Advising Trustees and Creditors in LA and TX Bankruptcies
Key Facts
- Cross-border matter
- $515 million total value
The Situation
German Pellets is one of the largest suppliers of wood pellets worldwide. The company and its US subsidiaries succumbed to economic difficulties driven by the dramatic decline in oil prices, lower pellet revenues, and a bad investment the company made in 2010.
The Approach
We represented the bond trustees as the senior secured creditors owed in excess of $330 million in Louisiana and $185 million in Texas in bankruptcy proceedings involving these companies. We handled issues including: negotiating post-petition financing for each facility; litigating issues involving the single largest off-take agreement with a UK company relating to the LA facility; litigating various issues against the unsecured creditors committee in each bankruptcy involving the rights, claims, and collateral of the bond trustee; negotiating proposed sale of Louisiana facility; and overseeing the various insolvency matters pending in Germany.
The Outcome
Our team continues to oversee the potential sale of the Texas facility in this ongoing matter.
