Greenberg Glusker partner Brian Davidoff was quoted in a Law360 article (May 27, 2016) discussing issues that keep bankruptcy attorneys up at night. Attorneys representing Chapter 11 debtors are often faced with uncertainty and surprise but there are a number of situations that challenge even the most skilled bankruptcy practitioners including initial court filings, surprise creditors, auctions under Section 363, and fee applications.
"It's inevitable that things won't go the way you've planned," said Davidoff, chair of Greenberg Glusker Bankruptcy Group. "Very often, if you can't negotiate it, it turns into litigation in front of the court."
One of the biggest challenges debtors counsel can face is simply who is representing the creditors. Some cases can be caught in the expensive back and forth between unsecured and secured creditors, but things can be easier if debtors' attorneys draw committee counsel whom they've worked with before.
"As a professional, it's obviously easier to work with other professionals whom you've had prior interaction with and have established credibility," Davidoff said. "If they don't know if you're credible in your dealings with them it oftentimes leads to time consuming and precarious negotiations."