Bankruptcy News Makers


    Marc J. Carmel Joins McDonald Hopkins as Member of Restructuring Group

    October 22, 2018 - Marc J. Carmel has joined the Business Restructuring Services Group at McDonald Hopkins LLC as a Member in their Chicago office. Mr. Carmel joins from litigation finance firm Longford Capital Management where, as a director, he advised on investments in the bankruptcy and restructuring sector. Previously. Mr. Carmel had practiced law at Kirkland & Ellis and Paul Hastings. 
    Mr. Carmel has two decades of experience representing public and private companies, private equity and other investment firms, directors and executives, lenders, committees, and equityholders in a variety of distress and non-distress engagements. Mr. Carmel regularly advises clients regarding strategic alternatives, including: out-of-court and in court restructurings and bankruptcies; mergers and acquisitions, refinancings, recapitalizations, and sales; and fiduciary duties and governance matters throughout the United States and internationally.
    Sean D. Malloy, chair of McDonald Hopkins’ Business Restructuring Services Department, commented on the hire, “Marc has deep experience and a national reputation, and we are thrilled to welcome such an accomplished and respected restructuring attorney to McDonald Hopkins.”  Mr. Carmel added, “I am impressed with the McDonald Hopkins platform and excited to join. Particularly with its Midwest footprint and recent additions to an already-strong presence in Chicago, the firm is positioned to expand rapidly in the middle market.”
    Mr. Carmel is a frequent author and speaker on restructuring topics, with a focus on fiduciary duties, acquisitions of distressed assets, and strategies and tactics to address bankruptcy issues, as well as writing and speaking about litigation finance. Mr. Carmel earned his J.D. from Harvard Law School and his Masters of Accounting and Bachelor of Business Administration degrees from the University of Michigan. Mr Carmel is also a Certified Public Accountant.


    Alison Miller to Join Omni Management Group as Senior Vice President

    October 23, 2018 - Omni Management Group, an affiliate of Beilinson Advisory Group (“Beilinson”), announced the appointment of Alison Miller as Senior Vice President. Ms. Miller will focus on sourcing new opportunities, developing and directing strategic initiatives aimed at growing the firm's market share, and supporting its relationships within the bankruptcy, restructuring and investing communities. Notably, the addition of Ms. Miller to the Omni team is part of a larger growth strategy for the firm, which was acquired earlier this year by management, Beilinson Chairman Marc Beilinson, and affiliates of Beilinson.  

    Commenting on Ms. Miller’s move, Mr. Beilinson noted, “The expansion of the Omni leadership team to include Alison and her business development expertise and expansive network is in line with Beilinson Advisory Group’s commitment to grow the company, expand market share and continue exploring additional opportunities.”  

    Ms. Miller began her career in the Restructuring Group in the New York office of Kirkland & Ellis (“K&E”), where she represented financially distressed companies in all aspects of corporate restructuring. After leaving K&E, Ms. Miller served in a series of business development roles, where she was responsible for developing and implementing various strategic marketing and origination initiatives at firms in the legal, private equity and bankruptcy administration sectors

    Ms. Miller holds a J.D. with honors from Fordham University School of Law.


    Akin Gump Adds Four-Partner Restructuring and Global Debt Finance Group

    October 23, 2018 - Akin Gump announced the addition of four Morgan Lewis attorneys to its financial restructuring and global debt finance practices. Thomas F. O’Connor will be joining Akin’s team in London; and Renée M. Dailey, Christopher E. Lawrence and Chester L. (“Chip”) Fisher will launch the firm’s new Hartford, Connecticut office.

    Akin Gump Chairperson Kim Koopersmith commented on the hires, “The addition of these four outstanding lawyers is a fantastic opportunity for us to extend our reach in the areas of financial restructuring and ‘new money’ finance transactions. With deep ties in the insurance sector as well as among other institutional private placement investors in the U.S., Europe and Australia, Tom, Renée, Chris and Chip will enable us to grow and expand our work for clients in these spaces.”

    “As a group, we are delighted to be at Akin Gump,” added Renée Dailey. “Its restructuring and debt finance practices are well known for their top-tier work with sophisticated clientele, and its global platform and talent mix are ideal fits for our practice and the clients we serve.”


    B. Riley FBR - Announces Hiring of Richard NeJame as New Senior Managing Director

    October 11, 2018 - B. Riley FBR, a leading full service investment bank and wholly-owned subsidiary of B. Riley Financial, Inc., announced that it has named Richard NeJame as a Senior Managing Director in the firm’s Corporate Restructuring division. Mr. NeJame is a veteran corporate restructuring advisor with expertise in leveraged finance, distressed M&A advisory and capital raising for special situations. He will be based in the firm’s New York office.

    Mr. NeJame joins from Oppenheimer, where he served as managing director and head of Restructuring & Special Situations Advisory for Investment Banking. He previously served as a managing director and co-head of Recapitalization and Restructuring at Gleacher, responsible for new business origination of restructuring and leveraged finance transactions. He served as managing director at Imperial Capital where he also covered corporate finance and M&A advisory. NeJame was a senior founding member of Lazard’s Restructuring Group where he worked for nearly a decade.

    Perry Mandarino, B. Riley FBR’s Co-Head of Investment Banking and Head of Corporate Restructuring commented, “With a long track record of success advising clients on complex matters and recapitalization situations, Rich brings extensive experience in all aspects of restructuring and transaction advisory. We’re pleased to welcome Rich as another strong addition to our Corporate Restructuring team and look forward to continuing to expand our presence in the marketplace.”

    Commenting on his move, Mr NeJame added, “B. Riley FBR’s entrepreneurial culture offers tremendous growth opportunities. This robust platform allows us to deliver a unique combination of advice and execution capabilities to our corporate and institutional clients. I’m thrilled to join the team and to contribute to the growth of our corporate advisory business.”

    Mr. NeJame earned his M.B.A in Accounting and Finance from The Wharton School, The University of Pennsylvania. He received his B.S. in Electrical Engineering and Economics from Duke University, graduating Cum Laude.


    AlixPartners Announces Acquisition of Zolfo Cooper, Combined Entity to Include 350 Turnaround and Restructuring Professionals Worldwide

    September 27, 2018 – Global consulting firm AlixPartners announced that it had entered into an agreement to acquire independent financial advisory and interim management firm Zolfo Cooper This proposed acquisition follows AlixPartners’ acquisition of Zolfo Cooper’s European franchise in February 2015.

    In a press release announcing the acquisition, AlixPartners commented, “All of Zolfo Cooper’s Managing Directors and staff, based in New York and Los Angeles, will join AlixPartners, with the majority in its Turnaround and Restructuring (TRS) practice. Upon completion of the transaction, it is AlixPartners’ intent that the Zolfo Cooper brand will be retired from the international restructuring marketplace. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the fourth quarter.” According to Alix Partners, the combined firm’s global turnaround and restructuring division will include around 350 senior professionals, including 66 managing directors. 

    Simon Freakley, Chief Executive Officer, AlixPartners commented: “[T]his transaction reflects our strategy of identifying high-impact, tuck-in acquisitions which deliver our clients immediate value while adding to our top quality talent base. Joff Mitchell, Managing Partner, Zolfo Cooper, added: “Bringing together two of the most recognized players in our industry means that collectively we will be able to offer our clients a broader and deeper range of skills and experience than ever before. We are exceptionally proud of what we have achieved as a market-leading boutique business, and now look forward to joining a larger organization with whom we have so much in common.” 

    Terms of the acquisition were not announced. Willkie Farr & Gallagher LLP acted as legal counsel to AlixPartners, and Wollmuth Maher & Deutsch LLP as legal counsel to Zolfo Cooper.


    James T. Grogan Joins Blank Rome’s Houston Finance and Restructuring Practice as Partner

    September 12, 2018 - Blank Rome announced that James T. Grogan has joined the firm as a partner in its Finance, Restructuring, and Bankruptcy group in Houston. Mr. Grogan, who joins from Paul Hastings where he was of counsel in that firm’s Houston finance and restructuring practice, focuses his practice on Chapter 11 bankruptcy cases, representing a client base of debtors, lenders, and committees of unsecured creditors across a wide range of industries. His Paul Hastings biography notes that “He has been integrally involved in representing some of the largest chapter 11 debtors in history, including Lehman Brothers Holdings Inc. and WorldCom, Inc.” a point echoed by Alan J. Hoffman, Blank Rome’s Chairman and Managing Partner who commented, “From his experience representing some of the largest Chapter 11 debtors in history, to his broad client mix, James fits in seamlessly with our practice and we are thrilled to welcome him to Blank Rome.” Regina Stango Kelbon, Co-Chair of Blank Rome’s Finance, Restructuring, and Bankruptcy group, added, “With the recent wave of restructuring activity in the Houston market, combined with the cyclical nature of bankruptcy within various industries, James could not be joining us at a better time.” In a recent interview, Mr Grogan noted that despite the lift from recent oil price rises, the energy industry is “still an area of some distress” and energy companies continue to consider Chapter 11 as an opportunity to reorganize. Mr Grogan earned his B.A. from Wheaton College and his J.D. from the University of Kansas School of Law, where he was associate editor of the Kansas Law Review


    Kasowitz Benson Torres Hires Bankruptcy Veteran Kyung Lee to Join Houston Office

    September 12, 2018 – Kasowitz Benson Torres LLP, the law firm headed by President Trump’s lawyer Marc Kasowitz, has hired bankruptcy specialist Kyung S. Lee who will join the firm in its Houston office as a partner in its bankruptcy and restructuring litigation practice. Mr Lee joins from Diamond McCarthy LLP where he was a partner for more than 17 years. According to Mr Lee’s biography at Kasowitz, “Kyung S. Lee is a financial restructuring and bankruptcy litigation partner with over 30 years of experience advising on all aspects of troubled credit, from workouts to post-confirmation disputes, for clients including public and private companies, boards of directors, senior management, secured lending groups, secured and unsecured committees, trustees and other parties-in-interest in Chapter 11, 15 and 7 proceedings.” Unsurprisingly, a review of recent transactions reveals that much of Mr Lee’s Houston-based work has been on behalf of oil and gas clients; a sector currently generating a considerable volume of distressed company legal work.


    JND Legal Administration Announces Acquisition of Healthcare Lien Specialist, Lien Resolution Group

    September 5, 2018 - JND Legal Administration announced its acquisition of Lien Resolution Group, a settlement solutions company which assists law firms and corporate entities with issues relating to client healthcare liens. JND Legal Administration, backed by private equity firm Stone Point Capital, is a legal management and administration company offering clients multiple, intersecting service lines, including class action settlements, corporate restructuring, e-discovery, mass tort claims & lien resolution and government services. As a part of the acquisition, Lien Resolution Group’s Managing Director Rachel Stoering will join the JND team as chief operating officer - class action, mass tort & lien resolution. Prior to her tenure at Lien Resolution Group, Ms. Stoering oversaw class action operations at a claims administration firm after working in private practice as an attorney at Heins Mills & Olson PLC. “The acquisition of Lien Resolution Group completed the missing piece to our mass tort puzzle,” commented Jennifer Keough, JND Legal Administration’s chief executive officer and founder. Ms. Stoering added, “The companies’ combined experience makes us a powerful resource in the mass tort space.” Financial terms of the transaction, which completed on August 1, 2018, were not disclosed.


    Turnaround Specialist Tom Allison Joins Portage Point Partners

    August 23, 2018 — Portage Point Partners, LLC (Portage Point) announced that turnaround specialist Thomas J. Allison has joined the firm as a Senior Advisor. Chicago-based Portage Point, founded in 2016, serves as an interim management and advisory firm that partners with middle market companies. Matthew Ray, Managing Partner of Portage Point, commented, “Tom’s world-class experience and capabilities as well as his extensive business network will be significant assets to Portage Point and our clients.” Mr. Allison commented on his move, “Matt and I have worked so well together on many engagements over the years, and it is a natural progression for us to formalize that partnership. I am excited to be joining Portage Point as the firm continues to execute on substantial growth opportunities.” Mr. Allison joins Portage Point from Mesirow Financial Consulting where he was Executive Vice President and Senior Managing Director. Prior to Mesirow, he was one of the original founders and National Restructuring Group Practice Leader for Huron Consulting as well as the Partner-in-Charge for Arthur Andersen’s Central Region Restructuring Practice. Mr Allison is a founder and past chairman of the Turnaround Management Association (TMA) and was inducted into the TMA Hall of Fame in 2018. He was also the 2017 recipient of the TMA Legend Award and the first recipient of the TMA Peter Tourtellot Award. Mr. Allison, who has been a Certified Turnaround Professional (CTP) since 1994, is currently a Director and Restructuring Committee member for The NORDAM Group, Director and Audit Committee Chair for Monroe Capital, Director, Board Chair and the Audit Committee Chair for Katy Industries and Director for PTC Group Holdings Corp.


    Claire’s Stores – Oaktree Prepares $1.5 billion Cash Bid

    August 17, 2018 – In the latest chapter of a bitter battle between Oaktree Capital (“Oaktree”) and Apollo Global Management LLC (“Apollo”) over the future of Claire’s Stores, Inc. (“Claire’s” or “the Debtors”), Bloomberg is reporting that Oaktree is scrambling to meet an August 31 deadline to raise $1.5 billion for a cash bid that would top a debt-for-equity deal valued at $1.4 billion; the latter championed by Claire’s senior lenders, led by Elliott Capital Management, and Apollo, Claire’s’ private equity sponsor. Apollo is the holder of almost 98% of Claire’s outstanding equity and $52.8 million of debt which ranks senior to the $159 million of Claire’s second lien debt currently held by Oaktree. Reporting from the courtroom, Bloomberg quotes White & Case’s Tom Lauria on the looming deadline: “We are under extreme pressure raising $1.5 billion in cash.” Oaktree’s efforts may not be, however, exactly manic. As noted below, the Oaktree offer has been brewing for weeks and as Bloomberg reminds, “Oaktree is one of the largest distressed-debt investors in the world…[with]… $20 billion of uncommitted funds or ‘dry powder’ as of midyear.” If Oaktree wants to accessorize with Claire’s, it can. The real questions for Oaktree would appear to be ones of valuation and commitment: How much over $1.4 billion is Claire’s worth…and does Oaktree truly want to accessorize its portfolio with ownership or is it simply putting pressure on Apollo to push its valuation into territory more rewarding for second lien holders? The line of battle is clear: Apollo has embraced a plan of reorganization (“the Plan”) which values Claire’s at $1.4 billion, almost enough to make the largest class of Claire’s first lien lenders whole (86.8% estimated recovery), but which firmly shuts the door on a meaningful recovery by second lien lenders, who are left with a 3.5% estimated recovery (if they sign up to the Plan). Oaktree, Claire’s largest second lien lender, believes that Claire’s value extends $100’s of millions beyond the Plan valuation, possibly placing second tier lenders firmly in the money. Oaktree’s assault on the $1.4 billion valuation, has been holistic, and includes: (i) questioning why the Debtor picked a valuation at the bottom range of its own expert’s range (Lazard’s range as to enterprise value being $1,355,000,000 to $1,680,000,000), (ii) challenging the Debtor’s interpretation of a second lien intercreditor agreement, (iii) focusing on the apparent value added by post-petition operations at Claire’s (citing management projections as indicative of $400 million in additional enterprise value) and (iv) questioning whether Apollo’s efforts to protect its own Claire’s investment might have stepped over the line with a fraudulent transfer. According to Court documents reviewed by, Oaktree has been paving the way for a competing bid for a number of weeks, taking concerted steps in court that are intended to open up a reorganization process that Oaktree asserts has been managed by Claire’s management to its detriment as a second lien lender and in order to advance the interests of its controlling shareholder…Apollo. On July 17, 2018, Oaktree filed a motion seeking authority to “commence, prosecute and, upon Court approval, settle certain claims and/or causes of action of the Debtors’ estates,” namely a series of transactions between Apollo and Claire’s’ affiliates that Oaktree argues amounted to a “fraudulent transfer.” The motion appears to have a twofold purpose: (i) to aggressively characterize Apollo as a bad actor and (ii) push yet another argument as to why the Debtor’s $1.4 billion enterprise valuation is unfairly low, notably to out-of-the-money second lien lenders. The motion [Docket No. 649] states, “Apollo…is well known for the notorious zeal with which it ‘will aggressively protect [its] investments and defend [its] companies’ using all the tools available [citing WSJ]’….This Motion concerns Apollo’s attempts to ‘aggressively protect’ its equity and debt investments in Claire’s Stores by requiring a Debtor, while it was insolvent, to undertake a complicated refinancing transaction (the ‘Affiliate Transaction’) pursuant to which Apollo and others exchanged distressed (and, in some cases, near worthless) debt in Claire’s Stores for new structurally senior debt….The successful avoidance of CBI’s transfer of the Claire’s IP [this transfer a component of the Affiliate Transaction]….will generate more than $170 million in additional distributable value for all creditors of the Debtors’ estates—first lien creditors, second lien creditors, and unsecured creditors, alike.” On July 18, 2018, Oaktree submitted to the Claire’s’ Finance Committee a partially committed preliminary all-cash offer, subject to securing certain additional financing commitments, that Oaktree contends awards cash payments to each class of creditors in an amount that exceeds their recoveries under Claire’s’ current Restructuring Support Agreement (‘the RSA’) with Apollo and a large majority of its first lien lenders. In a July 20, Court hearing, Oaktree advised that it “expects that its proposal will be fully committed by the August 31 Bid Deadline.” In that same July 20 hearing, Oaktree raised with the Court its concerns that, as drafted, the Disclosure Statement lacked clarity as to whether the Debtors’ could, or would, allow for the Debtors to “toggle” to a better offer (made in advance of the August 31 bid deadline) without requiring the maker of that offer to begin a new solicitation process; this restart adding months to the reorganization and presumably allowing for further bids that would threaten that made by Oaktree, including any made by parties to the RSA (“the RSA Parties”). The Judge hearing the case agreed [Docket No. 693], approving Claire’s Disclosure Statement subject to the inclusion of language making clear that the Debtors could in fact toggle without resolicitation; although Oaktree has expressed its concern that the Debtors are exploring ways to allow first lien lenders to “veto” a higher bid, ie to find an end-run around the toggle provision. On August 3, 2018, Oaktree objected [Docket No. 732] to Claire’s motion of July 17, 2018 requesting an extension of the exclusive periods during which Claire’s could file a Chapter 11 Plan and solicit acceptances thereof [Docket No. 614]. In its objection, Oaktree further underscored its seriousness as to a competing bid by notifying the Court that, “If exclusivity ends, Oaktree will file a chapter 11 plan that incorporates its proposal in the near term .” As at the date of the objection, Claire’s sat between the filing and solicitation deadlines of July 17, 2018 and September 15, 2018, respectively. Following on the heels of Oaktree’s competing bid, it is reasonable to see some degree of strategic gamesmanship from both sides. Extensions are not normally requested after the expiration of an exclusive filing period and, absent a competing bid, the nearing expiration of the solicitation period would presumably have been welcomed by the RSA Parties. If, however, Oaktree was able to have its bid inserted into the Plan at the last minute, with the RSA parties obligated to continue their support of the altered Plan, The RSA Parties would find their ability to counterbid largely cut-off. Perhaps noting competing efforts to control the reorganization timetable, and certainly aware of a suddenly active bidding process, on August 17, 2018, the Court approved Claire’s extension request [Docket No. 791]. It will be an exciting two weeks.


    Matthew DeArman Joins Dorsey & Whitney’s Finance & Restructuring Group as Partner

    August 1, 2018 – Dorsey & Whitney LLP (“Dorsey”) have announced that Matthew “Matt” DeArman has joined the Firm’s Finance & Restructuring Group in Dallas as a Partner. Mr. DeArman’s practice focuses on the representation of agents, lenders and public and private corporate borrowers in a variety of finance transactions and restructuring matters, including in connection with secured and unsecured revolving and term facilities, asset-based lending, oil and gas reserve-based lending, first lien/second lien transactions, bridge and mezzanine financing, acquisitions financing, cross-border transactions and debtor-in-possession financing. His practice has an emphasis on asset-based lending and oil and gas related financings He joins Dorsey from Munsch Hardt Kopf & Harr, P.C., where he was a shareholder in the Dallas office. Prior to joining Munsch Hardt in 2017, he was in the corporate finance section of Norton Rose Fulbright where he was made a partner in the Dallas office in January 2017.


    GlassRatner Becomes Wholly-Owned Subsidiary of B. Riley Financial

    August 1, 2018 - B. Riley Financial, Inc. (NASDAQ: RILY) (“B. Riley”), has announced the signing of a definitive agreement pursuant to which specialty financial advisory services firm GlassRatner Advisory & Capital Group LLC (“GlassRatner”) became a wholly-owned subsidiary of B. Riley as of July 31, 2018. Under terms of the agreement, Atlanta-based GlassRatner will constitute a new, dedicated business consulting services unit vertical under B. Riley Financial and will continue to be operate under the same name and under the direction of co-Founder Ian Ratner. Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley, commented on the acquisition, “As we look to grow B. Riley Financial, we are strategically looking for businesses that allow us to enhance the services we provide to our clients. GlassRatner’s specialized expertise and skillset is a complementary fit for our diverse mix of services and strengthens our ability to provide clients with a more holistic, strategy through execution approach to their most critical needs. GlassRatner has approximately 100 professionals in 14 offices across the U.S. in Arizona, California, Florida, Georgia, Missouri, New York, Texas and Utah. Los Angeles-headquartered B. Riley, which provides financial services and solutions to fit the capital raising and financial advisory needs of public and private companies and high net worth individuals, has approximately 900 employees in offices serving major U.S. financial markets.


    Christopher Updike Joins Bankruptcy Management Solutions (“BMS”) as General Counsel

    July 31, 2018 – Bankruptcy Management Solutions, Inc., which provides software and services to the consumer-bankruptcy and corporate-restructuring industries, has announced the appointment of Christopher Updike as its new General Counsel. Updike, who was a restructuring attorney at Cadwalader, Wickersham & Taft and, more recently, Debevoise & Plimpton, will oversee BMS’s legal department and also serve as an advisor on corporate and strategic initiatives. Before joining BMS, Updike advised debtors, creditors, lenders and acquirers on complex corporate restructurings, including chapter 11 cases, out-of-court workouts and cross-border insolvency proceedings. In 2016, he was selected as one of twelve “Outstanding Young Restructuring Lawyers” by Turnarounds & Workouts; he was further recognized as a “Next Generation Lawyer” for corporate restructuring in the Legal 500 United States guide in both 2017 and 2018.


    Bruce Buchanan Joins Oppenheimer as Head of Restructuring and Special Situations

    July 23, 2018 - Oppenheimer & Co. Inc. ("Oppenheimer"), the investment bank subsidiary of Oppenheimer Holdings, has announced that Bruce Buchanan will be joining as its new Head of Restructuring & Special Situations. Buchanan is expected to be based in New York and will report to Robert Lowenthal, Head of U.S. Investment Banking. In his new role, Buchanan will be responsible for capital raising and providing strategic advisory services to Oppenheimer clients and will work with financial sponsors and other stakeholders on complex recapitalizations in both the public and private markets. Lowenthal commented, "Bruce has incredible experience with advising and assisting corporate clients on strategic alternatives, distressed capital structure solutions, and liability management services. His proven track record for creating value and providing exceptional service to his clients is a strong differentiator for our platform." Prior to joining Oppenheimer, Buchanan was the Head of Debt Capital Advisory for PwC Corporate Finance, where he developed and led the strategic corporate finance and debt capital advisory platform. He was previously Head of Strategic Finance and Restructuring at Morgan Stanley and Bank of America Merrill Lynch, and Head of Strategic Finance and Global Restructuring Group Team Leader at RBS Securities.


    Anthony Facciano Joins Bankruptcy Management Solutions as Director

    Bankruptcy Management Solutions, Inc. (BMS), a case- administration software and depository-services provider serving the corporate restructuring and bankruptcy industries, has announced that Anthony Facciano is joining the company as a director and will be responsible for managing BMS relationships with bankruptcy trustees and other fiduciaries. Facciano joins BMS from Epiq Systems Inc where he served as director of trustee and fiduciary services and was charged with market share growth.

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