Paul Zumbro Named to Lawdragon’s 2020 Lists of Leading Bankruptcy & Restructuring Lawyers

On July 20, 2020, Lakeland Tours, LLC, d/b/a WorldStrides (“WorldStrides”) filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. On July 8, 2020, WorldStrides signed a Restructuring Support Agreement (“RSA”) with (i) holders of 85% of its term and revolving loans, (ii) its private equity sponsors, Eurazeo North America, as manager of funds affiliated with Eurazeo SE (“Eurazeo”) and Primavera Capital Management Ltd. (“Primavera” and together with Eurazeo, the “Sponsors”) and (iii) its consenting hedge provider. The RSA contemplates a “pre‑packaged” plan that would significantly deleverage the company. The transaction involves a $368 million debtor‑in‑possession (“DIP”) financing facility, of which $216 million consists of new money loans provided equally by the consenting lenders, on the one hand, and the Sponsors, on the other hand. At exit, the Sponsors will receive their pro rata share of 100% of the new common stock issued by the reorganized debtors.

On July 3, 2020, communications company OneWeb announced it has entered into an agreement with a consortium led by Bharti Global Limited (“Bharti”) and Her Majesty’s Government (“HMG”) (through the UK Secretary of State for Business, Energy and Industrial Strategy) for the acquisition of the OneWeb business in connection with its court‑supervised sale process. Bharti and HMG have committed to provide more than $1 billion to acquire OneWeb and fund the full restart of its business operations. Following a competitive process, the consortium’s winning bid will enable OneWeb to successfully emerge from the chapter 11 process. The agreement remains subject to approval by OneWeb’s creditors, the U.S. Bankruptcy Court and applicable regulators. Cravath is representing Bharti in connection with the transaction.

On April 7, 2020, Quorum Health Corporation (“Quorum Health”) filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware. In conjunction with this petition, Quorum Health signed a Restructuring Support Agreement (“RSA”) with a majority of its term and revolving loan lenders and noteholders on a “pre‑packaged” plan to recapitalize the business and significantly reduce the company’s debt. The company also received a commitment of debtor‑in‑possession financing of $100 million, which was approved by Judge Karen Owens on April 9, 2020.

Cravath represented the initial purchasers, including, among others, Citigroup, BofA Securities and J.P. Morgan Securities, in connection with the $2.25 billion Rule 144A/Reg. S high‑yield senior secured notes offering of Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC. Uniti Group Inc., the parent company, is an internally managed REIT engaged in the acquisition and construction of mission critical infrastructure in the communications industry. The transaction closed on February 10, 2020.