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 representing secured creditors, we have employed the full range of creditors’ remedies, including:

  • Appointment of Trustees
  • Debtor in Possession Financing
  • Motions for Relief
  • Opposition to Plan Confirmation
  • Proposing a Creditor’s Plan.
  • 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*

  • FTF Parties: Robins Kaplan LLP is counsel to the New FTF, Inc. parties that include the former owners of VER Technologies, LLC, and its affiliates in their Chapter 11 cases. Robins Kaplan 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.

  • 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.

  • Enron: Represented a defendant in a lawsuit to recover alleged preferential and fraudulent transfers arising out the redemption of Enron commercial paper by various broker-dealers and/or holders of such paper. We spearheaded complex litigation and then drove a settlement between plaintiff and several defendants, including its client.

  • The Shooting Gallery: Represented the bank group for the independent motion picture producer and sound stage operator known as The Shooting Gallery Pictures. When the board and officers suddenly resigned and disappeared, we engineered strategies involving state law litigation and federal bankruptcy procedures that enabled the bank group to reorganize and dispose of assets and recover under D&O insurance policies. The banks recovered all of the over $20 million in principal they were owed.

  • Adventure Parks Group: In our representation of major creditors as defendants in a lawsuit to re-characterize their claims filed by the Chapter 11 debtors, we successfully litigated and then settled for no re-characterization of their claims and dismissal of the lawsuit.

  • Union Bank: Represented Union Bank in the restructuring and Chapter 11 cases of real estate, manufacturing, retail and other business with banking indebtedness of over $10 million.

  • CIT Business Credit: Represented CIT Business Credit in the restructuring and Chapter 11 cases of technology, manufacturing, and other business with senior and junior asset based financing in excess of $20 million.

  • Los Angeles Bonaventure Hotel: Represented the senior secured creditor in the Chapter 11 case involving the restructuring of the Los Angeles Bonaventure Hotel.

  • Lagardère Active Broadcast: Represented Lagardère, a major French and international media company, as plaintiff in a lawsuit for alleged breach of contract and related claims against the producers of the American adaptation of a popular French film. We obtained a $4 million judgment in favor of Lagardère in the lawsuit.

  • JP Morgan: Represented the secured lender in the bankruptcy case of Cimm’s, a national Burger King franchisee with over 130 locations when the bankruptcy commenced.

  • Conservation Billing Services: Obtained a substantial judgment in favor of Conservation Billing Services, a plaintiff in a breach of contract lawsuit against real estate development and management group.

  • Intrepid USA: Representing sole equity security holder of one of the largest home health care businesses in the U.S. in its Chapter 11 case and the jointly administered Chapter 11 cases of its nearly 60 affiliates.

  • Sun Country Airlines: Represented first air carrier to file bankruptcy post 9/11, resulting in sale of airline and its reemergence as a Minneapolis-based, lower-cost carrier.

  • Olympic Pipeline Company: Contested confirmation in oil pipeline reorganization on behalf of business interruption insurers holding in excess of $500 million in claims.

  • NRG, Inc.: Advised outside directors of Xcel Energy in out-of-court workout and pre-negotiated Chapter 11 of troubled subsidiary involving $10 billion of debt.

  • Best Buy Co. Inc.: Assisted retailer in divestiture of distressed subsidiary, Musicland Stores Corp., and as a creditor in Chapter 11 cases such as Montgomery Wards, Bradlees and K-Mart.

  • ABC Bus Companies, Inc.: Representation of seller/lessor of highway coaches in bankruptcy cases throughout the U.S.

  • Recomm International Display: Counsel to a Pitney Bowes leasing subsidiary in Chapter 11 bankruptcy of a marketer of electronic advertising display equipment and in related multi-district litigation.

  • Citi-Equity Group, Inc.: Represented unsecured creditors’ committee in Chapter 11 bankruptcy of corporate general partner of low-income real estate partnerships.

  • Alliant Computer Systems Corporation: Counsel to indenture trustee of $50 million bond issue in Chapter 11.

  • Techworld Associates Limited Partnership: Represented general partner in prepackaged bankruptcy involving $200 million real estate project in Washington, D.C.

  • International Broadcasting Corporation and Affiliates: Chapter 11 representation of New York-based financial institutions with claims in excess of $67 million - bankruptcy and litigation cases involving Harlem Globetrotters and Ice Capades.

  • Born Information Systems: Advised owner of national IT consulting firm and golf course development company in workout and litigation.

  • Tricord Systems, Inc.: Represented developer of clustered server appliances in Chapter 11 case and related litigation.

  • Jefferson Bus Lines: Counsel to major secured creditor in Chapter 11 of second largest bus line in U.S.

  • Amdura Corporation: Post-confirmation representation of reorganized 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.

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