Arnold Bloch Leibler partners Michael Dodge, Genevieve Sexton and Leon Zwier led a team from across the firm that included Emma Ferguson and David Monteith in acting alongside Sullivan and Cromwell for two of the hedge funds (Ares Management and Ascribe Capital) that held a significant portion of the Secured Notes and the Unsecured Notes issued by Boart Longyear.
An announcement from Boart Longyear earlier this year stated: “The Recapitalisation will reduce the Company’s debt and interest costs, improve liquidity and extend debt maturities, which will provide the Company with a more sustainable capital structure and is critical to supporting its operations and future growth.” Details of the implementation of the recapitalisation can be found here.
Michael Dodge commented on the transaction: “This was a most complex transaction that was opposed at each Court hearing required to implement the scheme. Two separate challenges were mounted by a creditor and by a shareholder who were disgruntled by their treatment under the schemes. As a result the transaction created new law as each of the court decisions were appealed on short notice to the Full Court of the Supreme Court of New South Wales. It was a pleasure to advise Ares and Ascribe, who have now become significant shareholders in Boart Longyear.”
Genevieve Sexton was also pleased with the outcome, adding: “Agreeing terms across various ownership groups is often difficult. This transaction was particularly challenging given the level of opposition that we faced and the fact that the schemes were amended to give effect to the outcome of a cross-border mediation ordered by the court at the end of the second court hearing. That mediation was the first of its kind, and ultimately resulted in an agreement between (virtually all) creditors to support the restructure of the Company. The new platform for the Company, and the avoidance of the stigma of an insolvency process can only benefit the company’s stakeholders which include its staff, suppliers and customers.”
Leon Zwier, who heads the insolvency and restructuring team at Arnold Bloch Leibler, noted that: “The New South Wales Supreme Court is to be commended for giving the parties the opportunity to revise the schemes, rather than just retiring to make a decision. It was also significant that the Appeals Court was prepared to hear both appeals on very short notice. These developments are a testament to the emphasis that the Australian Courts are now placing on the need to rehabilitate Australian companies, rather than just forcing companies into an insolvency process.”
For more information, or to arrange an interview, contact Aleks Czerwinski, Marketing & Business Development Manager, firstname.lastname@example.org or (+613) 9229 9715.
About Arnold Bloch Leibler
Arnold Bloch Leibler is a premium Australian commercial law firm renowned for advising on clients on their most important transactions, commercial issues and disputes. From offices in Melbourne and Sydney, the firm provides advice to a diverse range of entrepreneurial Australian listed companies, family businesses, high-net-worth individuals and international corporations. The firm also has a dedicated pro bono practice providing advice on social, environmental and cultural issues to more than 150 charitable and not-for-profit organisations.