Our Special Assets, Workouts & Distressed Real Estate team has broad experience serving clients whose issues are capable of being resolved outside of the bankruptcy context. Our non-bankruptcy creditors’ rights services include out-of-court workouts/forbearance arrangements and foreclosures, and we also are adept at providing services related to the enforcement of creditors’ rights pursuant to state law. Commercial lenders and financial institutions frequently turn to us for assistance in workout negotiations with financially troubled entities in an effort to avoid bankruptcy. Attorneys from our Bankruptcy & Creditors’ Rights team are well-versed in state law collection of defaulted debt obligations, beginning with the initial demand letter and continuing to judgment and enforcement. Unlike in the bankruptcy context, where all creditors are treated equally, state court proceedings are often “races” to find, collect, and liquidate the debtor’s assets. Our attorneys use a multidisciplinary approach to handling foreclosure issues. Non-performing debt problems usually require a varied and integrated plan that incorporates sophisticated business skills, as well as intimate knowledge of the enterprise experiencing difficulty.
Our services in this area include:
- Analysis of credit facilities, loan and security agreements and related documents
- Actions against borrowers and guarantors and enforcement of judgments
- Application for receivership or dissolution under state law
- Asset investigation
- Assignments for the benefit of creditors
- Conducting debtor interrogatory hearings
- Drafting of forbearance and other debt-restructuring agreements
- Executing garnishments and levies
- Fiduciary duty claims
- Filing of complaints, confessions of judgment, and creditor’s bills
- Foreclosures, deeds in lieu of foreclosure, and recovery of rents and other income
- Negotiation of realistic and agreeable terms with debtors, landlords, other secured parties and parties in interest
- Receiverships
- Recovery, repossession, and liquidation of security interests in personal property through public or private sale
- Seeking pretrial attachment and seizure
- Successor liability