International Bankruptcies and Restructurings

Along with the globalization of business comes an increased need for advice on the insolvency risks and exposure related to cross-border matters.  Orrick lawyers have a broad range of experience handling foreign insolvencies in non-U.S. jurisdictions, international Chapter 11 bankruptcies and restructurings, and ancillary proceedings under the old Section 304 of the U.S. Bankruptcy Code for a variety of parties including debtors, creditors' and bondholders' committees, financial institutions and other debt holders.  As a result, our lawyers are well positioned to navigate the complex cross-border issues of international insolvencies as well as the emerging challenges of the recently enacted Chapter 15 in the United States.

Significant current and recent cross-border and international matters include the representation of:

• Bank of America and Deutsche Bank as members of a U.S. bank syndicate in connection with  a troubled international telecommunications group.  Subsequently, we advised Grant Thornton as an administrative receiver of two U.K.-based companies, and we advised Grant Thornton and the bank syndicate on international issues affecting the telecom group in eight jurisdictions.
• A leading accounting firm in the proposed $1.8 billion restructuring of a major media, travel and financial services group.
• British Broadcasting Corporation in connection with disputed film rights from the insolvency of Paragon Entertainment Group in Canada.
• The ad hoc committee of noteholders in the proposed restructuring of Cirio, an Italian-based international group.  The public debt totaled approximately €1.4 billion.
• Credit Lyonnais (now known as Calyon), a major international commercial bank, and its Netherlands affiliate, Credit Lyonnais Bank Nederland NV, in a workout of its investments in Metro-Goldwyn-Mayer, Inc., Carolco, Inc. and other entertainment assets in the United States and Europe.  Orrick lawyers represented the bank in connection with restructuring [SASEA] Group and its affiliates in one of the largest Swiss bankruptcies to date.
• Fairclough Homes Limited, a U.K.-based home-building company and AMEC plc, an international engineering company, in restructuring a series of complex property joint ventures.
• The Indonesian Bank Restructuring Agency, Indonesia's banking sector regulatory body, in the takeover and restructuring of insolvent local banks, in the allocation of settlement and recovery of amounts owed to the Indonesian government by shareholders of the insolvent banks, and in the auction sale process that liquidated more than $100 billion of assets of insolvent banks.
• The bondholder's committee in the successful exchange offer and debt restructuring of Grupo Mexicano de Desarrollo, S.A., one of the largest construction companies in Mexico, with more than $500 million of creditor claims.
• Heraeus Holding GmbH, a German precious metals and materials technology company, in restructuring its U.K. subsidiaries.
• The liquidators of Jetour (Europe) Limited, the U.K. subsidiary of Jetour Inc. (Japan).
• The Kingdom of Thailand in the takeover and liquidation of 52 insolvent Thai finance companies and in the auction sale of $25 billion of their assets through the Financial Sector Restructuring Authority.
• The major shareholder in the disposal of the ICS Group of companies to Hays plc.  Orrick lawyers were also involved in refinancing negotiations with senior and mezzanine lenders.
• The ad hoc committee of bondholders in the restructuring of approximately $962 million of notes issued by Millicom International Cellular S.A., a global, Luxembourg-based mobile communications services operator.
• Morgan Stanley as agent for 11 European banks on various enforcement options relating to a troubled international telecommunications group.  This resulted in an attempted restructuring, an MBO and a workout in nine jurisdictions in Europe.
• Philippine Airlines in its rehabilitation proceeding and an ancillary proceeding under the U.S. Bankruptcy Code, which involved adjusting $2.5 billion of debt, including the largest claim ever asserted by the Export-Import Bank of the U.S.
• The bondholders' committee in the $4 billion restructuring of Polysindo Eka Perkasa and its affiliated entities, the largest polyester manufacturer in Indonesia.
• A committee representing the interests of $6 billion of “Brady Bonds” in connection with Ecuador's sovereign debt restructuring that was completed in 2000.
• The liquidators of TCI Europe Limited, the U.K. subsidiary of TCI Inc. (Japan).
• The largest individual public debt holder in the restructuring of Vantico International S.A., a Luxembourg-based international chemicals group.
• The World Bank, acting as lead consultant, in rewriting the bankruptcy and insolvency statutes of the government of South Korea under a financial sector reform program sponsored and funded by the World Bank during 1999-2000.
• The trustee for the U.S. assets Bank of Credit and Commerce International, an Islamic bank.  An Orrick lawyer was appointed general counsel by the U.S. District Court for the District of Columbia in this largest criminal asset forfeiture ever in the United States and largest bank fraud in world history.