McGuireWoods is a proven leader in the representation of lenders in complex
out-of-court and in-court financial restructurings and recapitalizations. We
regularly represent lenders in their capacity as administrative agents for
syndicates in some of the largest restructurings and bankruptcy proceedings in
the country. We also regularly represent lenders in club loans and bilateral
facilities to middle-market borrowers.
Our lawyers efficiently execute best practices with respect to financially
distressed loans, with significant experience in a wide range of industries and
a broad array of capital structures. We regularly achieve consensual
out-of-court solutions that include significant revisions to the original
capital structure, and are equally comfortable effectuating non-consensual
enforcement transactions through the remedial provisions of the Uniform
Commercial Code and obtaining maximum recoveries through a restructuring or exit
transaction effectuated through pre-arranged or traditional bankruptcy
As a result of the continuing active market in distressed debt, lender group
members often have differing goals in a financial restructuring. Our lawyers
have earned a stellar reputation for managing the diverse interests of lenders
toward a common end in very difficult situations.
Our lawyers understand that a borrower often needs
immediate access to working capital, and as a result our clients are often
called upon to make very quick decisions to accommodate a borrower’s special
liquidity needs. Experience, judgment and the ability to quickly structure and
document such incremental liquidity can be critical to preserving going concern
Our lawyers regularly represent lenders in connection with establishing
incremental liquidity through additional sponsor, third-party or existing lender
financing, structured on a junior basis or through an amendment to an existing
loan facility or the establishment of a separate senior facility.
In addition, we regularly represent lead lenders in making loans to borrowers
as debtors-in-possession. Those loans are often “defensive,” and made to protect
or improve their pre-petition credit positions. Other times they are
“offensive,” where the primary motivation is the potential profitability of the
transaction and the opportunity to provide exit financing.
As creditor’s rights advocates, we have successfully commenced litigation
outside of bankruptcy to enforce lenders’ liens, security interests, guarantees
and other rights to payment. We have been highly successful in contested matters
and adversary proceedings before the bankruptcy and district courts, including
the prosecution of actions involving the automatic stay, the provisions of
adequate protection, the use of cash collateral, the debtor’s exclusive right to
file a Chapter 11 plan, and the confirmation of a Chapter 11 plan, as well as
the defense of preference, fraudulent transfer and lender liability claims.
When appropriate, we collaborate with our select team of appellate lawyers,
which include former attorneys general and assistant attorneys general. Our team
of fewer than 40 lawyers successfully brief and argue dozens of appeals each
year in federal and state courts. Our clients trust us to defend lower court
wins and to attack dangerous losses.
In addition, we recognize that discovery can play an important role in the
efficient and successful resolution of litigation matters. Our document
collection and discovery processes are among the most sophisticated available
today. Clients receive not only senior-level, hands-on discovery advice, but
also the unique services of in-house specialists experienced in running advanced
case management and trial presentation software. We invest significantly in
innovative technology to improve efficiency and client service.
Download a PDF copy of our industry team brochure.