Weil Gotshal Leads Two Clients Out of Bankruptcy

Monday, February 1, 2010 - 01:00

Weil Gotshal clients Pilgrim's Pride Corp. and Nortek, Inc. have successfully restructured and emerged from Chapter 11 bankruptcy. This follows Weil client SemGroup®Corporation's exit from Chapter 11 as a newly reorganized public company in late November.

Pilgrim's Pride and six of its subsidiaries emerged from Chapter 11 effective December 28, 2009. The amended reorganization plan was filed in September and approved earlier this month, closing out a 13-month restructuring process involving the sale of a 64 percent stake in the company to JBS U.S.A. Holdings, a subsidiary of Brazilian beef producer JBS SA, for $800 million and the arrangement of a $1.75 billion exit facility. Pilgrim's Pride is a major poultry processor and distributor.

The Weil Gotshal team representing Pilgrim's Pride was led by bankruptcy partners Gary Holtzer and Stephen Youngman. The bankruptcy, corporate, employment and tax attorneys are from the firm's New York, Dallas and Houston offices.

Nortek, Inc. and its affiliated domestic companies emerged from bankruptcy effective December 17, 2009, only 57 days after the filing of a prepackaged plan of reorganization and subsequent confirmation of the plan on December 4, 2009. The restructuring eliminates approximately $1.3 billion of debt, and together with a new $250 million asset-based credit facility, makes Nortek financially stronger and well positioned for the future. Nortek is a private-equity backed manufacturer of residential and commercial ventilation, HVAC and home technology convenience and security products.

The Weil Gotshal team representing Nortek was led by Bankruptcy partners Gary Holtzer and Stephen Youngman. The cross-disciplinary team included bankruptcy, corporate, regulatory and tax attorneys from the firm's New York, Dallas, Boston and Washington, DC offices.

Steven Tyrrell, former Chief of the U.S. Department of Justice's ("DOJ") Fraud Section, has joined Weil Goshal as a partner in its Washington, D.C. office. Mr. Tyrrell and Boston partner Thomas C. Frongillo will serve as co-chairs of the firm's Investigations & Criminal Defense practice.

As Chief of the DOJ's Fraud Section, Mr. Tyrrell supervised 60 attorneys and 25 support staff in connection with the development, investigation, prosecution and coordination of sophisticated economic crime matters and enforcement initiatives, including issues involving corporate, securities, commodities and investment fraud, Foreign Corrupt Practices Act, health care fraud, procurement fraud, stimulus and rescue fraud, mortgage fraud and identity theft. Steve also played a key role advising Department leadership on various matters, including legislation, crime prevention, public education and the Department's recently announced Financial Fraud Enforcement Task Force.