Bankruptcy & Corporate Restructuring

Cole Schotz’s Bankruptcy & Corporate Restructuring Department has expertise in complex corporate restructurings, state and federal insolvency proceedings and “high stakes” bankruptcy litigation.  Our clients include debtors, creditors and other statutory committees, institutional creditors, secured parties, indenture trustees, bond insurers, venture capitalists, lessors and contract parties, asset purchasers, equity holders, directors, and court-appointed fiduciaries. 

We practice on a national platform with veteran attorneys based in Delaware, Maryland, New Jersey, New York, and Texas, which provides a “one stop shop” for our clients.  The department has earned high marks and placed prominently for the past several years in Chambers USA: America’s Leading Lawyers for Business, a well-respected legal directory, compiled based on in-depth interviews with key in-house counsel and private practice attorneys.  Attorneys from our other highly regarded departments such as corporate, tax, real estate, environmental, and litigation, frequently contribute their expertise in meeting our clients’ needs in financially distressed  situations.  We are known not only for the high caliber of our representations, but also for our economic efficiency in handling complex matters and bringing them to a successful resolution.  Unlike many other bankruptcy practices, Cole Schotz does not represent major financial institutions, which enables us to be unquestionably and directly adverse to those entities and to be retained as co- or conflicts counsel on behalf of debtors or creditors’ committees.

Out-of-Court Restructurings and Chapter 11 Reorganizations

Usually confronted with emergent situations, our attorneys swiftly and efficiently assess our clients' source of financial distress and work to devise and implement innovative alternatives to preserve enterprise value and fulfill our clients' business objectives.

In analyzing our clients’ circumstances, we strive in the first instance to avoid a Chapter 11 filing and to provide creative out-of-court restructuring advice and options through consensual debt restructurings and financial recapitalization.

If bankruptcy is the most viable restructuring option, our extensive experience representing Chapter 11 debtors uniquely positions us to achieve successful results. 

Business Sales

The sale of a business and/or its assets is often the most viable option.  We assist our clients in seeking the most advantageous means of disposing of distressed business interests, whether through asset or stock sales, and institute and process orderly liquidations pursuant to federal and state law. 

Bankruptcy Litigation

We are not just experts in complex corporate restructuring proceedings – many of our attorneys are also seasoned litigators.  We regularly handle pre-bankruptcy litigation.  We are well versed in litigation procedure and trial practice and are capable of handling all facets of the complex litigation that often arises in restructuring matters.  We are frequently retained as special litigation and/or conflicts complex litigation counsel within bankruptcy proceedings.

The types of bankruptcy litigation that we handle include:   plan confirmation, debtor-in-possession financing, cash collateral, relief from the automatic stay, asset sales, complex fraudulent transfer and preference litigation, equitable subordination and recharacterization of debt to equity, substantive consolidation and other litigation involving affiliates of debtors,  chapter 11 trustee and examiner motions, claims challenges and estimation, and lender liability.

Secured Creditors’ Rights

In limited circumstances, we will undertake the representation of non-institutional secured lenders such as private equity firms, opportunity funds and note holder groups.  We work with our clients to develop and implement innovative and practical solutions that maximize the value of their collateral and interests in and out of bankruptcy.

• Gary Leibowitz was recognized in the 2010 Daily Record "VIP List, Successful Before 40"
• Cole Schotz Attorneys Named to 2010 Maryland Super Lawyers and Rising Stars Lists
• Chambers USA 2009 Ranks Cole Schotz Among Top Law Firms in Delaware, Maryland and New Jersey
• Michael Sirota appeared on the March 9, 2009 segment of FoxBusiness.com discussing his thoughts on whether General Motors should file for bankruptcy

• Bankruptcy Forum: What Judges and Trustees Want You to Know
• Handling Current Commercial Landlord Tenant Issues, New Jersey Institute for Continuing Legal Education (NJICLE), May 12, 2010
• Bankruptcy Preparation: Beyond the Basics, American Bankruptcy Institute 2010 Annual Spring Meeting, May 1, 2010
• Selected Issues in Plan Confirmation Proceedings: Termination of Exclusive Periods, Competing Plans and the Struggle to Control the Process, American Bankruptcy Institute 2010 Annual Spring Meeting, May 1, 2010

• Visteon's Impact On Debtors' Ability To Cancel Benefits, Law 360, August 20, 2010
• Fifth Circuit Expands § 510(b) Subordination in In the Matter of SeaQuest Diving LP, ABI Journal, July/August 2010
• Case Study: Grossman’s v. Gordon Van Brunt, Law 360, July 19, 2010
• Vacating a Judgment under Rule 60(b)(4): A Review of the Espinosa Decision, American Bankruptcy Institute Bankruptcy Litigation Committee Newsletter, June 2010
• Structured Chapter 11 Dismissals: A Viable and Growing Alternative After Asset Sales, ABI Journal, June 2010