AREAS OF LAW
Bankruptcy and Creditors' Rights

The attorneys in our bankruptcy and creditors’ rights practice group have extensive experience in handling all of the legal aspects arising out of troubled business situations.  Because of our experience in bankruptcy court and in state court receiverships, we are well suited to negotiate on behalf of our clients from the first moment that they confront their own financial difficulties or the problems caused by their suppliers, customers, landlords, tenants, lenders or joint venturers.

We have represented debtors in Chapter 11 reorganizations and liquidations, Chapter 7 and Chapter 11 trustees, the non-debtor partners of debtors, the purchasers of assets from bankruptcy estates, and the purchasers of the equity of reorganized debtors.  We have successfully prosecuted and defended hundreds of preference and fraudulent conveyance actions.  Our attorneys have successfully prosecuted and successfully defended involuntary bankruptcy petitions against corporate debtors and nondischargeability actions against individual debtors.

We have all of the core competencies necessary to address the business and litigation aspects of these bankruptcy and receivership representations: We have exceptionally strong commercial litigation, securities, mergers and acquisitions, taxation, and labor and employee relations practices.

Our recent successes include:

  • The sale of a private university through a state court receivership
  • The recovery of almost $2 million on behalf of a Chapter 7 trustee by unwinding the payments of a Ponzi scheme
  • The cooperative sale of the assets of a troubled builder by means of bankruptcy intervention
  • The affirmation by the Sixth Circuit Court of Appeals of the extension at the trial court level of our lender client’s lien to the assets of successor corporation that had filed for bankruptcy
  • The protection of our lessor client’s assets from inclusion as assets of the estate of its bankrupt tenant
  • The structure of a client financing package to keep an insolvent business in operation long enough to permit the client to purchase through a bankruptcy sale the desirable assets as a going concern
  • Resolving an action that sought to hold an officer of a bankrupt corporation personally liable for more than $500,000 of the corporation’s obligations
  • Obtaining a voluntary dismissal of an action which sought $1 million in damages from our client for allegedly assisting an insolvent debtor to defraud its creditors
  • Negotiating debtor-in-possession financing to provide for full payment to our client, who was the largest secured creditor
  • Obtaining payment in full for a client who sold over $100,000 worth of goods to a company just prior to its filing a Chapter 11 bankruptcy
  • Successfully defending an action seeking to have more than $1 million declared nondischargeable. The plaintiff creditor unilaterally dismissed the case a week before trial
  • Winning a Sixth Circuit appeal on the question of whether a lessor is entitled to be paid in full when a debtor vacates leased premises before month’s end

For more information about our bankruptcy practice, please contact Mary K. Whitmer at 216-736-7255 or mkw@kjk.com, or James W. Ehrman at 216-736-7298 or jwe@kjk.com.

 

1375 East Ninth Street    One Cleveland Center, 20th Floor    Cleveland, Ohio 44114