Bankruptcy Litigation

(Bankr. D.N.J.): As counsel to the creditors’ committee, investigated and developed valuable estate claims that formed the basis for the chapter 11 plan, which—rather than releasing claims as originally proposed by the debtors—assigned them to a litigation trust. Our lawyers represented the litigation trust in prosecuting avoidance actions and breach of fiduciary duty claims, and ultimately secured a $65 million mediated settlement from the liquidating trust for the benefit of general unsecured creditors, who were initially proposed to receive only $250,000 in aggregate recovery.

(3d Cir.): Won an appeal for the former officers and directors of Standard Register Corporation in the U.S. Court of Appeals for the Third Circuit, a victory that follows two prior wins in bankruptcy court and federal district court in an adversary bankruptcy proceeding. The plaintiff, the trustee in Standard Register’s bankruptcy, alleged that the officers and directors breached their state-law fiduciary duties by acquiring a competitor business years before Standard Register’s bankruptcy and that any post-acquisition bonuses paid to the officers were fraudulent transfers under federal.

(Bankr. S.D. Tex.): Counsel to creditors’ committee in connection with an investigation of, and a 30-day bench trial over, a prepetition liability management exercise.

(Bankr. D. Del.): As counsel to the creditors’ committee, investigated and prosecuted a standing motion and claims objection to claims asserted for prepetition synthetic royalty financing, ultimately obtaining a favorable settlement that included a substantial reduction in claims asserted by lenders and an established pathway for future recoveries to unsecured creditors.

(Bank. S.D. Tex.): Counsel to bondholders that led to a $50.5 million settlement of estate and securities law claims against insiders.

(Bankr. D. Del.): Successfully obtained dismissal, on behalf of a secured junior mezzanine lender, of a bad faith chapter 11 filing intended to prevent foreclosure on a nationwide portfolio of self-storage facilities.

(Bankr. N.D. Tex.): As counsel to a secured creditor holding over $300 million in debt in the chapter 11 cases of a company with a portfolio of 64 self-storage facilities, prosecuted numerous contested matters, including a motion to appoint a chapter 11 trustee.

(Bankr. D. Del.): Counsel to the defendant in preference litigation brought by a litigation trust for Prime Trust, a bankrupt provider of banking and payment processing for the crypto industry, seeking damages of nearly $250 million.

(Fed. Cl.): Counsel to Education Creditor Trust in litigation against the U.S. Department of Education seeking to recoup $92 million drawn by the federal government on a letter of credit funded by lenders to bankrupt Education Management Corporation.

(Bankr. E.D. Virginia): Successfully obtained summary judgment for the defendant dismissing a $12 million, plus interest, preference claim brought by plaintiff litigation trustee.