LRC served as sole counsel to the Official Committee of Equity Security Holders (the “Equity Committee”) in the Chapter 11 proceedings of Tuscany International Drilling Inc. and its affiliates (“Tuscany”) in the United States Bankruptcy Court for the District of Delaware. LRC engaged in extensive litigation over the proposed pre-negotiated Chapter 11 Plan, which would have delivered all of Tuscany’s assets and value to their prepetition lenders (the “Lenders”), represented by Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent under the prepetition credit agreement (the “Agent”). On behalf of the Equity Committee, LRC negotiated material changes to Tuscany’s proposed bidding procedures and marketing process to ensure that Tuscany’s assets were adequately marketed. LRC subsequently negotiated a global settlement that was embodied in an amended plan of reorganization. Pursuant to the settlement, the Lenders agreed to carve out certain assets to be placed in a settlement trust controlled by designees of the Equity Committee, including causes of action against Tuscany’s officers and directors and all insurance related thereto, for the benefit of equity security holders (the “Settlement Assets”). Pursuant to a sharing agreement negotiated by LRC and embodied in an amended plan of reorganization, the Settlement Assets are expected to provide a significant recovery to Equity Holders, who would have received no distribution under the plan initially filed by Tuscany (with support of the Lenders).
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