Latham Advises on “Turnaround of the Year” Restructuring

Turnaround Management Association

September 14, 2016

The prepackaged Chapter 11 bankruptcy restructuring of Allen Systems Group (“ASG”), a US-based computer software company, has been honored as “Turnaround of the Year: Mid-Size Company” by the Turnaround Management Association (TMA). Since 1993, TMA has honored excellence in bankruptcy and restructuring matters through its annual awards program, which recognizes successful turnarounds and impactful transactions. According to TMA, this year’s winners "saved countless jobs and made a significant economic impact, both locally and globally."

Los Angeles partner Peter Gilhuly and associate Ted Dillman led the Latham finance team advising Allen Systems Group in a prepackaged plan of reorganization that converted US$300 million in principal amount of second lien bond debt to 41.5% of reorganized ASG’s new common stock. The remaining 58.5% was sold in a US$130 million rights offering, backstopped by an ad hoc group of the second lien bondholders representing approximately 72% of the second lien bonds.

The TMA awards will be presented at the organization’s annual event in November 2016. TMA has more than 9,000 members in 55 chapters worldwide, which include turnaround practitioners, attorneys, accountants, advisors, liquidators, executive recruiters, and consultants, as well as academic, government, and judicial employees.

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