Announcements
Feb. 11, 2016

Kramer Levin Represents Certain Targus Holding Companies in Prepackaged Chapter 11 Cases

Kramer Levin represents the former direct and ultimate holding companies (the “Targus Holding Companies”) for the international operations of Targus – the global leader in mobile device case and accessories solutions. In addition to representing the holding companies, Kramer Levin advised the operating entities owned by Targus Group International, Inc. (“TGII”) in the financial and operational out-of-court restructuring process. The restructuring amicably addressed over $250 million in secured debt and $61 million in unsecured funded debt, as well as preserved the underlying global businesses for the benefit of employees, vendors and customers. Over the course of twelve months, Kramer Levin navigated both the holding and operating companies through numerous forbearance agreements to ultimately reach consensus with their key lenders on the terms of a long-term forbearance and transaction structure that permitted a thorough marketing of the operating companies (by PJT Partners/The Blackstone Group) and guaranteed consideration for the holding company (which has separate unsecured indebtedness). When the marketing process established that the fulcrum value was in the secured debt at the operating company, Kramer Levin advised the entities through the change of ownership process for TGII and negotiated additional agreements to settle the amount of the guaranteed consideration for the benefit of the holding company’s creditors and, in connection with the transfer of TGII’s operations as a going concern, facilitate the orderly wind down of the various entities. The wind down of the Targus Holding Companies will be implemented through a prepackaged bankruptcy commenced on February 9, 2016 in the United States Bankruptcy Court of the Southern District of New York. Throughout this process, Kramer Levin advised the boards of the respective entities and assisted the operating companies with their strategy utilizing the firm’s tax, mergers and acquisitions, and restructuring expertise. Led by Adam C. Rogoff and Anupama Yerramalli, additional members of the Kramer Levin team working on this matter included Thomas Moers Mayer, Barry Herzog, John Bessonette, P. Bradley O’Neill, Randal D. Murdock, Yakaterina Chernyak, Rachael Ringer, Rita C. Celebrezze, Julia Papastavridis and Rachel Mark.


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