Stakeholders in complex insolvency and corporate restructuring matters are represented by Schwabe.

Overview

Litigation arises in a number of contexts throughout the course of a Chapter 11 bankruptcy proceeding, including early stage financing disputes, the sale of estate assets, avoidance actions to recover funds fraudulently transferred by the debtor, and plan confirmation, to name a few.

Schwabe’s Bankruptcy Litigation team’s actual trial experience sets us apart from other firms. Our attorneys have successfully tried some of the most complex and challenging bankruptcy matters, on behalf of trustees, committees, creditors, and other interested parties. One example is the successful $375 million fraudulent transfer and equitable subordination action for the Yellowstone Club, in which a team led by Troy Greenfield and Larry Ream proved that a global financial institution engaged in predatory lending. Following a fiercely contested trial, the judge equitably subordinated the $375 million secured claim, resulting in remarkable recoveries by the unsecured creditors and the successful reorganization of the Yellowstone Club.

When representing a debtor, Schwabe’s team first seeks to preserve its client’s assets and keep the company out of bankruptcy. In the event that a Chapter 11 bankruptcy is the best alternative, the experience of Schwabe’s skilled litigators significantly increases the probability of a successful exit from bankruptcy. We aim to preserve the going-concern value of a company, maintain jobs, retain business for suppliers and customers, and provide a greater benefit to the economy, while repaying creditors an amount that is greater than the liquidation value of the company assets.