Bankruptcy & Creditors' Rights

Howard & Howard's Bankruptcy and Creditors' Rights practice offers a full range of services to creditors and other clients in connection with out-of-court restructurings, bankruptcies and related litigation.

Our lawyers regularly advise:

  • Secured lenders in the context of commercial, industrial and agricultural credit facilities, finance leases, and commercial mortgages
  • Administrative agents
  • Individual members of a lending group or steering committee
  • Owners of leased equipment
  • Unsecured creditors, including trade creditors
  • Purchasers of assets from distressed businesses
  • Licensors and licensees of intellectual property
  • Landlords

Our Bankruptcy and Creditors' Rights attorneys work closely with attorneys from across the firm's diverse practice groups—including: Commercial Finance, Litigation, Real Estate, Securities, and Tax—to effectively achieve the client's objectives in any default and/or insolvency scenario. For instance, our Commercial Finance attorneys are actively involved in structuring and documenting loan workouts, debtor-in-possession and exit financing agreements, and the acquisition and disposition of businesses and assets out of distressed situations.

The Bankruptcy and Creditors' Rights group has three broad areas of focus: (a) out-of-court restructurings and workouts; (b) bankruptcy and state-court insolvency proceedings; and (c) insolvency-related litigation.

Out-of-Court Restructurings and Workouts

Our lawyers have experienced myriad default and insolvency situations, and offer creative and effective solutions to our clients to maximize recovery and protect collateral. Representative services provided by our team include:

  • Representing secured lenders' interests in the restructuring of a borrower's global debt obligations and forbearance agreements
  • Representing the administrative agent in the workout of credit facilities
  • Negotiating and documenting loan re-financings by lender clients or take-outs by third party lenders and/or equity sponsors
  • Negotiating and documenting loan and lease modifications
  • Handling the acquisition and disposition of businesses and assets out of distressed situations, including voluntary surrender agreements, repossession, deeds in lieu of foreclosure, marketing collateral and leased equipment, and UCC transfers-of-interest and sales
  • Coordinating with an administrative agent, a lending group and/or a steering committee to protect our client's interests

Bankruptcy and State-Court Insolvency Proceedings

Our Bankruptcy and Creditors' Rights lawyers have handled the many issues that arise in bankruptcy cases, including:

  • Pre-packaged and pre-arranged plans of reorganization
  • Cash collateral orders and disputes
  • Investigating fraud and breach of fiduciary duties by officers and directors of a borrower
  • Debtor-in-possession financing
  • Motions to lift the automatic stay, adequate protection orders and related disputes
  • 363 sales
  • 365 assumption or rejection of leases and contracts
  • Claims objections and disputes
  • Plans of reorganization and objections thereto
  • Chapter 7 conversions and liquidation of collateral

Likewise, we have significant experience protecting our creditor clients' interests in state-court insolvency proceedings, including receiverships, special master proceedings, trust mortgages and assignments for the benefit of creditors.

Insolvency-Related Litigation Matters

Howard & Howard has a premier insolvency-related litigation team. We are not merely litigators who occasionally handle bankruptcy litigation. We are attorneys who focus on representing lenders in both bankruptcy and litigation matters. We are well-versed in insolvency law, litigation procedure, our clients' businesses, relevant substantive law, and the interplay between bankruptcy and related litigation matters. Our team has successfully handled every variety of insolvency-related litigation, including:

  • Representing lenders in suits against defaulting borrowers and guarantors, including replevin actions
  • Defending lender liability actions
  • Pursuing and defending bankruptcy litigation (adversary proceedings), including lien priority disputes and preference actions
  • Pursuing and defending fraudulent transfer litigation
  • Pursuing and defending foreclosure proceedings regarding real property and personal property
  • Enforcement of letters of credit
  • Loan participation disputes