On December 2, 2022, Leech Tishman’s Business Restructuring & Insolvency Practice Group confirmed a Chapter 11 Reorganization Plan for a real estate company and 23 of its affiliated debtors, resulting in significant debt relief for the company.
The transaction involved 23 entities represented by the firm in a Chapter 11 bankruptcy case, in which close to $270 million was owed to creditors regarding a real estate assemblage in midtown Manhattan.
Confirmation of the Plan of Reorganization allowed the client to walk away from approximately $270M of secured debt and receive full release of his personal guarantees; in addition, all pending litigation against him and his relatives came to an end.
Leech Tishman’s team was able to achieve this result without the client declaring personal bankruptcy, and despite ongoing delays and challenges of developing the assemblage first due to the pandemic and later due to the adverse economic climate, including spiking interest rates.
Leech Tishman’s Business Restructuring & Insolvency team consisted of: