Home Print E-mail
Members of this practice area:

View Publications related to this practice

INSOLVENCY AND CREDITORS’ RIGHTS

The Insolvency and Creditors’ Rights Practice Group has extensive experience in:

We have frequently represented secured and unsecured creditors, debtors and asset acquirors in bankruptcy cases and non-bankruptcy workouts, 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. 

We represented parties who had open transactions with Lehman Brothers Holdings, Inc. and its affiliates in closing out and asserting the claims arising out of those transactions.

 

We are advising parties who invested directly or indirectly in Bernard Madoff’s on their rights and liabilities in connection with those investments.

 

We represented indenture trustees and collateral agents in the recent chapter 11 cases of energy company Calpine Corporation and Northwest Airlines, two of the largest recent bankruptcy cases in the United States Bankruptcy Court for the Southern District of New York. We also represent parties who were investing in claims in these and many other substantial bankruptcy cases.

 

We represented suppliers who shipped goods to Steve & Barry's before that retail chain filed a chapter 11 case in New York and sold many of its stores.

 

We acted as special corporate and litigation counsel for container leasing company Sea Containers Ltd. and its affiliates in connection with their pending chapter 11 cases.

 

We represented the members of the Board of Directors of Loral Orion Corporation in connection with the chapter 11 cases for Loral Corporation, a large manufacturer and operator of satellites.

 

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.

 

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.

Representative Clients

Our clients have included the Bank of New York Mellon, the FAO Schwarz Family Foundation, the Board of Directors of Loral Orion, Inc., Whole Foods Market, Inc. 

Professional Activities

James Gadsden is a member of the Committee on Bankruptcy and Corporate Reorganizations and the Committee on Structured Finance of the Association of the Bar of the City of New York, a former 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 and Working Group on Legal Opinions of the Section of Business Law, the New York University School of Continuing Legal Education, 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.