Paul Zumbro Speaks at the 2020 National Association of Attorneys General “Bankruptcy from a Governmental Perspective” Conference

On July 1, 2020, PG&E Corporation and Pacific Gas & Electric Company (together, “PG&E”) announced that PG&E has emerged from Chapter 11, successfully completing its restructuring process and implementing PG&E’s Plan of Reorganization that was confirmed by the United States Bankruptcy Court on June 20, 2020. Cravath has represented PG&E as corporate, financing and litigation counsel in its Chapter 11 bankruptcy proceedings, as counsel in the arrangement of its Debtor‑in‑Possession financing, committed debt bridge financing, committed backstop equity financing and marketed equity exit financing, and in litigation related to the 2017 and 2018 Northern California Wildfires.

On July 17, 2020, Cravath’s Financial Restructuring & Reorganization team submitted an amicus brief, working on a pro bono basis on behalf of Veterans Education Success (“VES”), in support of Plaintiff‑Appellee Kevin J. Rosenberg, a veteran who sought to discharge his student loan debts as part of his Chapter 7 proceeding. Student loan debt obligations are notoriously difficult to discharge even in bankruptcy, and Mr. Rosenberg’s success in the bankruptcy court was a rare victory for student loan debtors.

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.