Partnering with Kirkland & Ellis, Jackson Walker represented Belk, Inc. in obtaining approval of a prepackaged reorganization plan within 24 hours of filing its Chapter 11 cases. The cases were filed at 5:00 p.m. on February 23, 2021. The plan was approved by 10:00 a.m. the following day and went effective just four hours later—setting a national record for the fastest-ever prepackaged case from filing to emergence.
As a result of the restructuring, the Charlotte, North Carolina-based retailer has eliminated $450 million of debt and received $225 million of new capital for growth initiatives. The Company will also continue at all 291 of its store locations across 16 Southeastern states.
“Jackson Walker has played a significant role in a handful of ‘firsts’ and notable mentions in the bankruptcy space, but this one is special,” said Matthew D. Cavenaugh. “Belk is now out of bankruptcy 21 hours after it was put in. This not only set a national record, but it also saved a storied company and approximately 17,000 jobs.”
“Jackson Walker has played a significant role in a handful of ‘firsts’ and notable mentions in the bankruptcy space, but this one is special.”
The Jackson Walker team representing Belk was led by Kristhy Peguero and included Matt Cavenaugh, Liz Freeman, Gen Graham, Veronica Polnick, and Victoria Argeroplos. The case was filed in the U.S. Bankruptcy Court for the Southern District of Texas – Houston Division.
For more information about Belk’s bankruptcy, view the following articles:
- “Belk Becomes The In-And-Out Of Bankruptcy,” Forbes (February 25, 2021)
- “Belk Confirms $450M Ch. 11 Debt Slash In Less Than A Day,” Law360 (February 24, 2021)
- “Belk OK’d to exit bankruptcy less than 24 hours after it filed,” Reuters Legal (February 24, 2021)
- “Belk bankruptcy plan approved by judge. Iconic retailer gets the lifeline it sought,” The Charlotte Observer (February 23, 2021)
Founded in 1887, Jackson Walker continues to advance the world of business by helping companies of all sizes navigate today’s increasingly complex, interconnected legal landscape. With more than 400 attorneys across seven offices, we are the third-largest law firm in the state and have been recognized by Law360 as a “Texas Powerhouse” and an “elite law firm” that regularly provides counsel to industry-leading clients on highly complex transactions. To explore the Firm’s experience handling complex corporate Chapter 11 cases, out of court workouts, and litigation proceedings, visit the Bankruptcy, Restructuring, & Recovery practice page.
Fast Takes Podcast: “Using Prepackaged Plans to Speed Through Bankruptcy Courts” »
~6.5 minutes | Not all bankruptcy plans need to be drawn-out or costly affairs. Veronica Polnick explains how a bankruptcy prepack plan speeds up the time it takes to emerge from bankruptcy proceedings. One such example is Jackson Walker’s representation of Mood Media Corp. and its 17 affiliates in filing a prepackaged reorganization plan and emerging from bankruptcy in just over 30 hours—a record for the Southern District of Texas.