Business Finance & Restructuring Representations
Representation of RDA Holding Co. and certain subsidiaries, including The Reader’s Digest Association, Inc., a global, multibrand and multiplatform media and direct marketing company, in their prenegotiated chapter 11 cases. RDA relied on Weil’s unique expertise to negotiate a restructuring support agreement with its senior lenders and a majority of the holders of RDA’s senior secured notes, resulting in the successful emergence from chapter 11. The benefits of the restructuring support agreement included the consensual conversion of approximately $475 million of debt to equity, the conversion of $105 million debtor in possession financing to exit financing, an 80% reduction of prepetition debt burden post-emergence, and continued execution of key transformational initiatives.
Representation of LodgeNet Interactive Corporation, the leading provider of interactive media and connectivity services to the hospitality and healthcare industries in the United States, and certain subsidiaries in their prepackaged chapter 11 cases. Prior to filing the chapter 11 case, Weil facilitated the signing of an investment agreement by multiple stakeholders, which set the stage for the prepackaged bankruptcy. This transaction, which involved the sale of 100% of the new common stock of the reorganized LodgeNet for $68 million, was the basis for the plan of reorganization, which also provided for the payment in full of LodgeNet’s prepetition lenders and general unsecured creditors, and was confirmed less than two months after the cases were filed.
Representation of Texas Rangers Baseball Partners, the owner and operator of the Texas Rangers Major League Baseball Club, in its prepackaged chapter 11 case. The chapter 11 case was commenced to consummate a sale of substantially all assets, including the Texas Rangers MLB team, to Rangers Baseball Express, an entity whose principals included Hall of Fame MLB pitcher Nolan Ryan. By seeking an expedited auction process and confirmation hearing, Weil minimized the impact of the chapter 11 case on the Texas Rangers MLB team, as evidenced by the team’s on-the-field success, which helped the team clinch the American League Pennant and its first trip to the World Series.
Representation of Dallas Stars, LP, owner of the Dallas Stars National Hockey League Club, and certain subsidiaries in their prepackaged chapter 11 cases. Weil negotiated a chapter 11 plan that would effectuate a sale of the Dallas Stars and its hockey-related assets in an NHL-supported auction with Vancouver-based businessman Tom Gagliardi agreeing to serve as the stalking horse bidder. Two months later, the Bankruptcy Court approved the sale and confirmed the prepackaged plan, with the sale closing and the plan becoming effective that same day.