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Cases & Deals

May 1, 2019

Deutsche Bank Negotiates Chapter 11 Operational Restructuring by iHeartMedia


King & Spalding advised Deutsche Bank – who was the collateral agent, transfer agent, registrar and paying agent in connection with more than $10 billion of priority guaranty notes issued by the iHeartMedia debtors – with respect to negotiations concerning a comprehensive balance sheet and operational restructuring completed by the iHeartMedia debtors. K&S worked cooperatively with counsel for the ad hoc group of priority guaranty noteholders and the various indenture trustees to engineer a comprehensive restructuring and successfully defeat efforts by the Unsecured Creditors’ Committee to obtain standing in the bankruptcy case to bring more than $1 billion in claims and causes of action against Deutsche Bank, the term loan lenders and several other parties, including with respect to an allegedly lapsed UCC-1 financing statement and the Debtors’ erroneous release of certain liens and security interests on a tranche of the notes. Under the Chapter 11 Plan of Reorganization, Deutsche Bank received releases from the Debtors and from the noteholders, and K&S successfully negotiated post-confirmation indemnification rights for Deutsche Bank. K&S also counseled Deutsche Bank in connection with ancillary litigation brought by certain “legacy” noteholders against various parties.