Davis Polk & Wardwell is advising Wachovia Bank in connection with its exposure under three separate secured credit facilities to WCI Communities, Inc., a major homebuilding company that filed for bankruptcy in Delaware on August 4, 2008. Wachovia is administrative agent under WCI’s $49 million tower construction facility, co-agent under WCI's $489 million revolving credit facility and held a significant position in WCI's $225 million term loan facility, and was actively involved in WCI’s attempt during the first half of 2008 to achieve an out-of-court restructuring.
Davis Polk is also advising Wachovia as administrative agent and joint lead arranger for WCI’s $150 million debtor-in-possession credit facility, which was approved by the Bankruptcy Court on September 23, 2008.
With total assets of over $2.5 billion as of March 2008, WCI is a fully integrated homebuilding and real estate services company with over 50 years of experience in the design, construction and operation of leisure-oriented, amenity-rich, master-planned communities.The credit and restructuring team advising Wachovia includes partners John Fouhey and Jinsoo H. Kim, counsel Timothy Graulich and associates Vivian Y. Wong, Hugh McCullough, Molly C. Breyfogle and Angela Doolan, all of the New York office.
The credit and restructuring team advising Wachovia includes partners John Fouhey and Jinsoo H. Kim, counsel Timothy Graulich and associates Vivian Y. Wong, Hugh McCullough, Molly C. Breyfogle and Angela Doolan, all of the New York office.
Davis Polk & Wardwell is serving as lead counsel to Frontier Airlines Holdings Inc. in securing a $75 million DIP financing commitment from Washington, DC private equity firm Perseus LLC, as part of its Chapter 11 reorganization. Perseus would also serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million. The DIP facility and plan sponsorship are subject to bankruptcy court approval and various other conditions.
Frontier operates jet service carriers linking its Denver hub to 46 cities coast-to-coast, 8 cities in Mexico and 1 city in Canada. Frontier Holdings and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code on April 10, 2008, in the Southern District of New York. On July 25, Frontier filed motions with the Bankruptcy Court for the Southern District of New York seeking approval of the proposed DIP financing and plan sponsorship proposal. Under the terms of the proposed DIP credit facility, Frontier will be able to access a $40 million first tranche immediately upon court approval and $35 million when the plan sponsorship agreement and final DIP order are approved at a later date.
The Davis Polk corporate team includes partners Juliet Cain, Marshall S. Huebner and Nancy L. Sanborn, counsel Timothy Graulich, associates Karla Booth, Jason Kyrwood, Hugh McCullough, Damian S. Schaible, H. Oliver Smith, Hilary Dengel, Pheabe S. Morris, Carson T. Stewart, Eli James Vonnegut, Alexander Young-Anglim, and summer associate Marissa A.L. Jackson. Counsel Betty Moy Huber and associate Elisabeth Hanratty are providing environmental law advice. Partner Kathleen L. Ferrell and associates Joshua Ruland and Ari Weinstein are providing tax advice. Partner Jean M. McLoughlin, counsel George R. Ince Jr. and associate Ada Dekhtyar Karczmer are providing employment law advice. Alfonso Silva is the legal assistant on the deal. All members of the Davis Polk team work in the New York office.
Davis Polk & Wardwell advised MicroCredit Enterprises (MCE) on its $10.2 million line of credit and term loan facility with First Republic Bank, a division of Merrill Lynch Bank & Trust Co., FSB. The facility will be used by MCE to provide loans to overseas microfinance institutions which, in turn, will provide small business loans to poor entrepreneurs in developing countries.
Headquartered in Sacramento, California, MCE is a non-profit public charity committed to reducing poverty by mobilizing private investment capital to finance micro-businesses of poor families throughout the developing world. Davis Polk represented MCE on a pro bono basis.
The Davis Polk corporate team included partner Julia K. Cowles and associate Vincent T. Cannon, both of the Menlo Park office. Partner Peter S.W. Levin and associates Jason Kyrwood and Norberto E. Quintana, all of the New York office, provided credit advice.
Davis Polk & Wardwell advised Tekni-Plex, Inc. on an out-of-court restructuring of its balance sheet, pursuant to which over $300 million of its 12.75% senior subordinated notes due 2010 were exchanged for common stock, the company’s preferred stock was exchanged for three series of warrants and the company’s existing common stock was repurchased by the company. Davis Polk also advised Tekni-Plex on an upsizing of its credit facility to $110 million.
Tekni-Plex is a global, diversified manufacturer of packaging, packaging products and materials, as well as tubing products. The company primarily serves the food, health care and consumer markets. Tekni-Plex has operations in the United States, Europe, China, Argentina and Canada.
The Davis Polk team included partners Lawrence E. Wieman, Marshall S. Huebner and Michael Kaplan, and associates Jean Weng, Brian M. Resnick, Hugh McCullough, Joanna A. McGinley, Florian Feder, Alexander N. Macleod (not yet admitted) and Hilary Dengel (not yet admitted). Additionally, partner Gail A. Flesher and associate Brianne M. Lucyk provided environmental advice, partner Kathleen L. Ferrell and associate Joshua Ruland provided tax advice, associate Ada Dekhtyar provided executive compensation and employee benefits advice and counsel Susan D. Kennedy provided real estate advice. All members of the Davis Polk team are based in the New York office.
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