Bondholder and Investor Representations

Stroock attorneys are nationally known for their representation of bondholder groups in the financial restructuring of corporate and municipal bond issues.  Specifically, we have played a major role in numerous debt-for-equity exchanges that have allowed the bondholders to obtain control of financially distressed debtors, as well as creative restructuring of tax-exempt obligations with multi-tranche and PIK features.

Stroock has represented numerous committees with public bondholder representatives, as well as debtors working closely with indenture trustees, institutional holders, pension funds, vulture funds and individual holders, to negotiate appropriate treatment of public debt interests.

Several of our larger clients in this area often take control positions in distressed securities issued by troubled companies with a view to acquiring significant or majority stakes in those companies’ equity at the consummation of restructurings.  As a result, we are extremely familiar with the business motivations of control investors and the issues they may face as large stockholders in a reorganized business, and are adept at guiding them to their goals.