Insolvency and Restructurings
Our attorneys advise corporate boards, special committees, and individual officers and directors regarding their fiduciary duties in situations involving financial distress, insolvency, restructuring, or bankruptcy. These situations often involve competing interests, difficult decisions, and stakeholder demands that are impossible to reconcile. The law surrounding the duties of officers and directors of a financially distressed or insolvent company is evolving, and it is important to have counsel who are up to speed on the most recent developments. We help our clients navigate these complex situations so that they are able to follow appropriate procedures, comply with their duties, maximize value for stakeholders, and at the same time protect their own interests. Situations involving financial distress or bankruptcy sometimes result in litigation against officers and directors, as aggressive creditors, trustees, and committees second-guess judgments that were made, seek leverage, and look for every possible source of recovery. We are experienced at defending these claims, and we have a track record of success in doing so.
- Advised the independent members of the Board of Directors of Capmark Financial Group, Inc. in connection with Capmark's Delaware Chapter 11 reorganization.
- Represented directors in connection with breach of duty claims filed in the Delaware Bankruptcy Court in the Allied Systems Holdings, Inc. Chapter 11 proceedings.
- Defended a private equity fund and individual directors against breach of fiduciary duty claims filed by a bankruptcy trustee, arising from a failed leveraged buyout.
- Defended investment funds and their principals against breach of duty, equitable subordination, and recharacterization claims asserted in the Steve & Barry's bankruptcy case in the Southern District of New York.
- Represented a private equity firm and certain of its principals in litigation brought by a bankruptcy trustee alleging breach of fiduciary duties and other business torts following the private equity firm's exit and the subsequent financial collapse of the business.
- Defended directors of a hospital management company in breach of fiduciary duty litigation filed by a liquidating trustee under a Chapter 11 plan.