Creditors’ Rights, Lender Liability and Bankruptcy Litigation Group
On behalf of creditors, attorneys in our group have handled matters ranging from the filing and defense of proofs of claim to the litigation and negotiation of cutting edge issues involving the remand of creditor litigation from bankruptcy courts to state courts, obtaining administrative claims treatment for obligations in rejected contracts, and the exclusion of property from a debtor’s estate, paving the way for higher recoveries outside of bankruptcy court.
We counsel companies, shareholders and asset purchasers concerning the use and operation of the Bankruptcy Code, state dissolution statutes and common law principles to reduce the risk of exposure to creditor claims.
We also counsel business owners and asset purchasers concerning the operation and effect of bankruptcy laws, corporate dissolution statutes, fraudulent conveyance laws and alter-ego and successor liability principles regarding means to reduce their potential exposure to creditor claims.
- In In re Kaiser Aluminum Corp. we successfully defeated a debtor’s motion to reject and extinguish an international alumina supply contract valued at tens of millions of dollars, by establishing the post-petition status of the contract through litigation and further negotiated protections for the client attending the assignment of the contract in a bankruptcy asset sale.
- In In re Advanced Restoration Technologies, Inc. we obtained orders dismissing a Chapter 11 bankruptcy case as a “bad faith” filing, defeated a debtor’s motion to reject a ten year exclusive licensing contract, and proceeded to judgment in favor of the client outside of the bankruptcy court.
- In In re Eastman Kodak Company, Inc. we successfully negotiated a settlement for the payment of a substantial administrative expense resulting from the debtor’s rejection of a license agreement, rather than the treatment of our client as an unsecured creditor with a lesser recovery.
- In In re Ashapura Minechem Ltd. we obtained a landmark ruling terminating recognition of a foreign insolvency proceeding under Chapter 15 of the Bankruptcy Code, based on the post-recognition exclusion of the client creditor from participation in foreign insolvency proceeding, paving the way for our client to pursue collection efforts in the United States on an arbitration award in the tens of millions of dollars.
- In In re Samsun Logix Corp. we defeated an emergency motion in a U.S. Chapter 15 bankruptcy proceeding to restrain the client’s intended arrest of a vessel in a foreign port, resulting in expeditious recovery outside of the bankruptcy proceedings.
- In In re Britannia Bulkers, we litigated an objection to the foreign shipping company debtor’s request for a “gap period” injunction (modeled after the automatic stay), resulting in a “carve out” that allowed the client to proceed against a vessel in a foreign port.
Members of the Creditors’ Rights, Lender Liability and Bankruptcy Litigation Group also serve in the firm’s Litigation, Intellectual Property and International Practice Groups, allowing for a multi- disciplinary approach to matters involving creditor recoveries and debtor exposures.