Insolvency and Debt Restructuring

Our firm represents clients in cases involving workout of bad debt, debt restructuring and arbitration following Events of Default.

Examples of Matters Relating to Insolvency and Debt Restructuring :

• Representation of a U.S. computer leader in litigation in France arising in connection with insolvency proceedings of its European distributor.
• Representation of a syndicate of ten financial institutions with a minority participation in an arbitration and the workout of a multiple European jurisdiction investment in a European leader in motorway signs by a total of 13 financial institutions, including negotiation among client financial institutions and with the lead investor of arbitration strategy and subsequent settlement.
• Representation of a leading French bank in the negotiation and drafting of debt rescheduling documentation including local registration of security, with a French-based multinational construction company, in connection with U. S. real-estate investments.
• Representation of a French industrial commercial bank in connection with one of its important customers, a boat manufacturer, in the workout of the boat manufacturer's potential insolvency resulting from failure of a chemical process in fibreglass resins supplied by a major French chemical company, involving negotiations among the bank, its customer and the chemical company.
• Representation of a Southeast Asian state-owned entity in an ICC arbitration for the purpose of recovering its debt from an Eastern European state-owned trading company.
• Representation in France of a U.S. finance company in bankruptcy proceedings in connection with outstanding loans.
• Representation of a New York/London-based worldwide financial institution in connection with the workout of more than thirty "bad loan" files involving an aggregate of approximately 200 million Singapore dollars, including review and evaluation of existing loan documents with in-house counsel, work-out officers, credit officers and top branch management; drafting and editing of pleadings and briefs, and their finalization with local pleading attorneys.
• Participation in negotiation and drafting of the contract for the rescheduling of the National Bank of Cuba's debt with approximately 100 commercial banks.
• Representation of an international financial institution in an arbitration for the recovery of a US$ 100,000,000 secured loan to an Eastern European manufacturer.
• Representation in France of a U.S. finance company in bankruptcy proceedings in connection with outstanding loans.
• Refinancing of a paper mill's multimillion-dollar debt by a Bangkok-based financial institution.

Voluntary Liquidation:

• Representation of a company in voluntary winding-up, including drafting of different agreements relating to negotiation (i) with the various suppliers including equipment suppliers of termination agreements and appropriate penalties for cancellation of orders in progress, and (ii) with government authorities, labor unions and regional industrial development agencies, content and implementation of a social plan leading to reduce the social impact of the lay-off and, (iii) with the labor unions and creditors, the overall terms and schedule of the actual winding up.

Under French bankruptcy law, an ad hoc mandate is a a preventive and confidential procedure for amicable workout of financial difficulties, in an effort to restore the situation of a company before it is in cessation of payments:

• For a French telecommunications company, setting up an ad hoc mandate, renegotiation of debt with major creditors, recapitalization and then resale of the company.