Our Practices

Bankruptcy, Financial Reorganization and Creditors' Rights

As seen in the 2011 edition of Chambers USA®, “Impeccable judgment and a real fortitude in providing timely, qualitative advice.  The lawyers know how to bring in support when required while still controlling costs for the client, and they work hard to get up to speed with the issues facing our business..”

The Creditors' Rights and Bankruptcy Reorganization Practice Group has broad experience in all aspects of bankruptcy, reorganization and creditors' rights matters, including complex litigation cases.  This experience includes representing debtors, official and unofficial committees, secured and unsecured creditors, trustees and other parties in interest in out-of-court restructurings and in Chapter 11 reorganization cases. Our group has also structured “pre-negotiated” plans of reorganization to expedite the Chapter 11 process.  We also have extensive experience in representing creditors in Uniform Commercial Code lien enforcement issues in state and federal courts.  In addition, we provide advice and counsel to distressed public and private companies, their boards of directors, bank groups, receivers and other fiduciaries with regard to proposed financings, corporate transactions and real estate acquisitions.  
 
While attempting to resolve matters through negotiation whenever possible, members of our Creditors' Rights and Bankruptcy Reorganization Team are routinely involved in litigating complex matters in bankruptcy courts, including valuation questions, fraudulent transfer and preference actions, DIP financing and use of cash collateral, adequate protection issues and contested confirmation hearings. The Team is also adept at state and federal court litigation involving the enforcement of creditors' rights under the Uniform Commercial Code, the Uniform Fraudulent Transfer Act and state receivership laws.  Since restructuring issues are often inter-disciplinary, the Creditors’ Rights and Bankruptcy Reorganization Practice Group often draws assistance from the Firm’s other practice groups including, tax, banking, commercial litigation, real estate and corporate.
 
The members of our Team combine technical knowledge of the highly complex Bankruptcy Code, the Uniform Commercial Code, and other statutes dealing with creditors' rights, practical knowledge of the "real world" bankruptcy process and, as importantly, a sound understanding of the business issues confronting our clients.  

As seen in the 2011 edition of Chambers USA®, “Sills Cummis & Gross is hugely admired for its skill in unpicking even the most complicated of bankruptcy cases to the benefit of its clients.  Its reputation is founded on its depth of understanding of the subject matter, and experience tackling cases in courts around the country.  Attorneys can call on their representation of lenders, secured creditors and debtors in overcoming a variety of obstacles.  The team represents a clutch of well-known organizations, and is particularly adept in bankruptcy issues with a real estate or healthcare bent.”

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Representative Matters

  • Representation of various investment funds in connection with the conversion of approximately $200 million of debt to equity to facilitate the acquisition of Motor Coach Industries International, Inc. through a pre-negotiated Chapter 11 process.
  • Representation of the unsecured creditors’ committee in the cases of Bayonne Medical Center and Hudson Healthcare, Inc.
  • Representation of clients In re Bernard L. Madoff Investment Securities LLC adversary proceeding with claims exceeding $1 billion.
  • Representation of Pascack Valley Hospital as a Chapter 11 debtor.
  • Representation of two national telecommunications companies as creditors in major Chapter 11 cases including Winstar, Enron, Teleglobe and WorldCom.
  • Representation of one of the largest unsecured creditors in the Chapter 11 case of Washington Group International, a construction company which had debts in excess of $5 billion.
  • Representation of a nationally-known engineering and design company in a Chapter 11 case filed to address the company's asbestos-based personal injury liabilities.
  • Representation of one of the largest owner/managers of commercial real estate in the United States in bankruptcy cases nationwide, including Linens 'n Things, Blockbuster, Urban Brands (Ashley Stewart), Sbarro and Chevy's Restaurants.
  • Representation of a pre-petition and DIP lender owed in excess of $100 million in a large paper product manufacturing Chapter 11 case.
  • Representation of a multi-national computer manufacturer and lessor in numerous reorganization cases, including Delta, Delphi and Le-Nature’s, Inc.
  • Representation of a major financial institution in Chapter 11 cases of two large residential real estate property developers.
  • Representation of a lender in the debt restructuring of a complex series of commercial real estate secured loans.
  • Representation of a major financial institution in the restructuring of the debt of a large trucking company.
  • Representation of an insolvent insurance brokerage firm in a liquidating asset sale and assignment for the benefit of creditors.
  • Representation of the purchaser of a substantial secured position in an aftermarket automobile accessory business and a subsequent Uniform Commercial Code Article 9 sale of the assets.

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