Jack Cooper Ventures, Inc.’s Restructuring


Paul, Weiss advised Jack Cooper Ventures, Inc. and 18 of its subsidiaries and affiliates in their successful pre-negotiated restructuring transaction effecting the sale of the company’s assets to affiliates of certain prepetition secured lenders.

A leading provider of finished vehicle logistics in North America for new and used vehicles, and diversified logistical services in select non-automotive markets, Jack Cooper Ventures faced complicated challenges, including an overleveraged balance sheet, unsustainable debt service obligations and significant pension- and labor-related liabilities. Following extensive multiparty negotiations, the company entered into support agreements with 100% of its secured lenders and its largest pension fund and obtained the agreement of the leadership of its largest union, the Teamsters, to support the restructuring. After obtaining this overwhelming support, the company commenced its chapter 11 cases in U.S. Bankruptcy Court for the Northern District of Georgia. A mere 66 days later, the court approved the proposed sale, and the sale closed.

The deal substantially deleveraged the company’s balance sheet, addressed approximately $575 million in prepetition secured debt, modified certain rights and obligations under certain of the company’s collective bargaining agreements, and dealt with more than $2 billion in potential pension withdrawal liabilities—each of which has put the company in a position to execute on its business plan and take advantage of future growth opportunities.

The Paul, Weiss team included restructuring partners Brian Hermann (Picture), Kelley Cornish and Paul Basta and counsel Diane Meyers and Claudia Tobler; employee benefits partner Lawrence Witdorchic, of counsel Rob Fleder and counsel Uri Horowitz; tax partner Scott Sontag and counsel Todd Hatcher; litigation partners Gregory Laufer and Allan Arffa and counsel Robert Kravitz; corporate partner Catherine Goodalland counsel Bruce Gruder and Chaim Theil; and personal representation partner Alan Halperin.

Involved fees earner: Allan Arffa – Paul Weiss Rifkind Wharton & Garrison; Paul Basta – Paul Weiss Rifkind Wharton & Garrison; Kelley Cornish – Paul Weiss Rifkind Wharton & Garrison; Robert Fleder – Paul Weiss Rifkind Wharton & Garrison; Catherine Goodall – Paul Weiss Rifkind Wharton & Garrison; Bruce Gruder – Paul Weiss Rifkind Wharton & Garrison; Alan Halperin – Paul Weiss Rifkind Wharton & Garrison; Todd Hatcher – Paul Weiss Rifkind Wharton & Garrison; Brian Hermann – Paul Weiss Rifkind Wharton & Garrison; Uri Horowitz – Paul Weiss Rifkind Wharton & Garrison; Robert Kravitz – Paul Weiss Rifkind Wharton & Garrison; Gregory Laufer – Paul Weiss Rifkind Wharton & Garrison; Diane Meyers – Paul Weiss Rifkind Wharton & Garrison; Scott Sontag – Paul Weiss Rifkind Wharton & Garrison; Chaim Theil – Paul Weiss Rifkind Wharton & Garrison; Claudia Tobler – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Paul Weiss Rifkind Wharton & Garrison;

Clients: Jack Cooper Ventures;