A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Restructuring and Bankruptcy

A company’s need to implement an operational restructuring or financial recapitalization could arise from a myriad of factors, including liquidity constraints as a result of an overleveraged capital structure with near-term maturities, secular or cyclical pressures, outdated labor and pension obligations, or unfavorable litigation results.

Clients call upon Simpson Thacher’s restructuring team to respond to these situations in a variety of ways—from liability management and other preemptive transactions, to covenant waivers to complex out-of-court recapitalization and deleveraging transactions and pre-negotiated and prepackaged bankruptcies, to traditional bankruptcy reorganizations.
Restructurings
The Firm represented The J.G. Wentworth Company in a comprehensive restructuring pursuant to a pre-packaged Chapter 11 case, a transaction that resulted in lenders extinguishing approximately $449.5 million of their existing term loan debt in exchange for cash consideration and at least 95.5% of the equity in the reorganized company.

For decades, clients have looked to Simpson Thacher to advise on complex domestic and international restructurings, recapitalizations and workouts implemented out-of-court or through judicial proceedings. Our team has represented key players in many of the largest and most challenging financial reorganizations in U.S. history. We counsel clients on the full spectrum of challenges they will face in court and while we excel at crafting creative and consensual out-of-court solutions to the thorniest disputes, when circumstances demand, our bankruptcy litigators have extensive experience and sophistication to successfully prosecute complex bankruptcy cases.

Fundamental to our approach to company-side restructuring assignments is our focus on process, corporate governance, decision making and risk management. We approach these difficult situations with a multidisciplinary legal team, led by our restructuring partners, to advise seamlessly on credit, capital markets, M&A, litigation and fiduciary matters. 

For distressed issuers, we have:

  • Structured asset dispositions and deleveraging transactions, including leading negotiations with public and private side investors in a manner consistent with management’s and the board’s fiduciary obligations
  • Ensured best practice governance arrangements are implemented and followed during periods of financial distress, including, where appropriate, use of independent directors and/or special committees
  • Assisted with disclosure-related matters and requirements, including in connection with SEC reporting requirements or requirements of the New York Stock Exchange and the NASDAQ Stock Exchange
  • Ensured executive compensation arrangements are appropriate in light of attracting and retaining key management during a period of financial distress
  • Advised on pursuing internal investigations when appropriate
In addition to advising debtors, members of the restructuring group also play a key role in the firm’s Private Capital & Special Situations Group, which is composed of lawyers from the Firm’s credit, capital markets, M&A, litigation and tax groups, who focus on executing complex and bespoke strategic credit, opportunistic equity and rescue finance transactions. Our multidisciplinary approach gives clients innovative and market leading solutions while our global footprint allows the PSIG team to work seamlessly around the world.
“Very strong lawyers; creative and practical deal-doers who are also flexible and great communicators”
Chambers USA (quoting a client)
Debtor Experience
Partners on our team have represented numerous debtors including America Online Latin America, American Safety Razor, BIS Industries, Eastman Kodak Company, J.G. Wentworth, Motor Coach Industries, Oneida Ltd., Qimonda North America, Qimonda Richmond, Remy International and Smarte Carte.

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