Financial Sponsor Transactions

Weil regularly represents more than 200 sponsor clients.  Attorneys have significant experience representing private equity firms and portfolio companies in sophisticated financing solutions, including distressed situations involving restructuring overleveraged portfolio companies.
General economic or industry-specific conditions may result in the need to restructure the balance sheet of a portfolio company (whether the company was acquired in a traditional buyout, in a distressed buyout, or in partnership with another party). Weil has extensive experience in all  issues common in such restructurings, including out-of-court techniques, protecting and defending the sponsor and the sponsor’s directors and officers, recharacterization and equitable subordination litigation, sale of portfolio companies, new value chapter 11 plans, chapter 11 plan and confirmation issues, and conflicts.

Weil has significant experience in helping clients select out-of-court techniques that work best in the particular circumstances, including consensual foreclosures, coercive or noncoercive exchange offers, tender offers, forbearance and standstill agreements with lender groups, amend and extend transactions with senior lenders, permitted sales of assets, and rights offerings. 

Weil counsels boards of portfolio companies regarding their potential exposure to threats from creditors based on alleged breaches of fiduciary duties where the sponsors’ strategies (e.g., the sale of a company or purchase of controlling blocks of debt) could result in significant pressure on directors to follow the demands of creditors.  In addition, Weil has advised sponsors and portfolio company boards in connection with developing practical and defensible strategies to manage potential conflicts to accomplish strategic goals while minimizing the risk of litigation.

Weil has successfully defended sponsors in significant litigation matters, such as fraudulent transfer and preference litigations, and found other ways to minimize the risk of having to repay dividends or other amounts received from a portfolio company.  In addition, Weil has helped sponsors and portfolio companies plan and document loans to protect such advances against recharacterization of the sponsors’ claims as capital contributions to the debtor or against equitable subordination of such claims to the claims of all other creditors in the event the portfolio company commences a chapter 11 case.

Weil has advised clients regarding sales of portfolio companies that allow sponsors to bid for and purchase the companies’ assets free and clear of the debt or become chapter 11 plan sponsors.  Weil also has experience in dealing with new value chapter 11 plans, in which the sponsor makes a new investment in the company, and developing chapter 11 plans that meet the goals of the sponsor while maximizing the chances for confirmation.

Selected Representations

Aleris International, Inc.

Deb Shops, Inc.

Dubai International Capital

International Aluminum Corporation

Newport Television LLC

Panolam Industries International, Inc.

Southern Air Holdings, Inc.

Texas Rangers Baseball Partners

Uno Restaurant

Vertis Holdings, Inc.

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Weil has been ranked Tier 1 in “Restructuring and Insolvency” in the U.S. for the past eight consecutive years.

IFLR1000 2011-2018

The Weil Restructuring blog contains developments on the restructuring world from our Restructuring team. The European Restructuring Watch presents views from Weil's European teams.