Pryor Cashman Represents Indenture Trustees in Four Major Bankruptcies
Continuing a string of high profile representations, Pryor Cashman has been retained to represent indenture trustees to more than $1.7 billion of funded debt in four of the most significant bankruptcy cases of 2018.
iHeartMedia Bankruptcy
In the bankruptcy case of iHeartMedia, Inc., one of the largest radio companies in the United States, the firm represents longtime client Wilmington Savings Fund Society, FSB (WSFS), the indenture trustee to $475 million in senior notes. WSFS has been selected as a member and co-chair of the Official Committee of Unsecured Creditors. iHeart and certain of its subsidiaries filed for bankruptcy protection on March 15, 2018, in the United States Bankruptcy Court for the Southern District of Texas.
The case, In re iHeartMedia, Inc., et al., Case No. 18-31274 (MI), is pending before U.S. Bankruptcy Judge Martin Isgur.
Claire's Stores and Southeastern Grocers Bankruptcies
Pryor Cashman also represents WSFS as indenture trustee to $222.3 million in senior secured second lien notes in the bankruptcy case of Claire’s Stores, Inc., one of the world’s leading specialty retailers of affordable, fashionable jewelry, accessories, and beauty products for young women, teens, “tweens,” and kids, and as indenture trustee to $425 million in senior secured notes in the bankruptcy case of Southeastern Grocers, LLC (SEG), parent company of supermarket operator Winn-Dixie. Claire’s and certain of its affiliates filed for bankruptcy protection on March 19, 2018, in the United States Bankruptcy Court for the District of Delaware. SEG and certain of its affiliates filed for bankruptcy protection on March 27, 2018 also in the United States Bankruptcy Court for the District of Delaware.
The cases, In re Claire’s Stores, Inc., et al., Case No. 18-10584 (MFW) and In re Southeastern Grocers, LLC, et al., Case No. 18-10700 (MFW), are both pending before U.S. Bankruptcy Judge Mary F. Walrath.
FirstEnergy Solutions Bankruptcy
Finally, Pryor Cashman has been retained as counsel to UMB Bank, N.A., as indenture trustee to $328 million and $285 million in secured pollution control revenue notes issued by FirstEnergy Generation, LLC and FirstEnergy Nuclear Generation, LLC, respectively, in the FirstEnergy Solutions Corp. (FES) bankruptcy case. Headquartered in Akron, Ohio, FES and its affiliates own and operate multiple fossil and nuclear power generating facilities throughout Ohio and Pennsylvania. FES and certain of its affiliates filed for bankruptcy on March 31, 2018 in the United States Bankruptcy Court for the Northern District of Ohio.
The case, In re FirstEnergy Solutions Corp. et al., Case No. 18-50757 (AMK), is pending before U.S. Bankruptcy Judge Alan M. Koschik.
The Pryor Cashman Team
Leading the representation for Pryor Cashman are Partners Seth H. Lieberman and Patrick Sibley and Associate Matthew W. Silverman, members of the firm’s Corporate Trust Practice and Bankruptcy, Reorganization + Creditors’ Rights Group.
As of the end of the first quarter, Lieberman, Sibley, and Silverman have represented indenture trustees in six of the nine largest bankruptcy cases to file in 2018, including in the bankruptcies of independent oil and natural gas company EXCO Resources, Inc. and Cenveo, Inc., one of the largest printing and envelope companies in North America. And over the past few years, they have represented indenture trustees and agents in several “mega” bankruptcy cases, including Walter Investment Management Corp., 21st Century Oncology Holdings, Inc., rue21, inc., Payless Holdings LLC, Vanguard Natural Resources, LLC, Caesars Entertainment Operating Company, Inc.. American Gilsonite Company, Inc., UCI International, LLC, Penn Virginia Corporation, RCS Capital Corporation, and Momentive Performance Materials Inc.
