Kramer Levin Naftalis & Frankel LLP's Distressed and Special Situations Lending Subgroup is comprised of attorneys from both the Corporate Restructuring and Bankruptcy Group and the Corporate Department, and has significant experience representing lenders to distressed companies in and out of bankruptcy. The Distressed Lending Subgroup works closely with our corporate, tax, real estate, intellectual property and employee benefit groups to provide diversified, sophisticated advice to our distressed lending clients.

We focus on the representation of investment banks, commercial banks and domestic and international hedge funds engaged in the business of lending to companies unable to obtain traditional financing, including companies undergoing financial restructuring or bankruptcy.  We regularly represent financial institutions and funds as lenders in structuring and documenting cutting edge loan transactions, including DIP loans, chapter 11 exit facilities, term b loans, mezzanine loans, bridge loans, acquisition facilities and other transactions.  While many of our transactions are very complex, Kramer Levin is dedicated to meeting the needs of its distressed lending clients to implement these transactions quickly.  Our lending services are often coupled with our distressed M&A practice to consummate a debtor-in-possession financing as a precursor to acquisition of a company out of bankruptcy.  In addition, the firm's Corporate Restructuring and Bankruptcy Group attorneys regularly represent bank groups, agents and lenders in complex restructurings and chapter 11 proceedings.

Our diverse experience allows us to provide comprehensive service and protection to our lending clients, from analyzing the existing debt structure and structuring the deal to protecting the interests of the lenders in the event of any post-closing bankruptcy, restructuring or litigation.  Recent representative transactions in which our attorneys have been involved include:

• $1.5 billion of credit facilities to a major industrial company;
• $1.5 billion competitive bid option credit facility to a bank holding company;
• $807 million loan secured by a portfolio of publicly traded securities, derivatives contracts, proceeds from a sale of an entertainment concern, copyrights, and various partnership and limited liability company interests;
• $600 million refinancing of the credit facilities of a major, public chemical manufacturer;
• $500 million loan to an estate secured by a portfolio of publicly traded securities and various limited liability company interests;
• $450 million debtor-in-possession facility for a steel manufacturer;
• $300 million of secured, cross-border bank and bond facilities to a container manufacturer;
• $275 million working capital facility for a steel manufacturer;
• $210 million in liquidity facilities to a municipality in support of public bond issuances for a major French lender;
• $165 million second lien financing for a major textile manufacturer;
• $100 million financing to a steel concern guaranteed by the United States under the Emergency Steel Loan Guarantee Act;
• $75 million debtor-in-possession facility and an exit facility for Glenoit Corporation, a North Carolina fabric and home furnishings manufacturer;
• $70 million debtor-in-possession facility and exit facility for General Chemical Inc., a chemical manufacturer with facilities in US and Canada;
• $67.5 million term b loan to Friedman’s Inc., a national jewelry retailer;
• $50 million working capital loan to a real estate finance company;
• $50 million bridge loan to a technology finance company;
• $50 million participation in a $75 million acquisition facility loan to a national restaurant chain; and
• $45 million debtor-in-possession facility and a $35 million exit facility for Rue 21, Inc. (f/k/a Pennsylvania Fashions), a mid-Atlantic clothing retailer.

In addition, we have played lead roles representing borrowers in the following representative transactions:

• $1 billion of senior and subordinated trust certificates in several series to a master trust to a commercial paper conduit in connection with a trade receivables financing facility;
• restructuring of approximately $1 billion of indebtedness of the steel manufacturing
   subsidiaries of a major Mexican conglomerate;
• $825 million of secured facilities to a major maritime shipper;
• $600 million in senior secured credit facilities to a publicly traded corporate borrower;
• $350 million of multi-currency, senior secured facilities and an offering of $400 million of senior subordinated and convertible senior subordinated notes for a major gaming interest;
• $300 million restructuring and exit facility for a major manufacturer of decorative surfaces;
• $250 million in senior debt securities secured by a second priority lien on mineral rights to a publicly traded corporation;
• $245 million senior secured credit facility and $25 million insurance company note facility in connection with an acquisition;
• $60 million of secured facilities for a national trailer sales and leasing company; and
• $34 million in acquisition credit facilities secured by collateral in the U.S., the British Virgin Islands, the Philippines and Hong Kong.