Representation of Secured and Unsecured Creditors
We represent private equity firms of almost every type. We assist our clients with workouts, restructurings, bankruptcy filings, receivership appointments, and foreclosures. We advise secured creditors in negotiating and closing transactions involving the creditors’ collateral, such as Section 363 sales or sales under a plan of reorganization. We assist clients with relief from stay proceedings to repossess collateral. Our attorneys represent secured creditors in litigation regarding secured status and value of collateral. We have significant experience regarding loan workouts and modifications, restructurings, forbearance agreements, bankruptcy alternatives, capital infusions, and alternatives for obligations in all stages of distress.
We regularly represent buyers of defaulted or distressed loans in bankruptcy court proceedings, receiverships, assignment for the benefit of creditors, and other litigation. We have been involved in the restructuring of all types of real estate loans, including commercial mortgage loans, construction loans, bridge loans, mezzanine loans, and preferred equity investments throughout the Southeast.
We have represented many official committees of unsecured creditors in Chapter 11 bankruptcies. We focus on capturing value for unsecured creditors that otherwise would go to other constituents in the case.
In committee engagements, our goal is to create a legal structure that will result in a fair opportunity for the general unsecured creditors to share in the recovery, even in the most challenging of cases. Often this effort entails approaching secured lenders, purchasers of assets, and other constituents to negotiate for a recovery. When the representation of a committee requires litigation and advocacy, such as when it is necessary to take a firm stance in opposition to a proposed debtor-in-possession financing facility or sale transaction, we are prepared and experienced.
We also have broad experience in reviewing and analyzing business decisions leading to distressed situations, with the two-fold goal of keeping the players honest to promote maximization of value for creditors, and identifying whether potential causes of action (including those that may be paid through insurance) are available to unsecured creditors.
Purchasers and Sellers of Distressed Assets
We routinely assist creditor clients during the Chapter 11 sale process. Through a Section 363 asset sale, a debtor can shed assets quickly. Those assets can include discrete assets, specific business units or substantially all the debtor’s assets. Our firm has significant experience in navigating numerous clients through the sale process, either as purchasers, sellers, official committees of unsecured creditors, ad hoc committees, lenders, or parties in interest impacted by the sale. Often a sale process results in sale proceeds less than the secured debt, and our attorneys are experienced in advising the various constituents through such situations.