Diebold Nixdorf emerges from chapter 11 and WHOA and obtains chapter 15 recognition
We advised an ad hoc group of secured creditors in connection with Diebold’s restructuring proceedings
Davis Polk advised an ad hoc group of secured creditors in connection with the chapter 11 restructuring of Diebold Nixdorf, Incorporated (together with its subsidiaries, “Diebold”) and the related proceedings under the Dutch Act on Confirmation of Extrajudicial Plans (Wet homologatie onderhands akkoord or “WHOA”). On June 1, 2023, Diebold filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas. Additionally, on June 1, 2023, certain Diebold entities commenced a Dutch scheme proceeding under the WHOA. On July 13, the U.S. bankruptcy court confirmed the chapter 11 plan of reorganization for Diebold. On August 2, 2023, a Dutch court entered an order sanctioning the WHOA plan under the Dutch scheme proceeding. On August 7, 2023, the U.S. bankruptcy court entered an order pursuant to chapter 15 of the bankruptcy code recognizing the order sanctioning the WHOA plan.
The restructuring deleveraged Diebold’s balance sheet by approximately $1.3 billion and provided for approximately $1.25 billion in exit term loan financing. Substantially all the equity of the reorganized Diebold was distributed to Diebold’s prepetition creditors.
Diebold is a global leader in financial and retail technology, with presence in over 100 countries. In addition to producing hardware, such as ATMs, Diebold provides maintenance services for its hardware and produces banking and retail software.
The Davis Polk restructuring team included partners Damian S. Schaible and Adam L. Shpeen and associates Dylan A. Consla, Amber Leary, Mariya Dekhtyar and Linyang Wu. The finance team included partner Christian Fischer, counsel Jason Palios and associates Alexander K.B. Shimamura, Bryan Mendiola and Audrey Youn. Counsel Robert (Bodie) Stewart provided capital markets advice. Partner James P. Dougherty provided corporate advice. Counsel Matthew Yeowart provided antitrust and regulatory advice. Partner Lucy W. Farr provided tax advice. Members of the Davis Polk team are based in the New York and London offices.