Robinson+Cole Lawyers Recognized During Global M&A Network's 2023 Turnaround Atlas Awards

Members of Robinson+Cole’s Bankruptcy + Reorganizations Group were recognized for their work on the Mallinckrodt plc restructuring during Global M&A Network's 15th Annual Turnaround Atlas Awards hosted in New York City on July 19, 2023 as part of the organization’s Restructuring & Distressed Investing Forum. The annual event honors the achievements of legendary leaders, outstanding firms and best-value creating transactions from the restructuring, distressed investing and insolvency industry. Robinson+Cole won the Chapter 11 Restructuring of the Year in the “mega” category (value: above $5 billion).

Robinson+Cole serves as co-counsel to the Official Committee of Unsecured Creditors (UCC) in the Mallinckrodt plc, et al. chapter 11 cases. Mallinckrodt is a global enterprise that operates two separate businesses – a Specialty Brands business and a Specialty Generics business. The Specialty Brands business manufactures INOmax and Acthar Gel, while the Specialty Generics business is the only U.S. producer of acetaminophen and various opioids. Litigation against the company on multiple fronts, including opioid-related litigation, left the company to seek to restructure its businesses, which led to the chapter 11 filing on October 12, 2020. Through the bankruptcy, the Debtors were able to de-lever their capital structure by more than $1 billion. A disclosure statement for the plan of reorganization was approved by the Bankruptcy Court for solicitation on June 17, 2021, with the hearing on confirmation of the Debtors’ plan held on September 21, 2021. On February 3, 2022 the Bankruptcy Court issued a written ruling confirming the Chapter 11 plan and on March 2, 2022 the Bankruptcy Court entered a Confirmation Order confirming the Fourth Amended Joint Plan of Reorganization. Further, on April 27, 2022 the Irish High Court made an Order pursuant to Section 541(3) of the Companies Act of Ireland confirming the Scheme of Arrangement proposed by the Examiner between Mallinckrodt plc, its creditors and members, which is based on and consistent in all respects with the Fourth Amended Plan.

The Team advising the UCC includes Natalie Ramsey, Jamie Edmonson, Patrick Birney, Michael Enright, Rachel Jaffe Mauceri, Laurie Krepto, Ryan Messina, Annecca Smith, along with Business Litigation Group Members John Cordani and Curtis Crowther. Learn more about the Turnaround Atlas Awards.

In addition to the award, Jamie was among the panelists that presented the "Distressed M&A: Deals and Steals" as part Restructuring & Distressed Investing 15th Annual Forum, which discussed acquiring assets under Chapter 11 bankruptcy proceedings – from valuations, challenge of due diligence, and financing.

Andrew DePeau and Annecca Smith Author ABI Journal Article on Why “Pre-Petition Liens in ‘Accounts’ May Not Survive Post-Petition Sales”

Bankruptcy + Reorganizations Group lawyers Andrew DePeau and Annecca Smith authored the article “Pre-Petition Liens in ‘Accounts’ May Not Survive Post-Petition Sales” published in the May 2023 edition of the ABI Journal, the flagship publication of the American Bankruptcy Institute. In the article, Andrew and Annecca discuss the U.S. Bankruptcy Court for the Southern District of Texas and their recent addressing of the applicability of a secured creditor’s lien rights in the debtor’s “accounts” under Article 9 of the Uniform Commercial Code (UCC). The court concluded that under Texas UCC Law, proceeds from a real estate sale are accounts that could be subject to an Article 9 lien. Andrew and Annecca examine this case and compare it to two other decisions analyzing the interplay between the nature of the security agreement, the applicable state’s UCC definitions, and the timing of any sale or disposition of the collateral. Read the article.

Katherine Fix and Annecca Smith Author ABI Journal Article on Person-Aggrieved Standing

Bankruptcy + Reorganizations Group lawyers, Katherine Fix and Annecca Smith, co-authored the article “Person-Aggrieved Standing: Can the Possibility of Excessive Litigation Be Enough?,” published in the November 2022 edition of the ABI Journal. Examining the holding by the U.S. Court of Appeals for the Eleventh Circuit in Valley National Bank v. Warren (In re Westport Holdings Tampa Ltd. P’ship), they write that “the possibility of litigation neither imparts ‘person-aggrieved’ standing to a liquidating trust­ee-adversary proceeding defendant nor implicates Bankruptcy Code protection.” Thus, if the only direct and pecuniary harm they can state is a fear of future litigation against them, “an adversary-proceeding defendant cannot appeal bankruptcy court approval of a litigation funding agreement.” The future of person-aggrieved standing is unclear, especially in light of the doubt cast on the prudential standing doctrine following Lexmark Int’l Inc. v. Static Control Components Inc. “Although no circuit court has yet abrogated person-aggrieved standing in light of Lexmark, the issue remains one to watch,” they write. Read the article.

Patrick Birney and Annecca Smith Co-Author ABI Journal Article on Litigation-Settlement Financiers

Bankruptcy + Reorganizations Group members Patrick Birney (co-chair) and Annecca Smith co-authored the article “Litigation-Settlement Financiers, a Secured Claim Might Be Illusory,” published in the March issue of the ABI Journal, the member publication of the American Bankruptcy Institute. The article offers a brief overview of the Bankruptcy Code sections related to property of the estate and exemptions, and presents a primer on litigation funding agreements. They also analyze the decision of the U.S. Bankruptcy Court for the Eastern District of New York in In re Reviss, in which the Court forewarns litigation-settlement financiers that their security interest in settlement proceeds could be in peril when the proceeds are not yet attached and a Chapter 7 debtor attempts to exempt the same proceeds from property of the debtor’s bankruptcy estate. Read the full article here.

Robinson+Cole Welcomes Fall Class

Robinson+Cole welcomes back the following members from our summer class and internship programs: Christopher Y. Eddy (University of North Carolina School of Law), Michael G. Lisitano (Quinnipiac University School of Law), Ryan M. Messina (Widener University School of Law), Samuel C. Maduabueke (University of Connecticut School of Law), Annecca H. Smith (Washington University in St. Louis School of Law), and Kayla N. West (Wake Forest University School of Law), and congratulates them on their recent graduation.

Alexandra Kritzman, Sandra Lautier, Stephani Roman, and Annecca Smith Named to CCADV’s First 100 Plus Class of 2022

Robinson+Cole lawyers Alexandra Kritzman, Sandra Marin Lautier, Stephani A. Roman, and Annecca H. Smith have been named to the Connecticut Coalition Against Domestic Violence (CCADV) First 100 Plus Class of 2022 during the organization’s 11th Annual Breakfast & Awards Ceremony on April 8, 2022, at the Hartford Marriott Downtown in Hartford, Connecticut.

The First 100 Plus Class of 2022 is comprised of leaders working to improve the lives of domestic violence survivors and their families in Connecticut. These lawyers, with varied backgrounds and practices, have all made vital contributions to their state and local communities. Read more in the press release.