Willkie Represents Dubai Fund in Barneys New York Restructuring

May 8, 2012

Comprehensive financial restructuring will reduce the luxury chain’s long-term indebtedness by over $500 million.

On May 7, leading clothing and luxury goods retailer Barneys New York announced a comprehensive financial restructuring that will reduce the company’s long-term indebtedness by over $500 million without affecting the rights of any suppliers, trade creditors or employees. The restructuring, which was accomplished without the need for a bankruptcy filing, was based on an agreement with the company’s largest creditors, Perry Capital and The Yucaipa Companies, and Barneys’ owner, Willkie client Istithmar World. Istithmar World is an investment arm of the government of Dubai, and manages more than $5 billion in assets. Following the restructuring, Istithmar has retained a minority ownership position in the restructured company and continues to serve on its board of directors. The matter is being handled by Business Reorganization and Restructuring partners Matthew Feldman and John Longmire, Corporate partner Rosalind Fahey Kruse, and associates Jeffery Fang, Daniel Forman and Richard Kurdziel.