A Haynes and Boone team led by Partner Ian Peck has been honored by the Turnaround Management Association (TMA) for its representation of Tuesday Morning Corporation in its successful reorganization and emergence from Chapter 11.

Haynes Boone received the 2021 Large Company Turnaround/Transaction of the Year Award. The TMA Turnaround and Transaction Awards, among the most well known in the restructuring industry, are chosen based on a rigorous peer-review process by the volunteer TMA Awards Committee. This process includes extensive diligence of each nominated case. As the judges review all components of each entry, they look for well-defined, measurable outcomes, the TMA said.

"This year's award winners have made a significant impact on the global economy during one of the most challenging times for business in generations,” TMA Global Chief Executive Officer Scott Y. Stuart said.

“This award is particularly thrilling because it reflects the fact that we helped achieve a phenomenal result for a valued client that, like so many businesses worldwide, has faced unprecedented challenges due to the COVID-19 pandemic,” said Peck, who handles complex Chapter 11 bankruptcy cases, out-of-court workouts, and distressed mergers and acquisitions transactions across a wide range of industries. “The fact that Tuesday Morning Corporation emerged from a temporary, chain-wide shutdown with a reorganization plan that paid off its creditors in full and protected its shareholders speaks to the perseverance and creativity of its past and present leadership, including Steve Becker, Stacie Shirley, and Bridgett Zeterberg, among many others.”  

Haynes Boone Managing Partner Taylor Wilson added: “It was our honor to work with the leadership of Tuesday Morning Corporation to achieve such an exemplary outcome. We are very pleased that our Restructuring Practice Group could provide its deep experience throughout this process.”

The Global M&A Network also awarded Haynes Boone 2021 Corporate Turnaround of the Year — in the “best value-creating transactions” category — for its representation of Tuesday Morning Corporation. And The M&A Advisor selected the firm for its Turnaround of the Year Award (under $100 Million) for its work on the Tuesday Morning Corporation bankruptcy.

Haynes Boone’s turnaround engagement with Tuesday Morning Corporation, a publicly held, off-price home goods retailer with stores throughout the U.S., began in March 2020, concurrent with Tuesday Morning Corporation’s temporary store closures as a result of the pandemic. To address the monumental challenges Tuesday Morning Corporation faced, the Haynes Boone team worked with management to develop a comprehensive reorganization strategy that included securing two separate loan facilities that gave Tuesday Morning Corporation access of up to $125 million to finance operations during the bankruptcy case, shedding the company’s less profitable locations through successful store closing sales, and renegotiating the terms of hundreds of store leases at the company’s go-forward locations. These efforts resulted in millions of dollars of savings to the company.

The Haynes Boone team also advised Tuesday Morning Corporation in the negotiation and documentation of two exit loan facilities totaling $150 million and a $70 million sale-leaseback of certain of the company’s owned real estate. These capital sources, combined with a $40 million rights offering, funded the company’s exit from Chapter 11.

In confirming Tuesday Morning Corporation’s reorganization plan, Chief Judge Harlin Hale of the U.S. Bankruptcy Court for the Northern District of Texas described Haynes Boone’s efforts as “extraordinary” and the outcome as “wildly successful.”

Led by Peck, the cross-sectional Haynes Boone team included Restructuring Practice Group team members Jarom Yates, Jordan Chavez, Rich Kanowitz, Martha Wyrick, David Staab, David Trausch, Arsalan Muhammad, Tom Zavala, and Kim Morzak. Litigation support was provided by Aimee Furness and Taylor Robertson. Additional assistance in the reorganization was provided by Finance team members Sakina Foster, Molly Barham, Laura Shapiro, Cody Cravens, and Paul Amiel; Real Estate team members Brack Bryant, Chris Konopka, Kate Ortbahn, and Sarah Perot; Employee Benefits and Labor and Employment team members Susan Wetzel, Melissa Goodman, and Raquel Alvarenga; and Private Equity and Tax lawyers Rachael Apfel, David Lightstone, Dan Malone, AK Bonnet, and Ken Bezozo.

The Haynes Boone Restructuring Practice Group handles issues in large and complex out-of-court financial restructurings and Chapter 11 reorganization cases. Chambers USA, Chambers and Partners, 2020 ranks the practice as a market leader, and clients describe the lawyers as “efficient, creative, and business-oriented attorneys who don’t crack under pressure.”