Commercial Litigation

Our commercial litigation practice focuses on the enforcement and preservation of creditors’ rights in bankruptcy, other federal and state courts, and arbitration proceedings.

We represent financial institutions as plaintiffs and defendants throughout the country as well as in cross-border matters. We also frequently litigate in bankruptcy court issues relating to first day orders, use of cash collateral, relief from stay, sale of assets and bidding procedures. The following matters are illustrative of our broad commercial litigation experience:

Our recent representations include:

Enforcement of creditor rights

plaintiffs in an action to enforce the terms of a credit facility against a real estate developer; in the foreclosure of a mortgage secured by a retail mall; in various loan enforcement proceedings against a regional fast food franchisee, a hemp processor, a printing company, car dealerships, commercial airlines, real estate developers, energy supply companies and retailers; plaintiffs in actions involving sub-prime and alt-A securitizations, equipment loans and asset based loans; in a fraudulent conveyance action brought by several banks against MBIA, challenging the restructuring of its monoline insurance business; in an action seeking a declaratory judgment with respect to termination of billions of dollars of credit default swaps by FGIC; and in an action involving a massive check-kiting scheme, and as a claimant in related bankruptcy and criminal proceedings.

Defense of creditor rights

defendants in a “lender liability” case arising out of the Adelphia chapter 11 case; in a California “lender liability” action arising out of a bankruptcy proceeding and litigation in France; in mortgage “put back” litigation brought by CIFG; and in various preference and fraudulent conveyance actions, including actions to recover “false profits” in Ponzi schemes.

Bankruptcy litigation

eight secured lenders in the chapter 11 case of Miami Metals I, Inc. (f/k/a Republic Metals Refining Corporation) in multi-party litigation with the debtors’ former customers over the debtors’ precious metals inventory; mortgagee in the Coltex single-asset real estate chapter 11 case in which we obtained a ruling from the Court of Appeals for the Second Circuit rejecting confirmation of a “new value” plan and significantly limiting the availability of such plans; two music licensors in the chapter 11 case of a failed music streaming company in which we successfully defeated confirmation of a plan prior to solicitation; and a financial institution in litigation with the debtor over the turnover of assets in the possession of a state court-appointed receiver.

Contract disputes

a financial institution in a lawsuit commenced by the estate of a former executive concerning change in control benefits.

Arbitration

a financial institution in an arbitration relating to ownership interests in an investment management firm.

Stay-related litigation

the Financial Oversight and Management Board for Puerto Rico in stay and related litigation in the U.S. District Court for Puerto Rico and in the First Circuit Court of Appeals; a fuel distributor and owner of gas stations in litigation against the operator; and a multimedia company in litigation over extension of the automatic stay to a pending action against the debtor’s officers and directors.

Securitization litigation

a financial institution in its capacity as “Owner Trustee” in litigations arising out of residential mortgage and student loan securitizations.