Latham & Watkins Represents Exela Technologies BPA in Amended Plan Support Agreement With Significant Stakeholder Support
Exela Technologies BPA, LLC, its subsidiaries and certain of its affiliates, a global business process automation (BPA) leader, has announced that it has reached a comprehensive settlement with over 80% of the company's April 2026 noteholders to support a consensual Chapter 11 plan of reorganization on terms contained in the Amended Plan Support Agreement (PSA) that was filed with the Court last week. As part of the reorganization, the company will reduce its debt by more than US$1.1 billion, with the April 2026 noteholders converting their interests into equity, significantly improving the overall strength of the company's balance sheet. The terms of the PSA are also supported by the official committee representing the company's unsecured creditors in the company's Chapter 11.
With this crucial support in hand, the company recently filed a proposed Chapter 11 plan of reorganization (the Plan) and corresponding disclosure statement. On May 8, the Bankruptcy Court conditionally approved the disclosure statement and the company’s procedures for soliciting votes on the Plan. The company is commencing such solicitation and has scheduled a hearing to consider confirmation of the Plan for June 18, 2025. The company is optimistic that it will confirm the Plan and emerge from Chapter 11 around the end of the second quarter of 2025. Additionally, the company has successfully obtained final approval of its proposed debtor-in-possession financing, which, together with the interim funding it received at the outset of the cases, provides the company US$80 million in total new money loans to fund its emergence from Chapter 11 on an expedited basis. The PSA contains exit financing commitments that will solidify the company's balance sheet and provide sufficient post-Chapter 11 liquidity after emergence.
Latham & Watkins LLP represents Exela in the process with a Restructuring & Special Situations team led by New York partners Ray Schrock, Alexander Welch, and Hugh Murtagh, and counsel Adam Ravin, with associates Jon Weichselbaum, Thomas Fafara, Ata Nalbantoglu, Kevin Shang, Brian Herskowitz, Beau Parker, Richard Cantoral, and Saadia Naeem. Advice was also provided on litigation matters by New York partner Eric Leon and Boston partner Betsy Marks, with associate Kamali Houston; on finance matters by New York partner Marcela Ruenes, with associate Youn Song; on capital markets matters by New York partner Benjamin Stern; on M&A matters by Chicago partner Zachary Judd and counsel Ben Kaplan; and on tax matters by Chicago partner Joseph Kronsnoble, with associates Lukas Kutilek and Jay Khurana.