Private Equity, Finance Lawyer Melinda Rishkofski Joins Baker Botts L.L.P. as Partner in Moscow

MOSCOW, February 28, 2012 /PRNewswire/ –
Melinda Rishkofski, who has represented private equity fund managers, international financial institutions and portfolio companies in Russia, Eastern Europe, the UK and the US, has joined Baker Botts L.L.P. as a partner in the firm´s Moscow office.
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Rishkofski´s experience includes working with Russian and Eastern European privatization policies, policy advice and drafting laws for the new Russian economy, development of Russian corporate securities and regulatory structures. She also worked on regulatory and legislative matters with representatives for the U.S. and Russian governments.
“Melinda adds depth to our international transactional resources, ” said Baker Botts Managing Partner Walt Smith. “Her focus on the Russian market and her extensive private equity experience are significant additions to our client offerings.”
Prior to joining Baker Botts, Rishkofski was general counsel for Russian-based Baring Vostok Capital Partners. As principal advisor, negotiator and transaction counsel, she provided legal support to financial institutions, multilateral development banks, private equity fund managers and Russian companies with respect to debt and equity financing transactions, mergers and acquisitions, restructurings, employee incentive programs, dispute resolution and general corporate matters.
In this role, Rishkofski has worked with and served more than 35 investee companies and the legal needs of private equity investment funds with more than $2 billion in capital and assets. She has also worked extensively with the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the Overseas Private Investment Corporation (OPIC) on secured credit and debt and equity financing transactions.
“Melinda´s extensive knowledge of the private equity and funds sector in Russia and the CIS, a market sector where we expect to see significant increased activity in 2012, will provide our clients working in or entering into this sector an expertise not currently available from legal consultants in the region, ” said Steven Wardlaw, Partner in Charge of Baker Botts´ Moscow office.
Rishkofski obtained a BS from the Pennsylvania State University in the U.S., a J.D. from the Dickinson School of Law (now part of the Pennsylvania State University), and an LL.M in International Business and Finance from the University of London, Kings College in the UK.
About Baker Botts L.L.P.
Baker Botts is an international law firm with over 725 lawyers and a network of 13 offices around the globe. Based on our experience and knowledge of our clients´ industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Throughout our 172-year history, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit http://www.bakerbotts.com/.
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Quiznos Completes Restructuring of Debt and Strengthens Financial Position

DENVER, Jan. 24, 2012 /PRNewswire/ – Quiznos, one of the nation’s premier quick-service restaurant chains and pioneer of the toasted sandwich, today announced that the Company has successfully completed its previously announced financial restructuring on an out-of-court basis. The agreement eliminates one-third – or approximately $300 million – of the company’s outstanding debt, and provides a significant infusion of $150 million in new equity from Avenue Capital Group, a global investment firm, to position Quiznos for future growth.
“Improving our balance sheet and putting our capital structure issues behind us are major steps forward to strengthening the Quiznos brand and our customer experience,” said Greg MacDonald, Quiznos Chief Executive Officer. “We look forward to working alongside the Avenue Capital Group team and appreciate the support of all of our lenders during this restructuring process. Along with our dedicated franchise owners and employees, we can now focus primarily on the customer experience and our fresh, high-quality products. This is an exciting time for all of us here.”
Following the successful closing of an exchange offer launched by Quiznos on December 23, 2011, Avenue Capital Group has become the majority owner of the Company through its $150 million equity infusion and the conversion of its debt to equity.
Marc Lasry, CEO of Avenue Capital Group, said, “We are excited to be part of the Quiznos team and look forward to partnering with management in the weeks and months ahead.”
One hundred percent of the aggregate principal amount of the first- and second-lien loans were tendered in the exchange offer. The holders of approximately $650 million in first-lien loans were repaid $75 million in cash and the maturity of the balance of their loans was extended until the five-year anniversary of the closing. Certain lenders also exchanged approximately $150 million of their existing first-lien loans for new second-lien loans, and holders of approximately $225 million of second-lien loans exchanged their loans for a pro rata share of 40 percent of the new equity of the recapitalized Quiznos. In addition, the Company received significant concessions from certain other creditors and stakeholders.  Former equity owners Consumer Capital Partners facilitated the restructuring process and provided certain concessions to allow the restructuring to be completed out of court. 
Quiznos’ financial advisor for the restructuring was Moelis & Company and its legal advisor was Paul, Weiss, Rifkind, Wharton & Garrison L.L.P.  Vinson & Elkins L.L.P acted as the company’s financing counsel.  The financial advisor for Avenue Capital and certain other lenders was Lazard and the legal advisor was Akin Gump Strauss Hauer & Feld LLP.  The financial advisor for first-lien lenders was Blackstone Advisory Partners L.P. and the legal advisor was Willkie Farr & Gallagher LLP.
 About QuiznosNow in its 30th year, Denver-based Quiznos is a national chain designed for today’s busy consumers who are looking for a tasty, freshly prepared alternative to traditional fast-food restaurants. Using premium ingredients, Quiznos restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads.
CNN Money ranked toasty sub pioneer Quiznos as the No. 2 most popular franchise of the past decade in 2010. In 2009, Quiznos’ Toasty Torpedoes® earned a spot as one of the top 10 new product introductions from the Most Memorable New Product Launch Survey. Also in 2009, QSR Magazine ranked Quiznos No. 19 overall in its Top 50 Chains in system-wide sales. In October 2007, Quiznos was recognized for leading the QSR industry in wait time performance by the Mystery Shopping Providers Association’s (MSPA) 2007 Wait Time Study. In May 2007, Zagat’s consumer surveys listed Quiznos in the top 5 for Top Food, Top Facilities, Top Service and Top Overall, ahead of its direct competitors. For further information, please visit www.quiznos.com.
About Avenue Capital GroupAvenue Capital Group is a global investment firm focused on undervalued opportunities in the private and public debt, equity and real estate markets in the U.S., Europe and Asia.  The firm is headquartered in New York, with offices in London, Luxembourg and Munich, and five offices throughout Asia.  As of November 30, 2011, Avenue manages approximately $12.1 billion of assets under management, on behalf of a sophisticated global base of institutional investors, the majority of which is pension funds, and also includes family offices, foundations, insurance companies and sovereign wealth funds.  Avenue was founded in 1995 and draws on the skills and experience of approximately 300 employees worldwide.
Forward-looking StatementsThis press release contains “forward-looking statements,” within the meaning of the federal securities laws that involve risks and uncertainties. All statements herein that address activities, events, conditions or developments that the Company expects or anticipates will or may occur in the future are generally forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Tuesday morning headlines

Stocks slump: Discouraging news out of Europe isn’t helping. Dow is down about 60 points.
Romney’s taxes: He reported income of $21.7 million in 2010 and paid $3 million in taxes – an effective rate of 14 percent. He also made $3 million in tax-deductible charitable donations. (Washington Post).
Dodgers receive opening bids: More than a dozen investment groups are interested, and several of the bids were in excess of $1 billion, the WSJ reports.

Bankers didn’t require the bids to be binding or ask for bidders to submit a deposit with their offers. Bidders also didn’t have to provide firm promises of financing. As a result, several bidders said, there was little reason for them to not submit high offers with hopes of surviving to a second round.

Academy Award nominees: “The Artist,” “Hugo,” and “The Descendants” lead the way. (NYT)
Greece update: Eurozone officials rejected a final offer from bondholders, which is a big blow to resolving the nation’s debt crisis. From Reuters:

Greece’s top official at the Brussels meeting remained stoic, saying the country had the euro zone’s support to complete the debt swap talks in the “coming days.” “In reality, we are now entering the final stretch,” , Finance Minister Evangelos Venizelos said in a statement. “I believe everyone has now realized that Greece must be supported in its effort, which is of vital importance not only for us but for the euro zone as a whole and the global economy.”

Calpers returns just 1.1% in 2011: That’s a fraction of the projected 7.75 percent annual returns by California’s pension fund giant. Last year, Calpers earned 12.5 percent. From the LAT:

Calendar-year results, however, are used only as indicators, a CalPERS spokesman said. The fiscal year returns, posted as of June 30 each year, are the legal basis for annual decisions by the CalPERS board to raise or lower the contributions it gets from 3,100 participating government agencies, including the state of California.

Happy hours at Starbucks: The coffee giant will be offering beer and wine in four to six L.A.-area locations by the end of the year. From the LAT:

Starbucks is looking to differentiate itself from competitors as varied as Dunkin’ Donuts, fast-food behemoth McDonald’s Corp. and the fast-casual Panera Bread Co. chain, analysts said. It’s a “natural extension” for Starbucks to move into specialty beverages, said Jason Moser, an analyst with Motley Fool. The coffee chain in November bought San Bernardino natural juice company Evolution Fresh Inc. for $30 million, promising to launch a series of “wholesome” juice shops.

Downtown theater to become hotel: The historic United Artists building at Broadway and 9th Street will be transformed by a chain of boutique inns. The 180-room hotel will have a pool, restaurant, bar and 1,600-seat theater. From the LAT:

The complex at 927 S. Broadway was built in 1927 in part to provide a theater for the movie production company founded by film luminaries Mary Pickford, Douglas Fairbanks, Charlie Chaplin and D.W. Griffith. The Spanish Gothic theater was designed by C. Howard Crane and the office tower by Walker & Eisen, the team behind other local landmarks including the Fine Arts Building downtown and the Beverly Wilshire hotel in Beverly Hills.

LAX contract awarded: Westfield Concession Management has received a 17-year lease for the Theme Building, Terminal 2 and the Tom Bradley International Terminal. Westfield will be charged with bringing in restaurants and retailers. (Daily Breeze)
Burkle buys stake in Relativity Media: It’s the billionaire’s second investment this month in the film and television studio led by Ryan Kavanaugh. No terms disclosed. (Bloomberg)
Silicon Valley salary is 100K: Software and other engineering employees made, on average, $104,195 last year, according to a survey, a 5.2 percent increase from a year earlier. (WSJ)
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Back a Lawsuit, Get a Return

An investor-financed suit against Chevron won a judgment of $18.2 billion Lou DeMatteis/Redux

By Paul M. Barrett
The white-wigged sages of British jurisprudence outlawed investing in someone else’s lawsuit for fear that feudal lords would manipulate their subjects’ litigation for profit or mere sport. The 18th century British jurist William Blackstone condemned such investment, known as champerty, for “pervert[ing] the process of law into an engine of oppression.”
Restrictions on champerty faded as the law evolved. In the U.S., the Supreme Court held in the 1960s that civil rights organizations have a constitutional right to invest in other people’s lawsuits that further the advocacy groups’ aims. More recently, many states have loosened rules to allow consumer-finance firms to lend money for legal cases. The companies that have done litigation finance to date have mostly made loans to plaintiffs’ lawyers pursuing slip-and-fall and auto-accident suits, often charging interest rates of 20 percent or higher.
Now litigation finance is moving up the corporate food chain. Larger and more sophisticated investment outfits, such as Burford Group and Juridica Capital Management in the U.K. specialize in making bets on bigger-dollar cases. Parabellum Capital recently opened its doors in New York after being spun off from the legal finance group at investment bank Credit Suisse. “We’re looking at a company’s lawsuit against another company as an asset on the corporate balance sheet that can be monetized in the short run, while we take an interest in, and some of the risk in, the long-run outcome,” says Christopher Bogart, chief executive officer of Burford and a former executive vice-president and general counsel of Time Warner.
Working out of Manhattan offices so new the art is still indicated only by blue tape on bare walls, Bogart runs a $300 million fund that made new commitments to legal cases totaling $35 million in just the last three months of 2011. “Another way of understanding what we do is that we provide corporate finance for assets that traditionally weren’t subject to finance,” he says. “We’re making the litigation marketplace more efficient.” His investors include Invesco UK, Reservoir Capital Group, and Scottish Widows Investment Partnership.
No data exist on how much is invested in ligitation finance. Burford’s analysis of figures gathered by American Lawyer magazine shows that the 200 largest U.S. law firms bill about $33 billion annually related to litigation, Bogart says. That excludes the cost of verdicts and settlements as well as the billings of tens of thousands of smaller law firms.
Litigation finance, which fertilizes lawsuits that otherwise might settle quickly or die altogether, “is poised for growth worldwide,” Cassandra Burke Robertson, associate professor of law at Case Western Reserve, wrote in an article published in November 2011.
While Bogart doesn’t like discussing Burford’s investments for the record, he points to one widely publicized case that concluded in 2010. The firm invested $6 million in a breach-of-contract lawsuit between two Arizona real estate developers. The winner, Gray Development, paid more than $18 million to Burford—a 200 percent return. Gray would not have been able to afford its highly regarded New York law firm, Simpson Thacher & Bartlett, without an infusion of outside capital, Bogart says. A spokesman for Gray did not return a phone message seeking comment.
In another case, Burford provided $4 million in financing in November 2010 that helped keep alive a lawsuit filed against Chevron on behalf of residents of the rain forest in eastern Ecuador who allege large-scale contamination from a predecessor company’s oil drilling. The investment allowed the plaintiffs’ team to augment its legal firepower by hiring Washington-based law firm Patton Boggs, which normally represents large corporations. Burford quickly sold off its stake in the case, eliminating its downside risk while retaining an interest in any winnings. In February 2011, a provincial Ecuadorian court imposed an $18.2 billion judgment on Chevron; an appellate court has upheld that verdict. The oil company has said it will continue to contest the judgment.
The bottom line: Burford Group has raised $300 million to invest in litigation. It put $35 million to work in the last three months of 2011.
Barrett is an assistant managing editor and senior feature writer at Bloomberg Businessweek.
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Here’s Why Internet Travel Site Stocks are Facing Major Losses

Google is out with huge changes to their travel search algorithm, and internet travel sites may lose significant market share. Google will now place its own flight-search service at the top of search results for flight information.
The move will immediately hurt online travel websites such as Expedia , Orbitz , Travelzoo , and Priceline which receive ten to twenty percent of their leads from Google searches. That’s a lot of money to lose in the $110 billion online travel market.
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This morning you can expect lots of high priced lawyers to call the Department of Justice claiming Google is violating guidelines established for their entry into the online travel market. We will wait to see whether legal fees are the only loss taken by Expedia  , Orbitz  , Travelzoo  , and Priceline  , or whether it will be billions in lost flight bookings.
Here’s how these travel stocks are reacting to the industry shaking news:
Google Inc. : GOOG shares recently traded at $633.76, up $0.62, or 0.1%. They have traded in a 52-week range of $473.02 to $642.96. Volume today was 57,266 shares versus a 3-month average volume of 3,109,540 shares. The company’s trailing P/E is 21.60, while trailing earnings are $29.34 per share.
Expedia Inc. : EXPE shares recently traded at $29.61, down $0.43, or 1.43%. They have traded in a 52-week range of $27.28 to $65.78. Volume today was 88,372 shares versus a 3-month average volume of 2,346,560 shares. The company’s trailing P/E is 8.79, while trailing earnings are $3.37 per share.
Orbitz Worldwide, Inc. : OWW shares recently traded at $3.79. They have traded in a 52-week range of $2.76 to $7.01. Volume today was 7,373 shares versus a 3-month average volume of 330,987 shares. The company’s trailing earnings are $-0.66 per share.
Travelzoo Inc. : TZOO shares recently traded at $26.04, down $0.07, or 0.27%. They have traded in a 52-week range of $20.68 to $103.80. Volume today was 7,308 shares versus a 3-month average volume of 649,216 shares. The company’s trailing P/E is 651.00, while trailing earnings are $0.04 per share.
priceline.com Incorporated : PCLN shares recently traded at $480.58, down $1.15, or 0.24%. They have traded in a 52-week range of $399.18 to $561.88. Volume today was 26,948 shares versus a 3-month average volume of 1,274,540 shares. The company’s trailing P/E is 25.46, while trailing earnings are $18.88 per share.
Investing Insights: Apple and Google Working Together on These Wearable Computers.

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