Bankruptcy, Restructuring and Distressed Situations

Vorys represents business debtors in matters arising under all chapters of the Bankruptcy Code.  Our lawyers have handled enormously complicated cases, including a recent matter involving a $1 billion per year agricultural cooperative that operated in nine states and had approximately 76,000 creditors.  That debtor emerged from Chapter 11 after only six months as the result of a confirmed Plan of Reorganization.

We recognize that crisis management is the cornerstone of representing distressed business entities.  We know what to do when everything needs to be done at once.  We look for solutions short of bankruptcy, such as workout agreements and restructurings.  When bankruptcy proves to be the best solution, our lawyers have the experience and knowledge to achieve the best outcomes for our clients.  

Vorys strategically represents a myriad of trade vendors, logistics providers and other unsecured creditors on a national basis, be it prior to bankruptcy, within a bankruptcy case, or in other judicial and extrajudicial settings, all with the common goals of maximizing value and minimizing risk.  Relatedly, Vorys represents unsecured creditors’ committees and top creditors who serve on unsecured creditors’ committees in bankruptcy cases across the country.  From complex, mega chapter 11 cases to smaller local disputes, Vorys tailors each representation with legal know-how, sophistication, efficiency and creativity, blended with client input and industry knowledge.      

A bankruptcy filing often leads to asset sales under Section 363 of the Bankruptcy Code.  The asset sales process offers many opportunities for both strategic and financial purchasers.  We are experienced in negotiating purchase and sale documents, as well as drafting sales procedure orders that dictate the ground rules for the sale process and orders approving such sales.  The breadth of our firm’s capabilities in the commercial, corporate, real estate, environmental, employment and tax areas means that we can provide our clients with whatever experience is required by the particular purchase or sale transaction.

We also represent debtors and trustees seeking to sell assets.  In that capacity, we have dealt with investment bankers and others retained to assist in the sales and marketing efforts, documented sales contracts and auction and bid procedures that undergo Court review, and established data rooms and other protocols to facilitate the sales process.  Our representation of creditors’ committees has included scrutiny of asset sale efforts and other procedures in order to ensure that the interests of unsecured creditors are protected.

In addition to asset sales and purchases in the bankruptcy context, our restructuring attorneys have significant experience with rights and remedies, including secured party sales of personal property and strict foreclosures, under Article 9 of the Uniform Commercial Code.

Distressed Automotive Suppliers

We extensively represent an original equipment manufacturer (OEM) and Tier 1 and Tier 2 suppliers involving distressed automotive suppliers.  This representation includes the development of strategies for the protection of the supply of component parts produced by financially distressed suppliers and those that have filed for bankruptcy.  These strategies may include negotiation and documentation of accommodation agreements, access and security agreements, wind down and transition agreements and exit agreements.  These negotiations may also include negotiation of amendments and forbearance agreements with lenders of the distressed automotive supplier.  Our experience includes many of the largest automotive supplier bankruptcies over the past couple decades and many of the largest out of court workouts during this time, including the international bankruptcy and restructuring of Takata.  Our team has advised clients through highly complex situations, in an ever-evolving automotive industry.

We have decades of experience handling the procedural and litigation complexities inherent in the representation of secured creditors and lenders, but we pride ourselves on maintaining a practical view focused on recovering assets and resolving conflicts.  Our lawyers' long-standing record of achieving favorable results in the highly specialized bankruptcy court environment benefits clients whose matters require litigation.