Search PillsburyLaw.com
  • All
  • Lawyers
  • Capabilities
  • Insights

Service

Indenture Trustee & Agency Services

Contact

Hugh M. McDonald
Partner, New York
T: +1.212.858.1170
See All Professionals

Pillsbury brings decades of experience and a keen understanding of the particular considerations important to protecting the interests of indenture trustees in post-default scenarios, whether in or out of court.

Our Insolvency & Restructuring lawyers focus on the unique issues indenture trustees face in default situations. These include enforcement and restructure of payment defaults and covenant violations (both in and out of chapter 11 proceedings), intercreditor priority disputes and related litigation, and post-default trust administration. We also have extensive experience defending fiduciary duty claims asserted against indenture trustees.

Our lawyers understand the key and sometimes challenging issues bondholders and other stakeholders present, as well as the challenges presented by issuers, and the growing tendency of stakeholders to seek reallocation of responsibilities and risks to trustees. We take a diverse, multidisciplinary approach to indenture trustee representation in post-default situations that covers an array of industries and involves the full spectrum of debt securities. Further, we offer fully integrated services with our firm’s corporate, finance and litigation practices, enabling us to draw on the extensive experience of our lawyers in each of these areas to ensure deep familiarity with the issues indenture trustees face.

View More

  • Default situations
  • Restructuring transactions, bankruptcy proceedings and workouts
  • Litigation involving security holders, transaction parties and others

Representative Experience

  • Represented indenture trustee for $1.75 billion of debt in the Brazilian recuperação judicial proceedings of the OAS Group.
  • Representing RMBS trustee in litigation in state court in Illinois to enforce approximately $900 million of mortgage insurance.
  • Represented indenture trustee for $4 billion of senior debt in Washington Mutual Inc.’s chapter 11 case, the largest bank holding company failure in U.S. history.

View More

  • Bankruptcy-Related Experience
    • Represented the indenture trustee for $200 million of subordinated notes in the chapter 11 cases of K-V Pharmaceutical Co.
    • Represented indenture trustee for over $2 billion of leveraged lease debt secured by over 100 aircraft in the Delta Airlines bankruptcy case.
    • Represented tmaster servicer and indenture trustee for mortgage-backed securities aggregating several billion dollars of original principal in American Home Mortgage’s bankruptcy case.
    • Represented indenture trustee for $2 billion in public debt in chapter 11 case of Federal Mogul.
    • Represented indenture trustees for $500 million in senior notes issued by Armstrong World Industries Inc. in a chapter 11 case involving substantial asbestos-related claims.
    • Defended indenture trustee and collateral agent for $800 million of debt in an adversary proceeding in the G-I Holdings bankruptcy case.
    • Represented indenture trustee for $250 million notes in recuperação judicial proceedings in Brazil and a related chapter 15 proceeding in New York in the Aralco S.A. bankruptcy.  
    • Represented indenture trustee for $200 million notes governed by a New York law indenture and in recuperação judicial proceedings in Brazil regarding Wind Power Energia S.A.
    • Represented Wilmington Trust Company as indenture trustee for $400 million notes in Canadian arrangement proceedings and chapter 15 proceeding in Delaware in the Essar Steel Algoma bankruptcy.
    • Represented indenture trustee for $15.1 million of municipal bond debt in the chapter 11 case of the Consolidated Freightways Corp.
    • Represented trustee in an enhanced equipment trust certificate structured finance transaction secured by three B757-200 aircraft being operated by debtor in the US Airways bankruptcy.
    • Represented trustee in structured PTC transactions with leveraged lease debt on five widebody aircraft in the United Airlines bankruptcy.
    • Represented indenture trustee in litigation in connection with Trans World Airlines’ bankruptcy.
    • Represented indenture trustees for nearly $2 billion in 10 GIC-backed municipal bond issues in adversary and insolvency proceedings in Executive Life Insurance Co.’s insolvency.
  • Trustee Litigation Experience
    • Represented indenture trustee for $850 million in notes issued by Canadian drugstore chain Jean Coutu. Defeated summary judgment motion and obtained favorable settlement for bondholders while protecting creditor’s rights.
    • Defended Bankers Trust Co. as indenture trustee for $578 million in notes issued by Semi-Tech. Obtained summary judgment in Bankers Trust’s favor, dismissing all claims and affirmed by the Second Circuit.
    • Defended indenture trustee for $4.3 billion of public debt in securities fraud class action litigation arising from the bankruptcy of Adelphia Communications.
    • Represented indenture trustee in an action alleging breach of fiduciary duty in connection with sale of collateral for securities issued by Sierra Foothills Public Utility District.
    • Represented TitleOne Corp. in a putative class action suit involving a bond issuance from a real estate development company allegedly engaged in a Ponzi scheme.
    • Defended RMBS trustee as insured in litigation brought by mortgage insurer seeking a declaratory judgment that would limit the insureds’ rights.
    • Filed amicus brief for American Bankers Association in support of appeals court decision holding indenture trustees have no obligation to review an issuer’s SEC filings for substance in connection with Enron’s bankruptcy.
    • Defended RMBS trustees and named trust in fraud case brought by bond insurer MBIA.
    • Defended RMBS trustee and named trusts in securities fraud class case brought by investors in connection with Bear Stearns mortgage pass-through certificates. Obtained negotiated dismissal of the claim.
    • Represented custodian for a series of mortgage purchase transactions in connection with disputes relating to New Century Warehouse Corp.’s bankruptcy.
    • Represented trustee in noteholder litigation concerning asset swap hedge agreements.
    • Defended indenture trustee in litigation brought by an equity tranche holder challenging whether a “rapid amortization event” occurred under an RMBS indenture.
    • Defended RMBS trustees and numerous trusts named as defendants in securities fraud action brought by various New Mexico pension funds as RMBS investors.
    • Represented backup servicer in a declaratory judgment action seeking a determination that it did not breach its duties under the applicable agreements in an asset-backed securitization transaction.

Practice Area Highlights

  • Recognized as one of the top restructuring firms in the world in Global Restructuring Review’s prestigious eighth annual GRR100 guide for 2024.
  • Pillsbury is “Highly Commended” by Financial Times for legal innovation in our out-of-court work.
  • Best Lawyers recognizes our Bankruptcy and Creditor/Debtor practice as among the top in the nation and U.S. News & World Report reports top-tier national recognition to Pillsbury for bankruptcy litigation.

View More

  • Lawdragon has recognized several of our partners on their annual lists of the 500 Leading Global Restructuring & Insolvency Lawyers and 500 Leading U.S. Bankruptcy & Restructuring Lawyers.
  • Chambers USA recognizes individual Bankruptcy/Restructuring partners throughout our various offices.
  • Multiple “Deal of the Year” honors and other accolades from publications such as the Financial Times, M&A Advisor, Global M&A Network, Turnaround Management Association, International Financial Law Review and Latin Lawyer.

Awards

2024 GRR100 Guide—Restructuring Firm

One of the top restructuring firms in the world in Global Restructuring Review’s GRR100 2024 guide

2024 Chambers USA Leading Firm

52 Pillsbury Practices and 92 Firm Lawyers

2024 U.S. News—Best Lawyers Best Law Firms

97 Tier 1 practice rankings in the U.S. News—Best Lawyers 2024 Best Law Firms survey

2022 Latin Lawyer Deal of the Year - Restructuring

Counsel for multiple creditors in the Chapter 11 restructuring of Avianca Holdings, S.A.

Resources

Case Study

(VCLF) Prevailing at Trial Against a Determined Plaintiff

Case Study

Bankruptcy as a Civic Service

Case Study

Protecting Bondholders on $850 Million Debt

Related Insights

View More
View All