FINANCIAL RECOVERY-WORKOUTS

In response to dramatic shifts in the economic environment, the Firm’s Financial Recovery – Workout Practice Group has expanded to assist clients in managing the challenges that the real estate marketplace is presenting.

The Group regularly provides legal services and counsel to financial institutions, creditors, receivers, trustees, creditor’s committees, buyers of distressed assets, CMBS special servicers and investors.

Wherever possible, our attorneys strive to resolve debtor/creditor issues in an out-of-court workout. Experience has shown that this approach can often lead to beneficial results for our clients with considerable cost savings over the expense and risk of litigation.

Our attorneys advise clients in evaluating their assets, establishing workout strategies, creating the workout’s legal structure and then negotiating the workout.

The Group routinely handles:

Chapter 11 reorganization proceedings - Bankruptcy filed under Chapter 11 is generally filed by business entities that require time to restructure debt, and involves a reorganization of the debtor's business affairs and assets pursuant to a court approved plan of reorganization.

Out-of-court workout - A negotiated agreement between a debtor company and creditor for the reorganization of a company's debt.

Chapter 7 liquidation - A sale of debtor's non-exempt property and distribution of proceeds to creditors.

Debt restructuring proposals to lenders from borrowers - Formation and negotiation of debt restructuring proposals on behalf of borrowers and institutional lenders.

Assignments for the benefit of creditor proceedings - Insolvency proceeding governed by state law, as an alternative to Chapter 11 and Chapter 7.

State court corporate liquidations - Legal representation of assignees, assignors, creditors and purchasers of assets in assignments for the benefit of creditors.

Risk planning analysis and management

Purchases from distressed situations - Legal representation of potential purchasers, and purchasers of assets from entities and individuals in financial distress, including representation of borrowers and lenders for non-performing debt.

Creditor committee representation - Representation or performance of services for an appointed unsecured creditors' committee or equity security holders' committee.

Trustee and receiver representation - Legal representation and performance of services for Chapter 7 and Chapter 11 bankruptcy trustees appointed in bankruptcy cases.

Workout related tax planning and consultation - Tax counsel pertaining to debt forgiveness, debt restructuring and exchange of property for debt, as well as debtor and creditor use and treatment of tax assets.

Due diligence for non-performing assets

Attorneys within this practice employ a team approach in the representation of our clients. Sophisticated real estate workout and foreclosure matters, for example, are handled by the Firm’s real estate lawyers and litigators; distressed asset purchases often involve a collaborative effort between our corporate and real estate lawyers, and estate and risk planning with our estate and tax planning practices. We believe this team approach enhances the quality and comprehensive nature of the representation we provide our clients.