Bankruptcy & Restructuring

Applying insolvency law expertise and diverse skills to protect our clients’ interests. Bankruptcy & Restructuring

Our bankruptcy & restructuring attorneys regularly represent clients in all facets of bankruptcy, restructuring and other insolvency proceedings and in any setting in which the financial condition of a party – distressed or otherwise – is at issue.

Success Spotlight

A real estate development company filed for Chapter 11 bankruptcy, owing millions to its mortgage lender, unpaid contractors and taxing authorities. The mortgage lender and...

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The group represents primarily creditors, as well as borrowers, in strategic engagements and parties acquiring assets through bankruptcy. The Farrell Fritz bankruptcy team:

  • Advises clients who have an ongoing relationship with a debtor in bankruptcy, as a landlord, a service provider or other contract counterparty. We assist them in continuing to do business with the debtor, while pursuing prompt payment for products or services provided post-bankruptcy and positioning the client to maximize recovery on any pre-bankruptcy debt.
  • Provides transactional services in loan workouts and bankruptcy cases, as well as defends those being sued by official committees, debtors or trustees in bankruptcy adversary proceedings, including defense of claims to recover preferences or fraudulent conveyances and claims alleging lender liability, breach of fiduciary duties or other mismanagement.
  • Counsels current and former owners and managers of companies undergoing restructuring whether in or out of bankruptcy. Farrell Fritz advises owners, officers and directors on the performance of their duties while their company is in bankruptcy or in financial distress, and we defend ownership and management against claims brought by and on behalf of the bankrupt company or its creditors.
  • Advises institutional lenders dealing with financially distressed borrowers. We review and analyze loan documents and lenders’ collateral coverage for existing and potential defects and enforcement problems; advise the client regarding available strategic alternatives; work with the client to minimize the risk of a claim of lender liability; evaluate the borrower’s proposals against the backdrop of potential litigation strategies; and document pre-bankruptcy agreements with an eye toward possible future bankruptcies.
  • Assists vendors in collecting debts from customers in the State of New York by suing to obtain judgments, collecting on judgments through enforcement procedures and remedies provided under New York State and federal law and structuring settlements to maximize creditor recoveries.

In addition, Farrell Fritz has developed a niche in the intersection of healthcare and Chapter 11, representing official committees, distressed hospitals and other key players in healthcare bankruptcies.

We also frequently work with our corporate and real estate attorneys to analyze insolvency issues that arise in loan originations such as preferential payments, credit enhancement issues, fraudulent conveyances, alter ego, substantive consolidation and inter-creditor issues.