Meet the Lawyers Guiding Digital Media Through Ch. 11
A team of attorneys from Kirkland & Ellis LLP and Porter Hedges LLP is handling the bankruptcy case of advertising technology firm Digital Media Solutions, as the company seeks to sell its assets under Chapter 11 in Texas.
Digital Media Solutions filed for Chapter 11 protection Wednesday, citing a decline in business due to changes in consumer behavior after the pandemic. According to co-founder and CEO Joe Marinucci, the company rode high during the pandemic due to lower auto accident rates, but as normal conditions returned, insurance companies reduced their ad spending, impacting the company’s revenue.
Digital Media Solutions is pursuing a stalking horse credit bid with existing lenders to eliminate $95 million in debt and assume certain liabilities. These lenders are also providing $122 million in debtor-in-possession financing, including $30 million in new loans and a rollup of $92 million in existing debt. U.S. Bankruptcy Judge Alfredo R. Pérez approved the interim financing during a virtual hearing Wednesday.
Digital Media Solutions has $346 million in secured debt, including term loans and a revolving credit facility. An auction and sale hearing is expected in late October, with a plan to be confirmed by November.
Joshua A. Sussberg
Kirkland
Sussberg is a partner in Kirkland's restructuring practice group, where he has worked since 2007, he shared in his LinkedIn profile.
Sussberg has a broad range of experience as counsel for companies including JCPenney, Macy's, Express Inc., Forever 21, AllSaints, Tailored Brands Inc., Bed Bath & Beyond, Cineworld Group, BlockFi Inc., California Pizza Kitchen, WeWork, McDermott International Inc., Envision Healthcare and Genesis Care Pty Ltd., Kirkland noted on its website.
He graduated from Yeshiva University's Benjamin N. Cardozo School of Law.
Elizabeth H. Jones
Kirkland
Jones joined the firm as an associate in 2019. Before, she worked as a fellow at the U.S. Supreme Court for one year, and as a judicial clerk in the U.S. Bankruptcy Court for the Eastern District of New York, according to her profile on the firm’s website.
She has represented various restructuring cases, including Sientra Inc., West Marine Inc., Lannett Co. Inc., Radiology Partners Inc., Oasis Petroleum Inc. and Celsius Network LLC, according to the profile.
Jones earned her law degree from the University of Michigan Law School.
Alexandra F. Schwarzman
Kirkland
Schwarzman has worked at the firm more than 12 years, focusing on corporate restructuring, bankruptcy and insolvency proceedings. The Chicago-based partner has represented companies including David’s Bridal LLC, Sirva Worldwide Inc., Sonder Holdings Inc., Carlson Travel Inc., Gordmans Stores Inc. and AMF Bowling Worldwide Inc., according to her profile on the firm’s website.
She graduated from the New York University School of Law.
John F. Higgins
Porter Hedges
Texas-based partner Higgins has more than 25 years of experience in bankruptcy practice, focusing on corporate reorganization, acquisitions and litigation.
He has experience in representing various Chapter 11 debtors, including MD America Energy LLC, SAExploration Holdings Inc., Diamond Offshore Drilling Inc., Epic Cos. LLC, Alta Mesa Resources Inc. and University General Health System Inc., according to his profile on the firm’s website.
Higgins earned his law degree from the University of Houston Law Center.
M. Shane Johnson
Porter Hedges
Texas-based partner Johnson joined the firm in 2018 as an associate, and has advised corporate debtors, creditors, lenders and trustees on various restructuring matters. Before joining the firm, he worked as a senior associate at Hogan Lovells for three years, according to his LinkedIn profile.
Johnson also clerked for bankruptcy judges in the Southern District of New York and Western District of Texas before joining Porter Hedges.
He has represented debtors including Alpine Summit Energy Partners Inc., Agilon Energy Holdings II LLC, MD America Energy LLC, SAExploration Holdings Inc., Epic Cos. LLC and PetroQuest Energy Inc., according to the firm’s website profile.
Johnson earned his law degree from the University of Texas School of Law.
Megan Young-John
Porter Hedges
Young-John joined the firm in 2020 and became a partner in January. She has represented Chapter 11 debtors and creditors committees, as well as Chapter 7 trustees and creditors, and worked in industries including oil and gas, retail energy, retail, real estate, manufacturing and financial services, according to her profile on the firm’s website.
She has represented corporate debtors including Alpine Summit Energy Partners Inc., Audacy Inc., Barretts Minerals Inc., Diamond Sports Group LLC, MD America Energy LLC, Diamond Offshore Drilling Inc., OFS International LLC and Party City Holdings Inc.
Before joining the firm, she was a bankruptcy and energy attorney at Jones Walker LLP and an associate attorney at McDowell Hetherington LLP, according to her LinkedIn profile.
She also worked as a judicial clerk for the U.S. Bankruptcy Court for the Western District of Texas.
She graduated from Drexel University’s Thomas R. Kline School of Law.
James A. Keefe
Porter Hedges
Keefe joined the firm as an associate in 2023, advising debtors, lenders and creditors on insolvency matters. He has represented various industries including energy, finance and media, according to his profile on the firm’s website.
Previously, Keefe was a senior associate at Schiffer Hicks Johnson PLLC and worked as a judicial clerk for the U.S. Bankruptcy Court for the Southern District of Florida and the Arizona Court of Appeals, according to his LinkedIn profile.
He graduated from the University of Arizona’s James E. Rogers College of Law.
The lead case is In re: Digital Media Solutions Inc., case number 24-90468, in the U.S. Bankruptcy Court for the Southern District of Texas.
—Editing by Abbie Sarfo and Kelly Duncan.
