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Eric Sherman is an associate in the business restructuring practice group in New York. He specializes in corporate restructurings, providing strategic counsel to prominent companies and ad hoc groups in complex chapter 11 cases and out-of-court restructurings. Eric’s practice also encompasses liability management transactions, with notable experience including involvement in the first-ever Dutch auction "uptier" transaction.
Eric has extensive experience across a wide range of industries, including retail, healthcare, hospitality, food services, technology, manufacturing, and industrials, and he regularly teaches a restructuring seminar at New York University School of Law. He also maintains an active pro bono practice, including representing several charitable organizations with orderly wind downs and having represented a meditation and contemplative arts retreat center in its subchapter V bankruptcy case.
Experience
- Hardinge, a precision machining and tooling manufacturer, in connection with refinancing efforts and ultimately, their chapter 11 cases to address over $100 million in secured debt, facilitate two going-concern 363 sale transactions for substantially all assets, investigate claims and causes of action held by the estates, and negotiate and consummate a liquidating chapter 11 plan, including a global settlement embodied therein.
- An ad hoc group of bondholders of Exela Technologies, a global business process automation company, in connection with its chapter 11 cases, captioned In re DocuData Solutions, Inc. pending in the United States Bankruptcy Court for the Southern District of Texas. These proceedings involve the restructuring of $1.3 billion of funded debt and the ad hoc group is providing a new money DIP facility of up to $80 million.
- Trinseo PLC and its subsidiaries in connection with a pari-plus transaction involving approximately $2.2 billion in funded debt, $300 million in new capital, extending maturities by three years, and capturing approximately $56.925 million in discount.
- Aimbridge Hospitality in connection with a comprehensive out-of-court restructuring supported by 100% of the company’s lenders that successfully converted more than $1 billion of senior and junior debt into equity and infused the company with $100 million in new capital. Aimbridge is the leading third-party hotel management company, managing over 1,000 hotels globally and employing approximately 47,000 individuals.
- Hearthside Foods and its affiliated debtors in their prearranged chapter 11 cases involving approximately $3.0 billion of funded debt. A leading contract manufacturer and producer of convenience foods, including baked, refrigerated, and frozen foods, sweet and salty snacks and nutrition bars, Hearthside serves as a full-service provider of food packaging services for many of the world’s premier brands and is the largest private bakery in the industry with a production network of 27 facilities powered by a skilled and dedicated workforce of approximately 12,000 employees. Hearthside’s prearranged chapter 11 plan eliminated approximately $2 billion of funded debt and provided $200 million of new money through an Equity Rights Offering and approximately $190 million of additional capital from a new asset backed loan facility. Hearthside emerged from chapter 11 with approximately $600 million of liquidity and rebranded as Maker’s Pride.
- A leading platform dental services organization in an out-of-court restructuring involving the deleveraging of its approximately $900 million capital structure, including through an equitization of approximately $300 million of senior secured obligations and the provision of a $75 million new money term loan facility.
- RevitaLid Pharmaceutical Corp. and its two debtor-affiliates, RVL Pharmaceuticals, Inc. and RVL Pharmacy, LLC, in their prepackaged chapter 11 cases, which were entered into with full support from the debtors’ lender and key stakeholders. The debtors’ prepackaged plan equitized approximately $80 million of funded indebtedness, preserved 100% of existing jobs, and left general unsecured trade creditors unimpaired. RVL Pharmaceuticals is a specialty pharmaceutical company focused on the commercialization of a branded ophthalmic solution for the treatment of low-lying eyelids in adults.
- FB Debt Financing Guarantor, LLC and certain of its subsidiaries (“Forma Brands”), a builder of top beauty brands including Morphe®, Morphe 2®, Jaclyn Cosmetics®, and Born Dreamer®, in their Chapter 11 cases to address approximately $870 million of funded indebtedness, facilitate a going-concern 363 sale transaction for substantially all assets, and resolve numerous complex licensing and potential litigation issues.
- An ad hoc group of first lien lenders of K&N Engineering, Inc., a leading consumer-branded designer, manufacturer and marketer of high performance automotive and power sports aftermarket parts, in a $60 million new money financing in connection with its out of court restructuring of approximately $415 million of funded indebtedness.
- Output Services Group, Inc. and certain of its affiliates in connection with its prepackaged Chapter 11 cases. Output Services Group is a leading provider of integrated customer communications and engagement services. The company’s plan of reorganization successfully restructured approximately $825 million of funded indebtedness through a consensual deleveraging of approximately $134 million and new money capital infusion of approximately $70 million. In 2023, The M&A Advisor recognized the successful restructuring of Output Services Group as the “Information Technology Deal of the Year” as part of its 17th Annual Turnaround Awards.
- Vewd Software AS and certain affiliates in connection with their prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York. Vewd is a market leader in enabling the transition from cable, broadcast, and satellite television platforms to over-the-top video streaming services. Vewd’s Chapter 11 plan of reorganization was supported by 100% of its secured lenders and resulted in the exchange of over $100 million of secured debt claims for 100% of the equity of reorganized Vewd Software AS and the payment in full of all unsecured creditors. Under the plan of reorganization certain of Vewd’s existing secured lenders also agreed to provide $25 million of exit financing and up to $20 million pursuant to a preferred stock issuance to provide substantial liquidity support for the reorganized company. In 2023, The M&A Advisor recognized the successful restructuring of Vewd Software AS as the “Cross-Border Restructuring of the Year ($100mm to $1B)” as part of its 17th Annual Turnaround Awards.
- An ad hoc group of bondholders of Exela Technologies, Inc. with respect to, among other things, an out of court exchange involving approximately $1.0 billion of first lien bond debt, and a subsequent exchange of $1.3 billion of first lien bond debt
- 24 Hour Fitness Worldwide Inc. and its debtor-affiliates in their pending chapter 11 cases involving approximately $1.4 billion of funded debt. 24 Hour Fitness is a leading fitness club operator with locations across the United States and more than 3 million members.
- The Official Committee of Unsecured Creditors in Bouchard Transportation Co., Inc.’s chapter 11 cases.