- Chapter 11 reorganizations
- Out-of-court workouts
- Prepackaged plans
- Construction loans
- Leveraged buyouts
- Commercial finance loans
- Asset-based loans
- Lender liability
- Fraudulent transfer
- Extent of security interest and liens
- Lien avoidance actions
- Purchase/sale of assets, securities, or obligations of a Chapter 11 debtor
- Restructuring of publicly held debt and equity securities
- Recovery of leased or financed property
- Debtor-in-possession lending, financing, and use of cash collateral
- Recovery of rents; assumption/rejection of leases
- Refinancing/renegotiation of privately held debt
- Issue tender/exchange offers for publicly held debt securities
- Solicitations of bondholder consents to covenant relief
- Cash infusions from existing or new investors
- Asset sales, swaps, and spin-offs
A reorganization often is the most practical and promising strategy for a troubled company. Our attorneys represent debtors, creditors’ committees, and trustees in formal Chapter 11 proceedings throughout the United States. We advise on “prepackaged” and “prenegotiated” plans, which implement quick restructurings that otherwise would take years to complete. We also advise debtors and financial institutions in nonjudicial debt restructurings or workouts that involve publicly and privately held instruments. In some instances, a business is not in distress but desires to retire debt at a discount, restructure operations, or recapitalize. Our group works with healthy companies seeking creative techniques to achieve specific business goals.
A company’s fiscal difficulty impacts various other parties, such as those who have provided loans, supplied goods and services, and invested capital. Lowenstein Sandler represents official and unofficial creditors’ committees and equity committees in diverse Chapter 11 and other insolvency matters. We work with commercial and investment banks, savings institutions, mutual funds, and other financial firms in their management of troubled credit. Our attorneys also advise clients who are interested in buying assets from Chapter 11 debtors. We help structure and secure bankruptcy court approval of debtor-in-possession financing, and we represent lenders in exploring and establishing these and other financing opportunities.
Whenever possible, we consult with our firm’s corporate attorneys in diverse disciplines to structure transactions that minimize future complications and liability and to avoid the domino effect that one bad deal can have on a company’s overall well-being. We also advise on the significant bankruptcy aspects of various transactions, including commercial finance transactions, as well as mergers, acquisitions, and divestitures of solvent, insolvent, and other highly leveraged companies. We are involved in large and complex commercial, industrial, and residential real estate insolvencies, and we help companies emerge from bankruptcy with controlled environmental liabilities.
Lowenstein Sandler attorneys prosecute and defend all types of litigation related to bankruptcy proceedings. We have developed a niche practice representing the interests of shareholders and investors in securities fraud class actions against corporate defendants in bankruptcy. Such representation helps protect a class of creditors that generally receives little or no recovery in Chapter 11 reorganizations or liquidations.
Our Bankruptcy, Financial Reorganization & Creditors’ Rights Group navigates smoothly through the complicated bankruptcy process to ease our clients’ most serious concerns. Our extensive knowledge of the insolvency landscape, our ingenuity and foresight, our negotiation and trial skills, all work to inspire our clients’ trust.