321 North Clark Street
Erik Chalut’s practice involves commercial bankruptcy, insolvency, restructuring, and workouts on behalf of secured lenders, unsecured creditors, creditors’ committees, equity holders, and debtors. He has represented both publicly and privately held companies in connection with pre-packaged, prearranged, and traditional Chapter 11 cases, sales of assets under Section 363 of the Bankruptcy Code, and non-bankruptcy insolvency proceedings. In addition, Mr. Chalut has significant experience negotiating out of court restructuring transactions, including the related debt for equity exchange agreements, financing agreements, and shareholder agreements. He also has significant experience negotiating domestic and cross-border joint venture agreements.
On the transactional side, Mr. Chalut has a broad range of experience, including advising clients with respect to distressed mergers and acquisitions, negotiating asset-based lending agreements, structuring out of court workouts, DIP financing, and negotiating, drafting and implementing Chapter 11 plans of reorganization.
Mr. Chalut's related litigation experience includes aggressively defending his clients' various interests in numerous adversary proceedings and contested matters involving Chapter 11 plan confirmation, preference actions, fraudulent transfers, complex claims disputes, lease recharacterization disputes, involuntary Chapter 11 proceedings, executory contract rejection and assumption disputes, and several complex matters involving high-risk litigation tactics of debtors, committees and other constituencies. Mr. Chalut has also represented both large and mid-size commercial banks in connection with the enforcement of their rights through bankruptcy, foreclosure and state law insolvency related litigation.
Mr. Chalut has industry experience in a number of areas, including automotive, airline, media and publishing, gaming, manufacturing, real estate, financial services, and health care.
Prior Work Experience
Prior to joining Loeb & Loeb LLP, Mr. Chalut was a partner in Kirkland & Ellis LLP's Restructuring Group.
Represented a leading business to business media provider and trade show operator with significant operations in both the United States and overseas. The company sought to sell substantially all of its assets pursuant to Section 363 of the Bankruptcy Code. Mr. Chalut had a lead role in negotiating the asset purchase agreement, the sale and bid procedures, the DIP agreement, and cash collateral order with the company's key constituents. To preserve enterprise value, the company sought an expedited process to obtain an order authorizing the sale in less than 50 days after filing for chapter 11. Over the creditors' committee's objection and after a contested hearing conducted by Mr. Chalut, the company secured the timeline it sought, the order was entered 50 days from the filing of the bankruptcy, and the assets were sold.
Represented an enterprise that had interests in eleven casinos across five states, including in Las Vegas, Nevada and Atlantic City, New Jersey. The company confirmed two separate plans of reorganization on a consensual basis by restructuring liabilities of more than $3.3 billion. Mr. Chalut assisted in all aspects of this case. Among other things, he played a lead role in negotiating the plan and associated documents, in leading the "first day" prep team, and in litigation involving the former equity holder of the company.
Represented United Air Lines, Inc. in the largest airline Chapter 11 restructuring in history. Mr. Chalut assisted in all aspects of this case. Among other things, he played a key role in the negotiation of the plan and disclosure statement, the restructuring of United's pension and special facility bond obligations, the development and implementation of United's cross-border strategy, the development and implementation of a worldwide communications strategy, and the development and implementation of the strategy and reconciliation of the claims filed against United including the litigation of related claims objections. In addition, Mr. Chalut also represented United in various matters in which United's debtors filed for Chapter 11.
Represented a leading manufacturer of precision components primarily for the automotive industry and also for the medical device industry in a comprehensive out-of-court restructuring. Pursuant to the restructuring, the holders of senior subordinated notes issued by the company exchanged their notes for 93.5 percent of the shares of new common stock. In addition, those holders of notes who elected to participate could purchase preferred stock in the company. The purchase price received for the new preferred stock was used, in part, to pay the balance of the debt under the company's second lien credit facility. Working with senior management and the company's key constituents, Mr. Chalut helped to negotiate and draft the restructuring agreement, post-restructuring financing agreement, shareholder agreements, preferred stock agreements, and related agreements.
Represented the world's largest company dedicated solely to the sale of medical in vitro diagnostics products, systems and services. These negotiations culminated in an agreed upon debt to equity conversion of the company's bond indebtedness and a substantial portion of its secured bank debt. Mr. Chalut assisted in all aspects of this matter.
Representing creditors committee in connection with the Gamma Medica, Inc. bankruptcy case. Mr. Chalut also represented Honeywell in the U.S. Airways bankruptcy case, which included representation of the Company in its service on the U.S. Air Creditors Committee.
Representing senior lender in connection with the Metro Fuel Oil Co. Chapter 11 bankruptcy case.
Representing Fortune 150 Company in review of its cross-border licensing agreements.
- Speaker, China: Legal, Tax & Accounting Update (March 18-19, 2013)
- Speaker, China: Legal, Tax & Accounting Update (March 19-20, 2012)
- Co-author, River Road: The Right Road for Selling a Secured Lender’s Collateral Under a Chapter 11 Plan of Reorganization, The Banking Law Journal (February 2012)
- Co-author, Current Developments in Intellectual Property Issues in Bankruptcy, Practising Law Institute
- Co-author, Current Developments in Allowance and Priority of Claims; Expenses of Administration; Late Claims, CERCLA Claims; Equitable Subordination, Practising Law Institute
- Co-chair, Turnaround Management Association Breakfast Committee (2013)
- Member, American Bankruptcy Institute
- Member, Turnaround Management Association
- Member, University of Michigan Alumni Association
- Member, Spartan Leaders
- Recommended “Top Lawyers in Illinois” in Bankruptcy & Workout Law, Leading Lawyers Network, a division of Law Bulletin Publishing Company (2012)
University of Michigan Law School, J.D., 1999
Michigan State University, B.A., 1996, with High Honors