PWK’s Scott Gautier Leads Counsel In Sexy Hair Concepts’ Swift Emergence From Chapter 11, Capped By $88M Private Equity Deal
Imperial Capital and CRG Partners Play Major Role in Reorganization Solution
Los Angeles- May 2, 2011— Just 125 days after filing chapter 11 on behalf of Sexy Hair Concepts, Peitzman, Weg & Kempinsky LLP’s Scott F. Gautier counseled the hair care product manufacturer through the confirmation of its plan of reorganization and closed the company’s related $88 million equity transfer deal by a private equity fund focused on branded consumer businesses.
The fast-track timeframe for plan confirmation included the settlement of the debtor’s exposure in an industry-wide class action lawsuit and overcoming the objections to the restructuring transaction by the $25 million subordinated note-holder. The note-holder, represented by the law firms of Pachulski Stang Ziehl & Jones and Schiff, Hardin & Waite, negotiated an improved settlement from the debtor’s proposed plan treatment.
The reorganized entity exited chapter 11 with a strong financial facelift and improved business results over the past year. This achievement was the culmination of an extensive restructuring effort led by Gautier, Scott Avila of CRG Partners, providers of financial restructuring and operational improvement services, and Robert Warshauer of Imperial Capital, an investment banking firm. The firms began advising Sexy Hair during its default, continuing through a 14-month restructuring period leading to its year-end chapter 11 filing, up until the successful equity funding on April 25, 2011.
“Despite the diverse challenges that could have easily destroyed a successful resolution for Sexy Hair, I believe the team’s efficient orchestration of a successful exit from chapter 11 was due in part to our ability to infuse a persuasive practicality and purpose into our negotiations with all interested parties,” said Gautier. He was assisted in the matter by PWK colleagues Lorie Ball, Thor McLaughlin and Kathryn Russo.
Sexy Hair filed for chapter 11 December 21, 2010 in the U.S. Bankruptcy Court for the Central District of California, its plan was confirmed April 8, 2011 and just 17 days later, on April 25, the $88M transaction was completed. The case is In Re: Sexy Hair Concepts LLC, case number 10-bk-25922.