Baker & McKenzie advised UPC Polska, Inc. (now known as UPC Polska, LLC) on its recent financial restructuring and successful emergence from Chapter 11 proceedings. The restructuring arrangement discharged more than $950 million in debt from UPC Polska’s balance sheet, and involved the issuance of more than $200 million in consideration to UPC Polska’s creditors in the form of cash, new notes and parent company common stock. UPC Polska is Poland’s largest cable television operator, and it is part of Liberty Media Corporation’s empire of cable assets.
The Chapter 11 proceeding was filed in the U.S. Bankruptcy Court for the Southern District of New York on July 7, 2003. UPC Polska’s plan of reorganization was confirmed by that Court on January 22, 2004 and the company’s financial restructuring was completed on February 18, 2004.
Corporate & Securities Partner, Marc Paul, and Bankruptcy Partner, Ali Mojdehi, led the Baker & McKenzie team and were supported by other professionals in the San Diego, Washington, DC, New York, Dallas and Warsaw, Poland offices. Ali Mojdehi said, “This was a complex bankruptcy, involving a prenegotiated restructuring, then a court-ordered mediation with the Creditors Committee, followed by a confirmation hearing that was contested by a large creditor, and finally an appeal to the U.S. District Court from that same creditor. We are happy to have had the opportunity to guide our client UPC Polska through this obstacle course and to its goal of a successful financial restructuring.”
Commenting on the announcement and Baker & McKenzie’s role, Marc Paul added, “This transaction displayed effective cooperation not only among offices, but also among numerous practice groups. It shows what can be achieved when an organization combines broad geographical reach with effective teamwork.” Attorneys involved in the transaction were from the Private Equity, Bankruptcy, Securities, Finance, Litigation and Tax practice groups.
This transaction marks another in a series of important financial transactions that Baker & McKenzie has performed for UPC Polska. Since representing private equity firm Advent International in its initial investment into UPC Polska (then known as @Entertainment, Inc.), the Firm has assisted UPC Polska in three public bond offerings, a preferred stock offering, an IPO on NASDAQ, a buyout via tender offer by Europe’s largest cable television company, and numerous other transactions.