Bankruptcy, Reorganization & Capital Recovery

Debtor and Creditor Services

Companies of any size and any industry can face challenges that lead to financial distress. Rutter Hobbs & Davidoff counsels clients along the path back to financial health, from early stage evaluations and prepetition planning to out-of-court reorganizations, formal Chapter 11 bankruptcy proceedings and Chapter 7 liquidation proceedings. We are experienced in representing the many parties involved in reorganization and liquidation bankruptcies: debtors and creditors, equity holders, creditors' committees, secured creditors, and indenture trustees. As a result, we offer our clients a broad perspective and practical advice.

Our lawyers shape the solution to fit the problem. A formal bankruptcy proceeding, which is a cost-effective tool in some situations, is not always the best option. We may advise working with other professionals, such as accountants and turnaround specialists, to evaluate and implement alternatives short of bankruptcy, including assignments for the benefit of creditors, renegotiation of loans and covenants, and other methods to improve the operations.

Representative Engagements

Our Services:

Corporate Reorganization

• Evaluate alternatives and assist in prepetition planning
• Assist in arranging debtor in possession financing
• Coordinate with management, consultants, and turn-around specialists

Workouts

• Evaluate, negotiate, implement, and supervise out-of-court workouts
• Renegotiate bank loans and covenants, revise debt instruments, and structure payment plans with trade vendors
• Assist in locating new capital
• Coordinate with management consultants and turnaround and crisis management specialists in the restructuring and "right-sizing" of client's business

Assignment for the Benefit of Creditors

• Represent both debtor / assignor companies and assignees
• Formulate, negotiate, and implement out-of-court assignments for the benefit of creditors
• Structure sales to third parties as part of assignments

Committee Representation

• Representation of creditor and equity holder committees in the protection of their rights and assets
• Representation of bond holders
• Filing of creditor plans of reorganization
• Monitoring of debtor reorganization cases

Creditor Representation

• Pursue defaulting debtors on behalf of lenders and enforce lenders’ rights
• Injunctions, writs of attachment, writs of possession, receiverships, and like procedures
• Prepare forbearance agreements and renegotiate loans and covenants
• Design use of cash collateral and debtor-in-possession financing agreements
• Obtain relief from stay
• Evaluate security interests and implement UCC and real property foreclosure sales
• Prosecute and defend lender liability actions

Purchase and Sale of Distressed Assets

• Conduct Section 363 sales for debtors
• Conduct sales through assignment for benefit of creditors
• Conduct sales through UCC foreclosure
• Represent buyers of assets in bankruptcies and reorganizations
• Advise clients on opportunities and risks associated with distressed sale transactions

Adversary Litigation

• Prosecute and defend preference, fraudulent transfer, and other avoidance actions
• Advise clients on structuring settlements and evaluate third-party claims within the framework of in and out-of-court restructurings, workouts, and reorganizations

Director and Officer Litigation

• Prosecute D&O claims on behalf of debtors and trustees
• Defend directors and officers against claims of trustees for breach of fiduciary duty, deepening insolvency, and other claims

Loan Documentation

• Structure document and close financing transactions
• Interpret financing transactions, including cash flow loans, asset-based loans, real estate secured loans, and senior secured and mezzanine loans

Contacts:

Brian L. Davidoff (practice group leader)
Duane Kumagai
Paul J. Laurin
John Melissinos
David Joe 
Claire E. Shin