Bankruptcy, Restructuring & Litigation | McCarter & English, LLP

Our lawyers deploy a wide range of restructuring options and litigation strategies to help both distressed debt owners and creditors not only minimize losses, but also leverage the sale or leasing of assets that could potentially lead to new opportunities.

Because of our deep bench of experience, we’ve encountered nearly every situation related to bankruptcy and insolvency and counseled clients from myriad industries. We are particularly noted for creditors’ rights; debtor or creditor committees counsel; prosecution of claims; defense of preference claims; prepackaged bankruptcies to shorten turnaround times; business and loan restructuring; forbearance agreements, structured settlements; loan sales; and representing buyers in Section 363 sales of debtors’ assets.

We regularly collaborate with colleagues from our tax, real estate, environmental, energy and corporate practices to ensure that clients get the benefit of subject matter experts in every discipline.

Bankruptcy

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No one benefits from a protracted bankruptcy process. That’s why we work quickly and efficiently to help debtors and trustees stabilize troubled companies by selling off distressed assets and assist lenders, creditor committees, secured and unsecured creditors in recovering monies owed after a debtor files for Chapter 7, 11 or 13 protection.

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Business Restructuring & Workouts

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We leverage the deep understanding of our clients’ businesses and investment strategies to counsel them on the most efficient path forward, whether it is in business and loan restructuring, forbearance agreements, structured settlements, or loan sales.

Construction & Real Estate Litigation

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A quick response to disputes affecting construction projects and real estate transactions is important to our clients’ bottom line. Our experienced construction and real estate litigators help clients respond timely to resolve conflicts or defend their interests in litigation.

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Consumer Financial Services Litigation

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We defend companies across all sectors of the consumer financial services industry against consumer claims and governmental actions and help them anticipate litigation trends and regulatory shifts impacting the industry.

Our clients include national and regional banks, mortgage lenders, mortgage loan servicers, credit card issuers, and other consumer credit providers. We provide strategic counsel to these companies concerning the broad spectrum of issues and disputes unique to the consumer finance marketplace.

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Creditors’ Rights

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We represent secured and unsecured creditors, creditor committees, and banks and loans servicers and handle title disputes and distressed real estate and UCC litigation defense.

We possess decades of experience representing financial institutions, which allow us to deliver prompt and thorough strategic advice and take a creative approach to handling any complicated creditors’ rights issues that may arise during insolvency.

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Representing a real estate developer where the seller refuses to comply with contractual obligations and convey title to the developer of property valued in excess of $10 million. Active discovery practice including depositions and active court matters addressing motion practice.

Representation of special servicers in collection of securitized loans and achieving recoveries through foreclosures and property sales, or restructuring debt.

Represented a lender in the bankruptcy proceedings of its borrower and guarantor and obtained summary judgment in the non-dischargeability adversary proceeding against the guarantor, resulting in a substantial settlement payment to the bank.

Represented an NFL football team in response to a subpoena and defense of threatened preference/fraudulent transfer claims in the bankruptcy proceeding of In re National Events Holding, LLC.

Representing a commercial lender in collecting a $16 million loan from non-obligor sources based on causes of action of fraud, conversion, and accountant malpractice.

Secured a full recovery on $7 million in loans made by our grocery wholesaler client to a borrower within a contested state court litigation that required navigating a forbearance agreement and the borrower selling some assets.

Representing a commercial bank in litigation to collect a $5 million Small Business Administration loan made to a bankrupt construction company. The litigation involves liquidation of more than 400 pieces of machinery and equipment, four foreclosure actions, and multiple collection actions against guarantors.

Represented the Chapter 7 Trustee in litigation to prevent the Debtor’s discharge on the basis of fraudulent conduct. After briefing and arguing the issues on Summary Judgment, the Court issued a detailed decision ruling in our favor (published as Stanziale v. Boyajian (In re Boyajian), 486 B.R. 306 (Bankr. N.J., 2013)).

Obtained a dismissal for the Navajo Times in a bankruptcy adversary action on the basis of a Sovereign Immunity defense. The court’s well-reasoned decision is published as Subranni v. Navajo Times Publishing Company, Inc. (In Re Star Group Communications, Inc.), 2016 Bankr. LEXIS 1893 (Bankr. N.J. April 29, 2016).

Successfully litigated a dispute against the assignee of a contract and received an award of all litigation fees in connection with the proceedings in the Bankruptcy Court and the appeals to the District Court and, ultimately, the 3^rd Circuit Court of Appeals. The Third Circuit Decision is published as Regis Corporation (Appellant) v. Southern El Dorado Corporation (Appellee) (In re Trade Secret, Inc.), 609 Fed. Appx. 98 (3d Cir. June 10, 2015) (Appeal from Bankruptcy Court Judgment).

Representing a financial institution, a victim of a massive fraud involving in excess of $15 million, involving a borrower who submitted false financial information, pursuing liquidation of assets in three states, defeating arguments of a third party claiming superior liens, addressing issues raised by a bankruptcy trustee, addressing issues of claimed Fifth Amendment privilege raised by loan guarantors, and laying the foundation to successfully pursue third parties under malpractice, negligence, conversion, and tortious interference with the bank’s rights. Litigation has occurred in state courts, state appellate courts, and the bankruptcy court.

Successfully represented a mortgage holder with a $12 million claim in a bankruptcy matter where the debtor entities engaged in a Ponzi scheme involving more than 20 commercial properties and many lenders. Caused rental revenue to be segregated for the benefit of the client, obtained a release so that no claims were brought against the client, and exited the bankruptcy with title to the property within nine months of the bankruptcy filing. Substantial recovery for the client in a relatively short period.

Represented a national bank holding a $22 million claim secured by ocean barges and tugs in a borrower bankruptcy. Assumed a leading role in advancing mediation and ultimate agreement involving the debtor company and the lender group of twelve banks. Additional collateral for repayment of the claim was obtained, all legal fees were reimbursed, and the matter proceeded promptly to a confirmed plan of reorganization, allowing regular loan payments to resume.