Common Bankruptcy/Creditors’ Rights Issues

When a tenant or borrower files for bankruptcy protection, clients are worried about how those proceedings may delay or impair their ability to obtain the bankrupt party’s full performance of its obligations. Clients may be unfamiliar with the process or uncertain about their rights and obligations in light of the bankruptcy filing. Clients are often required to respond very quickly to motions or other proceedings in order to protect their rights. Sometimes the client will need to seek affirmative relief from the bankruptcy court in order to allow it to protect its interests. These issues, and the often unpredictable nature of bankruptcy proceedings, can be especially disconcerting.

How Our Experience Helps

We have extensive experience representing landlords, lenders and other institutional creditors in connection with debtors’ bankruptcy proceedings. Our experience includes preparing proofs of claim and defending against claim objections; prosecuting requests for payment of administrative expenses, including administrative rent; representing landlords in connection with motions to reject, assume, or assume and assign leases; prosecuting motions for relief from stay; contesting chapter 11 and chapter 13 plan confirmations, including defending against efforts to “cram down” a chapter 11 plan; and adversary proceeding litigation, including litigation involving nondischargeability, preference, and fraudulent conveyance claims.

Representative Matters

• Represented federal credit union in obtaining successful resolution of a defaulted $9 million commercial loan secured by a single-tenant office building, including obtaining relief from stay and successfully opposing the borrower’s effort to confirm “cram down” plan in its chapter 11 bankruptcy case
• Represented multiple landlords in successfully obtaining relief from stay to proceed with unlawful detainer proceedings
• Represented various secured lenders in connection with obtaining relief from stay to foreclose on their real and personal property collateral
• Represented landlord of industrial business park premises in defending against debtor’s effort to modify lease as part of the sale of the debtor’s business and assignment of the lease
• Represented landlord of fitness club in connection with the resolution of amounts required to be paid by bankruptcy trustee in order to cure existing lease defaults and assume lease
• Defended general contractor against trustee’s claims for amounts owing arising out of prepetition termination of subcontract with debtor subcontractor
• Successfully represented commercial lender in obtaining full payment of a loan secured by a deed of trust on the borrower’s business property, including objecting to and negotiating the terms of a chapter 13 plan
• Defended numerous creditor clients in actions brought by chapter 11 debtors and bankruptcy trustees for turnover of property and recovery of alleged preferential and/or fraudulent transfers

If you would like to discuss how our experience can assist you with your specific business dispute or legal issue, please contact us for a free telephone consultation.