Ray Schrock is Co-Chair of the Business Finance & Restructuring Department and a member of the Firm’s Management Committee. Mr. Schrock has extensive experience leading complex, corporate international and U.S. restructuring matters for public companies, financial institutions, private equity funds, portfolio companies and creditors. His recent cutting-edge matters include J.Crew, Claire’s Stores, Inc., Southeastern Grocers, Inc., Aeropostale, Walter Investment Management Corp., Tidewater and many other ongoing public and non-public matters.
Mr. Schrock is consistently recognized as one of the country’s leading restructuring lawyers. He led the team that advised J.Crew in its groundbreaking consensual restructuring, which recently won the Financial Times North America Innovative Lawyers Report 2017 award for “Accessing New Markets and Capital.” He was named among Turnarounds & Workouts’ “Outstanding Restructuring Lawyers”, and Global M&A Network’s Top 100 Restructuring & Turnaround Professionals, and he has also been named a Bankruptcy MVP by Law360. He is recognized as one of the nation's leading restructuring lawyers by Chambers & Partners, The Legal 500 U.S., International Financial Law Review (IFLR1000) and Super Lawyers magazine, and he is an editor of The Law and Practice of Restructuring in the UK and US, published by Oxford University Press.
Mr. Schrock has served as lead restructuring partner in a number of the largest domestic and international cases on behalf of companies and fund-based clients.
Experience includes advising:
- Southeastern Grocers, Inc., the fifth-largest supermarket chain in the United States, in its prepackaged restructuring of more than $1 billion in debt.This novel and groundbreaking model will result in the preservation of more than 40,000 jobs and provide unimpaired recoveries to all operating company creditors while allowing the company to close unprofitable locations.
- Claire’s Stores, Inc., one of the nation’s largest retailers with more than 4,000 owned and franchised locations globally, in its prearranged restructuring efforts related to more than $2 billion in funded debt.
- Tops Supermarkets, a regional supermarket chain with more than 15,000 employees and $1 billion in funded debt, in its restructuring efforts.
- Walter Investment Management, Inc., the fifth-largest mortgage servicer in the United States, in its prepackaged restructuring efforts related to more than $2 billion in funded parent-level debt and more than $13 billion in other funded debt obligations. This one-of-a-kind restructuring plan allowed this highly regulated enterprise to avoid filing its operating companies for chapter 11 while simultaneously discharging the operating companies’ guarantees of funded debt at the holding company.The restructuring plan also provided a recovery of 50% of the recognized company’s common stock to existing shareholders while simultaneously reducing the company’s funded debt by more than $600 million.
- Tidewater Inc., the largest offshore vessel service company in the world, in connection with restructuring more than $2 billion in funded debt obligations.
- J.Crew Group, Inc., one of the nation’s premier clothing retailers with approximately $2 billion in funded debt, in its restructuring efforts.This restructuring resulted in approximately 80% of the common stock to be held by the existing equity sponsor while conducting an out-of-court exchange for more than the $500 million of holding company debt.
- Basic Energy Services, Inc., one of the nation’s largest oilfield services companies, in their prepackaged restructuring cases involving more than $1.1 billion in funded debt obligations.
- Breitburn Energy Partners, L.P. in restructuring efforts related to more than $3 billion in funded debt obligations.
- Aeropostale, Inc. and its subsidiaries, an international retail clothing company, in connection with their chapter 11 cases. Aeropostale has locations in all 50 states, 17 countries internationally and approximately 20,000 employees. Aeropostale’s chapter 11 has been recognized as the 2017 Section 363 Sale of the Year (over $100 Million to $250 Million) and the 2017 Restructuring Deal of the Year (over $250 Million to $500 Million) by The M&A Advisor.
- Fairway Group Holdings and its subsidiaries, an iconic New York supermarket chain, in their prepackaged chapter 11 cases. Fairway’s chapter 11 has been recognized as the 2017 Consumer Staples Deal of the Year (over $100 Million) by The M&A Advisor.
- Other retail companies in their strategic review efforts.
- Several companies in the E&P and E&P service sectors in restructuring efforts related to multi-billion dollar funded debt capital structures.
- Ad Hoc Group of Unsecured Bondholders in 77Energy, Inc., an oilfield services company, in connection with its prepackaged chapter 11 cases.
- Alfa Group, a multi-billion dollar conglomerate with worldwide operations, in connection with its investment in Pacific Exploration and Production Corporation. Pacific Exploration is a global energy exploration and production company with more than $5 billion in funded debt.
- Advising Biotechnology and Lifesciences companies in connection with strategic reviews of assets and capital structures.
- The Great Atlantic & Pacific Tea Company (A&P) and its direct and indirect subsidiaries in their chapter 11 cases, commenced in 2015. A&P entered chapter 11 with nearly $600 million in signed asset purchase agreements covering 120 stores and more than 12,500 employees. A&P currently employs more than 28,500 people at stores throughout the northeastern United States under numerous retail banners. A&P listed $1.6 billion in assets and $2.3 billion in debt as of the commencement of the cases.
- Essar Steel Algoma, Inc. and certain of its affiliates, in connection with the restructuring and refinancing of their $1.2 billion capital structure. Essar Steel Algoma is one of the largest integrated steel manufacturers in North America and is a portfolio company of the multi-billion dollar Essar Group Fund Limited.
- Vantage Drilling Company in their prepackaged chapter 11 cases to restructure more than $2.5 billion in senior secured debt. Vantage filed its prepackaged chapter 11 cases with the support of more than $1.6 billion in senior secured debtholders having agreed to vote in favor of the balance sheet restructuring. Also representing Vantage Drilling for matters of U.S. law in connection with their parallel liquidation proceedings in the Cayman Islands. Vantage Drilling’s subsidiaries will reorganize as one of the largest international oil and gas ultra-deep-water drillers, with a fleet of operations spanning the globe in partnership with various, international oil and gas producers.
- Chassix Holdings, Inc. and its domestic subsidiaries, in connection with their prearranged chapter 11 restructuring of their $700 million capital structure. Chassix employs more than 4,500 people worldwide and is one of the world’s leading manufacturers of chassis and other safety-critical components to the world’s leading car makers, including BMW, Chrysler, Ford, General Motors and Nissan. The Chassix restructuring has been recognized as the 2016 Chapter 11 Reorganization of the Year (Over $500 Million) by The M&A Advisor and the Prearranged Chapter 11 Restructuring and Recapitalization of the Year at the 2016 Turnaround Atlas Awards.
- Several sponsors/funds and creditors in private loan-for-control, in-court and out-of-court workouts.
- KKR Credit in private creditor representations.
- Trive Capital in several buy-side investments.
- TerraMar Capital in connection with certain private investments.
- Peak Rock Capital, LLC regarding various confidential and non-confidential distressed situations, including in the acquisition of Groeb Farms, Inc., one of America’s leading producers and distributors of honey and other food products, pursuant to a three-month prearranged chapter 11 case.
- Certain Private Equity sponsors and portfolio companies in their out-of-court restructuring efforts.
- Longview Power, LLC and certain of its affiliates, including Mepco Holdings, LLC and its affiliates, in connection with their chapter 11 cases involving the restructuring of approximately $1 billion in funded debt.
- Ally Financial Inc. and Ally Bank and their subsidiaries, in connection with Ally Financial Inc.’s (AFI) mortgage subsidiary, Residential Capital, LLC’s, chapter 11 bankruptcy cases, which include a global settlement with multiple key stakeholders. Residential Capital, LLC is the fifth-largest servicer of residential mortgage loans in the United States with more than $15.6 billion in assets and $15.2 billion of indebtedness. AFI is a leading, independent, globally diversified financial services firm with operations in 32 countries and assets in excess of $180 billion. Ally was the architect and plan sponsor of a landmark chapter 11 plan and settlement that relieved AFI and its non-debtor subsidiaries of all liabilities held by Residential Capital or private third parties.
- The Great Atlantic & Pacific Tea Company (A&P) and its direct and indirect subsidiaries in their 2010 chapter 11 cases. Won a contested confirmation hearing in 2012.
Mr. Schrock joined Weil in 2014 from a major international law firm, where he was a senior equity partner, resident in that firm’s New York office.
Mr. Schrock is an editor of The Law and Practice of Restructuring in the UK and US, published by Oxford University Press, and has served on Law360’s Editorial Advisory Board for bankruptcy. Mr. Schrock has participated on a variety of panels, including Views from the Bench: The Evolving Dynamics of Secured Lending and the Rights of Secured Creditors and the ABI Annual Bankruptcy Conference: Rise of Mediation in Major Bankruptcy Cases, amongst others. He is a member of the American Bankruptcy Institute, INSOL International and Turnaround Management Association.