Restructuring (including bankruptcy): municipal in United States

ArentFox Schiff

ArentFox Schiff’s municipal bond recovery practice forms a key part of the firm’s national bankruptcy offering and boasts experienced attorneys across the country with a wide range of expertise, including in bond workouts, municipal bankruptcy, municipal finance, and public pensions. The group is adept at handling matters involving municipal bonds and tax-exempt bond financing arrangements, particularly in relation to student and multi-family housing projects and senior living facilities. Indeed, the practice has recently advised US Bank as trustee for approximately $80 million in outstanding bonds in connection with the bankruptcy of student housing project owner Midtown Campus Properties, a key matter led by Mark Angelov and Beth Brownstein in New York, and Randall Brater in Washington, DC. David Dubrow in New York chairs the practice and specializes in high-yield below-investment grade credits, workouts or defaults on tax-exempt bonds, and chapter 9 bankruptcies. Dubrow has recently led a team, alongside Brater and New York-based Les Jacobowitz, advising Ambac Assurance Corporation in the Title III proceedings under the Puerto Rico Oversight, Management, and Economic Stability Act.

Practice head(s):

David Dubrow


Other key lawyers:

Beth Brownstein; Les Jacobowitz; Mark Angelov; Randall Brater


Testimonials

‘David Dubrow is a standout partner.’

The ArentFox team does a good job of listening to various bondholder opinions while efficiently working towards favorable solutions in complex situations.

David Dubrow and Mark Angelov have extensive knowledge of distressed situations in the 501c3 owned student housing sector and have done a great job of identifying ongoing risks within this sector.

Key clients

US Bank National Association


UMB Bank


Ambac Assurance Corporation


YM & YMHA of Washington Heights and Inwood


Glens Falls Hospital


Lapis Advisors


Nuveen Asset Management


Vanguard Mutual Funds


Work highlights


  • Represented US Bank as Trustee of Midtown Campus Properties for approximately $80 million in outstanding bonds, resulting in a sale of the project and recovery for the bondholders more than par and accrued interest.
  • Advised Ambac Assurance Corporation in the Title III proceedings under the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) with respect to Ambac’s rights as the insurer of the bond holders in proceedings with the PROMESA Oversight Board and currently working on the restructuring of Puerto Rico’s Highways and Transportation Authority (HTA).

Kramer Levin Naftalis & Frankel LLP

Kenneth Eckstein and Thomas Mayer in New York head Kramer Levin Naftalis & Frankel LLP’s bankruptcy and restructuring practice, which has a strong reputation for its municipal insolvency expertise having been involved in several major municipal restructurings recently. The practice has represented the $4 billion ad hoc group of Puerto Rico Electric Power Authority (PREPA) bondholders in connection with restructuring negotiations with and litigation against PREPA, as well as Invesco Advisers, Inc., as a bondholder of various entities, in in- and out-of-court restructurings, including of the Commonwealth’s general obligation bonds, led by Mayer, Amy Caton, and Alice Byowitz, both also in New York. Caton has broad bankruptcy experience and an excellent reputation for her role in the Puerto Rico restructuring, having recently led a team representing the holders of approximately $313 million in ‘Purple Line’ bonds issued to fund the construction of the Maryland DOT Purple Line rail project, in connection with litigation and negotiations concerning the future of the project. The practice has grown with the firm’s acquisition of Washington, D.C. litigation boutique Robbins, Russell, Englert, Orseck & Untereiner LLP, including five litigation partners with restructuring expertise, though in September 2022 Philip Bentley left the practice to serve as a bankruptcy judge in the Southern District of New York.

Practice head(s):

Kenneth Eckstein; Thomas Mayer


Other key lawyers:

Alice Byowitz; Amy Caton


Key clients

Ad Hoc Committee in connection with Purdue Pharma LP’s bankruptcy


Ad Hoc Committee of Governmental Plaintiffs in the Mallinckrodt plc bankruptcy


Parent Ad Hoc Claimant Group of LATAM Airlines


Official Committee of Unsecured Creditors of Brazos Electric Power Cooperative, Inc.


Official Committee of Unsecured Creditors of the Boy Scouts of America


Ad Hoc Group of Puerto Rico Electric Power Authority (PREPA) Bondholders and other Puerto Rico bondholders


Trustee for notes issued to fund CalPlant 1, LLC


Official Committee of Unsecured Creditors of Eagle Hospitality Real Estate Investment Trust


Maryland Purple Line


Benefit Street Partners in connection with The Williamsburg Hotel


Endo Pharmaceuticals Creditors’ Committee


Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

With considerable experience representing bondholders and indenture trustees in chapter 9 municipal bankruptcies, William Kannel in Boston heads Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.’s municipal bankruptcy practice, which is well known for its representation of bondholders, bond trustees, and bond insurers. The practice has been involved in the bankruptcy proceedings of the Commonwealth of Puerto Rico as representative of several institutional investors in relation to Puerto Rico and related public corporation bond issues, and has also advised institutional bondholders regarding the proposed refinancing and securitization of US Virgin Islands matching fund revenue bonds. New York-based Nathan Coco has a strong reputation for advising institutional investors, indenture trustees, and public debt holders in relation to distressed debt transactions involving municipal securities. Notably, he has recently led a team representing bond insurer Ambac Assurance Corporation in connection with the chapter 9 case of the City of Fairfield, Alabama. Ian Hammel in Boston also specializes in health care district bankruptcies and, alongside Kannel, has recently served as counsel to UMB Bank National Association as indenture trustee in the chapter 9 proceedings of Oklahoma-based Atoka County Hospital Authority. Boston-based Eric Blythe has significant experience advising clients in relation to municipal securities and became a partner in January 2023.

Practice head(s):

William Kannel


Other key lawyers:

Daniel Bleck; Eric Blythe; Ian Hammel; Nathan Coco; Poonam Patidar


Testimonials

Strong and deep bench in municipal workout and restructuring, spanning across all sectors in the public finance space. Able to efficiently bring subject matter expertise to bear on a wide variety of situations.

Ian Hammel has strong analytical capabilities and is effective at distilling complex concepts in written updates to creditors. He is also highly responsive and receptive to guidance and concerns from individual bondholders in group settings.’

‘Dan Bleck is the best in the business for senior living workouts and restructurings, bar none. Extremely thoughtful, responsive, and practical; an expert strategic thinker who zeroes in on key issues and is always prepared with workable solutions and recommendations for clients.’

Key clients

Various Institutional Debt Holders of Puerto Rico Bonds


Preston Hollow Community Capital


Ambac Assurance Corporation


Institutional Debt Holders of US Virgin Islands Matching Fund Revenue Bonds


UMB Bank, N.A.


Work highlights


  • Served as counsel to several institutional bondholders of Puerto Rico bonds including advising on PROMESA, Commonwealth and related fiscal plans and plans of adjustment.
  • Serving as counsel to the institutional bondholder and the indenture trustee of bonds issued for the benefit of Chester, Pennsylvania in the city’s recently filed Chapter 9.
  • Representing Ambac, a bond insurer, in Chapter 9 bankruptcy case of the City of Fairfield, Alabama.

Orrick, Herrington & Sutcliffe LLP

Orrick, Herrington & Sutcliffe LLP’s restructuring practice, chaired by Raniero D’Aversa in New York, works closely with the firm’s public finance department to offer clients considerable municipal bankruptcy expertise. The practice represents debtors, creditors, financial institutions, and bondholders in relation to high-profile restructurings both in and out of court. Thomas Laryea and Lorraine McGowen, in Washington, D.C. and New York respectively, are leading a multidisciplinary team representing the bondholder committee in the $850m Suriname debt restructuring. McGowen played an important role in the Puerto Rico restructuring, while Laryea specializes in sovereign debt restructuring and has also recently led a team representing the Belize bondholder creditor committee in relation to the government’s buyback of $553m in bonds, involving several novel ESG aspects. Marc Levinson in San Francisco has extensive experience representing cities in connection with chapter 9 filings, and is notable for his work in the real estate space.

Practice head(s):

Raniero D’Aversa


Other key lawyers:

Lorraine McGowen; Marc Levinson; Thomas Laryea


Key clients

Suriname Bondholder Committee


Belize Bondholder Committee


PG&E Equity Holders


City of Beaumont, California


Work highlights


  • Representing the bondholder committee on the restructuring of US$850million of Suriname government bonds.
  • Advised the bondholder creditor committee on the Belize government’s buyback of its $553-million bonds due 2034.
  • Advising bondholders on a sovereign debt restructuring for Venezuela, which has amassed about $150 billion in public debt, much of which is in default.

Ballard Spahr LLP

Ballard Spahr LLP’s bankruptcy and restructuring practice group is well known for its municipal bankruptcy expertise, particularly in connection with chapter 9 cases involving pension obligations debt. The practice has a strong reputation for advising indenture trustees but also represents fiscally challenged municipalities, underwriters, bond insurers, and institutional investors. William Rhodes in Philadelphia, and Tobey Daluz and Matthew Summers in Wilmington, jointly head the multidisciplinary practice group. Public finance specialist Rhodes leads on municipal recovery and represents issuers, broker-dealers, and investors in all areas of public finance, with a focus on state oversight of distressed municipalities, while litigators Daluz and Summers also have broad bankruptcy experience. In a standout matter, Rhodes and Kevin Cunningham, also in Philadelphia, represented an indenture trustee in connection with the covenant defaults and financial distress of the owners and operators of multi-family housing units, involving asset sales, bondholders’ presentations, and the negotiation of forbearance agreements. William Wassweiler in Minneapolis plays an important role in the team, and regularly advises financial institutions serving as corporate trustees in circumstances involving municipal bonds.

Practice head(s):

Tobey Daluz; William Rhodes; Matthew Summers


Other key lawyers:

David Fernandez; Kevin Cunningham; Kimberly Magrini; William Wassweiler


Key clients

KBC Bank N.V.


Wells Fargo Bank, N.A.


National Federation of Municipal Analysts


Pennsylvania Economic Development Financing Authority


Wilmington Trust, National Association


UMB Bank, N.A.


Build America Mutual Assurance Company


U.S. Bank National Association


Bank of New York Mellon Trust Company, N.A.


Goldman Sachs


Morgan Stanley


Bank of America Merrill Lynch


Computershare Trust Company


Cadwalader, Wickersham & Taft LLP

Ivan Loncar and Casey Servais head Cadwalader, Wickersham & Taft LLP’s distressed municipal finance practice, which has a strong reputation for its involvement in major Chapter 9 bankruptcies as well as for its expertise in distressed municipal credit risk and credit default swaps Loncar has considerable experience advising creditors in relation to tax-exempt and taxable financings by US state and local governments and not-for-profit corporations, while Servais focuses on bankruptcy litigation, distressed municipal finance, and financial restructurings generally, and has been heavily involved in the Puerto Rico restructuring. The team, including Lary Stromfeld, has recently led the practice in its representation of the bond insurers Assured Guaranty Corp. and Assured Guaranty Municipal Corp. in connection with the Commonwealth of Puerto Rico’s restructuring of approximately $73bn of bond debt. All lawyers mentioned are based in New York.

Practice head(s):

Ivan Loncar; Casey Servais


Other key lawyers:

Lary Stromfeld


Key clients

Assured Guaranty Corp. and Assured Guaranty Municipal Corp.


Bank of America Merrill Lynch


Fundamental Advisors


Morgan Stanley


Goldman Sachs


Norton Rose Fulbright

Norton Rose Fulbright’s municipal restructuring and bankruptcy group has been actively involved in several major municipal restructurings recently, including as the representative of significant stakeholders in connection with the Puerto Rico debt crisis, and regularly represents key parties in and out of court in restructuring proceedings across the US, particularly in the healthcare and senior living sectors. New York-based practice head Eric Daucher has a strong reputation for his work in Puerto Rico and led the practice in its representation of monoline insurer Syncora Guarantee in connection with the debt adjustment proceedings of the Commonwealth of Puerto Rico. He also led the representation of an ad hoc group of bondholders in the $17.5 billion restructuring of the Puerto Rico Sales Tax Financing Corporation. Rebecca Winthrop in Los Angeles is also leading the practice, alongside New York-based public finance specialist Lawrence Bauer, in its ongoing representation of Puerto Rico Electric Power Authority as special debt financing counsel. Winthrop has extensive experience advising indenture trustees and bondholders in relation to high-yield securities. Moreover, in the healthcare sector, Ryan Manns in Dallas is leading a team advising non-profit senior living facility Cardinal Bay in connection with the restructuring of approximately $250 million in municipal bond obligations.


Practice head(s):

Eric Daucher


Other key lawyers:

Lawrence Bauer; Rebecca Winthrop; Ryan Manns


Key clients

Syncora Guarantee


Puerto Rico Public Buildings Authority


Puerto Rico Electric Power Authority (PREPA)


Borough of East Rutherford, New Jersey


Cardinal Bay


Work highlights


  • Advising Syncora Guarantee in connection with the TitleIII plan of adjustment for the Puerto Rico Highways and Transportation Authority and for the Commonwealth of Puerto Rico and certain of its instrumentalities.
  • Advising the Borough of East Rutherford, New Jersey as a creditor in connection with a major public/private enterprise in the tristate area.
  • Representation of Cardinal Bay in connection with the restructuring of approximately US$250 million in municipal bond obligations.

O'Melveny & Myers LLP

With considerable restructuring experience, especially in relation to Puerto Rico, John Rapisardi in New York chairs O'Melveny & Myers LLP’s municipal restructuring practice, which, led by Rapisardi, has served as counsel to three Puerto Rico Governors as well as the Fiscal Agency and Financial Advisory Authority in connection with the $120bn restructuring of the Commonwealth. Rapisardi is also leading a team representing the Puerto Rico Electric Power Authority (PREPA) in connection with the ongoing restructuring of approximately $8 billion of bond debt and other claims. Maria DiConza stands out for her contribution, having represented the several Puerto Rico agencies in in- and out-of-court debt restructurings under PROMESA.

Practice head(s):

John Rapisardi; Joseph Zujkowski


Other key lawyers:

Maria DiConza; Peter Friedman


Testimonials

Responsive, thoughtful and considerate of business and legal matters.

Key clients

City of Long Beach, New York


Morgan Stanley


Brazos Electric Power Cooperative, Inc.


Commonwealth of Puerto Rico


Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”)


Brandywine (a Chubb company)


Puerto Rico Electric Power Authority


Pacific Alliance Asia Opportunity Fund L.P.


Alvarez & Marsal


Ankura Consulting Group


Reed Smith LLP

With experience representing creditors’ committees and indenture trustees in relation to bankruptcies throughout the United States, the Virgin Islands, and Puerto Rico, Kurt Gwynne, operating out of Wilmington and New York, chairs Reed Smith LLP’s restructuring and insolvency group, which has a strong municipal bankruptcy offering. Luke Sizemore in Pittsburgh also represents indenture trustees and plays an important role in the team. Adam Solowsky is well known for his work representing trustees in relation to sovereign bond defaults and restructurings.

Practice head(s):

Kurt Gwynne


Other key lawyers:

Adam Solowsky; Luke Sizemore


Testimonials

The team is set apart by the knowledge of the individuals.

Kurt Gwynne, our attorney, has a depth of experience that allows him to draw from various case law, consistently delivering at peak levels.

Squire Patton Boggs

Karol Denniston in San Francisco, Stephen Lerner in Cincinnati and New York, and Pedro Hernandez in Miami jointly head Squire Patton Boggs’s multidisciplinary municipal restructuring practice, which has recently been involved in several major matters. Denniston and Hernandez continue to lead the practice in its role as issuer and governmental affairs counsel for the US Virgin Islands Department of Finance in connection with the refinancing of $1 billion of outstanding bond debt secured by federal rum tax proceeds. Denniston has considerable municipal bankruptcy experience and has represented distressed governmental entities, cities, special districts, indenture trustees, bondholders, taxpayers, and monoline insurers, while Hernandez specializes in public finance, specifically bond issues in the State of Florida and Commonwealth of Puerto Rico. Pedro Miranda in Phoenix has recently served as bond and disclosure counsel to PREPA in connection with the restructuring of approximately $8.5 billion of PREPA debt. Lerner has broad experience in in- and out-of-court restructuring matters, including Chapter 9 bankruptcies.

Practice head(s):

Karol Denniston; Stephen Lerner; Pedro Hernandez


Other key lawyers:

Pedro Miranda


Testimonials

‘Extensive knowledge of the bond industry and appropriate client services’

‘Helpful, reasonable, and skilled without being incomprehensible.’

Key clients

US Virgin Islands Department of Finance


Keck Graduate Institute


Puerto Rico Electric Power Authority (“PREPA”)


Western Alliance Bancorporation


Work highlights


  • Continues to serve as issuer and governmental affairs counsel for the US Virgin Islands Department of Finance in connection with closing the refinancing of $1 billion outstanding bond debt secured by federal rum tax proceeds.