Debt Restructuring Pioneers Jay Goffman and Steve Smith Launch Novel Advisory Firm

NEW YORK, Nov. 3, 2023 /PRNewswire/ -- Jay Goffman, the former Global Head of Restructuring at Skadden Arps and Steve Smith, the former Global Head of Restructuring and Leverage Finance at UBS announced the launch of their boutique restructuring advisory firm Smith Goffman Partners LLC.

Smith Goffman Partners is the only restructuring advisory firm that will feature a merchant banking model that provides advice and capital to their clients. The firm will bring together the legal, business and financial skills needed for a successful restructuring in one place.

Over their careers, Messrs. Smith and Goffman have restructured over $1 trillion in debt. Together, they have conceived and applied ground-breaking, innovative and revolutionary concepts to the most complex and thorniest restructurings in history. Such deals include LyondellBassel, where Mr. Goffman represented the owner and Mr. Smith led the team at UBS which provided a $6.5 billion DIP loan, the largest ever in a US bankruptcy. 

"We can't think of a better time to launch given the increase in the number of bankruptcies we have seen and are seeing this year and the recessionary headwinds in the economy," said Mr. Smith. "And, I can't think of a better partner than Jay Goffman to co-found this firm with."

Mr. Smith added, "Our intent going into this is to remain a boutique so we can be intimately involved in advising and guiding our clients. We want our clients to know that we will be hands-on so that they can get the benefit of our many years of experience."

During the $20 billion prearranged Charter Communications reorganization, Mr. Smith represented the largest group of creditors and post-reorg equity holders, while Mr. Goffman represented Charter's owner Paul Allen. The judge who oversaw the bankruptcy proceedings called the "Paul Allen Settlement" "the lynchpin of the largest, most ambitious and most complex prearranged bankruptcy ever attempted."

Mr. Smith also served as financial advisor to General Growth Properties, at the time the second-largest mall operator in the nation, during its bankruptcy proceedings. Under Mr. Smith's stewardship, they presented the board with first-of-its-kind equity fundraising that served to put a floor under competitive bidding by several buyers to control the company post-bankruptcy. The bankruptcy judge overseeing the case declared it the most successful bankruptcy in the nation's history.

"We believe our firm fills an important niche," said Mr. Goffman, who has led or played a leading role in more than 50 in-and-out court restructurings, including American Airlines, America West, Charter, MGM and the Portland Trailblazers, "Our clients will be advised by two very senior and experienced professionals who have not only been personally involved in nearly every industry and every aspect of a restructuring, but who have headed the restructuring practices for one of the largest law firms and one of the largest investment banking firms in the world."

Mr. Goffman was a partner and head of the corporate restructuring practice at O'Sullivan Graev & Karabell before starting his 24-year career at Skadden.

While at O'Sullivan, he was credited for creating and pioneering what was then the revolutionary concept of "Prepackaged Reorganization" – a strategy that allows companies to emerge from bankruptcy in days rather than years by negotiating with creditors in advance of Chapter 11 proceedings. As such, companies are allowed to reorganize quickly and cost effectively, avoiding liquidation, saving jobs and maximizing value for all.

Mr. Goffman was most recently Client Chairman of Teneo's Financial Advisory Business and Mr. Smith was Managing Partner of Aurora Resurgence, a Los Angeles based distressed for control fund.

SOURCE Smith Goffman Partners LLC