Bankruptcy LitigationWe have extensive experience in handling complex bankruptcy litigation matters for clients across various industries. We have been at the center of several of the most significant and high-profile bankruptcy matters in U.S. history, including Enron, Lehman Brothers, Chrysler and Caesars Entertainment, each of which involved hundreds of billions of dollars in claims, assets and disputes. We have represented debtors, trustees, creditors and creditors committees in the largest and most complex Chapter 11 or liquidation matters in bankruptcy courts in various jurisdictions around the United States.
In addition to representing some of the largest institutions in the world in the most high-profile bankruptcies on a national scale, our creditor clients have also included medium-sized corporations and privately held companies in local bankruptcy courts (in the Southern and Eastern Districts of New York). Our experience is diverse in these cases, and we are equipped to handle litigation commenced against a client in bankruptcy court, including preference and fraudulent conveyance litigation initiated by a bankruptcy trustee or debtor-in-possession. We have represented clients in all aspects of bankruptcy litigation, and have litigated allegations of fraud, asset concealment, and other improper transactions in insolvency proceedings, including: director and officer liability claims; breach of fiduciary duty claims, fraudulent transfers, preferential transfers, contested confirmation hearings, and trustee and examiner litigation.
- In re the Financial Oversight and Management Board for Puerto Rico, No. 17-BK-3283 (LTS) (D.P.R.) – served as conflicts counsel representing a bondholder group in Promesa Title III litigations concerning claims relating to the validity of multi-billion dollar bonds issued by the Employees Retirement System of the Government of the Commonwealth of Puerto Rico.
- In re Lehman Brothers Holding Company, Inc., No. 08-13555 (JMP) (Bankr. S.D.N.Y.) – represented bankruptcy estate in complex trial and related proceedings involving multi-billion dollar claims arising out of the bankruptcy court-approved sale of Lehman’s North American broker-dealer business to Barclays Capital. Briefed and argued multi-million dollar summary judgment motion related thereto.
- In re Enron (Class Action Litigation, Bankruptcy, Prosecutions and Regulatory Actions) – key members of an international legal team that, for years, defended several financial institutions in the massive and unprecedented securities class action litigation and regulatory actions stemming from the historic collapse of Enron. Specifically, represented the Royal Bank of Scotland in adversary proceedings, a shareholder class action and related cases, U.S. and foreign criminal investigations and regulatory proceedings arising out of the collapse of Enron, alleging participation in a scheme to misrepresent Enron’s financial condition via certain structured finance transactions.
- In re Caesars Entertainment Operating Co., No. 15-01145 (ABG) (Bankr. N.D. Ill.) - represented Noteholder Committee in various litigations relating to claims against bankruptcy casino operating company and high net-worth individuals holding interests in entities related to the debtor.
- In re Soundview Elite Ltd., No. 13-13098 (REG) (Bankr. S.D.N.Y.) – represented trustee of bankruptcy estate in, inter alia, adversary proceeding concerning redemption of debtor’s investment in complex fund of funds structure. Successfully briefed and argued motions for preliminary injunction, summary judgment, and contempt and in opposition to motion to withdraw the reference and to remove the trustee, as well as a number of appeals related thereto. Also represented trustee in connection with investigation of fraud and fiduciary breaches and in proceedings related thereto.
- Nordic Residential Partners, LLC v. Cordoba, Ltd., C.A. No. 1089-N (Del. Ch. Ct.) – represented executors of bankruptcy estate in this and other lawsuits involving allegations of fraud arising from real estate development and housing projects in New York City.
- In re Lehman Derivatives Litigation (Bankr. S.D.N.Y.) – represented Lehman affiliate in adversary proceeding involving a dispute over the rights to approximately $600 million of collateral posted under several complex derivatives swap agreements. Under the terms of a very favorable settlement following mediation, the Lehman Estate received a lump sum payment constituting one of the largest recoveries to date for Lehman in the bankruptcy.
- In re Relativity Media, LLC (Bankr. S.D.N.Y.) – represented debtor movie studio in connection with its Chapter 11 restructuring proceedings; reorganization plan was confirmed, reducing its funded debt by over $600 million.
- In re Chrysler LLC (Bankr. S.D.N.Y.) – represented debtor car-manufacturer Chrysler in bankruptcy proceedings and related dealer/distributor/franchisor disputes, leading to the sale of substantially all of its assets to a Fiat-led entity, providing the opportunity for its iconic brands and U.S. operations to survive.
- In re Anthracite Capital, Inc., No. 10-11319 (Bankr. E.D.N.Y.) – successfully represented on a contingency fee basis the trustee of a bankrupt REIT in bringing claims of, inter alia, breach of fiduciary duty, breach of contract, and fraudulent transfer against BlackRock Financial Management, Inc. and individual BlackRock defendants arising from investments in commercial mortgage backed securities (CMBS) and related instruments, ultimately resulting in substantial settlement for the estate.
- In re Alpha Natural Resources, Inc., No. 15-33896-KHR, (Bankr. E.D. Va.) — represented debtors in connection with negotiations and potential litigations with state and federal environmental regulators and interest groups with respect to reclamation of surface coal mining activities. Also, represented debtors in appeals relating to Key Employee Incentive Program (KEIP) issues.