client Alert)

Bankruptcy Asset Sales — A Taxing Problem (July 2007 Client Alert)

Bankruptcy Code Section 363 Sale of Stock Does Not Eliminate Claims Against Debtor's Subsidiary (June 2007 Client Alert)