Akin Gump Secures Successful Resolution to NII Bankruptcy Proceedings

(New York) - A cross-practice team at Akin Gump has concluded a successful Chapter 11 confirmation trial on behalf of Aurelius Capital, which, along with Capital Research, was one of the two largest creditors owning hundreds of millions of bonds of NII, the bankrupt Latin American arm of the telecommunications company Nextel. On June 18, a U.S. bankruptcy court judge gave approval of NII’s plan to exit Chapter 11 bankruptcy which, among other things, included ceding control of $4.35 billion in bonds to Aurelius and other holders.

The Akin Gump team helped to develop a legal thesis regarding certain claims and causes of action pertaining to NII bonds, and successfully forged a consensual resolution of these claims that eventually garnered the support of the debtors, the official committee, an independent manager for one of the estates appointed by the bankruptcy court, Capital Research and a super majority of the debtors’ noteholders.

One holdout group, comprising a smaller ad hoc committee of the notes most adversely affected by the settlement, attempted to block confirmation of the plan. However, the bankruptcy court, following a nine-day trial, overruled their objection. 

The Akin Gump team included the following individuals (listed with their respective practices):

Litigation: Partners David Zensky and Deborah Newman; associates Jack Murphy, Shawn Dixon, Annie Evans, Carly Weinreb and Kate Powers; and staff attorney Melodie Young.

Corporate: Partners Russell Parks, Rosa Testani and Alan Laves; and senior counsel Erica McGrady.

Tax: Partner Howard Jacobson and associate Sarah Salzenberg

Financial Restructuring: Partners Daniel Golden and David Botter; counsel Brad Kahn; and associate Naomi Moss.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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