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Zachary J. Garrett

Principal

Zachary J. Garrett photo
D: 312.863.7149
zachary.garrett@goldbergkohn.com
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Overview

Zachary Garrett is a Principal in the firm's Bankruptcy and Creditors' Rights Group. He represents secured and unsecured creditors, purchasers, and assignees in all aspects of commercial workouts and corporate bankruptcies, including restructurings, reorganizations, sales, and liquidations.

Zachary is experienced in the negotiation and documentation of out-of-court restructurings and liquidations, including through forbearance agreements, UCC sales, receiverships, and assignments for the benefit of creditors. He is also experienced in the negotiation, documentation, and litigation of debtor-in-possession financing, cash collateral use, collateral valuation, asset sales, and relief from the automatic stay.

Experience

  • Represented the senior secured lender of a personnel services provider in connection with the workout and restructuring of a $60 million senior secured loan facility, which culminated in a going concern sale of the borrower. The borrower encountered COVID-related liquidity and operational challenges in late 2020 that resulted in, among other things, the imposition of competing liens on its various assets and properties as well as increasing liquidity constraints. In response to these challenges, assisted the senior secured lender with structuring, negotiating and closing a series of complex amendment and forbearance arrangements with the borrower and various related constituencies to assist the borrower’s out-of-court going concern sale of substantially all of its assets. The parties successfully implemented various strategies with the borrower to resolve competing lien claims during the sale process. Throughout the sale and forbearance periods, helped the lender navigate numerous issues relating to competing lien claims, liquidity constraints, sale process and employment matters, and various rights and remedies. The borrower successfully closed a going concern sale transaction in 2021 that repaid the senior secured loan facility in full.
  • Represented a bank in its capacity as administrative and collateral agent for the prepetition senior secured lenders and debtor-in-possession lenders (the Agent) in the chapter 11 bankruptcy case of a large, national printing company. Represented the Agent in connection with all aspects from inception, including negotiating and documenting the original senior secured loan transaction, assisting with various amendment and forbearance agreements and pre-bankruptcy planning, as well as negotiating, documenting and closing the company’s $12 million chapter 11 DIP financing facility. The borrower filed for chapter 11 bankruptcy in 2020 in order to pursue and close a 363 going concern sale in bankruptcy. Assisted the Agent with the many complexities that arose before and after the filing of the chapter 11 bankruptcy case, including the negotiation and documentation of complex forbearance arrangements and the DIP financing package. The borrower was able to successfully close a going concern sale in bankruptcy that repaid the senior secured loan facility in full.
  • Represented a financial company in its capacity as administrative and collateral agent for the senior secured lenders (the Agent) of a consultancy company in connection with a complex out-of-court restructuring of a $50 million senior secured credit facility. After exercising remedies to vote the pledged equity interests of certain obligors, the Agent negotiated, documented and closed a consensual restructuring that included a debt to equity conversion. The senior secured lenders and the borrower were able to restructure the borrower’s balance sheet and chart a successful path forward while avoiding potentially value-destructive alternatives.
  • Represented a financial company in its capacity as administrative and collateral agent for the senior secured lenders (the Agent) of an appliance distributor in connection with the workout of a $12 million senior secured loan facility. Assisted the Agent in exercising certain remedies under the loan documents and applicable law, including exercising remedies to vote the pledged equity interests of the borrower and to prepare, market and close a public UCC foreclosure sale of the borrower’s assets.
  • Represented a financial company in its capacity as administrative and collateral agent for the prepetition senior secured lenders and debtor-in-possession  lenders (the Agent) in the chapter 11 bankruptcy case of a large North American manufacturer and distributor of laundry products. Represented the Agent in connection with all aspects, including documenting and administering the senior secured loan facility and in the chapter 11 bankruptcy case and sale of the borrower. After the borrower’s sales declined as a result of changing industry dynamics, assisted the Agent in negotiating multiple forbearance agreements and various other workout-related agreements. Unable to turnaround its performance, the borrower and its subsidiaries sold their businesses as a going concern in bankruptcy. Represented the Agent in connection with negotiating and documenting a $25 million DIP loan facility as well as navigating the 363 sale process in bankruptcy, which resulted in full repayment of all obligations owing to the senior secured lenders.

Credentials

Education

  • University of Michigan Law School, J.D., 2007

    – Cum laude

  • Hope College, B.A., 2005

    – Political Science and Philosophy, summa cum laude

Admissions

  • Illinois

Professional Activities

  • Chicago Bar Association
  • American Bankruptcy Institute, Member
  • Turnaround Management Association