Distressed Debt
Vinson & Elkins’ Finance practice advises on every aspect of distressed-debt transactions, representing some of the biggest players in markets worldwide. Negotiating and structuring some of the precedent distressed-debt transactions in Europe, we have set trends, established market terms, and developed proficiencies that have made us recognized leaders. We regularly advise on transactions ranging from U.S.-domestic acquisitions, financing, and disposition of nonperforming and distressed debt portfolios to cross-border transactions involving complex issues, regulatory compliance matters, such as risk retention, and reconciling legal requirements across different legal jurisdictions.
Market Leaders
V&E Finance lawyers have recently handled transactions in all of the active distressed-debt markets — in the U.S., throughout Western Europe (including the UK, the Republic of Ireland, Portugal, Spain, Italy, Germany, and France), and Japan. Using innovative, as well as traditional, debt instruments and financing techniques, we leverage our extensive experience across asset types and industries. We advise on the structuring of transactions to maximize asset value and investment return, while minimizing related funding costs and execution risks. We assist lenders, borrowers, private equity sponsors, and other investors, as well as companies with impaired debt at all stages, from initial strategic analysis, legal due diligence, and deal structuring through financing (or refinancing) and execution. We also advise on post-acquisition asset management and sale, joint venture structuring, securitizations, and special servicing.
Comprehensive Service & Integrated Solutions
Our Finance lawyers work closely with our Restructuring & Reorganization practice, representing clients both in and out of court, guiding them through loan workouts, exchange offers, restructuring, reorganization, and liquidation matters. Collaborating with members of our Tax, Mergers & Acquisition, Derivatives, Employee Benefits & ERISA, Regulatory, and Litigation practices, and with local counsel, we offer an integrated service to meet the specific requirements of each client.
Experience Highlights
Private credit fund in acquiring direct assignments and participations in a portfolio of $497 million in distressed and performing senior secured energy loans from a commercial bank for an estimated $257.5 million in purchase price proceeds
Private upstream E&P company in the $215 million distressed sale of substantially all of their assets in Sublette County, Wyoming (Pinedale Field) to a strategic buyer with the consent of the company’s lenders, who cancelled all debt in excess of the purchase price in connection with the out-of-court transaction
A private equity fund in the acquisition of a portfolio of performing and nonperforming loans from an alternative lender
A private equity sponsor in connection with the acquisition and financing of a portfolio of nonperforming commercial real estate debts located in Spain and Portugal with a face value of €4.4 billion
An international private equity fund in €734 million purchase and financing of interests in portfolio of CMBS notes issued by 56 European commercial mortgage backed securitization vehicles
An international private equity fund in €1.5 billion acquisition of interests in respect of French real estate involving an existing securitization
An international private equity fund in a €2.6 billion acquisition of a pan European portfolio of performing and non-performing commercial real estate loans, formation of related joint venture, acquisition financing (provided by vendor) and servicing structure
An international private equity fund in €1.2 billion acquisition and financing of non-performing and sub-performing residential mortgage portfolios in Ireland
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V&E Restructuring & Reorganization Update
January 23, 2023