Kirkland Advises New York Taxi Workers Alliance on Restructuring of Medallion Owners’ Debt

Since 2019, Kirkland has advised the New York Taxi Workers Alliance, pro bono, in their negotiations to restructure taxi medallion loans to comport with a realistic current market value of the medallions.

The individual medallion owner-drivers in New York City are a largely immigrant community, many of whom were indebted to their lenders in amounts exceeding $500,000 for the purchase of medallions the values of which have decreased significantly over the past decade. Last week, with Kirkland’s assistance, the Alliance struck a deal with the largest holder of taxi loans in the city to restructure the loans and reduce the principal owed by each driver to $170,000.

The deal was supported by the City of New York, which agreed to backstop the loans and provide a guarantee in the event of defaults of the restructured loans. This outcome gives the owner-drivers a manageable monthly loan payment, and allows them to stay on the road and earn a living wage.

The team was led by restructuring partners Susan Golden and Chris Marcus and associate Prentis Robinson.