Lucy F. Kweskin

Representative Experience

• Represented the company at the direction of the Independent Managers in the Chapter 11 cases of retailer In re Claire’s Holdings, LLC. Led investigation at the direction of the Independent Managers, into the propriety of releases in connection with Claire’s 363 sale, pursuant to which Claire’s was able to continue as a going-concern, keeping numerous stores open, preserving jobs and supporting vendors.
• Represented private credit lenders under a first lien credit facility in out-of-court workout of a leading orthodontics services organization managing orthodontics practices in 13 states in the eastern US, including sale of the company’s business to a large strategic buyer in the space, which was a first-of-its kind transfer of an orthodontics service organization of scale to another orthodontics service organization platform.
• Represented the Transaction Committee of the Board in complex Chapter 11 cases of In re Prospect Medical Holdings involving regional health care operations across multiple states. Conducted independent, fact-intensive investigation into related-party transactions and potential claims, enabling the Transaction Committee to approve global settlements that preserved estate value while maintaining uninterrupted patient care.
• Represented the independent directors in the Chapter 11 cases of In re Thrasio Holdings, Inc., a significant Amazon e-commerce aggregator. Katten advised the independent directors in all aspects of the Chapter 11 cases, including with respect to their authority over the Chapter 11 plan and the critical investigation into pre-bankruptcy transactions involving the Debtors and certain insiders, analyzing potential causes of action against the Debtors' directors, managers, officers, subsidiaries, affiliates and other related parties. The Chapter 11 plan implemented a restructuring transaction that eliminated approximately $495 million of $855.2 million in existing funded debt.
• Represented the independent director in Chapter 11 cases of In re Audacy, Inc. of a company with substantial operations in radio broadcasting, podcasting and audio streaming. Under the Chapter 11 plan, the company equitized approximately $1.6 billion of debt.
• Represented Gordon Brothers as secured lender in the prepackaged Chapter 11 cases of toy manufacturer In re KidKraft, Inc.
• Represented a publicly-traded life settlements and alternative investments company in connection with their Chapter 11 cases, including confirmation of a Chapter 11 plan to resolve over $2 billion in debt, including bonds held by 26,000 individual bondholders, which was supported by over 99 percent of voting constituencies. *
• Represented the administrative agent and collateral agent under the $100 million DIP facility and $1.2 billion exit facility in connection with the Chapter 11 cases of a major owner of malls and shopping centers across more than 100 locations across the United States. *
• Represented an off-priced luxury retailer and its affiliates in their Chapter 11 cases, in which the debtors successfully liquidated and closed their retail locations, sold their intellectual property assets for 10 times more than the pre-auction “stalking horse” bid, became among the first Chapter 11 debtors to sell a participation interest in a sizeable business interruption insurance claim from the effects of the COVID-19 global pandemic, and entered into a global settlement resolving the estates’ claims against their equity owners, cumulatively resulting in material distributions to general unsecured creditors. *
• Represented first-lien lender in the 2020 Chapter 11 cases of an apparel company, in which plan of reorganization resulted in issuance to client of convertible second-lien notes that convert to majority equity ownership. *
• Represented new money DIP lender in Chapter 11 case of a medical technology company, who provided critical financing to bridge to a 363 sale of substantially all assets, where despite COVID-19, sale was approved by the Bankruptcy Court and consummated in under 60 days, and DIP loan was repaid in full. *
• Represented last-out first-lien prepetition lender, DIP lender and credit bid acquirer in Chapter 11 case of a dental services organization providing management services to 150 dental practices in 16 states. *
• Represented first-lien lender in connection with a contested cash collateral hearing and successful credit bid acquisition related to the Chapter 11 case of a television broadcasting company. *
• Represented ad hoc group of private credit lenders holding more than $300 million of first-lien term debt of a coal mining company and its subsidiary in connection with the company’s Chapter 11 cases, which featured a credit bid purchase with a strategic operating partner, litigation to address material legacy labor liabilities, and other environmental, surety, reclamation and regulatory issues. *
• Represented multi-employer pension plan in the Chapter 11 cases of a major owner/operator of casino entertainment services, including litigation regarding violations of the automatic stay and withdrawal liability. *
• Represented the creditors' committee in the bankruptcy cases of an energy company with substantial environmental liabilities, where the committee jointly proposed and confirmed a Chapter 11 plan creating a litigation trust to assert $12 billion in litigation claims against former parent company. *
• Represented ad hoc group of private credit lenders holding more than $80 million of first-lien term debt in connection with the first Chapter 11 case of a company providing seismic data solutions to the global oil and gas industry, which involved litigation over a heavily-contested priming DIP loan from a group of unsecured bondholders leading to a refinancing at par plus accrued. *
• Represented private credit lender holding more than $200 million of first-lien term debt in connection with an out-of-court restructuring of a privately owned information technology software company. *
• Represented numerous defendants in connection with fraudulent transfer litigation in an energy company. *
• Represented ad hoc group of first-lien private credit lenders in connection with Chapter 11 cases of a digital production company, including make-whole litigation. *