Exela Technologies in Chapter 11 Restructuring of Its Subsidiaries

Cleary Gottlieb represented Exela Technologies Inc. (ETI) and two subsidiaries (together, ETI entities) in the successfully completed Chapter 11 restructuring of Exela Intermediate LLC (Intermediate) and certain of its debtor affiliates.

When the Chapter 11 cases were filed, ETI was the 100% shareholder of the debtors, and the ETI entities were the most significant creditor and counterparty of the debtors, owning over 30% of the debtors’ outstanding secured bonds and providing numerous critical services to the debtors through a variety of contractual arrangements.

The U.S. Bankruptcy Court for the Southern District of Texas confirmed the debtors’ Chapter 11 plan on June 23, 2025, overruling an objection by the U.S. Trustee’s to the plan’s opt-out non-debtor releases. On July 24, 2025, the Bankruptcy Court denied a request by the Official Committee of Unsecured Creditors to enjoin consummation of the plan, clearing the path for it to go effective on July 29, 2025.

Cleary advised the ETI entities on a wide range of matters in connection with the debtors’ Chapter 11 cases, including matters involving bankruptcy, corporate law, debt finance, securities, tax, and litigation. Most importantly, Cleary led the  negotiation of a plan of reorganization resulting in ETI’s ownership of approximately 25-30% of the outstanding shares in XBP Europe Holdings Inc., an affiliate of ETI, that acquired the debtors pursuant to the plan. As a result of the plan, ETI and its related parties received full releases in connection with ETI’s agreement to fund certain potential liabilities in the future.