Practice Areas

Bankruptcy, Reorganization & Capital Recovery

Greenberg Glusker bankruptcy attorneys shape business solutions specific to each client’s concerns. Our counsel ranges from early stage evaluations, transactional advice and pre-petition planning to out-of-court reorganizations, chapter 11 bankruptcy reorganizations and asset sales. Our broad client base and years of experience litigating in the bankruptcy courts of Southern California make us uniquely suited to efficiently advise on bankruptcy-related issues. We represent the many parties involved in reorganization and liquidation bankruptcies, such as:

·       Debtors and Creditors

·       Equity Holders

·       Individuals and Guarantors

·       Creditors' Committees

·       Landlords

·       Secured Creditors

·       Purchasers and Sellers of Distressed Assets

·       Indenture Trustees

·       Chapter 11 and Chapter 7 Trustees

On the Debtor side, our practice emphasis is in representing Southern California middle-market companies and transitioning “failed’’ businesses into operating enterprises. We work to preserve value for clients and help them achieve their operational goals.

We assist company principals whose businesses are in distress in protecting their individual interests, including protecting their equity interests in their businesses, responding to and defending against director and officer claims, and providing advice if claims are made or threatened against them as guarantors.

For purchasers of distressed assets, Greenberg Glusker attorneys have extensive experience in assisting buyers purchasing distressed commercial real property assets, entertainment company assets, and other operating businesses, both in Southern California and in other bankruptcy courts around the country, including the bankruptcy court in Delaware..

We regularly assist our real estate clients in navigating the unique rules which impact the landlord-tenant relationship in bankruptcy cases.

We assist our creditor clients in drafting loan agreements, protecting their rights in collateral, including perfection of security interests and addressing complicated intercreditor issues such as subordination and marshaling of assets. We have particular expertise in entertainment and intellectual property matters.  We also represent creditors seeking to recover their assets whether by way of writ of attachment proceedings, relief from stay, contested plans or other bankruptcy litigation.

We also represent both chapter 11 and chapter 7 trustees in complex cases which require litigation in the bankruptcy court in order to preserve the assets of the bankruptcy estate and to create a recovery for creditors.

Offering a Full-Service Alternative in Bankruptcy and Restructuring

As a full-service, midsize firm, Greenberg Glusker provides an accessible alternative to bankruptcy groups within larger national law firms or “boutique” bankruptcy firms. Related issues in employment, real estate, finance, corporate law, litigation and tax almost always arise in the restructuring context. Greenberg Glusker bankruptcy attorneys regularly collaborate with other practitioners in the firm to address these areas and provide clients with prompt, complete and efficient representation that can fully address their concerns and achieve their business goals.

Customizing Value-Driven Bankruptcy Solutions

When customizing the right solution, Greenberg Glusker explores practical and novel approaches. In some cases, a chapter 11 bankruptcy is not always the best option. We may advise working with other professionals, such as accountants and turnaround specialists, to evaluate and implement alternatives short of bankruptcy, including assignments for the benefit of creditors, renegotiation of loans and covenants, and other methods to improve operations.

For more information, please contact Brian L. Davidoff.

Greenberg Glusker’s bankruptcy attorneys develop legal solutions that enhance and preserve value for clients.  This approach takes into account the business, strategic practical and legal concerns facing the company and client.

Our bankruptcy and reorganization background includes:

  • Debt restructuring, loan workouts, reorganization and competing plans of reorganization
  • Debtor-in-possession financing and cash collateral agreements
  • Secured and unsecured creditors
  • Committees - creditors, equity security holders and bondholders 
  • Lenders with defaulted loans
  • Indenture trustees
  • Preference and fraudulent conveyance actions, non-dischargeability actions
  • Liquidations
  • Buyers of assets from bankruptcy 
  • Involuntary bankruptcy petitions
  • Executory contracts, leases and intellectual property rights in bankruptcy
  • Foreign representatives in ancillary proceedings

Key Strategies:

Corporate Reorganization

  • Evaluate alternatives and assist in prepetition planning 
  • Assist in arranging debtor in possession financing 
  • Coordinate with management, consultants and turn-around specialists 

Workouts

  • Evaluate, negotiate, implement and supervise out-of-court workouts 
  • Renegotiate bank loans and covenants, revise debt instruments, and structure payment plans with trade vendors 
  • Assist in locating new capital 
  • Coordinate with management consultants and turnaround and crisis management specialists in the restructuring and "right-sizing" of a client's business 

Assignment for the Benefit of Creditors

  • Represent both debtor/assignor companies and purchasers of assets from assignees
  • Formulate, negotiate, and implement out-of-court assignments for the benefit of creditors 
  • Structure sales to third parties as part of assignments 

Committee Representation

  • Represent creditor and equity holder committees in the protection of their rights and assets 
  • Represent bondholders 
  • File creditor plans of reorganization 
  • Monitor debtor reorganization cases 

Creditor Representation

  • Pursue defaulting debtors on behalf of lenders and enforce lenders’ rights 
  • Advise on injunctions, writs of attachment, writs of possession, receiverships, and like procedures 
  • Prepare forbearance agreements and renegotiate loans and covenants 
  • Design use of cash collateral and debtor-in-possession financing agreements 
  • Obtain relief from stay 
  • Evaluate security interests and implement UCC and real property foreclosure sales 
  • Prosecute and defend lender liability actions 
  • Manage creditors’ rights litigation involving real estate property, receivership, guaranty claims and commercial instruments  

Purchase and Sale of Distressed Assets

  • Conduct Section 363 sales for debtors 
  • Conduct sales through assignment for benefit of creditors 
  • Conduct sales through UCC foreclosure 
  • Represent buyers of assets in bankruptcies and reorganizations 
  • Guide clients on opportunities and risks associated with distressed sale transactions, including merger and acquisition transactions  

Adversary Litigation

  • Prosecute and defend preference, fraudulent transfer and other avoidance actions 
  • Advise clients on structuring settlements and evaluate third-party claims within the framework of in and out-of-court restructurings, workouts and reorganizations 

Director and Officer Litigation

  • Prosecute D&O claims on behalf of debtors and trustees 
  • Defend directors and officers against claims of trustees for breach of fiduciary duty, deepening insolvency and other claims 

Transactional Counsel

  • Provide bankruptcy perspective and “bankruptcy proofing” measures in mergers & acquisitions transactions, corporate and real estate transactions, and commercial litigation settlements, asset-based loans, and senior secured and mezzanine loans 
  • Advise clients during deal due diligence and negotiations, and evaluate costs and benefits of acquiring assets in and out of bankruptcy 
  • Interpret financing transactions, including cash flow loans

Debtors' Counsel

  • Represented Rhythm & Hues, a visual effects company, in connection with Chapter 11 filing and sale of assets 
  • Represented Imaging3, Inc., a publicly traded company, in connection with its Chapter 11 filing and successful confirmation of a plan of reorganization
  • Provide reorganization counsel to the owners of Gardena Hospital
  • Acted as counsel to majority  shareholder of Currie Technologies in its Chapter 11 reorganization
  • Represented Cisco Brother in a confirmed plan of reorganization
  • Advised and counseled CEO of Contessa in connection with the sale of the company’s assets under Section 363 of the Bankruptcy Code

Creditor Counsel 

  • Served as creditors’ committee counsel in the chapter 11 filings  of The Leather Factory and Academy films, which entailed the sale of a film library
  • Advise and counsel entertainment industry clients in recovering monies invested in the Bernard Madoff Ponzi scheme
  • Served as counsel to Cheesecake Factory as creditor and reclamation claimant in the Ameriserve and Empire Beef bankruptcies
  • Represented Allied Advertising Limited Partnership in a contested involuntary bankruptcy petition against judgment debtor Thinkfilm, LLC
  • Provide ongoing representation of Roland Corporation, one of the largest manufacturers and distributors of musical instruments, in structuring all of Roland’s credit and security transactions with retail dealers and financing companies
  • Served as counselor to Roland Corporation, a junior secured creditor in the Mars Music bankruptcy, securing a significant recovery from the bankruptcy estate and senior lender after commencing litigation to require the senior lender to marshal assets for the benefit of Roland
  • Represented World Communications Group Services, Ltd. in the defense of a bankruptcy preference action
  • Acted on behalf of Auto Wax Co., a manufacturer of car care products, as petitioning creditor in a contested involuntary bankruptcy against judgment debtor Mark V Products, defeating a motion to dismiss the involuntary petition
  • Counsel Avalon Risk Management, a broker of United States customs bonds, in bankruptcy proceedings filed by importers utilizing customs bonds  
  • Represented Convergenz, a personnel staffing company, in the bankruptcy of Axium Corporation
  • Represented PacifiCare of California as the single largest creditor in multiple hospital and healthcare provider bankruptcies

Trustee Counsel

  • Counsel to Signal Walnut Partnership L.P., and another first trust deed holder in the chapter 11 bankruptcy cases of Orange Grove Service, Inc. and Ocean Hills
  • Represented the court-appointed liquidator’s U.S. interests in an international insolvency proceeding based out of the Commonwealth of Dominica in which the debtor entity is a corporation responsible for an illegal “Ponzi” scheme which defrauded investors of more than $50 million
  • In re Halaco Engineering Co., represent David Seror, Chapter 7 Trustee.  Assisted trustee in liquidation of recycling firm, including sales of assets, litigation, and work with USEPA and state regulators on allegations of environmental contamination
  • In re Apex Digital, Inc., represented Rosendo Gonzalez, Examiner.  Assisted Examiner appointed in chapter 11 bankruptcy case of electronics distributor.
  • In re Calsafe Transportation, Inc., representing Diane C. Weil, Chapter 7 Trustee.  Assisted trustee with liquidating of assets and litigation involving transportation company.
  • Alameda Liquidating Trust, represented Liquidating Trust in litigation and sales of joint venture interests and properties located in the western United States.
  • In re BH Development, LLC, represented Rosendo Gonzalez, Chapter 7 Trustee.  Assisted trustee with evaluation, sale of assets and liquidating of internet gaming company.
  • In re Ben-Wal Leasing Company, represent Dennis Murphy, Receiver.  Represented receiver appointed by SEC in federal district court with respect to Ponzi scheme.
  • In re BH Development, LLC, represented chapter 7 trustee of estate of bankruptcy internet gaming company
  • In re Alameda Investments, LLC, represented liquidating trustee of land bank entity for one of largest privately held home builders in country

Litigation Counsel 

  • Represented Cessna Finance Corporation in litigation with borrowers in default and as a creditor in bankruptcy proceedings of borrowers
  • Advise and counsel numerous clients in bankruptcy court adversary proceedings including preference and fraudulent transfer litigation
  • Achieved a favorable settlement for the City of Culver City in a contested claim for unpaid taxes against Chapter 11 debtor Urban Hotels

Purchase and Sale of Distressed Assets

  • Represented purchaser of assets from THQ in bankruptcy 
  • Represented Regency Park Senior Living in its successful acquisition out of bankruptcy of a senior assisted living facility in Pasadena, California
  • Guided Rigor Mortis in a Chapter 11 reorganization and sale of assets of film library
  • Counseled Mar Vista Holdings in the sale of assets through an assignment for benefit of creditors