Milbank Team Obtains Significant, Complete Victory For Clients
NEW YORK, December 1, 2009 ― Milbank achieved a complete victory for its clients, a group of senior secured lenders to Herbst Gaming, Inc. – when the United States Bankruptcy Court for the District of Nevada confirmed a plan of reorganization in the matter of In Re Zante, Inc., giving the senior lenders 100% ownership of the reorganized company. Milbank represented Wilmington Trust Company in its capacity as administrative agent for senior secured lenders who financed a series of transactions that were challenged as fraudulent transfers by the debtors' junior creditors. In a series of rulings that culminated in a three-day, contested confirmation hearing, the Court denied standing to the Official Committee of Unsecured Creditors to bring fraudulent transfer claims against Wilmington Trust, dismissed a declaratory judgment action brought against Wilmington Trust by an indenture trustee alleging that the debtors' noteholders were not subordinated to the senior secured lenders and finally, confirmed a plan that included complete releases of Wilmington Trust and the senior secured lenders.
The Milbank team representing Wilmington Trust included Tom Kreller from Financial Restructuring, David Gelfand, Aaron Renenger, Paul Torres and Erin Culbertson from Litigation, and Blair Tyson, Jennifer Harris and David Kaye from Global Alternative Investments.