Arsenal Energy Holdings LLC
The debtor and its affiliates are engaged in the acquisition and development of natural gas resources in the Appalachian Basin, holding one of the largest acreage positions in West Virginia. The debtor commenced bankruptcy as part of a comprehensive recapitalization transaction that significantly reduced the company’s debt while leaving operations unaffected and trade creditors unimpaired. The debtor’s pre-packaged plan of reorganization, which converted subordinated notes totaling approximately $861 million into equity and provided the company with access to an additional $35 million in liquidity, was confirmed and went effective just ten days after the petition date. Young Conaway, along with Simpson Thacher & Bartlett LLP, led the debtor through this novel chapter 11 filing, which was the first of its kind to be approved in the Bankruptcy Court for the District of Delaware.
Mattress Firm, Inc.
Mattress Firm, Inc. is the largest specialty mattress retailer in the United States, operating more than 3,200 stores across 49 states prior to the company’s chapter 11 filing. Young Conaway, together with Sidley Austin LLP, successfully navigated the company and its affiliates through a prepackaged chapter 11 process designed to simplify and de-leverage the debtors’ capital structure and right-size their real estate footprint. The debtors confirmed their prepackaged plan of reorganization, which provided for payment in full of nearly all unsecured creditors, and emerged from bankruptcy in less than 50 days. The restructuring provided the company with enhanced financial flexibility through a $525 million exit financing facility and significant cost savings realized from the rejection of hundreds of store leases, setting the stage for the company’s long-term success.