Lender (Secured Creditor) Representation

The lawyers in the Culhane Meadows’ Bankruptcy Practice regularly represent banks, non-depository financial institutions, indenture trustees, bondholders, servicers and special servicers as secured creditors in significant bankruptcy matters and out-of-court restructurings on a nationwide basis. The Firm’s representation of secured creditors runs the gamut, from pre-bankruptcy default enforcement and election of remedies, to prosecuting appropriate value-maximizing strategies through the bankruptcy process, to post-bankruptcy enforcement of rights and remedies. In bankruptcy cases, the Firm’s attorneys regularly represent lenders in negotiating debtor-in-possession (DIP) financing facilities, cash collateral and adequate protection litigation, prosecuting stay relief motions and objections to confirmation, and negotiation of consensual reorganization plans where appropriate.

Creditors’ rights representation in loan workouts and in bankruptcy is a core function of the Firm’s Bankruptcy Practice Group. We leverage our extensive work in this area to offer clients knowledgeable and careful guidance, helping them make practical assessments of relevant economic and legal risks.

Loan Workouts

Our lawyers work closely with our clients to review loan documentation, establish strategic objectives, and implement a workout plan. We also advise lenders about appropriate responses to borrower fraud, accusations of lender liability, environmental risks, regulatory restrictions in the borrower’s industry, competing creditor claims, and other pitfalls they may face during the workout process.

Chapter 11 Bankruptcy Lender Representation

Our attorney’s experience representing banks, indenture trustees, asset-based lenders, equipment financiers, and other non-debtor constituencies in bankruptcy is significant. We work to protect the rights of creditors and other parties affected by insolvency in virtually all bankruptcy procedural settings. In large bankruptcy cases, we focus their efforts on efficient and cost-effective client recovery. In smaller cases, we often seek deadlines in favor of senior secured creditors that the debtor must meet to continue to receive bankruptcy protection.

Our capabilities cross a broad array of substantive issues, including the permissible scope of first day orders, DIP lending, use of cash collateral, automatic stay, sales of assets, assumption or rejection of executory contracts, contested plan confirmations, preferences, fraudulent conveyances, and claims objections.

In cases where valuations and business solutions are complex, we work closely with financial advisors. In all regards, we help clients formulate an effective bankruptcy strategy, with attention to practical assessment of relevant economic and legal risks.