Creditor Representation

Too often, creditors find themselves having to conclude important, expensive business relationships in bankruptcy court. At Robins Kaplan LLP, we bring a comprehensive understanding of bankruptcy law earned in complex insolvency proceedings to our representation of secured and unsecured creditors. Our emphasis on debtor-creditor matters gives our bankruptcy lawyers a special understanding of the bankruptcy and state law debtor-creditor system. In addition, we use insights gained from representing debtors, trustees, and other participants in debtor-creditor legal proceedings to benefit clients we represent as creditors.

Our unsecured creditor clients run the gamut from small businesses pursuing collection of a claim to large institutional investors holding hundreds of millions of dollars of publicly traded debt instruments. We also represent unsecured creditors with specialized problems, such as landlords, franchisors, licensors and licensees.

For secured creditors, our attorneys evaluate the client’s security documentation and, if issues exist, recommend ways to address them. Outside the bankruptcy arena, we have advised secured creditors on forbearance agreements, out-of-court restructurings, foreclosure proceedings, assignments for the benefit of creditors, and receiverships. In bankruptcy cases, we have experience in the full range of creditors’ remedies, including:

• Appointment of Trustees
• Debtor in Possession Financing
• Motions for Relief
• Opposition to Plan Confirmation
• Stay to Opposition
• Use of Cash Collateral

Clients and Industries

We serve secured and unsecured creditors from a variety of industry and business domains, including:

• Asset-Based Lenders
• Banking and Finance
• Entertainment and Media
• Factors
• Franchise Holders
• High Net Worth Families and Their Companies
• Hospitality and Leisure
• Insurance
• Private Equity and Hedge Funds

Selected Case Results*

• International Franchisor: Represented senior secured creditor with over $160 million owed in restructuring and multi-state litigation that resulted in the successful sale of international franchisor of multiple quick service restaurant brands.


• Owner/Developer: Represented creditor with over $50 million owed by fixed base operator at one of the busiest commercial airports in the country. Through a restructuring process and related litigation, achieved ongoing recoveries for the client.


• Lehman Brothers Holdings Inc. (Bankr. S.D.N.Y.): Represented institutional investor seeking damages for material misrepresentations made in sale of mortgage-backed securities. Won issue of first impression involving application of Bankruptcy Code section 510(b) to mortgage-backed securities, which resulted in published opinion and eight-figure cash recovery.


• Corinthian Colleges (Bankr. D. Del.): Represented liquidating trust in matter involving alleged breach of fiduciary duty and corporate waste by former officers and directors of Corinthian Colleges, for a time one of the largest for-profit college chains in the country. Achieved eight-figure settlement, which bankruptcy court approved, without filing suit.


• VER Technologies (Bankr. D. Del.): Represented the New FTF, Inc. parties that include the former owners of VER Technologies, LLC, and its affiliates in their Chapter 11 cases. The firm defended the interests of New FTF and negotiated an agreement to resolve any potential claims, including a potential fraudulent transfer claim that had claimed potential liability in excess of $500 million.


• Easyriders, Inc. (Bankr. C.D. Cal.): In represented liquidating trustee as plaintiff, obtained seven-figure judgment aftertrial against former officers and directors of Chapter 11 debtors based on fraudulent transfer law.


• BCHG (Bankr. D. Del.): Represented celebrity chef Chloe Coscarelli in bankruptcy case in which bankruptcy court rejected the investors of the “by Chloe” company, like Bain Capital and Kitchen Fund, attempt to purchase the “by Chloe” trademark—the company’s “crown jewel asset”—in a Chapter 11 proceeding without Chloe’s consent.


• Washington Prime Group, Inc. (Bankr. S.D. Tex.): Represented Fortune 500 company in connection with Chapter 11 bankruptcy case of major mall owner of more than 100 locations nationwide.


• Bruin E&P Partners, LLC (Bankr. S.D. Tex.): Represented American Indian Tribal entities in connection with Chapter 11 bankruptcy cases of Houston oil and gas company and its subsidiaries.


• Bernard L. Madoff (Bankr. S.D.N.Y.): Represented numerous victims of Madoff Ponzi scheme against SIPC trustee’s clawback suits. 


• Genus Products, Inc.: (Bankr. C.D. Cal.): Represented Chapter 7 trustee in the settlement of a $130 million fraudulent transfer adversary proceeding against motion picture production and distribution company for allegedly forcing unfair distribution agreements on captive home video distribution company.


• Adventure Parks Group (Bankr. M.D. Ga.): In representing major creditors as defendants in a lawsuit to re-characterize their claims filed by the Chapter 11 debtors, successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.


• Rossco Holdings/Leonard Ross (Bankr. C.D. Cal.): Represented creditors in prevailed on summary judgment in bankruptcy proceeding concerning deficiency claims against borrower and guarantor following foreclosure on real property.


• KSL Media (Bankr. C.D. Cal.): Represented cable network in connection with affirmative claims in media buyer’s bankruptcy and defense of trustee’s claw-back litigation for alleged preferential transfers. 


• Suzi Alter (Bankr. C.D. Cal.): Represented insurance companies in obtaining injunction against transfer of assets in a case involving alleged fraudulent scheme of an individual to shield assets from creditors.


• Exception to Discharge: Obtained multi-million dollar exception to discharge in Chapter 11 bankruptcy proceeding on behalf of a Commercial Bank from Houston, Texas.


• Assignment for Benefit of Creditors: Represented assignee for the benefit of creditors of company engaged in premium seafood and convenience meal businesses as litigation counsel in asserting and recovering preferential transfers.


• Asset Recovery: We represent clients in asset recovery, asset protection and enforcement of judgments, orders and arbitral awards, which has included, among other matters, obtaining an $8 million attachment and obtaining an injunction against the transfer of assets that facilitated prompt judgment satisfaction by judgment debtor.

* Past results are reported to provide the reader with an indication of the type of litigation we practice. They do not and should not be construed to create an expectation of result in any other case, as all cases are dependent upon their own unique fact situation and applicable law.