Stephen D. Zide represents a diverse range of clients in Chapter 11 bankruptcy and out-of-court restructuring matters. Mr. Zide has led numerous high-profile restructurings across a number of industries over the last twenty years. His clients include both official and ad hoc creditor and equity committees, debtors, bondholders, investors and secured lenders.

On the creditor side, Mr. Zide advises clients on distressed and bankrupt companies with complex corporate and capital structures. He provides incisive analysis and advice leveraging his extensive experience investigating and litigating fraudulent conveyance, fiduciary duty, intercreditor and valuation disputes; developing, negotiating and litigating Chapter 11 plans, cash collateral orders, debtor-in-possession financing, asset purchase agreements and equity commitment/backstop agreements; and developing and implementing rights offerings. Mr. Zide’s practice representing creditors is complimented by his experience representing distressed companies, and assisting debtors in navigating the complex legal, financial and operational issues that arise in Chapter 11.

Described as “very smart and commercial” and an “exceptionally talented and creative restructuring lawyer,” who “crafts creative deals and comes up with cutting-edge ideas” Mr. Zide is consistently recognized as a leading lawyer by Chambers USA for bankruptcy/restructuring. He was also recently recognized by The Legal 500 (US), with sources noting he is a "fantastic lawyer: he is innovative and understands the full picture with all of its intricacies.” M&A Advisor recognized Mr. Zide as “Legal Advisor of the Year” in 2020, and in 2019, he was named one of Turnaround and Workouts' “Outstanding Restructuring Lawyers.” He was previously regarded as a rising star for bankruptcy by some of the most prominent legal and industry publications, including Turnaround and Workouts, Law360 and M&A Advisor. He is also recognized as a New York Super Lawyer for 2019-21 and was a Super Lawyers “Rising Star” for 2014-2017.

Key Matters

  • An Unsecured Bondholder Group of Envision Healthcare, a leading provider of physician services to hospitals and health systems and operator of ambulatory surgical centers across the United States. Envision filed for Chapter 11 bankruptcy in the Southern District of Texas in May 2023 with over $7.8 billion in debt, including approximately $950 million in unsecured bonds. The Unsecured Noteholder Group entered into a settlement with Envision, which provided for significantly increased recoveries for unsecured bondholders than what Envision proposed at the outset of its bankruptcy case. Envision's chapter 11 plan, which incorporated the settlement, was confirmed in October 2023.
  • A Super Senior Lender Group of Diebold Nixdorf, a leading provider of automated teller machines and financial security software and hardware.  Diebold filed for Chapter 11 bankruptcy in the Southern District of Texas in June 2023 with over $2.7 billion in debt. The $400 million super senior debt tranche was paid in full in cash from the proceeds of Diebold’s DIP financing.
  • Redwood Capital Management in connection with liability management exercises by At Home Group, a leading home decor retail chain, including the issuance of $200 million of secured bonds and an exchange of approximately $450 million in unsecured bonds into secured bonds.
  • Ernst & Young Inc. as Monitor of Acerus Pharmaceuticals Corp., a specialty pharmaceutical company focused on the commercialization and development of innovative prescription products. Acerus filed a Chapter 15 bankruptcy petition in District of Delaware in January 2023 following the company's Canadian CCAA insolvency proceeding.
  • Wilmington Savings Fund Society, FSB, the indenture trustee of $350 million in bonds issued by Eletson Holdings Inc. (a Greek shipping company) in connection with litigation against Eletson for default under the bonds in the SDNY district court and involuntary proceedings commenced against Eletson in March 2023 in the SDNY bankruptcy court.
  • A First Lien Lender Group to Lyons Magnus LLC, a global foodservice and ingredient company and leader in the food service products industry, in connection with an out of court restructuring of over $400 million in financial obligations and an equity infusion by its equity sponsor.
  • A Surplus Noteholder Group of Ambac Assurance Corporation, a subsidiary of Ambac Financial Group Inc. (AFG), in connection with a series of lawsuits filed by Ambac against Bank of America entities, including Countrywide (which Bank of America acquired in 2008), related to RMBS insured by Ambac.  The litigation was settled in October 2022 for over $1.8 billion.
  • Genie Energy Ltd. in connection with the cross border Chapter 15 bankruptcy proceeding of Orbit Energy Limited, a global alternative energy company, which filed in the Southern District of New York in February 2022.  Genie is the parent company of Orbit, which filed its main insolvency proceeding in the United Kingdom.
  • Noteholder and Shareholders in the restructuring in the Summer of 2021 of over $700 million in funded debt of the Village Roadshow Group, a leading independent entertainment company, through a consensual out-of-court recapitalization.
  • Caliber Midstream and Riverstone Capital Partners in connection with the bankruptcy filing of Nine Point Energy in the District of Delaware in March 2021. Caliber is a midstream service provider that provided materials and services to NPE, an oil and gas exploration and production company operating in the Williston Basin of North Dakota and Montana. 
  • Dolphin Drilling in connection with the bankruptcy case of Seadrill, the owner and operator oil drillships, semisubmersible rigs, and jack-up rigs. Seadrill filed for bankruptcy in February 2021 with approximately US$5.6 billion in financial debt, and Dolphin, an offshore oil well driller that operates primarily in the North Sea, sought to acquire certain assets of Seadrill in bankruptcy. As part of that effort, Dolphin joined a consortium to bid on Seadrill’s assets.
  • The Creditors’ Committee of Gulfport Energy Corporation, which filed for Chapter 11 protection in the United States Bankruptcy Court for the Southern District of Texas on Nov. 13, 2020.
  • A Bondholder Group of Valaris plc, one of the largest oil rig owning companies in the world. Valaris filed for bankruptcy on Aug. 19, 2020, in the Southern District of Texas with over US$7 billion of financial debt, including approximately US$6.5 billion in bond debt and approximately US$600 million in revolver debt. The bondholder group, which held over US$3.7 billion of bond debt, negotiated and agreed with Valaris prior to the bankruptcy filing on a Restructuring Support Agreement providing for the conversion of all Valaris’ debt to equity pursuant to a Chapter 11 plan of reorganization. The bondholder group also provided US$500 million in DIP Financing, which was approved by the Bankruptcy Court following a contested two-day trial.
  • A Bondholder Group of Noble Corp. plc., a leading owner and operator in the offshore drilling industry. Noble filed for bankruptcy on July 31, 2020, in the Southern District of Texas with roughly US$4 billion of financial debt. The bondholder group, which held over US$695 million of bond debt, negotiated and agreed with Noble prior to the bankruptcy filing on a Restructuring Support Agreement providing for the conversion of all Noble’s debt to equity pursuant to a Chapter 11 plan of reorganization. Upon Noble’s emergence from bankruptcy, it implemented a rights offering for the issuance of US$200 million of new second lien notes which was backstopped by the bondholder group.
  • Bluestem Group Inc., the non-debtor parent company and largest unsecured creditor of Bluestem Brands, Inc. (BBI), an online and catalog retailer, in connection with BBI’s bankruptcy filing in the District of Delaware on March 9, 2020. BBI’s restructuring was accomplished through a global settlement among BBI, BGI, and other key constituencies, which resulted in the successful sale of BBI’s assets to BBI’s secured lenders pursuant to a plan of reorganization that went effective in August 2020.
  • The Creditors’ Committee of RAIT Funding LLC, a real estate investment trust, which sought Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on August 30, 2019.
  • The Secured Noteholder Group of MZ Funding LLC, a special purpose affiliate of MBIA Insurance Corp. Approximately US$300 million of secured notes were issued by MZ Funding to refinance existing notes issued in 2017 to provide MBIA with financing to pay claims on its policy insuring notes issued by certain Zohar entities.
  • A First Lien Lender Group of Payless Inc., the largest specialty family footwear retailer in the Western Hemisphere, with approximately 3,400 stores in more than 40 countries. Payless filed for Chapter 11 bankruptcy in the Eastern District of Missouri in February 2019. The ad hoc group provided Payless with DIP financing in connection with the bankruptcy filing.
  • A Preferred Shareholder Group of Ambac, a subsidiary of Ambac Financial Group Inc. (AFG), in connection with an exchange of approximately US$660 million aggregate liquidation preference of Ambac preferred shares for senior surplus notes of Ambac and cash and warrants from AFG.

Includes matters handled at Dechert and prior to joining the firm.

    • Hildene Capital Management in connection with the bankruptcy of Scottish Annuity & Life Insurance Co. and Scottish Holdings Inc., two subsidiaries of Scottish Re Group Ltd. (SRGL). SRGL is a life reinsurer with operations in multiple countries including a U.S.-based, Delaware- domiciled reinsurance affiliate, Scottish Re (U.S.) Inc., which has approximately US$1.68 billion in assets.
    • A First Lien Lender Group of Westmoreland Coal Company, the sixth largest North American coal producer. Westmoreland filed for bankruptcy in the Southern District of Texas in October 2018 after entering into a US$110 million bridge loan facility and restructuring support agreement with the lender group. Westmoreland’s chapter 11 plan, which became effective in March 2019, restructured approximately US$1 billion of financial debt, OPEB and other legacy liabilities.
    • The Creditors’ Committee of Toys “R” Us, the world’s leading toy and baby products retailer, with nearly 65,000 employees and approximately 1,900 locations in 38 countries, which filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Virginia on Sept. 18, 2017. 
    • Elliott Management Corp. and Aurelius Capital Management LP, as holders of more than US$1 billion of secured and unsecured claims, in the Chapter 11 case of Peabody Energy, the world’s largest publicly traded, private-sector coal company. Elliott and Aurelius participated in Peabody’s DIP financing, and a mediation that achieved agreement across Peabody’s capital structure on the terms of a Chapter 11 plan. The foundation of the plan, which was supported overwhelmingly by every class of creditors, was a US$1.5 billion equity raise backstopped by Elliott, Aurelius and other creditors. Peabody’s Chapter 11 plan, which became effective in April 2016, restructured debt of approximately US$8.8 billion.
    • A Secured Noteholder Group of MZ Funding LLC, a special-purpose entity affiliate of MBIA. The Noteholder Group lent US$328.5 million in notes to MZ Funding notes which were loaned to MBIA to pay claims on its policy insuring notes issued by the Zohar II collateralized loan obligation.
    • Luxor Capital Group LP, as the largest unsecured creditor in the bankruptcy case of RCS Capital Corp. In May 2016, RCS emerged from bankruptcy under a new moniker, Aretec Group Inc., with a network of 9,100 independent retail investment advisers, who provide financial advice to approximately 2.5 million clients and have approximately US$220 billion in assets under administration. Under the Chapter 11 plan, RCS transferred certain litigation claims to a trust for the benefit of unsecured creditors and funded the trust with US$15 million in cash and warrants for 10 percent of Aretec.
    • The Creditors’ Committee of NII Holdings Inc., one of the leading providers of mobile communication services operating under the Nextel brand in Latin America. Through its Chapter 11 plan NII restructured approximately US$8 billion of debt.
    • Bank of New York Mellon as indenture trustee for approximately US$120 million in municipal bonds issued by ACR Energy Partners LLC, the largest unsecured creditor of the Revel Resort and Casino in Atlantic City.
    • The Creditors’ Committee of Residential Capital (ResCap). ResCap was a wholly owned subsidiary of Ally Financial Inc. (formerly GMAC) that serviced more than 2.4 million domestic residential mortgage loans with a value of approximately US$374 billion. The committee played a key role in the sale of ResCap’s servicing and origination business and loan portfolio and led the negotiation of a US$2.1 billion settlement between AFI, ResCap and ResCap’s major creditor constituencies, which resolved numerous contested issues in the bankruptcy cases, including RMBS “put-back” litigation.
    • A Noteholder Group of Eastman Kodak Co., one of the world’s leading material science companies. The group served as backstop parties in connection with Kodak’s US$400 million equity rights offering, forming the cornerstone of Kodak’s Chapter 11 reorganization in 2013.
    • American Capital Ltd., in the bankruptcy cases of one of the nation’s largest catalog retailers, Orchard Brands. American Capital and other lenders provided a US$140 million debtor-in-possession financing and negotiated the terms of a plan of reorganization that substantially deleveraged Orchard.
    • The Creditors’ Committee of Cooper-Standard Holdings Inc., a leading manufacturer of fluid handling, body sealing, and noise and vibration control components, systems and modules in passenger vehicles and light trucks. Cooper filed for bankruptcy with more than US$1.1 billion in funded debt and, in a period of less than ten months, confirmed a fully consensual Chapter 11 plan with a rights offering that eliminated more than US$600 million in debt.
    • A group of state environmental authorities and water districts with substantial claims for a contaminated site located in Henderson, NV, in connection with the bankruptcy cases of Tronox. The group’s opposition to Tronox’s original Chapter 11 plan led to a modified plan that tripled the cash consideration distributed to fund the clean-up of the site.
    • The Equity Committee of Vermillion Inc., a developer of medical devices and diagnostic tests. Vermillion, confirmed a consensual Chapter 11 plan after nine months, providing its creditors with payment in full and the reinstatement of the company’s equity interests.
    • A Bondholder Group of ASARCO LLC, an integrated copper-mining, smelting and refining company that was one of the leading producers of copper and nonferrous metal in the United States. The group prosecuted their own plan of reorganization while opposing any plan that paid creditors less than in full, resulting in competing plans that paid unsecured creditors in full plus post-petition interest.
    • The Creditors’ Committee of Dana Corp., a leading supplier of automotive parts to every major vehicle producer in the world. The committee played a lead role in addressing issues which facilitated Dana’s reorganization, including the large-scale divestitures of unprofitable business segments, pension and other post-employment benefits, collective bargaining agreements, intercompany claims, preservation of Dana’s net operating losses, potential asbestos liabilities, and a rights offering.
    • The second lien agent and lender in the bankruptcy of Premier Leasing, a provider of semitrailer rentals for the midmarket segment of the transportation industry.
    • Plainfield Asset Management LLC as the largest secured creditor in the bankruptcy case of Wolverine Tube, a global manufacturer of copper and copper alloy tube and metal joining products.
    • A substantial equity holder in the bankruptcy case of Visteon, a global automotive supplier.
    • Genco Shipping & Trading Ltd., an international dry bulk shipping company, in restructuring US$1.4 billion of debt through a pre-packaged plan of reorganization. Genco’s plan was confirmed in less than three months over the objection of an official equity committee after a hotly contested valuation trial.
    • General Maritime Corp., one of the largest shipping companies in the world, in the seventh largest bankruptcy filing of 2011. General Maritime filed for bankruptcy amid the worst downturn in the shipping industry in decades, with a US$75 million debtor-in-possession facility and a restructuring support agreement that contemplated a US$175 million new capital infusion, obtained approval of a disclosure statement over the objection of the creditors’ committee within three months, and ultimately reached an agreement on the terms of a fully consensual plan of reorganization.
    • Saint Vincent Catholic Medical Centers, a prominent health care system with operations throughout New York City and surrounding counties, in Chapter 11 cases involving complex issues affecting the preservation and disposition of substantial assets (including the debtors’ Manhattan real estate formerly used to operate the hospital), ongoing patient care subject to regulatory oversight by various agencies, and a diverse group of creditors (including various classes of secured, union, pension and medical malpractice creditors), which resulted in a fully consensual Chapter 11 plan.
    • Bally Total Fitness Holding Corp., one of the largest full-service commercial operators of fitness centers in North America, in the restructuring of the company’s operations (including more than 300 fitness clubs), the securing of exit financing, the negotiation of a consensual disclosure statement and plan of reorganization, and its emergence from bankruptcy with a substantially restructured operational footprint and its debt burden reduced from approximately US$800 million to US$75 million.
    • Ascendia Brands Co. Inc., a national leader in the manufacture and sale of blended and private label health and beauty care products, in a bankruptcy that involved marketing and selling the company’s portfolio of nationally and internationally recognized brands such as Baby Magic, Binaca, Mr. Bubble, Calgon, Ogilvie and Lander.
    • Berry-Hill Galleries, a world-class art gallery operated by members of the Hill family for more than 100 years, in obtaining confirmation of a plan of reorganization that provided for payment in full, plus interest, of allowed claims, and the stabilization of a fragile business that was beset by litigation on multiple fronts and confronted with significant liquidity concerns.

    Includes matters handled at Dechert and prior to joining the firm.

    • Bankruptcy/Restructuring – New York – Chambers USA (2021 – 2022)
    • Restructuring (including Bankruptcy) – The Legal 500 (US) (2023)
    • New York Super Lawyers (2019 – 2021)
    • Legal Advisor of the Year – M&A Advisor (2020)
    • Outstanding Restructuring Lawyers – Turnarounds & Workouts (2019)
    • Rising Star in Bankruptcy Law – Law360 (2016)
    • Outstanding Young Restructuring Lawyer – Turnarounds & Workouts (2015)
    • 40 Under 40 Emerging Leaders, Legal Advisor – M&A Advisor (2015)
    • Rising Star – New York Super Lawyers (2014 – 2017)
    • Action by Inaction: In re Armstrong Flooring – American Bankruptcy Institute Journal (April 2023)
    • Liability Management Transactions – AIRA Journal, Vol 36: No 2 (May 11, 2023)
    • Numerosity Unwound: Counting Votes on a Chapter 11 Plan – Norton Journal of Bankruptcy Law and Practice (February 1, 2022)
    • Backstop and Private Placement Agreements: Commitment or Plan Treatment? – Norton Journal of Bankruptcy Law and Practice (April 1, 2021)
    • A Committee of None: Section 1114 Relief When No Retirees Will Serve – American Bankruptcy Institute Journal, Vol. 39, No. 4 (April 28, 2020)
    • Determining Diminution in Value: Key Issues on Valuing Adequate-Protection Claims – American Bankruptcy Institute Journal, Vol. 39, No. 1 (January 7, 2020)
    • Claim Treatment or New Investment? – American Bankruptcy Institute Journal, Vol. 38, No. 12 (December 10, 2019)
    • Implementing ISDA's Credit Derivatives Definition Changes – Law360 (August 26, 2019)
    • Opportunistic Credit Default Swap Strategies – Practical Law (November 8, 2018)
    • Addressing the Statute of Limitations in Serial Asset Sales Violating an Indenture – JD Supra (June 6, 2018)
    • CDS Market Integrity After Hovnanian – JD Supra (April 2, 2018)
    • District Court Upholds Damage Limitations for Lender’s Refusal to Fund: Lyondell Revisited – JD Supra (March 30, 2018)
    • Lyondell Chemical Company: Litigation Trust’s Fraudulent Conveyance Claims Fail – The Banking Law Journal (September 2017)
    • NDAs With Compelled Disclosure Are Critical to Reaching a Deal – New York Law Journal, Vol. 256, No. 107 (December 5, 2016)
    • Prepackaged Bankruptcy: Is It Right for Your Company? – American Bankruptcy Institute Journal, Vol. 34, No. 10 (October 30, 2015)
    • I’m Adequately Protected; Now What? Measuring Diminution Value – American Bankruptcy Institute Journal (April 16, 2014)

     

    • The Impact CLOs Are Having on Corporate Bankruptcies — 2023 Dechert Distressed Investing Forum, Dechert LLP – New York, NY (November 1, 2023)
    • Bankruptcy and Evaluating the Financial Health of an Entity — Pocket MBA 2023: Finance for Lawyers and Other Professionals, Practising Law Institute (PLI) – Chicago, IL (October 18, 2023)
    • Recent Confirmation Issues — New York City Bankruptcy Conference, American Bankruptcy Institute (ABI) – New York, NY (May 24, 2023)
    • PCES 2023: Lender Versus Lender — Private Credit Educational Summit 2023, Benefit Street Partners – New York, NY (April 25, 2023)
    • Creditor or Prey: A Discussion of Intercreditor Treatment in Restructuring Transactions — 2022 Dechert Distressed Investing Forum, Dechert LLP – New York, NY (October 27, 2022)
    • What Lawyers Need to Know About UCC Article 9 — Secured Transactions 2021, Practising Law Institute (PLI) (Jan. 07, 2021)
    • What Lawyers Need to Know About UCC Article 9 — Secured Transactions 2020, Practising Law Institute (PLI) (Jan. 16, 2020)
    • What Lawyers Need to Know About UCC Article 9 — Secured Transactions 2019, Practising Law Institute (PLI) (Jan. 07, 2019)
    • Unconventional CDS Credit Events: Hovnanian Enterprises — Debtwire (May 17, 2018)
    • Default, Enforcement and Bankruptcy - UCC Considerations When Things Go Wrong — Secured Transactions 2018, Practising Law Institute (PLI) (May 17, 2018)
    • Secured Lending and Secured Transactions Joint Subcommittee Meeting — ABA Business Law Section Annual Meeting (September 14, 2017)
    • What Lawyers Need to Know About UCC Article 9 — Secured Transactions 2017, Practising Law Institute (PLI) (January 11, 2017)
    • Understanding Cash Collateral and Debtor-in-Possession Financing Orders — American Bar Association Conference (September 17, 2015)
    • United States Bankruptcy Court, Eastern District of New York, Honorable Jerome Feller