Spectrum Brands Achieves Settlement

Skadden represented consumer products maker Spectrum Brands Inc.in one of the first cases to litigate the issue of reinstatement of the debt of a senior secured lender. On June 24, in the middle of the fifth day of a highly contested confirmation hearing, a settlement was reached less than one hour following Skadden's cross-examination of the lender’s expert witness, when the senior lenders yielded on virtually every contested issue. On June 25, the U.S. Bankruptcy Court for the Western District of Texas confirmed Spectrum's reorganization plan. Spectrum, which filed its voluntary bankruptcy petitions in February, is now expected to emerge from bankruptcy in August.