Bankruptcy

Guiding A Multi-Billion Dollar Company Through A Pre-Packaged Bankruptcy

Client:

A multi-billion-dollar global holding company headquartered on the East Coast.

Overview:

Severely impacted by a global recession, this heavily leveraged company filed a pre-packaged bankruptcy plan and emerged from the process with minimal impairment to the holding company and its subsidiaries. The move involved renegotiating more than $2 billion in debt, and ultimately an exchange for a portion of its debt for equity.

Strategy and Plan:

N&A developed a plan that would guide the company through eight public announcements and dozens of communications among the company, its affiliates, and customers throughout North America. Prior to the actual filing, it was decided to announce that the company had entered into lockup agreements with a majority of its bondholders; had begun a solicitation of votes from its creditors that would span 30 days; it had secured a commitment for a quarter-billion-dollar asset-based revolving credit facility; and it had received the necessary votes accepting its voluntary petition for Chapter 11 reorganization.

Results:

After only 59 days, the court approved the plan. News media coverage in the financial and trade press was concise and straightforward. No employees, customers, or suppliers commented on the bankruptcy. Disruption to company operations was minimal. The company was successful in the "court of law" and the "court of public opinion."