Simpson Thacher represented Agencia Especial de Financiamento Industrial – Finame, a subsidiary of the Brazilian Development Bank, in connection with the bankruptcy proceedings of Mesa Airlines, which recently concluded in the Bankruptcy Court for the Southern District of New York. As the lender in leveraged lease transactions for 36 Embraer regional jet aircraft, FINAME was the largest holder of general unsecured claims in Mesa’s bankruptcy case arising out of, among other things, Mesa’s rejection of the leases.
After filing and litigating various proofs of claim, and following extensive settlement negotiations, FINAME, Mesa and Mesa’s Unsecured Creditors’ Committee agreed to a settlement of all of FINAME’s claims pursuant to which, among other things, FINAME’s general unsecured claims were allowed in the approximate amount of $912 million.
The Simpson Thacher team included Kathrine McLendon, Anne Knight and Terry Sanders (Bankruptcy); Alan Brenner and Chi Shum (Corporate); Linda Martin and Daniel Stujenske (Litigation); and Moshe Schwerd and Chang Won Choi (Tax). Paralegals Sarah Baldwin and Chris Shields provided invaluable assistance.