Sidleys and Dentons in heavyweight restructuring

Sidley Austin Brown & Wood and Denton Wilde Sapte are advising Federal Mogul Corporation in one of the largest cross-border restructurings to date.
Federal Mogul’s UK and US subsidiaries simultaneously filed petitions on 1 October for administration and chapter 11 proceedings respectively. Sidley’s US office has a longstanding relationship with Federal Mogul and brought in Dentons to advise on the UK side.
Federal Mogul has since instructed Simon Freakley and a number of other partners at Kroll Buchler Phillips as administrators for the UK subsidiaries. In the US, it is usual for the law firm advising the company to also advise its administrators, and in this case Sidley and Dentons are also advising Kroll Buchler.
Federal Mogul presented the petitions on the basis of becoming insolvent following ongoing asbestos claims. The company said its finances need to be restructured so that the asbestos liabilities are separated from the rest of the company’s operations.