Exela Technologies Files Amended Plan Support Agreement With Significant Stakeholder Support

Ropes & Gray represented an ad hoc group of bondholders of Exela Technologies (“Exela”), a global business process automation company, in connection with a Plan Support Agreement (“PSA”) in its chapter 11 cases, captioned In re DocuData Solutions, Inc. pending in the United States bankruptcy Court for the Southern District of Texas. Pursuant to the PSA, Exela will implement transactions pursuant to a chapter 11 plan of reorganization in that will reduce its debt by over $1.1 Billion.

As part of the reorganization, the bondholders will convert their bonds into equity, significantly improving the overall strength of Exela’s balance sheet.  The terms of the PSA are also supported by the official committee representing Exela’s unsecured creditors in its chapter 11 cases.

Exela has also successfully obtained final approval of its $185 million debtor-in-possession financing facility, which, together with interim funding it received at the outset of its chapter 11 cases, provides Exela with $80 million in total new money loans to fund its emergence from chapter 11.  Ropes & Gray also represented the lenders in connection with the $185 million debtor-in-possession financing facility.

The Ropes & Gray team included business restructuring partner Matt Roose, finance partners Sam Badawi and Jennifer Harris, M&A partners David Harris and Jackie Cohen, tax partners Benjamin Rogers and Amanda Holt, litigation & enforcement partner Peter Welsh, and business restructuring associates Eric Schriesheim and Eric Sherman.