Creditors’ Rights & Intercreditor Disputes

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Overview

Litigators in RK&O’s Creditors’ Rights & Intercreditor Disputes practice are adept at identifying and exploiting areas of legal leverage to maximize the returns on our clients’ distressed and special situation investments. Our aggressive, strategic approach, combined with our deep knowledge of the judicial system and the Bankruptcy Code, allow us to stay moves ahead of our competition. more +

RK&O is a recognized leader in the distressed debt industry. The firm represented many of the original investors in distressed bank loans in the 1990s and helped create the standards and practices that revolutionized the secondary marketplace. Our litigators leverage this unique institutional knowledge, working closely with our Restructuring and Corporate colleagues, to formulate a strategy that advances our clients’ business objectives. 

Our group represents both creditors and debtors in a variety of commercial disputes related to bankruptcies, reorganizations and restructurings, including:

  • Fraudulent conveyance
  • Preference claims
  • Inter- and intra-creditor rights
  • Claims objections
  • Rights of minority investors or controlling investors in CMBS pools

We counsel a range of clients in the financial services industry, including hedge funds, insurers and investment banks, as well as borrowers and companies in a host of industries and sectors.

Experience

  • Black Diamond Capital Management and affiliated entities in connection with inter-creditor dispute arising from a credit bid.
  • Unsecured creditors in connection with highly publicized claims asserted against a financial advisory firm in connection with the GSC Group bankruptcy proceedings.
  • Goldman Sachs in a contested proceeding arising out of multimillion-dollar lease-rejection claims purchased in the secondary market filed in the Tower Automotive Inc. bankruptcy.
  • Quebecor (USA) Inc., as conflicts counsel, and certain of its affiliates, as debtors, in Chapter 11 proceeding in the U.S. District Court for the Southern District of New York. Cross-border bankruptcy proceedings were also pending in Canada.
  • Partnerships specializing in distressed-asset investments in a contested proceeding arising out of multimillion-dollar lease-rejection claims filed in the Tower Automotive Inc. bankruptcy.
  • Major lender banks against efforts by bankrupt LTV Corporation to consolidate bankruptcy-remote special purpose vehicles with the assets of the debtors, thus converting clients from secured to unsecured creditors.
  • A former chief executive officer and a chief financial officer of a bankrupt insurer in an action in which a Chapter 7 trustee brought $80 million in claims against them, along with various of the insurer’s advisers, directors and major shareholders.
  • A former chief executive officer of a bankrupt vacation-ownership-interval company in a federal court action brought by a litigation trustee asserting breaches of fiduciary duties and in related insurance coverage actions. 

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