December 16, 2015
Weil Business Finance and Restructuring partner Ray Schrock was named an MVP in Bankruptcy by Law360 in recognition for his work in a variety of restructuring matters including his guidance of the The Great Atlantic & Pacific Tea Co. (A&P) through a job-saving asset sale, his work helping to obtain a $300 million emergency boost for foreign exchange trader FXCM Inc., and his work on behalf of chassis machining and casting company Chassix Inc., which restructured a $700 million debt burden in a prearranged Chapter 11 deal.
In his work with longtime client A&P, Mr. Schrock was able to win approval from a New York Bankruptcy judge to sell stores to rival grocers Key Food and Morton Williams Supermarkets for roughly $150 million. “Selling 300 grocery stores with 28,500 employees subject to 35 collective bargaining agreements and 12 multi-employer pension plans posed many challenges,” commented Schrock. “[We] conducted one of the most complex auctions within Chapter 11 — salvaging more than 18,000 jobs.”
Mr. Schrock was also able to save foreign exchange trader FXCM from insolvency when the Swiss National Bank decided to no longer cap the Swiss franc’s exchange rate against the euro in 2014. Schrock guided FXCM through the ensuing market volatility by working with Leucadia National Corp. to put together $300 million in 24 hours to rescue the company, “which undoubtedly would have been liquidated in any proceeding,” Schrock noted.
Mr. Schrock’s guidance of Chassix Inc. through its prearranged Chapter 11 deal also demonstrated his poise and skill in helping a client deal with the unexpected. “There were many who said the company could never have a prearranged plan — or any plan — but we were organized and focused, able to negotiate significant price concessions from customers,” Schrock said. “Then we were able to convince the original equipment manufacturers and bondholders that a prearranged case was the best way to enhance value for everyone.”
Schrock also spoke highly of Weil’s legacy, a firm he said invented the concept of complex restructuring. “Here there is a strong emphasis on being a great lawyer as well as developing business that is unique … There is a determination and a collegial spirit to will clients to successful and often consensual solutions.”