Bankruptcy and creditors’ rights, broadly defined, lies at the intersection of litigation and corporate practice. In our view, a deep knowledge of bankruptcy and creditors’ rights is essential for all litigators, and for all corporate attorneys.
Nearly every corporate transaction must take into account the possibility of insolvency or bankruptcy of a party to the transaction, and the legal implications under the US Bankruptcy Code – or analogous system applicable to a particular entity, be that a SIPC liquidation of a broker/dealer, FDIC seizure of a bank; or a state law liquidation of an insurance company (often paired with parallel bankruptcy proceedings of parent holding companies).
And bankruptcy is also an alternative mechanism for acquisitions: a bankruptcy judge can be essential to provide clear title to an asset, free and clear of competing claims. And funds also routinely purchase bankruptcy claims, on which we advise.
Turning to litigation or arbitration, the possibility of bankruptcy is often a double-edged sword: the threat of involuntary bankruptcy can aid in collection of a debt – or the filing of a bankruptcy or analogous proceeding can delay enforcement of a debt, or can transform the priority of payment to various creditors.
Our extensive experience in all aspects of US bankruptcy encompasses filing and opposing bankruptcy cases, including stay litigation, negotiation and litigation of plans of reorganization, use of cash collateral, filing, estimation and litigation of claims, and the plan disclosure and confirmation process. Our experience also includes all aspects of bringing or defending adversary proceedings, preference proceedings, and fraudulent conveyance claims. In short, everything from filing a proof of claim, to constitutional challenges to the bankruptcy court’s authority.
As emphasized at the outset, it is this broad and extensive bankruptcy and creditors’ rights experience that complements and informs both our general commercial litigation and our general corporate practice.