In re Reorganization Plan for Spectrum Brands

As part of its plan of reorganization, Spectrum Brands proposed to “reinstate” the debt of senior secured lenders. Analysis Group was retained by Wachtell, Lipton, Rosen & Katz on behalf of senior secured creditors to evaluate whether Spectrum’s reorganization plan gave rise to certain events of default as specified in the senior secured credit agreement. Managing Principals Maureen Chakraborty and Andrew Wong led an Analysis Group team in support of our academic affiliate Robert Grien, a leveraged finance expert, in his examination of topics related to compliance certificates, change of control, the disposition of assets, and permitted refinancings of subordinated debt. Mr. Grien submitted an expert report and delivered expert testimony at deposition and at the hearing. The court approved a plan of reorganization for Spectrum that did not include the reinstatement of the senior secured lenders’ debt. The parties settled the matter by renegotiating the terms of the senior debt.