Case Study: Belk

Achieved the Fastest Chapter 11 in US History for Retailer 

An O’Melveny team represented the ad hoc group of Belk Inc. first lien lenders in one of the most high-profile retail restructurings of 2021, and the fastest chapter 11 case in US history.

Under the Belk prepackaged chapter 11 plan, which received near unanimous support from first and second lien lenders and the Belk’s equity sponsor (Sycamore Partners), members of the ad hoc first lien group received new first lien debt and equity in the reorganized company and the right to participate in a new capital raise that will provide Belk with the liquidity to execute on its business plan and weather the effects of the COVID 19 pandemic.

As a result of the consensus achieved among first and second lien lenders and Sycamore, unsecured claims were unpaired and received a 100% recovery under the plan.