Chapman’s market leadership structuring transactions on the front end enhances our ability to anticipate and prepare for virtually any issue that may arise in bankruptcy.
Chapman’s dedication to creditors’ rights in the financial markets and our in‑depth understanding of their products and concerns have allowed us to deliver prompt and thorough strategic advice and offer a creative approach to handling sophisticated issues that arise during the course of a bankruptcy proceeding.
Chapman’s clients constitute a cross section of creditors in the debt and equity markets:
Agent and Lender Representation
Chapman represents agents and lenders in bankruptcy proceedings. We help clients enforce their rights through the remedies available, including cash collateral and debtor-in-possession (“DIP”) financing agreements and orders, section 363 asset sales, prepackaged chapter 11 filings, plan negotiations and confirmation, claim treatment and defending against claim objections or cram-down, discovery matters, adversary proceedings, and appeals of bankruptcy proceedings.
Chapman’s experience advising hedge funds, private equity funds, and other investment management companies ranges from structuring investment transactions on the front end to negotiating workouts and remedies on the back end. We bring to the table an in-depth understanding of our clients' investment strategy, products, and goals.
Trustee and Bondholder Representation
Chapman represents indenture trustees and bondholders in matters involving a wide variety of debt securities. Our extensive market leadership on the front end of bond issuances and structured finance products supports and informs our work representing trustees and bondholders in cases of default, bringing to bear our thorough understanding of clients’ challenges, risk tolerances, resolution incentives, and other legal needs.
SELECTED INDUSTRY VERTICALS
Our bankruptcy, workouts, and restructuring attorneys have represented clients across a wide range of industry verticals including health care, for‑profit education, retail, manufacturing, dealer finance, and gaming. The sectors highlighted below provide an overview of Chapman’s range of experience and representation.
Asset Securitization Defaults
We have extensive experience in asset‑backed securitization transactions, including but not limited to RMBS, CMBS, CDOs, and similar structures in insolvency proceedings, as well as significant experience with accompanying swap transactions in default. We have handled restructurings for securitized transactions backed by credit card receivables, equipment leases, trade receivables, manufactured housing loans, mortgage loans, auto loans, and other assets. This experience has included work on some of the most complex and high-profile restructurings of securitization financings to date.
Energy, Oil, and Gas Bankruptcies
Chapman attorneys represent lenders and bondholders in workouts, restructurings, and bankruptcy proceedings involving a wide range of credits in the energy sector, including coal, oil, and gas. The collective experience of our group includes involvement in the bankruptcy proceedings of Argent Energy Trust, Pacific Energy Holdings, Remedial (Cyprus) Public Company, Ltd., Patriot Coal I and II, Alpha Natural Resources, and PG&E National Energy.
We have been involved in major airline bankruptcy proceedings including Trans World Airways, United Airlines, Delta Airlines, Northwest Airlines, ATA, and, most recently, American Airlines. We have represented airline creditors across the whole spectrum of transactional types — aircraft leases, pass‑through trusts, and enhanced equipment trust certificate transactions (“EETCs”).
Chapman has extensive experience representing lessees, lessors, lenders, and trustees in all types of leasing transactions, including leveraged lease financings, cross-border leases, tax-advantaged and municipal/governmental lease financings, synthetic leases, credit-tenant leases, and a vast variety of lease-related transactions (e.g., equipment trust certificates, enhanced equipment trust certificates, and lease portfolio securitizations). Should our clients face troubled or defaulted leases, our attorneys understand the unique issues connected to these transactions when seeking the best resolution in both in- and out-of-court restructurings.
When client interests extend overseas, we provide cross-border insolvency advice in matters involving foreign affiliates and subsidiaries of bankrupt debtors. We have experience in chapter 15 bankruptcy proceedings; for example, Chapman represented a group of ad hoc bondholders in a chapter 15 proceeding commenced by a Houston-based exploration and production (“E&P”) company with assets in the United States and Canada.
- Lehman Brothers — Representation of a trustee in connection with a broad spectrum of trusts, including CDOs, CLOs, RMBS, CMBS, municipal bonds, and other structured products.
- Los Angeles Dodgers, LLC — Representation of noteholders in connection with the bankruptcy case and sale of the Los Angeles Dodgers baseball team.
- Conseco Finance Corp. — Representation of the trustee for 138 securitization trusts, holding approximately $24 billion in loans secured by manufactured homes, residential real estate, and recreational vehicles.
- Paper Products Bankruptcy — Representation of institutional noteholders in a bankruptcy court-approved settlement of defaults under senior secured notes issued by a special purpose entity in a timberland financing.
- Mezzanine Debt Restructuring — Representation of a mezzanine lender in the restructuring of the capital structure of a food processing company, resulting in an additional capital infusion, restructuring of mezzanine debt, and a debt‑for‑equity conversion.
- ProtoStar — Representation of an ad hoc group of institutional noteholders in connection with the bankruptcy of a satellite operating company and subsequent sale of the satellite through a 363 sale process.*
- PG&E National Energy Group (NEG) — Representation of debtors in possession in connection with bankruptcy of PG&E’s non‑California electricity and energy business, which included as its single most valuable asset a gas pipeline that was sold in the course of the chapter 11 proceedings for $1.7 billion.
- Southern Montana Electric Generation & Transmission Cooperative — Representation of secured noteholders in bankruptcy of power cooperative that was in the process of converting a new coal-fired plant into a gas-fired plant.
- Pacific Energy Holdings — Representation of secured lenders in bankruptcy proceedings commenced by oil and gas producer with producing assets in California and Alaska, as well as assets in Canada.
- Alpha Natural Resources — Representation of lender in a prepetition secured facility worth more than $1 billion.
- American Airlines Bondholders — Representation of bondholders that financed hundreds of aircraft throughout the chapter 11 proceeding, including 1110 issues and negotiations, lease restructuring, aircraft foreclosures, and make-whole litigation.
* Representation by a Chapman attorney at a prior firm.