All businesses are susceptible to cash flow problems. In prosperous times, a company may build up debt by expanding too rapidly. In a less certain economy, the value of a company's assets may decrease unexpectedly, interest rates may rise, or industries may undergo fundamental shifts—all of which may lead to fiscal upheaval in companies not structured to withstand change.
Our attorneys work with creditors and debtors to address cash flow problems and to achieve the optimum business solution that circumstances allow. With a business perspective, we analyze a client's problems to devise the best business solutions, then create the appropriate legal strategy to implement them.
Our attorneys represent clients and practice in bankruptcy courts across the country. Moreover, the firm’s offices in Wilmington, DE and New York enable us to offer our clients direct access to the nation’s two most highly regarded bankruptcy courts.
Restructuring and Reorganization
During the past 25 years, our attorneys have represented hundreds of debtors in out-of-court restructurings and reorganizations under the Bankruptcy Code. Working closely with lenders, we implement out-of-court workouts by settling current debt, acquiring long-term capital, or renegotiating commercial loans or lease agreements. When a company's problems require reorganization under Chapter 11 of the Bankruptcy Code, our attorneys work with lenders and creditor committees to design and obtain confirmation of effective reorganization plans, which may involve staged reduction in business operations, selling assets to raise working capital, or refinancing current and long-term debt.
Our attorneys also advise on going-concern sales of businesses, including matters related to break-up fees, auction and bidding procedures, and how to maximize sale prices. We help our clients locate and negotiate with potential buyers, obtain lender approval, and undertake transactional work to complete the sale. When it is not feasible to save or sell a failing business, we advise clients about various liquidation alternatives such as proceedings under the Bankruptcy Code, dissolution and windup provisions under state law, or non-judicial vehicles such as bulk sales and negotiated foreclosure proceedings.
We have represented distressed companies in many industries including healthcare, retail, technology, media, automotive, manufacturing, distribution, hospitality, printing, and professional services. We have worked with small companies and large chains. In real estate matters, we have worked with home builders, land developers, commercial construction companies, real estate agencies, and others with significant interests.
Creditors’ Rights and Litigation
Our attorneys also represent creditors and other parties in bankruptcy proceedings. Our experience in restructuring and reorganization makes us particularly effective in guiding creditors when creativity is necessary to enhance creditor returns. We represent secured creditors, creditors' and other committees, landlords, vendors, insurance companies, and noteholders. We advise on and litigate all aspects of creditors' rights, including commercial collections, mechanics' lien enforcement, enforcement of lien and bond-claim rights of suppliers, and in-kind exchanges in satisfaction of debt obligations.
We are involved in every phase of bankruptcy litigation, including:
- Contested confirmation hearings;
- Claims litigation;
- Automatic stay litigation;
- Cash collateral and lien priming hearings;
- Lien avoidance litigation;
- Preference and fraudulent transfer litigation; and
- Asbestos and other mass tort issues.
We have represented debtors, trustees, creditors’ committees, and litigation trusts in addressing bankruptcy case issues, as well as in bringing litigation as a plaintiff to recover funds for distribution to creditors. Our attorneys have also represented secured creditors, insiders, and other potential litigation targets to obtain recovery on claims and to avoid litigation exposure.