Simpson Thacher represented Palladium Equity Partners LLC, as the equity sponsor of American Gilsonite Company, in the Company’s Chapter 11 bankruptcy proceedings.
The Company’s confirmed, prepackaged Chapter 11 Plan (“Plan”) provided for a deleveraging of its balance sheet via a debt-for-equity swap with its second lien noteholders, resulting in a reduction of approximately $160 million in total debt. Prior to its bankruptcy filing in early August, the Company entered into a restructuring support agreement with holders of over 67% of its second lien secured notes and the Palladium equity holders. Palladium maintained a small equity stake in the restructuring, and the Palladium entities and directors received full releases pursuant to the confirmed Plan.
Headquartered in Houston, Texas, American Gilsonite Company is the world’s only supplier of Gilsonite®, a naturally occurring hydrocarbon resin (uintaite). The Company sells its products to customers in four primary markets: (i) oil and gas, (ii) inks and paints, (iii) foundry and (iv) asphalt.
The Simpson Thacher team included Elisha Graff (Picture) and Ariana Evarts (Restructuring and Bankruptcy); and John Creed (Tax).
Law Firms: Simpson Thacher & Bartlett;
Clients: Palladium Equity Partners;