Distressed Debt and Bankruptcy Litigation
LLF has substantial experience in litigating creditorsí claims in the distressed debt and bankruptcy areas, having handled literally hundreds of litigations and workouts on behalf of creditors. The firmís willingness to handle matters outside of the traditional hourly-rate framework can be, and has been, particularly helpful in those very situations where resources for legal fees are limited: claims against distressed debtors; litigation claims on behalf of a debtorís estate or creditors in a bankruptcy proceeding; claims arising out of pledged collateral; and the like. LLF has achieved significant recoveries for creditors in circumstances where, were it not for the alternative billing arrangements agreed upon, the claims would probably never have been pursued. Here is a sampling of the types of cases LLF has handled in this area:
- A fraudulent conveyance action arising from dividend payments made to preferred shareholders of a company in Chapter 11.
- A claim against a guarantor by a corporation formed by lenders to take ownership of a debtorís distressed debt collateral.
- An action for interest payments due under the restructured bonds of a Latin American country.
- A claim arising from a hedge fundís purchase of bonds purportedly subject to a qualifying election in a pending bankruptcy proceeding.
- Claims arising from the default under a subordinated note pledged to the lender as collateral.
- A special proceeding to determine adverse claims to the property of a judgment debtor to void certain fraudulent conveyances.
- Multiple actions on defaulted real estate limited partnership investor notes pledged to lenders as collateral.