Milbank LLP successfully advised the ad hoc group of term loan lenders in connection with the chapter 11 cases of Vertellus Specialties Inc. and certain affiliates. The lenders provided Vertellus, a global manufacturer of fine and specialty chemicals, with $110 million in debtor-in-possession financing and served as the “stalking horse” bidder to acquire substantially all of the company’s assets for over $45o million in cash and other consideration. The sale to the lenders was approved on September 7, 2016 by US Bankruptcy Judge Christopher S. Sontchi in Wilmington, Delaware. The transaction closed on October 31, 2016.
The transaction will provide the company with an enhanced capital structure, more expansive support for its ongoing operations, and greater flexibility in selecting investments. The new Vertellus group of companies will be led by members of the existing management team. Vertellus will continue to operate much as it has in the past under the new ownership and board structure. The company will continue to execute on its current business strategy with a focus on safety, quality, growth and productivity. It will remain in its Indianapolis headquarters, continue producing in all of its plants.
Milbank’s representation of the lenders was led by Financial Restructuring partners Mark Shinderman and Peter Newman, together with Corporate partners Melainie Mansfield, Nicholas Smith, and Matt Ahrens, Leveraged Finance partner Jerome McCluskey, Tax partner Russell Kestenbaum, and Financial Restructuring of counsel Dennis O’Donnell and Corporate of counsel David Isenberg. Moelis & Company is the ad hoc group’s financial adviser.
