News & Announcements

Weil Recognized for 2016 Restructuring Successes by Turnarounds & Workouts

Turnarounds & Workouts has named Aéropostale Inc.’s restructuring as among the most successful of 2016 in a special report in its January 2017 newsletter. This recognition follows an active year for the Firm’s Business Finance & Restructuring Department, whose representations in 2016 totaled roughly $50 billion in liabilities.

Described as one of the year’s highest-profile bankruptcies, Aéropostale filed for chapter 11 amidst mounting pressure to liquidate. The company faced numerous difficulties, ranging from uncooperative lenders, ongoing litigation, a weak retail and mall environment, and poor historical financial performance. Weil, however, successfully steered Aéropostale through these challenges by arranging a first-of-its-kind restructuring that included the retailer’s major landlords and a brand management company. Weil’s ability to orchestrate a consensual agreement amongst all stakeholders, while keeping the majority of stores open, was a “major accomplishment,” and salvaged more than 500 stores and nearly 13,500 employees.

The restructuring team on Aéropostale was led by Business Finance & Restructuring Department Co-Chair Ray C. Schrock, P.C. and included partners Jacqueline Marcus and Garrett Fail. The corporate team was led by Corporate Department Chairman Michael Aiello and included partner Gavin Westerman.

The newsletter also featured Weil’s role as chief debtor’s counsel in four of the 16 largest bankruptcies of 2016:

  • Breitburn Energy Partners, led by Business Finance & Restructuring Department Co-Chair Ray C. Schrock, P.C. and partner Stephen Karotkin;
  • CHC Group Ltd., led by Business Finance & Restructuring Department Co-Chair Gary Holtzer and partner Stephen Youngman;
  • Halcón Resources Corporation, led by Business Finance & Restructuring Department Co-Chair Gary Holtzer and partner Joseph Smolinsky; and
  • Paragon Offshore, led by Business Finance & Restructuring Department Co-Chair Gary Holtzer and partner Stephen Youngman.

Turnarounds & Workouts is a monthly newsletter published by Beard Group, Inc. for professionals tracking distressed businesses in the United States and Canada.

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