Investors in Distressed Debt

A number of firm attorneys have gained national prominence for their experience and expertise in advising hedge funds, bondholders, private equity investors, and others on a wide variety of issues affecting investors in distressed debt. These attorneys are on the cutting edge of the distressed debt practice, both initiating and evaluating new legal developments affecting this area in real time. They have years of extensive experience representing, both in and out of court, significant distressed debt funds, including in many of the most complex restructurings and bankruptcy cases in the country, such as Caesars Entertainment, Lehman Brothers, Enron, CIT Group, Delphi, Owens Corning, Calpine, Residential Capital and Tribune Corp., among other notable engagements. These attorneys also bring to this area a breadth of perspective gained from decades of experience representing debtors and other stakeholders in connection with both in-court and out-of-court business restructurings, as well as the support of the firm’s substantial litigation capabilities.

Representations in this niche area of the law can be extremely complex and typically implicate a variety of issues. Our attorneys have the specialized expertise necessary to provide informed guidance on distressed investment and litigation strategies, including those associated with the acquisition of distressed entities. We consult regularly on issues affecting investment risks and other concerns that can often arise in distressed and special situations, including those relating to secured and unsecured creditor rights, claims trading, avoidance rights and defenses, subordination risks, creditor standing, debt-for-equity and debt-for-debt exchanges, intercreditor issues, and plan confirmation disputes, among numerous others. We also advise frequently on rights and obligations arising out of credit agreements and indentures, including through detailed analysis of covenants and their implications, and provide counsel with respect to collateral documents, intercreditor agreements, and related disputes.