September 20, 2016
Curtis Retained as Conflicts Counsel to Supermarket Chain Fairway Group Holdings, Inc.
Curtis served as conflicts counsel to the Debtors and Debtors-in-Possession in connection with the pre-packaged Chapter 11 cases of supermarket chain Fairway Group Holdings, Inc. (“Fairway”) in the Southern District of New York before Judge Michael E. Wiles. Fairway emerged from bankruptcy just 62 days after its filing.
Fairway filed a "prepackaged" Chapter 11 bankruptcy restructuring whereby prepetition senior secured lenders agreed to exchange existing debt for new equity and a significantly reduced amount of new debt in a reorganized company. Additionally, trade creditors, general unsecured creditors, and unions were unimpaired under the prepackaged plan. Curtis worked alongside Fairway’s lead bankruptcy counsel, Weil, Gotshal & Manges LLP, in order to maximize enterprise value and ensure a successful and timely reorganization. Namely, Curtis conducted a thorough independent investigation on a very compressed time schedule into potential claims against Fairway’s current and former directors and shareholders in order to support the releases provided in the company’s plan of reorganization, which releases facilitated the ultimate confirmation of the plan. In addition, Curtis worked to resolve certain objections to the plan. Fairway emerged from Chapter 11 with a stronger balance sheet, $50 million of cash and a new board of directors about 2 months after its Chapter 11 filing.
Curtis continues to represent Fairway in connection with certain post-confirmation matters. The Curtis team includes Restructuring and Insolvency Partner Steven J. Reisman, Litigation Partner Turner P. Smith, Litigation Counsel Gabe Hertzberg, Restructuring and Insolvency Counsel Cindi M. Giglio, Litigation Associate Julia B. Mosse and Restructuring and Insolvency Associate Peter J. Buenger.
Curtis has developed a national reputation as the leading law firm in conflicts counsel engagements in large and complex Chapter 11 restructurings on both the debtor and creditors’ committee sides.