Daily News: January 30, 2014

Choate, Hall & Stewart Receives Restructuring Deal of the Year

Choate, Hall & Stewart LLP received The M&A Advisor’s 2013 Restructuring Deal of the Year (over $50 million to $100 million) award for representing Salus Capital Partners in the restructuring and sale of National Envelope. After Salus committed to provide a $67.5 million debtor-in-possession financing, National Envelope ultimately secured a three-way $70 million sale. Without the financing, National Envelope would have been forced to liquidate its assets and terminate the vast majority of its employees.

Choate’s finance and restructuring team, led by partners John Ventola and Sean Monahan, represented Salus Capital Partners in the turnaround of National Envelope, which had filed for Chapter 11 bankruptcy. Salus’ debtor-in-possession loan of $67.5 million provided the working capital that allowed National Envelope to maintain its normal operations during the sales process, which was developed as a private sale instead of a typical Chapter 11 auction due to the need for a quick turnaround time. National Envelope’s $70 million sale of its operating assets, accounts receivable and inventory to three different companies enabled nearly all of National Envelope’s 1,590 employees to keep their jobs at the same wages, benefits and location.

With commitments in excess of $20 billion, Choate represents leading financial institutions, institutional investors, borrowers and issuers in a full range of financings, including senior syndicated, second lien, mezzanine/subordinated, club and single-lender facilities, and debtor-in-possession.