Overview

Not all financially distressed companies are alike. Some are pushed to the brink of insolvency by macroeconomic or industry-specific trends. Others face insolvency suddenly, following a judgment or cataclysmic event. Ropes & Gray’s restructuring team has experience with a wide spectrum of clients facing all types of financial distress. Our business-oriented strategies have led to overwhelmingly successful restructurings for our debtor clients.

Among the Ropes & Gray team’s recent and most notable debtor representations are:

Centric Brands, whose brands portfolio includes Calvin Klein, Tommy Hilfiger and Nautica, in a Ch. 11 reorganization approved by the United States Bankruptcy Court for the Southern District of New York which delivered the company’s approximately $1.7 billion in funded debt as part of a global settlement supported by key stakeholders including all of its secured lenders and its official committee of unsecured creditors.
TOMS Shoes, the popular shoe company, known for its “buy one, give one philosophy,” in a successful out-of-court recapitalization transferring ownership to a creditor group as part of a $300 million restructuring.
VIP Cinema Holdings, Inc., and certain of its affiliates, a multinational enterprise that is one of the largest manufacturers of luxury seating products for movie theaters, in its prepackaged chapter 11 case in the U.S. Bankruptcy Court for the Delaware. In connection with its restructuring, VIP reached agreements with its first lien and second lien lenders, and its private equity sponsor, prior to filing the chapter 11 case to deleverage its balance sheet by approximately $178 million.
Rubio’s Restaurants, the fast casual restaurant chain, Rubio’s, in chapter 11 reorganization cases in the U.S. Bankruptcy Court for the District of Delaware which secured debtor in possession financing provided by secured lenders as part of a prepackaged chapter 11 plan of reorganization.
24 Hour Fitness, a fitness industry leader for over 35 years, in the completion of a reorganization plan confirmed by the United States Bankruptcy Court for the District of Delaware. In its restructuring, 24 Hour Fitness restructured more than $1.2 billion of debt and reorganized its operations amidst unprecedented challenges facing the US fitness industry. 24 Hour Fitness reorganized with both a substantially de-levered balance sheet and a substantial equity investment from its new owners. The 24 Hour Fitness restructuring is a landmark for what businesses can accomplish even in the most difficult of circumstances.
AeroGroup International, a women’s footwear retailer, in chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.
Gawker Media, an online media company that operated a variety of well-known branded websites, in chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York.
Doral Financial Corporation, a former bank holding company, in chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York.
City Sports, Inc., an athletic retailer, in chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.
Delia’s, Inc., a teen clothing retailer, in chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York.
Noble Logistics Inc., a provider of package delivery services, in chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.
Ahern Rentals, a family-owned equipment rental company, in chapter 11 cases in the United States Bankruptcy Court for the District of Nevada. Ahern successfully reorganized over $620 million in debt and emerged from bankruptcy with equity, retaining its full ownership.
Reddy Ice Holdings Inc., a packaged ice maker, in chapter 11 cases in the United States Bankruptcy Court for the Northern District of Texas.
CIT Group, Inc. in the largest prepackaged bankruptcy and fifth largest bankruptcy case of all time, in the United States Bankruptcy Court for the Southern District of New York.