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September 20, 2021

The Turnaround Management Association has selected a matter in which a multidisciplinary team of Stroock attorneys, led by Financial Restructuring partners Sayan Bhattacharyya and Daniel Fliman, played an integral role for its 2021 Mid-Size Company Turnaround/Transaction of the Year Award.

The TMA annual awards program recognizes the most successful turnarounds and impactful transactions industry wide.  The Turnaround/Transaction of the Year Awards are chosen based on a rigorous peer-review process by the volunteer TMA Awards Committee.

Stroock represented an ad hoc group of term lenders of American Addiction Centers (“AAC” or the “Company”), a leading provider of substance abuse treatment services, throughout the Company’s restructuring process.  The Stroock team and the ad hoc group began engaging with AAC and its advisors more than a year prior to its chapter 11 filing in an effort to address the Company’s covenant, liquidity and operational issues.  The challenges to the Company’s restructuring efforts were compounded by the need to navigate the process through the onset of the COVID-19 pandemic. 

The Stroock team successfully negotiated a restructuring support agreement, DIP facility, key documents and settlements in the chapter 11 cases, and new organizational and financing documents for the reorganized Company.  AAC successfully emerged from bankruptcy in December 2020 with a significantly deleveraged balance sheet and the members of the ad hoc group as the Company’s controlling shareholders.

The restructuring was particularly innovative in that it required the Company and the ad hoc group to address significant issues concerning a myriad of regulatory, corporate and tax-related issues to reach a solution that would not only improve the reorganized Company’s operations and liquidity, but also secure its position as a leading service provider in the behavioral health industry post-emergence.

The firm’s team included Sayan Bhattacharyya (partner), Daniel Fliman (partner), Alex Cota (partner), Marija Pecar (partner), Brian Kelly (partner), Jeff Uffner (tax partner), Matthew Garofalo (special counsel), Thomas Shiah (special counsel), Emily Kuznick (associate), Elizabeth Loonam (associate) and Cole Harlan (associate).

Award recipients will be honored by TMA at the TMA Annual Conference October 26-29, 2021 in Nashville and online. For more information, please see the full release here.

About Stroock

Stroock provides strategic transactional, regulatory and litigation advice to advance the business objectives of leading financial institutions, multinational corporations and entrepreneurial businesses in the U.S. and globally.  With a rich history dating back 140 years, the firm has offices in New York, Washington, D.C., Los Angeles and Miami.

About TMA

About the Turnaround and Transaction Awards Program

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