Services & Industries

Bankruptcy and Restructuring

Overview Experience Professionals Insights News

Overview

Our Bankruptcy and Restructuring group serves the needs of creditors, investors and purchasers of debts and assets. Drawing on the combined experience of lawyers in our finance, bankruptcy, real estate, tax and business law practices, this group has been involved in major national and regional restructurings and insolvencies. Our practice is characterized by a proactive approach that emphasizes consensus building and the efficient achievement of "win-win" outcomes where possible, but which can, where required, include a very strong and aggressive litigation strategy.

Troubled Company Restructurings and Liquidations

We regularly counsel parties to distressed transactions on how to restructure the deal either within or outside the bankruptcy process. In times of restricted access to capital for emerging companies, our team of finance, bankruptcy, tax and corporate attorneys can assist companies, lenders, investors and other stakeholders in maximizing value, negotiating agreements and preserving inherent business value.

Representing Creditors and Other Stakeholders in Bankruptcy Proceedings and Litigation

Our bankruptcy and creditor rights experience allows us to provide advice to our clients in structuring securitizations, project finance transactions, commercial leases and other bankruptcy remote transactions in order to minimize the impact of bankruptcy. The strength and depth of our commercial trial practice gives us a strategic advantage in negotiating favorable outcomes in bankruptcy cases. When the objective requires high stakes litigation to prevail or to shift the leverage in a case, our bankruptcy and trial lawyers are experienced in managing the kind of diverse and complex litigation that arises in major bankruptcy cases, including contested plan confirmations, collateral valuation proceedings, claims objections, adversary proceedings and avoidance actions.

Nonperforming and Underperforming Structured Financings

Our extensive experience representing investors, issuers and others in structured financings – involving securitizations of commercial mortgage loans, franchisee loans, trade receivables, floor-plan financing, automobile loans, home equity loans, medical receivables, credit card receivables, utility stranded costs and numerous other financial assets – has helped us successfully represent parties to nonperforming and underperforming structured transactions. By deciphering complicated deal structures and analyzing important cash flow mechanics, we have helped our clients restructure these complex transactions. While we understand that servicing is often at the heart of a problem, we appreciate the rights and needs of differing classes of investors and their intercreditor issues, we work cooperatively to help the parties reach consensus, and we understand the consequences of failed bankruptcy remote structures for all parties involved, regardless of the ultimate source of the performance issues.

Distressed Real Estate

We have handled real estate restructurings and workouts, from large scale reorganizations such as the Colonial Realty debacle in Connecticut to single-asset Chapter 11 cases involving office buildings, shopping centers, restaurants, conference centers, apartment complexes, marinas and other special uses. We also have represented lenders and other parties in interest in contested confirmation battles, creditors' plans, deeds in lieu of foreclosure and complex restructurings to maximize value in distressed situations.

Workouts in the Airline Industry

We have represented secured and unsecured creditors, indenture trustees, and lessors of aircraft and engine parts in a number of airline bankruptcies, including serving as counsel to a member of the creditors' committees of American Airlines, Delta Airlines and Continental Airlines. We also represented significant creditor interests in Hawker Beechcraft, Northwest Airlines, TWA, Eastern Airlines, Pan Am, Braniff, Midway, Southern Air Transport, Shuttle America and others. We have taken significant roles in negotiating important aspects of plans of reorganization in some of these major cases.

Energy Industry and Electric Utility Restructuring

With a nationally recognized energy practice, we have decades of experience representing lenders, other creditors and debtors in bankruptcies and workouts across the energy industry. Our representations have included the acquisition of a large electric utility out of bankruptcy, counsel to a power pool in the bankruptcies of several large generators, and restructurings of independent power projects. We have addressed a broad range of issues in these engagements, including the replacement of project sponsors in power projects, the termination of power purchase agreements and the ramifications for power markets of the bankruptcy of multiple large market participants.

Hospitality Restructuring and Workouts

With in-depth knowledge of the hospitality industry, Day Pitney's Hospitality practice group provides clients a wealth of experience in numerous economic down cycles and in representing hotel and resort owners, lenders, managers, and brands to help them navigate restructurings, workouts and bankruptcies. Day Pitney attorneys understand the unique challenges faced by the hospitality sector, having substantial experience covering a broad range of transactional, litigation and operational issues. Our hospitality restructuring experience ranges from loan modifications to hotel bankruptcies, and from management renegotiation to receiverships.

Retail Industry Restructurings

We have served on committees in bankruptcy cases involving retail debtors and have participated in plan negotiations and litigated or negotiated resolutions on issues relating to leases, public bonds, mortgages, dispositions of assets, claims priorities and subordination, including participating and providing services to clients in the Chapter 11 proceedings of Aeropostale, Sears, Barneys, Ames Department Stores I & II, Caldor's, Bradlees, Federated Department Stores, Macy's, Filene's, Andy Jones, Countdown of CT and others.

Municipal and Tribal Restructurings

We have been a nationally recognized bond counsel since the early 20th century, and members of the municipal finance team represent and counsel states, municipalities, agencies, authorities, conduit borrowers, corporate trustees and banks, underwriters, and financial institutions that provide credit support to financing transactions in many types of matters, including restructurings. The depth of our municipal financing experience combined with our bankruptcy and complex litigation experience uniquely positions us to evaluate, advise on and implement strategic responses to the increased fiscal distress facing governments, communities and businesses.

Distressed Acquisitions

Our business and insolvency lawyers work together to assist creditors in controlling and disposing of collateral and to assist strategic or financial buyers in purchasing stock, loans and assets from distressed sellers.

Experience

Prior results do not guarantee a similar outcome.