Cadwaladers and Norton Rose rescue Alpha

US firm Cadwalader Wickersham & Taft and Norton Rose have saved debt-ridden Alpha Shipping.

London partner James Roome and associates Lyndon Norley and Vicki Hazelden, supported by New York partner Michael Sage and Larry Kirsh and Diana de Brito in Washington, acted for Credit Suisse First Boston's (CSFB) distressed securities group in restructuring Alpha.

The deal involved converting $175m(u107m) of high yield debt into shares in a new company. Because the notes needed unanimous noteholder approval the deal went through an Isle of Man arrangement scheme along with an ancillary injunction under the US bankruptcy code.

Roome says CSFB's plan shows the flexibility a distressed debt team can bring to restructuring companies. “The structure was changed to let a co-operative restructuring with incentives for management to achieve high levels of recovery,” he says.

Norton Rose partners John Shelton and Roger Heward advised Cadwaladers on maritime issues. Isle of Man firm Dickinson Cruickshank advised on local law.