Bankruptcy and Restructuring

Debtor/Corporate Restructuring

Experience

HCR ManorCare, Inc.

HCR ManorCare logo

HCR ManorCare, Inc. and its non-debtor subsidiaries are a leading national healthcare provider that operate a network of more than 450 locations nationwide providing (a) skilled nursing and inpatient rehabilitation facilities, memory care facilities, and assisted living facilities (b) hospice and home health care agencies; and (c) outpatient rehabilitation clinics and other ancillary healthcare and related businesses.  HCR ManorCare, Inc. commenced its bankruptcy case to effectuate a prepackaged plan of reorganization satisfying the claims of a major creditor and improving its go-forward operations by, among other things, reducing its operating leverage.  Young Conaway was retained as co-counsel in HCR ManorCare, Inc.’s chapter 11 bankruptcy case with Sidley Austin LLP.

Ascent Resources Marcellus Holdings, LLC

Image of Drilling Tower

Ascent Resources Marcellus Holdings, LLC and its affiliated debtors were formed to acquire, explore for, develop, produce, and operate natural gas and oil properties in the Marcellus Shale basin, one of the largest shale plays in the United States encompassing over 30 million acres across four states in the eastern U.S.  The debtors commenced their chapter 11 cases to obtain approval of a prepackaged plan of reorganization meant to not only reduce debt, but also maintain the underlying value of the debtors’ businesses and position the debtors for future growth.  The prepackaged plan of reorganization was approved 45 days after the commencement of the chapter 11 cases and significantly de-levered the debtors through a debt for equity conversion while providing general unsecured creditors with a 100% recovery.  Young Conaway was retained to represent the Debtors, as co-counsel to Sullivan & Cromwell.

Bon-Ton Stores

Bon Ton Logo

The Bon-Ton Stores, Inc. and its affiliated debtors were a leading hometown department store retailer with 256 stores located in twenty-three states in the Northeast, Midwest and upper Great Plains.  The Bon-Ton debtors commenced their bankruptcy cases due to adverse trends in the retail industry, including consumers’ shift from shopping in brick-and-mortar stores to online retail channels.  Following a marketing and sale process and auction, the Bon-Ton debtors ultimately sold substantially all of their assets to a joint venture led by Bon-Ton’s second lien noteholders.  Young Conaway was retained as co-counsel in Bon-Ton’s bankruptcy cases with Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Rentech WP U.S., Inc.

RenTech Logo

Young Conaway served as co-counsel to Rentech, Inc. and its affiliated debtors in their chapter 11 bankruptcy proceedings.  Prior to the Petition Date, Rentech was a large international wood fibre processing company, focusing primarily on the manufacture and sale of wood pellets.  Young Conaway helped Rentech strategically navigate the bankruptcy process, leading to the consummation and court approval of sales of two of Rentech’s primary business units that did not seek chapter 11 protection, and accomplishing the successful confirmation of the company’s chapter 11 plan.

JG Wentworth (Orchard Acquisition)

The J.G. Wentworth Company and its affiliated debtors are a leading diversified consumer financial services company focused on mortgage lending, personal and business lending, structured settlements, and prepaid cards.  The J.G. Wentworth debtors commenced their bankruptcy cases to effectuate a recapitalization of their balance sheet on a consensual basis in accordance with the terms of a restructuring support agreement with their primary stakeholders.  Following a mere 36 days, the J.G. Wentworth debtors’ pre-packaged plan of reorganization was confirmed and the company emerged from bankruptcy a week later.  Through the plan, the J.G. Wentworth debtors’ prepetition funded debt, which totaled $449.5 million, was eliminated and the company received $70 million in new funding.  Young Conaway was retained as co-counsel with Simpson Thacher & Bartlett LLP.

Woodbridge Group of Companies, LLC

On December 4, 2017, the Woodbridge Group of Companies, LLC and its affiliated debtors commenced chapter 11 cases, which arose out of a massive, multi-year Ponzi scheme perpetrated between (at least) 2012 and 2017.  As part of this fraud, the debtors raised over one billion dollars from approximately 10,000 investors, while amassing a significant portfolio of high-end real estate properties, the total estimated value of which is still being determined but which range individually in value from approximately $50,000 to over $100,000,000 per property.  The goal of the chapter 11 cases is to maximize recoveries to investors and other constituencies harmed by the Ponzi scheme.  In order to accomplish this goal, the debtors developed a plan of liquidation that memorializes a settlement reached with various investor and creditor parties in interest in consultation with the Securities and Exchange Commission.  The debtors are working diligently to confirm the plan and make initial distributions prior to the end of 2018.  Young Conaway was retained to represent the Debtors as co-counsel working with Gibson, Dunn & Crutcher LLP and Klee, Tuchin, Bogdanoff & Stern LLP.

Triangle USA Petroleum Corp.

Imperial Distributing, Inc.

Young Conaway served as co-counsel to Imperial Distributing, Inc. and certain of its affiliates, which were the largest processors and marketers of refined sugar in the United States. Through a chapter 11 plan of reorganization, Imperial Distributing was able to restructure its approximate $140 million senior secured debt and approximately $250 million subordinated debt.