EFFECTIVE RESULTS

Corporate Restructuring and Bankruptcy

Corporate Restructuring and Bankruptcy

LEADERSHIP: Robert S. Hertzberg, David B. Stratton, Todd A. Feinsmith and David M. Fournier

During times of financial stress, businesses need experienced, effective and efficient legal counseling. This is true on both the debtor and creditor side of restructurings, insolvencies, corporate reorganizations and other challenging events. For decades, businesses throughout the country have turned to Pepper Hamilton LLP's Corporate Restructuring and Bankruptcy Group for that critical advice and counseling.

Pepper’s Corporate Restructuring and Bankruptcy Group is an integrated network of more than 35 professionals and support personnel who focus exclusively on all aspects of reorganizations, bankruptcies, restructurings, workouts and buyouts. Our team is national in focus, appearing regularly in bankruptcy courts throughout the country. We are experienced in insolvency matters involving a wide range of industries, with particularly notable experience in the food, asbestos, energy, construction, manufacturing, health care and automotive industries. Our clients include large national and international public and privately held corporations, as well as governmental entities, small businesses and individuals.

OUR WORK

Debtor and Creditor Representation

The traditional core of our bankruptcy practice is representing debtors and creditors in efforts to restructure and rehabilitate distressed businesses or liquidate assets in a manner that preserves and maximizes their value.

Our representation includes advice on all aspects of Chapter 11 proceedings, as well as out-of-court restructurings and recapitalizations and pre-negotiated workouts. Our experience allows clients to fully evaluate the risks, benefits, challenges and opportunities available in restructuring proceedings, whether in bankruptcy court or at the negotiating table. Sometimes, formal bankruptcy proceedings are required to achieve a client’s goals, and sometimes clients have no other option, but in many cases court filings can and should be avoided.

On the debtor side, we assist financially troubled corporations and other business entities with evaluating options and negotiations with creditors. We help with asset sales, debtor-in-possession and other financing, debt restructuring, valuation, corporate governance and fiduciary duties, and other issues that affect maximizing value for the client. In addition to distressed businesses, we frequently represent institutional investors with ownership stakes in troubled companies. We also represent court-appointed trustees.

On the creditor side, we represent official and unofficial creditors’ committees, individual creditors, lenders, debtor-in-possession financiers, indenture trustees, government entities and others. A prime role of counsel to a creditors’ committee is to effectively communicate and coordinate the sometimes conflicting positions and interests of a diverse group of creditors. Pepper has long experience in that role and has had success in developing sound strategies that can be embraced by all parties. We assist committees and creditors in assessing the valuation and solvency of debtors, the validity of financing and restructuring strategies, the liens and claims of secured creditors, and other issues critical to maximizing value for creditors.

Bankruptcy Litigation

Litigation is frequently integral to bankruptcy proceedings. Our Corporate Restructuring and Bankruptcy Group includes seasoned trial lawyers experienced in handling complex litigation for debtors, secured and unsecured creditors, and trustees. Litigation we handle includes:

  • complex municipal and corporate bankruptcy disputes
  • preference, fraudulent conveyance and equitable subordination actions
  • debtor-in-possession financing and cash collateral disputes
  • relief from automatic stay motions
  • adequate protection motions
  • insurance coverage disputes
  • contested disclosure statements and litigation over proposed reorganization plans
  • fee disputes
  • trustee appointment disputes
  • claim objection and resolution
  • disputed sales or purchases of assets in bankruptcy
  • director and officer liability litigation.