Lehman Brothers Inc., through its subsidiaries, was one of the largest investment banking firms in the world that provided various financial services to corporations, governments and municipalities, institutions, and high-net-worth individuals worldwide. The firm operated in three segments: Capital Markets, Investment Banking, and Investment Management.
On September 15, 2008, Lehman Brothers Holdings, Inc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York (Manhattan). The bankruptcy filing of Lehman Brothers and its parent Company, Lehman Brothers Holdings, ranks as the largest bankruptcy in U.S. history. Cypress is acting as financial advisor to the Trustee for the SIPA Liquidation of Lehman Brothers Inc. in the Company’s Chapter 11 proceeding.
The Trustee for the SIPA Liquidation of Lehman Brothers Inc. engaged Cypress to assist in its evaluation of financial alternatives in connection with its $65.0 million of Invicta Capital’s Auction Rate Notes position. Cypress had a series of discussions with Invicta Capital (“Issuer”) that culminated in the Issuer submitting a proposal for the acquisition of the Notes. In evaluating the offer, Cypress undertook due diligence and analytics, considered similar securities as well as market bids on similar debt securities from major broker-dealers of the issuer structured debt securities trading desks. In conjunction with its evaluation, Cypress conducted a Market Check process whereby a number of qualified institutional investors were contacted to ascertain interest in acquiring the Notes. Through subsequent discussions with the Issuer along with bids received from third parties, Cypress successfully negotiated ultimate consideration in excess of 4 times what was proposed in the initial offer.
Chem Rx is a provider of institutional pharmacy services serving the New York City metropolitan area, as well as parts of New Jersey, upstate New York, Pennsylvania and Florida. Chem Rx’s client base includes skilled nursing facilities and a wide range of other long-term care facilities.
Cypress represented the company in the restructuring of certain terms of its senior secured debt and the subsequent sale to PharMerica following its bankrupcy.
PJ Finance Company owns a portfolio of 9,500 multifamily units in major metropolitan areas in the Sunbelt region including Dallas, Phoenix, Atlanta, Houston, Fort Lauderdale and Nashville. The Company filed for bankruptcy in March 2011 with more than $475 million in debt.
Cypress represented Gaia Real Estate in a §363 auction to acquire PJ Finance. The auction was conducted over 72 hours on three separate dates and involved several key terms including the terms of the assumption of debt and the recapitalization of the Company through an equity infusion. Gaia’s bid, financed in part by Starwood, was deemed a better bid over bids submitted by Fortress Investment Group and Oaktree Capital Management.
Orion suffered a major explosion and fire in early 2003. The resulting damages and business interruption losses totaled more than $150 million.
As a result of the fire, Orion filed for Chapter 11 bankruptcy protection in May 2003 and emerged approximately a year later. Cypress was hired as liquidating trustee in mid-2004.
Cypress worked with refinery process engineers to counter Orion’s insurers’ arguments on the size of Orion’s claim. Cypress was able to negotiate on increase from the insurers’ offer of approximately 40% of Orion’s claim to almost 90% of the claim.
Orion had sold its refinery during the bankruptcy to Valero. In addition to cash, part of the consideration received was Valero preferred stock and an earn-out based on crack spreads. Cypress created an auction for the earn-out and sold it for $136 million. Cypress also organized the sales of blocks of the preferred shares.
