Schiff Hardin’s Restructuring Group has a wide-range of experience in all forms of restructuring transactions and insolvency proceedings. Schiff Hardin regularly represents debtors, committees, secured creditors, unsecured creditors, lenders, bondholders, insurance companies, trustees and receivers in all aspects of the restructuring process. Schiff Hardin’s Restructuring Group regularly represents clients in all aspects of insolvency law and formal bankruptcy proceedings, including:
Official and Ad Hoc Committees Representations
Chapter 11 committees are an important and often pivotal constituency in restructurings and bankruptcy cases. We have extensive experience representing official and unofficial committees, managing the parties’ various agendas to leverage the power vested in the committee to secure the maximum recovery for its constituency.
As a full-service firm, with a deep bench in virtually all industries, our restructuring lawyers can similarly leverage Schiff Hardin’s vast talent base to tackle any issue confronting our committee clients, effectively serving as a resource to maximize creditor recoveries.
Notable committee representations include:
- Suntech America, Inc. et al. – Representing one of the world’s largest solar panel manufacturers and chairperson of the Official Committee of Unsecured Creditors, holding a claim of more than $143 million.
- Waterscape Resort, LLC - Represented the Official Committee of Unsecured Creditors in the chapter 11 case of a newly developed $160 million New York hotel and condominium building, resulting in a 100% recovery for unsecured creditors.
- Select Nutrition Distributors, Inc., et al. – Represented the Official Committee of Unsecured Creditors in the bankruptcy of the third-largest distributor of health supplements in the country, in the United States Bankruptcy Court for the Eastern District of New York.
- Hibbard Brown – Represented the Official Committee of Unsecured Creditors in the chapter 11 case of a “penny stock” brokerage bankruptcy firm with more than $100 million in stock fraud and manipulation claims in the Southern District of New York.
- Gilbert Robinson, Inc., G/R Holding Corp., Inc. (Houlihan’s restaurants) – Represented the Official Committee of Unsecured Creditors in the restaurant chain’s $200 million chapter 11 proceeding in the Southern District of New York.
- Dreis and Krump Manufacturing Company – Represented the Official Committee of Unsecured Creditors in a mass tort/product liability case in the Northern District of Illinois that culminated in a confirmed plan patterned after the Piper Aircraft present and future claims trusts, garnering national press.
- Berk and Berk – Represented the Official Committee of Unsecured Creditors in a case where unsecured creditors received a 100 percent dividend in a successfully reorganized chapter 11 case after the restructuring of more than $30 million in HUD secured debt.
- KIWI International Air Lines, Inc. – Represented the Ad Hoc Committee of All Present and Former Employees, an organized group of approximately 250 founding employee shareholders in the District of New Jersey,
- Mega-C Power Corporation – Represented the Ad Hoc Committee of Certain Equity Security Holders, in the District of Nevada, representing the interests of more than 100 investors in a contested plan confirmation hearing, competing plan litigation and related adversary proceedings.
- EnCap Golf Holdings LLC – Represented the Official Committee of Unsecured Creditors in a chapter 11 case involving a complex brownfield remediation and development project, with more than $1 billion in filed claims and nearly $300 million of debt secured by hundreds of acres in the New Jersey Meadowlands.
- Tomorrow’s Toys; In re Comeback Video; In re FIM Stores; In re Maurice Rothschild – Represented the Official Committee of Unsecured Creditors in the debtors’ chapter 11 cases, involving successful plans of reorganization with material dividends, including recovery of fraudulent transfers and preferences.
- Madison Management Group – Represented official unsecured creditors committee in the successful appointment of a chapter 11 trustee and helped develop the facts and theory related to fraudulent conveyance and alter ego litigation later brought by the chapter 7 trustee seeking over $100 million from insiders of the debtor.
We have represented creditors in a variety of insolvency transactions. From transactions as simple as selling or purchasing a claim to transactions as contentious as leveraging a creditor’s rights in negotiating a plan, our attorneys have significant experience maximizing our client’s return through efficient legal representation.
The rights of each creditor we represent are analyzed from every aspect and discipline to assure a maximum recovery from every available resource. In collaboration with the appropriate practice or industry-focused groups in the firm, our restructuring attorneys deliver efficient and effective advice to help clients navigate the complexities of any insolvency situation.
Notable representations include:
- 785 Partners, LLC – Represented a Real Estate Investment Trust (REIT) in connection with its $106 million loan secured by a New York apartment building, obtaining a full recovery, including title to the building and a multi-million dollar cash payment.
- The Vue Orlando LLC – Represented the Note-A Senior Lenders in the workout of a $124 million loan facility secured by one of the largest luxury condominium developments in Orlando, Fla.
- Representing a privately held $225 million exotic, high-end vehicle financing and leasing company in all aspects of its business.
- Sexy Hair Concepts, LLC – Represented a major insurance firm in the recovery of its mezzanine debt in a complex chapter 11 case in Los Angeles that required resolution of a class action and negotiating a sale of the business at a substantially higher price than was initially offered.
- Conseco, Inc., et al. – Represented Indenture Trustee for the 93/94 Noteholders, under two $200 million indentures in the $6.5 billion bankruptcy (which was then the third-largest bankruptcy proceeding in United States history), in the Northern District of Illinois, resulting in a 100 percent distribution to all noteholders.
- Honeywood Development – Represented consumer finance company in obtaining arbitration and civil RICO judgments against developer who used fraudulent appraisals and “straw purchasers” to obtain millions of dollars of financing for derelict Chicago houses.
- Represented a credit union in the successful referral for criminal prosecution by the United States of a RV dealer who used fraudulently obtained titles and “straw purchasers” to obtain millions of dollars of financing for nonexistent luxury RVs.
- Represented of junior mortgage lender in the foreclosure of over 10 downtown Chicago office and commercial residential high-rises.
- LFG LLC – Represented a bank in the successful defense and jury trial of lender liability issues in connection with a senior subordinated financing of a bankrupt major forwards commission merchant in Chicago, in which the jury not only gave the bank a defense verdict, it awarded $1.2 million in damages under a counterclaim for breach of a subordination agreement.
- Represented a bank, its subsidiaries and their officers and directors, in the successful defense of a $300 million lender liability counterclaim to a foreclosure action in which we obtained pre-trial dismissals, with prejudice, of all claims against the officers, directors and subsidiaries and of the claims of breach of fiduciary duty, breach of good faith, and one breach of contract claim and, after trial obtained judgment for the bank for all amounts sought, including all of the bank’s legal fees, and dismissal of all remaining lender liability claims.
- Kaiser Steel – Represented a securities firm in the successful defense of fraudulent transfer claims against them as sellers of stock in the debtor’s LBOs by utilizing provisions of the Bankruptcy Code that, years before, we helped to draft to protect such payments as “settlement payments”.
- Lee Way Holding Company – Represented a national consumer products company in a bankruptcy in Columbus, Ohio, and related litigation in federal courts in Ohio, New York, and Oklahoma, to defeat securities fraud, fraudulent transfer, alter ego, and RICO claims and a wide variety of bankruptcy litigation.
- Represented an LBO buyer in the successful defense against fraudulent conveyance, alter ego, RICO, and “unlawful dividend” and related litigation brought by the trustee in the Select Brand Industries bankruptcy in Kansas City, MO.
- Spinnaker Reach – Represented the LBO lender in proceedings to recover on its claim by the sale of several operating plants and the settlement of all fraudulent transfer and lender liability claims in the bankruptcy proceedings in Chicago.
- Counsel to a bank in the successful defense of a claim for several million dollars arising from the bank’s termination of a line of credit, foreclosure on $3 million in GNMA securities without notice, and the consequent liquidation of borrower by the Illinois insurance commissioner, in which we made new law favorable to lenders that the over the counter market for GNMA securities is a recognized market for which no prior notice is required and that the implied duty of good faith does not create an independent right of action under the Illinois UCC.
- Continental Airlines, Inc. – Represented the First Series Indenture trustee for approximately $100 million in secured equipment certificates in the bankruptcy case.
- Trump Taj Mahal, Inc. and Western Union (In re New Valley Corp.) – Represented the single largest bondholder in the District of New Jersey chapter 11 cases.
- Shelbourne North Water Street, L.P. – Represented architectural firm in connection with the chapter 11 case involving the Chicago Spire.
- Represented prominent commercial landlords and exclusive broker in RadioShack Corporation and Ashley Stewart Holdings, Inc., Escada, Steve & Barry’s LLC, and BH S&B Holdings LLC, involving multiple unexpired leases/licenses and other pre-petition and post-petition claims.
- MF Global and Lehman Brothers Chapter 11 and SIPA proceedings – Represented counterparties to repurchase agreement and other financing arrangements.
- Mortgage Lenders Network USA, Inc. – Represented national banks in connection with the Debtor's substantial servicing obligations in excess of $1 billion and other claims and interests.
- WorldCom, Inc. – Represented leading global investment-banking firm in connection with various license telecommunication agreements, non-residential real property leases, hotel accommodation services agreements, and preference defense.
- Northstar Aerospace – Represented bank agent in a complex cross-border bankruptcy case of a defense contractor involving debtor’s supply chain and the simultaneous sale of U.S. and Canadian corporate assets.
- Congoleum Corporation – Represented Indenture trustee in bankruptcy reorganization of asbestos flooring manufacturer in New Jersey ($100 million).
- CrossMedia – Represented secured lender in chapter 11 case, involving contested cash collateral and DIP financing issues.
Our Restructuring Group has represented debtors in a wide range of industries, assisting them through each phase of the chapter 11 process. We are retained regularly for pre-bankruptcy workouts, out-of-court restructurings, balance sheet restructurings, strategic filings, debtor-in-possession financing, and asset sales and plans of reorganization. Our attorneys have a broad range of legal experience in all aspects of an organization’s restructuring, including corporate, securities, tax, employment, environmental and real estate. We often work in tandem with corporate, tax and other groups within the firm to provide seamless representation while addressing the difficult and complex issues debtors must confront. We understand the need to manage a business, while attempting to resolve creditor or regulatory demands, allowing us to bring a practical and experienced perspective to any restructuring.
Notable representations include:
- In re Ranch*1, Inc., et al. – Represented chapter 11 debtors in their successful chapter 11 cases.
- In re Claremont Towers – Represented chapter 11 debtors, resulting in a successful reorganization as well as a published decision regarding claims allowance.
- China Natural Gas, Inc. – Represented chapter 11 debtor in its complex, multinational chapter 11 bankruptcy proceeding seeking to restructure nearly $100 million in asserted claims.
- In re Flinknote – Represented debtor, as special litigation counsel, seeking to recover $1 billion in fraudulent transfers from insiders under alter ego and fraudulent transfer liability (recovery of over $650 million in settlement).