On behalf of the majority shareholders of the Greek shipping company Eletson Holdings Inc., a Sidley team secured a significant win in the United States Bankruptcy Court for the Southern District of New York on May 29, 2024. During a three-day trial, which involved testimony from seven expert and fact witnesses, the Sidley team successfully defended Eletson’s shareholders against an attempted governance takeover and Chapter 11 trustee appointment motions filed by the Office of the U.S. Trustee, the Official Unsecured Creditors Committee (UCC), and the Petitioning Creditors.
On March 7, 2023, creditors initiated involuntary Chapter 7 cases against Eletson and two of its subsidiaries, claiming it had failed to repay US$354 million owed on notes issued in 2018. Eletson converted the Chapter 7 proceedings into voluntary Chapter 11 cases in September of 2023 and has since faced numerous challenges from the petitioning creditors and the UCC, both of which include a vulture hedge fund attempting a takeover of Eletson.
The Sidley team included Duston McFaul, Bill Curtin, and Michael Sabino. Rob Velevis also provided strategic input and consulting throughout the matter.
