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Bankruptcy, Creditors’ Rights, and Restructuring

Overview

We regularly represent clients in bankruptcy and creditors’ rights matters in federal and state courts throughout Virginia. We have significant experience representing and advising secured and unsecured creditors, institutional and DIP lenders, landlords, lessors, tenants, sellers, purchasers, claims traders and other interested parties in chapter 7 and 11 bankruptcy proceedings.

We frequently serve as local or co-counsel for corporate in-house counsel and some of the nation’s leading law firms in large bankruptcy cases pending in the United States Bankruptcy Court for the Eastern District of Virginia.

We also represent business clients seeking to reorganize or restructure outside-of-bankruptcy.

Bankruptcy is more than just a highly specialized area of law. It is an area of law that often requires a multi-disciplinary approach. A strong bankruptcy practice team requires attorneys with a wide array of skills. In any given matter not only may federal bankruptcy laws be involved, but sophisticated litigation, appeal, business, transactional, commercial, financial, lending, real estate, tax and other issues may be involved. Our practice team is poised to handle matters from the most mundane to the most sophisticated in a comprehensive, effective and cost-effective manner.

We maintain a significant practice representing creditors and interested parties in bankruptcy litigation matters of all types – from small contested matters to large preference and fraudulent avoidance actions. We regularly appear before the United States Bankruptcy Court for the Eastern District of Virginia and have a working familiarity with its local rules and practices.

We also represent entities in creditors’ rights and related litigation in state and federal courts throughout Virginia, including businesses large and small, regional, national and international corporate and business interests, and individuals.

Our Bankruptcy Creditors’ Rights and Restructuring practice includes:

  • Advising secured and unsecured creditors, institutional and DIP lenders, landlords, lessors, tenants, sellers, purchasers, claims traders and other interested parties in chapter 7 and 11 bankruptcy proceedings, including contested matters and adversary proceedings.
  • Serving as local counsel and co-counsel in large business bankruptcy cases in the United States Bankruptcy Court for the Eastern District of Virginia, being called upon by nationally-recognized law firms and in-house corporate counsel.
  • General representation of creditors in bankruptcy transactions, litigation and appeals, including asset sale, financing, relief from stay, cash collateral, adequate protection, turnover, abandonment, landlord-tenant, executory contract, disclosure statement, plan, tax, lien priority, claim, reclamation, discharge, exemption and preference and fraudulent transfer matters, actions, contests and controversies.
  • Out-of-court/out-of-bankruptcy business and loan reorganizations, workouts and restructurings.
  • Acquisition and restructuring of troubled businesses, loan restructuring and workouts and acquisition and sale of assets inside and outside of bankruptcy.
  • Foreclosures, repossessions, seizures and liquidations.
  • State court litigation, including collection proceedings and post-judgment collection and enforcement activities.
  • Involuntary bankruptcies.
  • Appeals of bankruptcy court final and interlocutory orders entered in contested matters and adversary proceedings.
  • Mediation and alternative dispute resolution.

Representative Experience

  • Represented an interested party in multi-prong effort to address disclosure obligations of court-approved professionals employed in large bankruptcy cases pursuant to Bankruptcy Rule 2014 and 11 U.S.C. § 327.
  • Defended a consumer finance company in a bankruptcy adversary proceeding alleging failure to comply with bankruptcy proof of claim documentation requirements and seeking certification of a class claim objection on behalf of a putative class of individual debtors.
  • Defended a biomarker discovery company in a bankruptcy adversary proceeding alleging breach of a pre-petition license agreement concerning the client’s intellectual property related to a prediabetes diagnostic test.
  • Defended a consumer financial services institution in a multi-million-dollar bankruptcy adversary proceeding alleging breach of a post-petition services contract.
  • Prosecuted hundreds of preference avoidance actions for Chapter 7 trustees.
  • Represented numerous defendants in adversary proceedings filed by Chapter 11 debtors in possession, Chapter 11 liquidating trustees and Chapter 7 trustees seeking avoidance of preferential and/or fraudulent transfers.
  • Represented numerous defendants in bankruptcy and U.S. District Court-ordered mediations.
  • Defended a national commercial lending institution in a bankruptcy adversary proceeding seeking the avoidance of preferential transfers made by a debtor in a Chapter 7 bankruptcy case.
  • Represented numerous landlords in national retail bankruptcy case.
  • Represented national manufacturing interests in national retail bankruptcy case.
  • Represented the Hong Kong Bank of Canada in a seizure of collateral from a textile manufacturing facility.
  • Represented Federal National Mortgage Association (“Fannie Mae”) in a complex series of bankruptcy cases relating to major Virginia real estate developer. Obtained relief from stay against real estate developments and defeated debtor’s cram-down Chapter 11 plan of reorganization.
  • Represented the Virginia Attorney General as special counsel for bankruptcy matters. Representation included the Department of Information Technology in the WorldCom bankruptcy, the Lottery Department in major financial fraud/bankruptcy case (Nelco), the Workers’ Compensation Commission in major coal company bankruptcy in Denver, Colorado, the Department of Motor Vehicles in an oil company bankruptcy regarding non-payment of trust fund fuel taxes and the Department of Medical Assistance Services in a nursing home bankruptcy. Successfully defended the Department of Corrections on constitutional sovereign immunity grounds in $800,000 turnover action in bankruptcy court.
  • Represented the Resolution Trust Corporation in a bankruptcy foreclosure against a golf resort hotel in Pinehurst, North Carolina.
  • Represented international lender in defense of purchase money security interest in heavy equipment valued at $2,000,000 through bankruptcy court, federal district court and federal circuit court of appeals.
  • Represented international lender in shutting down manufacturing facility and repossession of manufacturer’s inventory. Instituted/prosecuted 80 cases to collect accounts receivable, resulting in complete multi-million dollar recovery – all outside of bankruptcy.
  • Represented international cosmetics manufacturer in defense of preference action relating to regional department store bankruptcy.
  • Represented national lender in bankruptcy case resulting in recovery of multi-million dollar printing equipment.
  • Represented special creditor committee/investor group with multi-million dollar claim in Pittsburgh bankruptcy case, aggressively challenging debtor regarding misapplication of loan/equity contribution proceeds. Forced appointment of Chapter 11 trustee and obtained full recovery for client.
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