Weil advised the ad hoc group of noteholders (the Ad Hoc Group) of 2U, a global leader in online education, which announced on Friday, September 13, 2024 that it successfully completed its $1 billion financial restructuring and emerged from chapter 11 as a privately held entity. With this transaction complete, 2U now operates with a significantly strengthened balance sheet, firmly positioning the company to support leading universities in delivering high-impact, career-focused education essential for building a skilled global workforce.

The restructuring was implemented through a prepacked chapter 11 plan and involved noteholders including Mudrick Capital Management, Blantyre Capital and Bayside Capital, converting approximately $527 million in convertible unsecured notes in to equity in reorganized 2U, and financing the chapter 11 cases with a $64 million debtor-in-possession facility.  The transaction also involved the restructuring of $414 million in first lien claims. Pursuant to the terms of 2U’s chapter 11 plan, noteholders exchanged their notes to participate in a $46.5 million equity rights offering, whereby the Ad Hoc Group obtained a significant stake in the new common equity of 2U. 

The prepackaged chapter 11 cases were completed in 51 days.

The Weil team was comprised of a Restructuring team led by Co-Chair Matt Barr and Restructuring partner David Griffiths; Senior Associate F. Gavin Andrews; Capital Markets and Banking & Finance partner Nitin Konchady; Banking & Finance partner Heather Viets; Banking & Finance Counsel Nick Nikic; Private Equity partner Richard Frye; Public Company Advisory Group partner Adé Heyliger; Tax Partners Stuart Goldring and Alfonso Dulcey.