White & Case Advises on the US$2 Billion Restructuring of 245 Park Avenue Property LLC and Certain Affiliates

Global law firm White & Case LLP has represented 245 Park Avenue Property LLC and certain of its affiliates (collectively, the Debtors) on the successful restructuring of approximately US$2 billion of funded indebtedness related to the commercial office tower located at 245 Park Avenue in New York City. As part of that transaction, the 245 Park Avenue property will be transferred to an affiliate of SL Green Realty Corp., the largest office landlord in Manhattan.

The Debtors filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware in October 2021 due to a decline in earnings and liquidity due to a number of factors, including the COVID-19 pandemic, which significantly impacted the global economy and PWM’s businesses. In addition to owning the commercial office tower located at 245 Park Avenue, the Debtors also own a commercial office tower located at 181 West Madison Avenue in Chicago’s historic Loop. 

The chapter 11 plan was confirmed on August 31, 2022 and became effective on September 9, 2022 with respect to those Debtors that hold an interest in 245 Park Avenue. The plan restructures approximately US$1.76 billion of 245 Park Avenue’s existing mortgage and mezzanine debt on a fully consensual basis and will pay all of 245 Park Avenue’s administrative, priority, and trade claims in full in cash.  

The White & Case team was led by Financial Restructuring and Insolvency partners Thomas Lauria (Miami), Bojan Guzina, Gregory Pesce (both in Chicago) and Andrew Zatz (New York); M&A partners Adam Cieply and Daniel Kozin (both in New York); Real Estate partners Gene Leone (Chicago) and Steven Lutt (New York); Tax partner Scott Fryman (New York); Commercial Litigation partner Jason Zakia (Chicago); and Debt Finance partner Francis Zou (New York). The team also included Financial Restructuring and Insolvency counsel Fan He (Miami) and Richard Graham (New York); Financial Restructuring and Insolvency associates Kathryn Sutherland-Smith, Barrett Lingle, Lauren Lundy, Livy Mezei, Drew Magee (all in New York), Maria Protic, Reed Rogan (both in Chicago) and Gregory Warren (Miami); Commercial Litigation counsel Jesse Green (New York); Commercial Litigation associates Laura Garr (New York) and Elizabeth Barnes Coburn (Chicago); M&A associates Jane Kim and Amy Jiang (both in New York); Real Estate associate Christian Berger (New York); and Tax Associate Neil Clausen (Houston). Law clerks Dominic Gattuso, Kyle Ferrier and Stephen Ludovici assisted on the matter.

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