Bankruptcy, Creditors' Rights and Insolvency-Related Litigation

Complex bankruptcy cases call for attorneys who are at once litigators and negotiators, advocates who are fluent in law, business and finance. Time and again, the attorneys at McKenna Long & Aldridge (MLA) prove themselves on all counts. In major bankruptcies and restructurings throughout the U.S., MLA attorneys help troubled companies reorganize, creditors to recover what is due them, trustees to manage major cases, and businesses to acquire distressed assets. Whether negotiating a sophisticated reorganization plan or litigating a complex adversary proceeding, our attorneys bring experience and creativity to the task.

Commercial bankruptcy cases involve multiple stakeholders and an array of competing interests. Through years of concentration in this field, we have the knowledge to represent all major stakeholders. Our clients are trustees, examiners, debtors, creditors and creditors' committees. In addition, we represent court-appointed fiduciaries in enforcement actions brought by federal regulatory agencies. We also represent secured and unsecured creditors both in and out of bankruptcy court.

Our experience covers all major industries. Our record of successful cases spans real estate, health care, manufacturing, technology, securities, construction, retail and textiles. The attorneys within our practice are fellows of the American College of Bankruptcy, hold leadership positions in bankruptcy and insolvency organizations, regularly speak and write about bankruptcy issues and are well regarded among their colleagues.

Debtors

Our experience representing debtors includes the successful reorganizations of a health care provider with over $100 million in assets and liabilities and of a utility cooperative with more than $1 billion in secured debt and $150 million in unsecured debt. In our handling of the liquidation of a sportswear manufacturer with annual sales of $50 million, we achieved 100 percent confirmation of the plan by creditors.

Creditors' Committees

The creditors' committee is central to the outcome of a Chapter 11 case. Our record includes serving as lead counsel for the unsecured creditors' committee in a case involving a $100 million hedge fund and in another involving a publicly traded technology company facing secured and unsecured claims in excess of $100 million. In the bankruptcy of a major mortgage company that specialized in subprime home equity loans, we were lead counsel for the committee of equity security holders.

In representing the creditors' committee in the case of a leading modem manufacturer, we helped achieve a plan that paid unsecured creditors in full with interest. We achieved the same result for unsecured creditors in the liquidation of a publicly traded tour business.

Trustees, Examiners and Receivers

Our attorneys have experience representing court-appointed fiduciaries in multiple cases. Our work includes representing the examiner in the $2 billion failed IPO of a commodities broker. We represented the Chapter 11 and 7 trustee for international sporting goods companies with $100 million in secured and unsecured creditor claims.

We have represented receivers in cases involving a CFTC investigation of a hedge fund with $20 million in investor claims, an FTC investigation of a fraudulent debt counseling company with $172 million in consumer claims, and an SEC investigation of a fraudulent investment scheme involving liquidation of $23 million in receivership assets.

Creditors and Interested Parties

Our attorneys regularly represent individual creditors and other parties in interest in litigation and bankruptcy proceedings. In one case, we represented secured creditors holding $88 million of debt in the confirmation of a plan resulting in the sale of a chain of more than 250 regional convenience stores. In another, we represented an investment fund in the confirmation and $100 million purchase of a national chain of retail jewelry stores.

For a secured creditor holding $31 million of debt, we fought for its interests through highly contentious bankruptcy and adversary proceedings. We were successful in obtaining the appointment of a Chapter 11 trustee and in obtaining sanctions against the principal for its dilution of the creditors' collateral. Sanctions included daily fines and the principal's imprisonment.

Representative Engagements

Trustee, Examiner and Receiver Representations

The representation of court-appointed fiduciaries requires lawyers and law firms with experience and resources in all areas of commercial law, bankruptcy and litigation.  Our Group has both the skill and the resources to represent court-appointed fiduciaries in all manner of complex cases.  Members of the Group have represented court-appointed fiduciaries in the following matters:

Committee Representations

  One of the critical players in any Chapter 11 Case are Official Committees appointed by the United States Trustee.  Members of the Group have significant and very successful experience representing Committees as evidenced by the following engagements: 

Debtor Representations

The Representation of a Debtor in a Bankruptcy Case or in an out of court restructuring requires extensive skill and experience in all facets of bankruptcy and business law.  Members of the Group have represented Debtors in the following matters:

 

Creditor and Interested Party Representations

The following is a list of representative engagements in which members of the Group have represented individual creditors and other parties in interest in insolvency related litigation or bankruptcy proceedings:

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