Buchwald Capital Advisors LLC, New York, NYPresident
Founder and principal of investment banking firm specializing in financial restructuring, fiduciary and advisory services.
- Managed over 125 transactions in over thirty-five year career in investment banking.
- Serving as a trustee, independent director and providing litigation support and expert testimony.
- Providing senior-level personalized advice to companies, creditors and other parties-in-interest regarding bankruptcies, restructurings, acquisitions and dispositions.
Chanin Capital Partners, New York, NYManaging Director
Co-managed New York office of investment bank specializing in financial restructuring advisory services. Advised unsecured creditors, secured creditors and corporations in chapter 11 reorganizations and financial restructurings.
Salomon Brothers Inc., New York, NYDirector, Mergers and Acquisitions
Senior investment banker in charge of development and execution of domestic and international restructuring /M&A transactions. Advised corporations regarding financial and corporate restructurings, troubled company acquisitions, strategic business combinations and divestitures.
Rothschild Inc., New York, NYManaging Director, Corporate Finance
Advised clients on financial and operational restructurings, mergers and acquisitions, divestitures, privatizations, and raising capital through public and private securities placements. Through a broad range of transactions developed extensive knowledge of the aerospace, building products, financial services, manufacturing, pharmaceutical, retail, steel, transportation and utilities industries.
- Took a lead role in developing one of the most prominent restructuring practices in the country.
- In completing 30 restructuring assignments, became skilled at efficiently analyzing companies’ problems, assessing values, and developing, negotiating and implementing reorganization plans to maximize clients’ recoveries.
Smith Barney, Harris Upham & Company, Inc., New York, NYAnalyst, Public Finance Department
William E. Hill & Company, New York, NYResearch Associate, Management Consulting
McKinsey & Company, Inc., New York, NYResearch Assistant
- Magnesium Corporation of America and Renco Metals, Inc.: Mr. Buchwald is the Chapter 7 Trustee for both of these related companies, which had been owned by Ira Rennert and his holding company The Renco Group, Inc. Mr. Buchwald successfully prosecuted an adversary proceeding against Mr. Rennert, Renco and others asserting fraudulent conveyance, breach of fiduciary duty and other claims in connection with the payment of over $118 million in dividends, stock redemption and bonus payments to insiders made while both companies were insolvent. In February 2015, a jury awarded damages in excess of $117 million, which with interest resulted in a judgment in excess of $213 million. In August 2015, defendants filed an appeal which was fully bonded. After two hotly contested hearings in the Bankruptcy Court and one in the District Court, in September 2016, Mr. Buchwald obtained Court approval of an agreement whereby he sold an interest in the potential litigation recoveries to an affiliate one of the world’s largest litigation funders, Gerchen Keller (acquired by Burford Capital Limited in December 2016), for $26.2 million. This enabled him to monetize a portion of this speculative asset, hedge the estates’ downside exposure, provide much needed liquidity to the Debtors, and guarantee that there will be money for creditors. As reported in the American Lawyer and other media outlets, no transaction like this has ever been done in a pending bankruptcy case. On March 8, 2017, the Second Circuit Court of Appeals issued its decision affirming Mr. Buchwald’s $213 million judgment against Ira Rennert and Renco Group in all respects. On August 9, 2017, Defendants filed a Petition for Writ of Certiorari with the United States Supreme Court, which was denied on October 10, 2017. Thereafter, Mr. Buchwald collected approximately $214.7 million on account of the Judgment. After making that substantial recovery on account of his litigation claims in October 2017, Mr. Buchwald devoted significant time and effort to negotiating a Global Settlement among the three largest creditors groups: the Government, the Indenture Trustee and noteholders, and Renco Group and related entities. He worked tirelessly to successfully resolve four sets of complex issues to achieve a prompt distribution to creditors without squandering estate resources on years of litigation. Despite years of animosity and mistrust among the parties, who were diametrically opposed on virtually every issue, Mr. Buchwald spearheaded multilateral negotiations and ultimately achieved a consensual resolution. As a result, on July 16, 2019, Mr. Buchwald filed a motion with the United States Bankruptcy Court for the Southern District of New York, seeking Bankruptcy Court approval of a Global Settlement Agreement. By Order dated August 23, 2019, the Court approved the Global Settlement Agreement. Thereafter, Mr. Buchwald promptly distributed over $80 million to creditors and established a $5.9 million escrow account to defray costs associated with remediating environmental contamination caused by MagCorp’s former operations at its Rowley, Utah site. He is particularly proud that approximately $33 million will be made available to address environmental issues associated with MagCorp’s former magnesium manufacturing operation.
- Friedman’s Inc.: Mr. Buchwald was the sole Director, President and CEO, designated by the Unsecured Creditors’ Committee to oversee the Chapter 11 liquidation of this retail jewelry chain. Following confirmation of its Plan of Reorganization, Buchwald Capital Advisors became the Liquidating Trustee of each of the Friedman’s Liquidating Trust and the trust for Friedman’s subsidiary, Crescent Liquidating Trust. Unsecured creditors’ recoveries totaled 36% for Friedman’s and 19.7% for Crescent.
- New Stream Secured Capital, Inc.: Buchwald Capital Advisors served as the Liquidating Trustee for the New Stream Class 2 Creditors Liquidating Trust which was established following the liquidation of this hedge fund. Mr. Buchwald is served as a member of New Stream’s Wind Down Oversight Committee which oversees the disposition of a broad range of assets including real estate, operating companies and financial assets. In addition, he served as a Director of Diversified Terra Holdings Ltd., a related real estate and oil and gas investment fund.
- B+H Ocean Carriers Ltd.: Buchwald Capital Advisors served as the Liquidating Trustee for this offshore international shipping company. The Trust achieved recoveries ranging from 7% to 68% for eight debtor entities.
- Midway Games, Inc.: Buchwald Capital Advisors served as Liquidating Trustee for the Midway Liquidating Trust on behalf of bondholders and unsecured creditors. The Trust pursued over 100 preference actions, reconciled claims and recovered estate assets. It successfully recovered 17% and 26% of bondholder and unsecured creditor claims, respectively.
- Luxury Resort Investment Holding Company: Mr. Buchwald served as an independent director of this private equity company owned resort. He oversaw the successful restructuring of its secured debt obviating the need for a bankruptcy filing.
- NYTEX FDF Acquisition, Inc.: Mr. Buchwald served as an independent director of a subsidiary of a nominally publicly-held oilfield services company. In that capacity, he assisted in successfully completing a sale of assets in a multi-party, contentious situation which resulted in a substantial recovery to the private equity group that controlled the entity.