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- Chambers USA, Band 1 for Bankruptcy/Restructuring (Nationwide and NYC) and "Bankruptcy Law Firm of the Year" in 2019
Paul, Weiss Advises Ad Hoc Group of Bondholders in Hi-Crush Restructuring
- Client News
- July 12, 2020
Paul, Weiss is representing an ad hoc group of noteholders in connection with the prearranged restructuring of Hi-Crush Inc. and 21 of its subsidiaries. Hi-Crush is a fully integrated oil-field services company providing proppant and logistics services used in the hydraulic fracturing of oil and gas wells. The ad hoc group and Hi-Crush entered into a restructuring support agreement, pursuant to which the company commenced voluntary cases under chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas to implement the restructuring contemplated by the RSA.
The comprehensive prearranged restructuring plan, if approved by the bankruptcy court, will eliminate approximately $450 million of unsecured note debt, reduce the company’s annual interest expense by more than $43 million, equitize any other general unsecured claims against the company and restructure key supply and rail car arrangements, substantially reducing the company’s operational costs going forward. Additionally, Hi-Crush has received commitments from the ad hoc group and its prepetition lenders for an aggregate $65 million in Debtor-in-Possession financing to meet working capital needs during the chapter 11 cases, and exit financing commitments to meet the long-term capital needs of the company post-emergence. Working with the ad hoc group, who own or control approximately 94% of the aggregate outstanding amount of the company’s 9.5% senior unsecured notes due 2026, Hi-Crush expects to complete the chapter 11 process within 60 to 90 days, subject to court approval.
The Paul, Weiss team includes restructuring partners Elizabeth McColm and Brian Hermann; corporate partners Austin Witt, David Huntington, Jeffrey Marell and Sarah Stasny; tax partner Robert Holo; employee benefits partner Lawrence Witdorchic and counsel Jarrett Hoffman; intellectual property partner Charles Googe; real estate partner Harris Freidus; and antitrust counsel Marta Kelly.