The Insolvency and Creditors’ Rights/Bankruptcy Transactions Practice Group has extensive experience in:
We have frequently represented secured and unsecured creditors, debtors and asset acquirors in bankruptcy and non-bankruptcy workout cases, and have advised banks, mortgagees, lessors of real and personal property and other creditors in enforcing their rights. We have also represented indenture trustees and creditors’ committees.
Our practice group may often draw upon the resources of other groups in the firm, including the Real Estate, Corporate, Tax, Environmental, Maritime and Litigation Practice Groups.
In one of our most notable assignments in recent years, we acted as special maritime counsel to U.S. institutional investors in the largest financial collapse in the history of shipping, the Adriatic Shipping workout, which involved 49 vessels and more than $234 million in unpaid loans. This effort involved coordinating arrest and foreclosure of vessels in more than 30 jurisdictions around the world, litigating in two U.S. bankruptcy courts, advising on legal issues relating to the operation and sale of vessels acquired at auction, and litigating and negotiating with lien claimants on priority issues.
CL&M represented several dozen clients with claims against Enron or who were sued by Enron to recover payments made prior to its bankruptcy. We participated in litigation and negotiations over the terms of Enron’s plan of reorganization, finally confirmed in July 2004, and continue to represent clients in post-confirmation litigation.
We represented equipment supplier Cisco Systems in the Global Crossing, MCI/WorldCom and Genuity bankruptcy cases.
In 2003, we won a landmark victory for the Official Committee of Unsecured Creditors of Cybergenics Corporation in the Court of Appeals for the Third Circuit. After an extremely rare hearing en banc, the Court of Appeals reversed its prior panel decision by holding that a bankruptcy court may authorize an unsecured creditors’ committee to prosecute avoidance claims where the debtor in possession fails to do so.
We represented the London solicitors firm Lewis Silkin in connection with its advice to the liquidators of a U.K. company with an interest in a U.S. aircraft company. The representation was in connection with the sale of assets of the U.S. company and its subsequent voluntary liquidation.
Representative Clients
Our clients have included the Bank of New York, the FAO Schwarz Family Foundation, the Board of Directors of Loral Orion, Inc., Whole Foods Market, Inc. and the Indenture Trustee for notes issued by Navigator Gas Transport PLC.
Professional Activities
James Gadsden is the Chair of the Committee on Trust Indentures and Indenture Trustees of the American Bar Association’s Section on Business Law. He has been a speaker at programs sponsored by the Business Bankruptcy Committee, the American Bankers Association and the Banking Law Institute and has published numerous articles in the bankruptcy field.
Aaron R. Cahn is a member of the American Bar Association's Section on Business Law, the American Bankruptcy Institute, and the Turnaround Management Association. He has been a speaker at programs sponsored by the Section on Business Law and the Association of Insolvency and Restructuring Advisors, and has published various articles dealing with bankruptcy issues.