Sep. 13, 2012
Bruce S. Bennett
See more on Bruce S. BennettJones Day Los Angeles Corporate transactions Specialty: restructuring, reorganization and bankruptcy
Bennett's career in the past year has been shaped by a number of marquee bankruptcies, among them the closely watched Chapter 11 filing by the Los Angeles Dodgers Inc. in June 2011.
The legal mastermind behind the team's bankruptcy and eventual sale, Bennett recalls the matter not as a sweeping success but as a marathon slog that encountered pushback at every step.
But the results speak for themselves. Bennett's work on the matter resulted in the club and Dodger Stadium being sold to new owners for more than $2 billion - the highest price ever paid for a professional sports team. In re: Los Angeles Dodgers LLC, BK 11-12010-KG (D. Del., filed June 27, 2011)
"The reality of that case was we built it up piece by piece by piece," he said. "It wasn't all of a sudden we went from zero to $2.3 billion."
Early on in the process, then-owner Frank McCourt and Major League Baseball Commissioner Bud Selig publicly accused each other of forcing the team into bankruptcy. With tensions running high, Bennett said the first effort was to "force the dispute onto contract territory instead of who's a good guy and who's a bad guy."
From there the team jumped through a series of hoops, arranging short-term financing to pay the team's bills, squabbling over control of the stadium's parking, exploring possible media contracts and orchestrating an auction meant to maximize the sale value of the team. The final sale, announced in March, officially closed on May 1.
"Many elements had to come together," Bennett said. "The fact that people regard it as path-breaking is very flattering and satisfying."
As the Dodgers dust cleared, Bennett in mid-May announced he would leave his firm, then-floundering Dewey & LeBoeuf LLP, for Jones Day with a team of lawyers in tow. Within the month, Dewey filed for bankruptcy.
Other matters he has been involved with include the bankruptcies of Los Angeles Times parent company Tribune Co., expected to emerge soon from Chapter 11 protection, and brokerage firm MF Global Holdings Ltd., which filed for bankruptcy in October.
Bennett said he also is active in the municipal bankruptcy arena. With cities across California owing enormous amounts to banks and bondholders as well as to employees and retirees, he said, "I'm pretty sure we haven't seen the last filing."
- BEN ADLIN
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