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Bankruptcy & Financial Restructuring

The attorneys in Montgomery McCracken’s Bankruptcy & Financial Restructuring practice group assist clients in all aspects of restructuring, including bankruptcies, out-of-court restructurings, reorganizations, liquidations, workouts, debt refinancings, adversary proceedings, and contested matters. We represent creditors, debtors, creditor committees, secured creditors, liquidation/litigation trustees, DIP lenders, liquidators, factors, landlords, property managers, investors, and asset purchasers.

Since the 1960s, Montgomery McCracken attorneys have been recognized leaders in bankruptcy and restructuring. Today, the practice includes attorneys who have been involved in some of the most complex and well-known bankruptcy cases. The Bankruptcy & Financial Restructuring practice group has extensive experience in both transactional and litigation facets of bankruptcy practice, ranging from negotiating an asset sale or an agency agreement, to prosecuting, defending and mediating claim objections and avoidance actions. While our group regularly appears in cases in Delaware, New Jersey, New York, and Pennsylvania, they are able to assist with matters before any bankruptcy court in the country.

Our experience includes:

  • Advising companies on the pros and cons of filing for bankruptcy and what steps they should take to prepare for a potential filing.
  • Guiding creditors, both foreign and domestic, as to the impact a U.S. bankruptcy filing may have on their interests and what steps they can take to maximize their recoveries and minimize their exposure both before and after a bankruptcy filing.
  • Representing Official Committees of Unsecured Creditors to ensure that general unsecured creditors are treated fairly and receive the most favorable treatment permitted.
  • Negotiating in and out-of-court workouts for financially troubled businesses.
  • Prosecuting litigation claims on behalf of a debtor, creditor committee or trustee including receivable claims and avoidance actions.
  • Counseling foreign representatives in a Chapter 15 bankruptcy seeking to recognize a foreign bankruptcy and receive the protections and benefits of the U.S. Bankruptcy Code.
  • Advising and representing debtors and secured creditors with respect to asset disposition, including liquidations.
  • Mediating bankruptcy disputes, as well as representing clients in bankruptcy mediations.
  • Defending clients in avoidance actions where a debtor/committee/trustee seeks the return of transfers made prior to the bankruptcy filing.
  • Representing entities interested in buying some or all of the assets of a bankrupt company.
  • Representing state court plaintiffs in seeking stay relief to permit state court litigation to continue and access insurance proceeds.

The Bankruptcy & Financial Restructuring practice group regularly enlists the specialized talents of other firm departments in complex litigation, real estate, healthcare, tax, government enforcement and investigations, intellectual property, insurance, environmental, labor and employment, corporate and securities, and other specialties.

Representative clients include:

  • Official and Unofficial Creditor Committees
  • Debtors
  • Creditors (secured and unsecured) including trade vendors, landlords and factors
  • Liquidating/Litigation Trustees
  • Asset Purchasers
  • Foreign Representatives
  • Defendants in adversary proceedings
  • Liquidators
  • Owners/corporate parents/affiliates of debtors
  • Equity Holders

Practice members have been involved in the following matters:

  • Representing/represented the Official Committees of Unsecured Creditors in Orchid Paper Products Co., Willowood USA Holdings LLC, Centerstone Linen Services LLC, Puglia Engineering Inc., Avaya, General Wireless (Radio Shack 2), dELiA’s, OCZ Technology Group, Conexant Systems, Noranda Aluminum, Borders Group, Real Mex Restaurants, Bachrach, Delfasco, Resort Theaters of America, Boston Market (Boston West, LLC), Rampage Retailing/Clothing, and Lumenyte International, CST Industries, SP Newsprint, Gourmet Express, Chef Solutions, Advanced Marketing Services;
  • Represented the plan trustee in Isolux Corsan, B. Lane, Furniture Brands, Eastman Kodak, Dewey LeBoeuf, Penn Traffic, MPC, American Home Mortgage, New Century Mortgage, Musicland Holding Corp., MRI, and Pillowtex;
  • Represented foreign representative of Lupatech S.A., a Brazilian oil company, in a Chapter 15 proceeding;
  • Served as special asset disposition counsel/consultant to the secured lender in connection with the liquidation of the debtor’s retail inventory, furniture fixtures and equipment in Anna’s Linens, Inc.; Ben Moss Western Jewellers, Ltd.; Delia*s, Inc.; Dots, LLC; Filene’s Basement, LLC/Syms Corp.; RadioShack Corporation; and Rob & Stucky Limited LLP;
  • Representing environmental creditors in the WR Grace and G-I Holdings bankruptcies;
  • Represented Celotex Corporation as special counsel in preparing and confirming its plan of reorganization and establishment of its asbestos claims resolution facility;
  • Represented numerous landlords and managers of shopping centers in most recent retail bankruptcy cases, including Sears, Golfsmith, BCBG, Sports Authority, True Religion, Garces Restaurants, Anbient, Gordmans, Radio Shack, Coldwater Creek, Borders, Bakers Footwear, Betsey Johnson, Deb Shops, United Retail Group (Avenue), Sportsman’s Warehouse, Blockbuster, Inc., Linens ‘n Things, Circuit City, Goody’s, Boscov’s, Mervyns, Steve & Barry’s, Sharper Image, Whitehall Jewelers, Friedman’s Jewelers, Buffets Holdings, Mattress Discounters, Ritz Cameras and KBToys;
  • Represented two Fortune 500 companies in numerous chapter 11 bankruptcy cases nationwide, including with respect to equipment lease and supply agreement enforcement and termination issues, claims, and preference and lien-related litigation
  • Represented the debtor’s major secured creditor in the successful bankruptcy sale of substantially all of the assets of an energy technology company;
  • Representing/represented bankruptcy trustees, as both general and special counsel, in cases such as Jevic Holding Corp.;
  • Representing buyers in Section 363 or similar sales in the Castle Cheese and MRC Industrial Group bankruptcies;
  • Represented secured lenders and asset purchasers in Toys “R” Us, Inc., The Weinstein Company Holdings LLC and Last Call Guarantor, LLC;
  • Representing a large life, health and disability insurer on a national basis in, among other things, preferential and fraudulent transfer adversary actions, turnover demands, exemption disputes and payment priority disputes;
  • Assisted in creative bidding for purchasing the assets in MRC Industrial Group;
  • Partnering with the firm’s Maritime and Transportation practice to represent a financially troubled marine fuel business, handling both the bankruptcy and maritime aspects of the reorganization;
  • Partnering with the firm’s Maritime and Transportation practice to protect the interests of shippers, vendors, freight forwarders and debtors in reclamation and payment priority disputes both before and after the filing of a bankruptcy;
  • Served on the panels of mediators in Loehmann’s, Furniture Brands, Draw Another Circle, Advance Watch, Quicksilver, Health Diagnostic, Standard Register, Borders, WP Steel, GT Advanced Technologies, Vivaro and WireflyMobile;
  • Represented creditors in Sears, KMart, Nine West, Toys “R” Us, Westinghouse, Quebecor, Collins & Aikman, NewPage, Optima Specialty Steel, Lyondell, Radio Shack, Fortunoff, Great Atlantic and Pacific Tea Company (A&P), KB Toys, Circuit City, and Linens N’ Things bankruptcies including asserting and defending reclamation claims, section 503(b)(9) claims and lien rights, asserting setoff rights, and defending demands for the return of preferential transfers;
  • Served as counsel to the senior secured lender in JNL Funding Corp. case involving litigation and negotiation of consensual plan of liquidation and realization of real estate collateral;
  • Representing six clients/defendants in fraudulent transfer claims arising from the involuntary bankruptcy filing of a Long Island attorney running a Ponzi scheme;
  • Defended multimillion dollar preference actions in Dots, Factory 2-U, Linens N’ Things and HMX bankruptcy cases;
  • Represented corporate entity in successful dissolution under the DGCL in Petmedicus Laboratories, Inc.;
  • Represented the O.W. Bunker USA Inc. Liquidating Trust, Conexant Liquidating Trust, Verasun Liquidating Trust, Uni-Marts Liquidation Trust, and Copperweld Distribution Trust;
  • Represented the Debtors in O.W. Bunker Holding North America in a successful confirmation of their Chapter 11 liquidating plan;
  • Represented Anbient Corporation’s secured lender in the successful bankruptcy asset sale; and
  • Represented a foreign shipbuilder with respect to a significant vessel construction contract in the Toisa Limited bankruptcy case, including advising the client on its post-petition contractual obligations and potential avenues for seeking either continued performance or recovery of amounts owed by the debtor.

Montgomery McCracken has been recognized by the M&A Advisor multiple times for its involvement in the Chapter 11 cases of O.W. Bunker Holding North America Inc., O.W. Bunker North America Inc. and O.W. Bunker USA Inc. The M&A Advisor has awarded the OWB deal team with the following:

Our attorneys have an established reputation for forceful and effective representation with an impressive track record of success.  When you hire Montgomery McCracken, you will receive personalized and comprehensive attention and advice, bringing to bear the resources of other specialties as may be required, with a singular commitment to your needs and objectives.

For More Information

For more information, please contact Bankruptcy & Financial Restructuring chair Edward L. Schnitzer at eschnitzer@mmwr.com.