Restructuring & Change Management

Mr. Kraus is experienced in guiding companies through in-court and out of court restructuring and recapitalization transactions, and has experience working with restructuring counsel, financial advisors, and court-appointed monitors to achieve the most favorable outcome available to all stakeholders.  Mr. Kraus has acted as a de-facto Chief Restructuring Officer on multiple occasions. 

Mr. Kraus was lead in-house counsel for the $400 million cross border restructuring (CCAA / Chapter 15) Lone Pine Resources Inc. that resulted in a going private transaction with funds managed by Goldman Sachs.   The transaction involved the exchange of approximately $220 million of unsecured notes and other unsecured claims for 100% of the post-restructuring common equity of Lone Pine, the issue of US$100 million in new preferred equity to eligible unsecured creditors, the arrangement of $130 million in new secured credit facilities, and the repayment of approximately $192 million of secured debt with proceeds from the preferred equity offering and drawings under the new credit facilities. The recapitalization reduced Lone Pine's debt by over $300 million. 

Mr. Kraus was also lead counsel of a recapitalization transaction under the Canada Business Corporations Act by Bellatrix Exploration that reduced the Company's total outstanding debt by approximately C$110 million (approximately 23%), reduced annual cash interest payments by over C$12 million, and extended the Company's debt maturities for several years.

Mr. Kraus was subsequently also counsel to Bellatrix Exploration in its initiation of restructuring proceedings under the CCAA that ultimately resulted in a significant reduction in the Company's fixed cost structure (through the disclaimer of multiple contracts), and ultimately in the sale of the Company's assets to Spartan Delta Corp.

Mr. Kraus has experience in guiding boards of directors through highly confidential management change situations, including those involving board members, CEO, CFO and other executive leadership positions of public companies.  

Mr. Kraus has significant experience helping companies pivot their business plan in light of external forces and leading the resulting efforts to sell non-core businesses, enter into a new strategic alliance agreement, or make other significant changes.