James Newton is a partner in the Business Restructuring + Insolvency Group, based in the New York office. He focuses on advising individual and ad hoc groups of financial creditors in connection with distressed debt investments, distressed M&A transactions, and other special situations and restructuring matters.
James routinely advises financial institutions, alternative investment advisors, and other clients in connection with in- and out-of-court workouts and restructuring matters involving existing stressed and distressed investments. He is also regularly called upon by clients seeking to develop and implement creatively structured and bespoke financing or asset purchase transactions, including in connection with stressed and distressed refinancings and capital raising transactions, exchange offers, swap and hedging transactions, structured finance transactions, and receivables financing transactions undertaken in the bankruptcy and restructuring contexts.
While James’ practice focuses on advising bondholders and lenders, he also has significant experience representing debtors, creditors’ committees, individual creditors, and purchasers of assets in bankruptcy cases.
Experience
Led an ad hoc group of convertible debentures through an out-of-court restructuring, resulting in an exchange of approximately $266 million (100%) of KLDiscovery Inc.’s issued and outstanding debentures for approximately 96% of the company’s common equity.
Advised leading alternative asset manager in connection with a bespoke transaction involving the purchase of the “first dollars” recovered on account of a $390 million administrative expense claim asserted by Cobra Acquisitions LLC against the Puerto Rico Electric Power Authority (PREPA).
Led efforts to acquire and work out a loan secured by multiple aircrafts and engines operated by a U.S. airline.
Represented alternative asset managers in connection with an out-of-court workout of double-barreled bonds issued by the Puerto Rico Infrastructure Financing Authority and guaranteed by the Commonwealth of Puerto Rico.
Represented an ad hoc group of holders of bonds issued by the Commonwealth of Puerto Rico and certain of its instrumentalities in connection with Puerto Rico’s efforts to improve its fiscal situation and, ultimately, in connection with the restructuring of their debt under the Puerto Rico Oversight, Management, and Economic Stability Act and related Commonwealth laws.
Represented an ad hoc group of Puerto Rico Ports Authority bondholders in connection with its restructuring of over $190 million in funded debt obligations owed by the Puerto Rico Ports Authority. The initial restructuring transaction became one of the first successful restructuring efforts under the newly enacted Puerto Rico Oversight, Management, and Economic Stability Act.
Represented an ad hoc group of term and revolving lenders to Education Management Corporation in connection with negotiation and implementation of a strict foreclosure on their collateral and subsequent efforts to monetize that collateral.
Represented an ad hoc group of term lenders to Dream Center Education Holdings in connection with Dream Center’s distressed spinoff of two not-for-profit education systems to new ownership and the simultaneous restructuring of existing debt facilities.
Represented an ad hoc group of holders of bonds issued by the Puerto Rico Public Buildings Authority advancing “double-dip” claims against the PBA and the Commonwealth of Puerto Rico, including pursuit of litigation seeking administrative expense claims for lease rental payments owed to PBA. The PBA Funds’ efforts led to a significant increase in the price of PBA bonds and established an administrative expense claim that ultimately served as the centerpiece of a plan of adjustment for both the PBA and Commonwealth of Puerto Rico.
Represented ad hoc group of secured and unsecured noteholders in connection with the chapter 11 prepackaged plan of Southeastern Grocers LLC—one of the largest conventional supermarkets in the United States operating under the Winn-Dixie, Bi-Lo, Harveys, and Fresco y Más banners—successfully rationalizing its 704-store footprint and restructuring more than $1.5 billion in debt and other obligations, paying unsecured trade creditors in full.