PineBridge Targeting Asian, Latin American Defaulted Loans
Douglas J. Schneller
Mr. Schneller is a partner in the law firm's Finance practice and is located in the New York office. He leads Pillsbury's Distressed Investing group, advises investment banks, commercial banks, broker-dealers, hedge funds and other financial institutions in complex transactional matters involving finance, insolvency and restructuring, with an emphasis on the legal issues relating to distressed and alternative asset investments and secondary market trading (including, among other things, syndicated and bilateral bank loans and loan portfolios owing by U.S. and non-U.S. obligors, trade claims, derivative and other hedging instruments, notes and high-yield securities, accounts receivable, and other claims against and interests relating to debtors in bankruptcy, including default-triggered puts and litigation and liquidating trust vehicles).
In this regard he regularly advises clients about bankruptcy, finance and restructuring matters, including as they relate to distressed investments and secondary markets for fixed income and other debt instruments, including credit default and other hedges against non-payment. He has extensive experience in structuring, negotiating and documenting such transactions in the U.S., U.K. and elsewhere in Europe, Latin America and Asia, including cross-border insolvency situations, as well as performing pre-transaction diligence and analysis.
He also regularly advises clients about confidentiality and non-disclosure agreements, “big boy” issues and counterparty risk (particularly in respect of participation, collateral and derivative arrangements). In addition to advising clients on specific transactions, Mr. Schneller regularly provides trainings and seminars to clients concerning distressed trading principles and recent developments, including with respect to LSTA, LMA and bespoke trading documentation.
Another facet of Mr. Schneller’s practice involves the representation of banks and funds in connection with bank finance and related lending transactions, including leveraged, mezzanine, second lien, distressed and rescue finance, with a particular focus on representing senior and junior creditors in connection with intercreditor and subordination arrangements. Mr. Schneller also has extensive experience advising lenders in restructuring situations, both in and outside of formal insolvency proceedings.
- Representation of international banks and investment funds in connection with their purchases and sales (including syndications) of billions of dollars of claims against Lehman Brothers, MF Global, American Airlines, Bernard L. Madoff Investment Securities, Nortel, General Motors, TXU, and Tribune, among others
- Representation of banks and funds in connection with their purchases and sales of claims against numerous European and other non-U.S. debtors in administration or related insolvency proceedings, including Lehman Brothers International (Europe), Lehman Brothers Bankhaus Aktiengesellschaft, Lehman Brothers Finance SA, Lehman Brothers Asia Holdings Limited, MF Global U.K., Swissair, certain insolvent Icelandic banks
- Representation of indenture trustee in connection with the auctions and sales of over $500 million of claims arising from lease and loan obligations against a bankrupt transportation provider, on behalf of a major Latin American development bank
- Representation of a leading global bank and its affiliates in the development of a sales and syndication program of asserted and allowed claims against various Lehman Brothers U.S. and non-U.S. affiliates, including related market-making activities
- Represented global bank in its development of accounts receivable financing program, which enabled vendors of a financially troubled retailer to hedge their credit exposure to the retailer and offered a bankruptcy-triggered sale option
- Representation of global investment bank in its trading and market-making activities relating to the loans and other indebtedness owing by a significant Latin American debtor
- Representation of banks and funds in connection with option, put and sales agreements relating to vendor claims and accounts receivable
- Represented administrative agent and senior lenders in connection with the post-petition financing, Chapter 11 reorganization and ultimate emergence from bankruptcy of a middle-market manufacturing company
- Represented major international bank, as senior lender to a leading technology company, in the subordination and intercreditor agreement with numerous subordinated noteholders
- Represented the senior agent in connection with the restructuring and refinancing of the loan facilities for a major textile manufacturer, including new intercreditor arrangements with subordinated creditors
- Represented purchasers of assets from debtors in bankruptcy under Bankruptcy Code Section 363
- Represented “rescue” investors in connection with (i) their purchase of a substantial portion of bonds issued by an industrial development agency on behalf of an educational institution, and (ii) debt restructuring scenarios
- Represented the purchaser, and ultimate post-bankruptcy equity owner, of a majority of the debt obligations of a major retailer in bankruptcy
- Represented a syndicate of investors in connection with their purchase, through a special purpose entity, of substantial bankruptcy claims, including advising on management and governance issues among the investor class
- Represented global bank in its creation and implementation of a trading and syndication platform for trade finance and export-import loans
- Represented manufacturer in connection with its sales of customer account claims against a bankrupt international broker-dealer
- Represented numerous commercial banks, investment banks and investment funds in actively monitoring bankruptcy proceedings, negotiating and settling claims with debtors, and claims recovery and evaluation
Member: American Bankruptcy Institute, INSOL International, Loan Syndications and Trading Association (LSTA), Loan Market Association (LMA), American Bar Association, New York City Bar Association
United States District Courts for the Eastern and Southern Districts of New York; United States District Court of New Jersey