Stakeholders in complex insolvency and corporate restructuring matters are represented by Schwabe.
Litigation arises in a number of contexts throughout the course of a Chapter 11 bankruptcy proceeding, including early stage financing disputes, the sale of estate assets, avoidance actions to recover funds fraudulently transferred by the debtor, and plan confirmation, to name a few.
Schwabe’s Bankruptcy Litigation team’s actual trial experience sets us apart from other firms. Our attorneys have successfully tried some of the most complex and challenging bankruptcy matters, on behalf of trustees, committees, creditors, and other interested parties. One example is the successful $375 million fraudulent transfer and equitable subordination action for the Yellowstone Club, in which a team led by Troy Greenfield and Larry Ream proved that a global financial institution engaged in predatory lending. Following a fiercely contested trial, the judge equitably subordinated the $375 million secured claim, resulting in remarkable recoveries by the unsecured creditors and the successful reorganization of the Yellowstone Club.
When representing a debtor, Schwabe’s team first seeks to preserve its client’s assets and keep the company out of bankruptcy. In the event that a Chapter 11 bankruptcy is the best alternative, the experience of Schwabe’s skilled litigators significantly increases the probability of a successful exit from bankruptcy. We aim to preserve the going-concern value of a company, maintain jobs, retain business for suppliers and customers, and provide a greater benefit to the economy, while repaying creditors an amount that is greater than the liquidation value of the company assets.
- Successfully prosecuted a $375 million fraudulent transfer and equitable subordination action for the Yellowstone Club, proving that a global financial institution engaged in predatory lending.
- Represented a guarantor of $180 million of leases in a very large New York bankruptcy, successfully arguing that the debtor’s treatment of the leases violated the due process clause of the United States Constitution.
- Represented a Malaysian company in a large bankruptcy in the Delaware bankruptcy court in a years-long dispute concerning treatment of a manufacturing contract under the bankruptcy laws.
- Represented a creditor in the Lehman Brothers’ bankruptcy in a case involving complex legal issues relating to the characterization of swaps under bankruptcy laws.
- Successfully represented a steel products manufacturer in a Chapter 11 bankruptcy in the District of Delaware, including multiple trials concerning the sales of assets and complex issues concerning credit bidding in a bankruptcy auction.
- Successfully defended against a trustee’s various claims seeking to avoid transfers of $80 million.
- Counseled various creditors in defense of preferential transfers and other avoidance actions in numerous different Chapter 7 and Chapter 11 matters.
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