Business Reorganization and Bankruptcy

The following is a representative sample of some of the major cases in which the Business Reorganization and Bankruptcy Group or its principals have been involved:

  • Adelphia Communications Corporation.  HBD served as lead counsel to the ad hoc committee of Adelphia Communications Corporation Senior Noteholders, whose members held approximately $2.0 billion principal amount of ACC Senior Notes. Among other things, we represented the ad hoc committee members in a series of high stakes trials before the Bankruptcy Court regarding issues relating to allowance and valuation of tens of thousands of intercompany transfers, claims, and transactions, and allocation of almost $20 billion in value among more than 200 affiliated entities.
  • Ashanti Goldfields, Inc.  HBD was counsel for an ad hoc committee of bondholders of a Ghananian gold producer, whose shares trade on the NYSE and the London Stock Exchange. HBD negotiated a restructuring that resulted in redemption of our clients’ bonds at par plus accrued interest.
  • Brobeck, Phleger & Harrison LLP.  HBD acted as counsel the chapter 7 trustee for one of the largest law-firm chapter 7 cases, Brobeck, Phleger & Harrison LLP. HBD’s novel partnership liability theories facilitated more than $30 million in recoveries from former partners and other law firms for unsecured creditors.
  • Dade Behring Holdings, Inc.  HBD was counsel to an ad hoc noteholder committee in connection with the negotiation and implementation of a prepackaged chapter 11 plan of reorganization.  HBD’s efforts included the negotiation of a settlement of claims against equity sponsors arising out of a recapitalization transaction that included distributions to shareholders. The plan incorporated the settlement.
  • Desert Hot Springs, California.  HBD successfully represented the first California city to file a chapter 9 bankruptcy. The case culminated in the confirmation of a plan of adjustment that provided for the repayment in full of all creditor claims.
  • Hawaiian Airlines, Inc.  HBD served as reorganization counsel to the chapter 11 trustee in the successful reorganization of this operating United States flag air carrier headquartered in Hawaii that resulted in payment in full to unsecured creditors.
  • Hawaiian Airlines, Inc. v. Mesa Air Group, Inc.  HBD served as counsel to reorganized Hawaiian Airlines, Inc. and obtained a judgment on behalf of the reorganized debtor of more than $80 million in connection with a lawsuit for breach of a confidentiality agreement entered in the bankruptcy case.
  • Kinross Gold Corp.  HBD represented Franklin Advisers in out-of-court restructuring negotiations. The threat of litigation by HBD resulted in a favorable settlement involving the issuance of securities listed on the Toronto Stock Exchange and accompanying registration rights in the United States.
  • The LTV Corporation.  HBD represented the chapter 11 debtor in a first-of-its-kind litigation challenge relating to asset transfers to Special Purchase Vehicles. HBD’s efforts resulted in the funding of a $700 million debtor-in possession financing by lenders who previously were unwilling to provide it
  • Komag, Inc.  HBD acted as reorganization counsel for this publicly held (NASDAQ) manufacturer of disk media in out‑of‑court restructuring negotiations and in a chapter 11 case commenced to implement the agreement reached as a result of these negotiations.
  • Liberty House, Inc.  HBD served as lead counsel in this successful chapter 11 reorganization of the leading department store chain in Hawaii and Guam.
  • NorthPoint Communications Group, Inc.  HBD acted as counsel for chapter 7 trustee and counsel for an ad hoc committee of bondholders, in chapter 7 cases pending in the U.S. Bankruptcy Court for the Northern District of California. NorthPoint was a publicly held (NASDAQ) wholesale DSL provider.
  • Orange County, California.  HBD acted as both lead reorganization counsel in connection with the largest municipal debt adjustment case in U.S. history, and lead litigation counsel in lawsuits filed against Merrill Lynch, other broker-dealers, structured note issuers, and accounting and legal professionals retained by the County prior to the County’s financial crisis. HBD’s efforts resulted in the successful payment or restructuring of approximately $10 billion of indebtedness under a plan so successful that the County’s credit rating ascended from D (“default”) to AA (an investment grade rating) within 18 months following the implementation of the plan. HBD’s efforts also enabled the County to recover more than $871 million in litigation cases involving matters of securities, bankruptcy, commercial fraud, municipal government, and professional malpractice law.
  • Peregrine Systems, Inc.  We acted as counsel for an ad hoc committee of bondholders in out-of-court negotiations and then as counsel for the official committee of unsecured creditors of Peregrine Systems, Inc., and Remedy Peregrine, Inc., in chapter 11 cases pending in the U.S. Bankruptcy Court, District of Delaware.
  • Solutia, Inc.  HBD represented an ad hoc committee of Solutia Noteholders in the chapter 11 reorganization of a former chemicals business of Monsanto Corporation. The committee members held over $250 million in notes and included leading investors in distressed securities.
  • SpectraSite Holdings, Inc.  HBD was counsel to an ad hoc committee of bondholders. In that capacity, HBD commenced an action against SpectraSite and its equity sponsor for an injunction and for damages in response to a coercive discount tender offers for bonds issued by SpectraSite. A ruling by the United States District Court, District of Delaware that the bondholders were likely to succeed on the merits of their claims resulted in the withdrawal of the tender offers. HBD also represented the ad hoc committee of bondholders in out-of-court negotiations concerning a restructuring of SpectraSite’s financial affairs and, once a deal was reached, HBD represented the Official Committee of Unsecured Creditors in a chapter 11 case commenced to implement the restructuring.
  • Tucson Electric Power Company.  A senior member of the firm acted as reorganization counsel for out-of-court restructuring of $2.3 billion in debt obligations, lease obligations and preferred stock for NYSE listed utility.
  • United Air Lines, Inc.  HBD acted as counsel for UMB Bank, as indenture trustee, in an action involving valuation of collateral consisting of terminals at Los Angeles International Airport. The Seventh Circuit Court of Appeals ultimately ruled in the trustee’s favor, substantially adopting HBD’s theories at trial and finding the trustee to be oversecured and entitled to payment in full.
  • Westpoint Stevens, Inc.  HBD is counsel for Steering Committee of First Lien Lenders, who hold more than $250 million of a $480 million senior secured credit.