Jones Day's City arm ties up Dana pensions restructuring
Jones Day's London office has completed a controversial restructuring of car part manufacturer Dana's UK pension liabilities.
May 09, 2007 at 10:05 PM
2 minute read
Jones Day's London office has completed a controversial restructuring of car part manufacturer Dana's UK pension liabilities.
The restructuring was agreed last month with the liabilities understood to be worth a nine-figure sum.
UK head of restructuring Adam Plainer led a 30-lawyer team from Jones Day's London arm which also included employee benefits partner John Papadakis, corporate partner John Phillips and employment partner Mark Taylor.
Dana UK's parent company, Dana Corporation, entered into Chapter 11 in the US last year in what remain the largest Chapter 11 proceedings since the start of 2006.The firm is also handling ongoing proceedings for Dana worldwide with New York restructuring partner Corinne Ball leading.
The UK pension agreement saw the scheme's four creditors settle a substantial portion of their liabilities in exchange for a one-off cash settlement and a transfer of a portion of equity in the business. The liabilities were transferred to a new special purpose company with the structure intended to preserve jobs and allow planned sales of non-core UK businesses to go ahead.
With workers' pensions at stake, the deal required the agreement of the pension scheme trustees, the Pensions Regulator and the Pension Protection Fund as well as discussions with unions.
Herbert Smith, Eversheds, Hammonds and Wragge & Co acted for the four pension schemes with Herbert Smith finance partner Laurence Elliott coordinating agreements. Denton Wilde Sapte head of reconstruction and insolvency Mark Andrews acted for the Pension Protection Fund while Memery Crystal acted for the Dana UK directors and Berwin Leighton Paisner acted for the US creditors.
Plainer told Legal Week: "The UK had these huge pensions liabilities and with four different pension schemes I do not think there has been a restructuring as complex. It is likely to become a standard; as troubled companies may need to deal with their pension liabilities without further damage to their business."
Jones Day's UK office now has 10 lawyers focusing purely on restructuring, including new senior associate Paul Bromfield, who is joining in July from Linklaters.
According to reports in the US, the Dana restructuring generated fees for advisers of $26m (£13m) over just four months this year with Jones Day reportedly charging Dana roughly that figure in fees and expenses since the case began.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllA&O Shearman, Hogan Lovells & 10 Top Stories That Shaped Africa in 2024
4 minute readChristmas Mega-Deal Roundup: Direct Line, Wingstop and Foxtel Find Buyers
3 minute readFreshfields, MoFo Act on $1.8B TOPPAN Deal As Japan's US Buying Spree Continues
Trending Stories
- 1'Largest Retail Data Breach in History'? Hot Topic and Affiliated Brands Sued for Alleged Failure to Prevent Data Breach Linked to Snowflake Software
- 2Former President of New York State Bar, and the New York Bar Foundation, Dies As He Entered 70th Year as Attorney
- 3Legal Advocates in Uproar Upon Release of Footage Showing CO's Beat Black Inmate Before His Death
- 4Longtime Baker & Hostetler Partner, Former White House Counsel David Rivkin Dies at 68
- 5Court System Seeks Public Comment on E-Filing for Annual Report
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250