Financial Restructuring

Clients in need of experienced restructuring advice turn to the attorneys at Munger, Tolles & Olson. Our firm is frequently called upon for practical and sophisticated counsel in complex bankruptcy proceedings nationwide and is adept at handling the challenges facing companies and their key constituents in distressed financial situations.

Munger Tolles regularly represents Fortune 500 companies, leaders in their respective industries, large financial institutions and some of the most sophisticated and respected hedge funds, investors and financial players in the world. During the last several years, the firm has represented a variety of constituents in bankruptcies across a broad spectrum of industries and restructuring situations.

Public engagements include the following representations:

  • Energy Future Holdings. Representation of Energy Future Holdings Corp., a privately held energy company with a portfolio of competitive and regulated energy companies, in the restructuring of its $42 billion debt load. Munger Tolles represents the competitive energy companies, known as TCEH.
  • Edison Mission Energy. Representation of Edison International, ultimate parent of the debtors in the restructuring, bankruptcy sale, and global settlement of the multi-billion dollar independent power producer. Second largest case filed in 2012. Restructuring involved complex tax sharing and tax consolidation issues, as well as substantial investigation and litigation efforts that resulted in a beneficial settlement for both the Edison Mission Energy estate and Edison International.
  • Residential Capital. Representation of Berkshire Hathaway as a bondholder and asset bidder in the bankruptcy of one of the largest mortgage servicers in the country.
  • Station Casinos Bankruptcy Cases. Representation of Fertitta Entertainment in its joint venture with the former lenders to Station Casinos to purchase Station’s gaming properties and land holdings out of bankruptcy in a deal valued at $4 billion.
  • Harry & David Holdings. Representation of Wasserstein & Co., Harry & David’s majority stockholder and holder of senior notes, in the pre-arranged restructuring of the mail order marketer known for its high-end fruit and snack baskets. Harry & David reached an agreement with Wasserstein and other senior note holders in negotiating DIP financing, an exit rights offering and a pre-arranged plan that allowed the company to emerge from Chapter 11 in less than six months and in advance of the 2011 holiday season.
  • Sphinx Group. Representation of Merrill Lynch, in connection with both the U.S. Chapter 15 cases and Cayman Islands’ liquidation of the Sphinx Group of Companies following the collapse of the multi-national hedge fund. Our work included serving as Merrill’s representative on the official Cayman Islands liquidation committee responsible for analyzing and structuring a plan to distribute more than $500 million of investor funds.
  • Syms/Filene’s Basement. Representation of the Official Committee of Syms Corp. Equity Securities Holders in the Chapter 11 reorganization of Syms, a discount retailer in the Northeast, and its subsidiaries, including Filene’s Basement, long-known for its “Running of the Brides” wedding dress sale. 
  • Heller Ehrman. Representation of international law firm Covington & Burlington in defending litigation brought by the bankruptcy trustee of Heller Ehrman that charged Covington with aiding and abetting breaches of fiduciary duty resulting in the failure of Heller Ehrman.
  • Pasadena Playhouse. Representation of the playhouse as debtor’s counsel on a pro bono basis, developing a restructuring strategy for the 86-year-old California cultural institution that enabled it to emerge from Chapter 11 only two months after commencing its bankruptcy case.

Seth Goldman (213) 683-9554
Thomas B. Walper (213) 683-9193