Creditors Rights & Bankruptcy
The creditors rights and bankruptcy practice of Balch & Bingham regularly represents creditors, distressed companies, and other major parties-in-interest in out-of-court restructurings, Chapter 11 bankruptcy cases, commercial litigation, and other credit defaults. The lawyers in the practice are experienced in representing secured and unsecured creditors, DIP and exit facility lenders, distressed companies, committees, equity holders, investors and acquirers. The scope of the practice includes many major industry groups and involves clients and venues in the Southeastern United States and throughout the country.
Our lawyers, in addition to helping clients in reorganization cases and non-judicial workouts, regularly advise management concerning their duties to equity holders, creditors and others. Working with other practice groups in the firm, the creditors rights and bankruptcy practice also designs transactions, restructurings and corporate policies to mitigate the adverse effects of an insolvency.
Balch frequently represents institutional creditors in the management of their troubled credits. These include commercial and investment banks, savings institutions, investment funds, hospitals, universities, construction companies, insurance companies, indenture trustees, commercial landlords, utilities, and equipment lessors. Since the firm has one of the largest banking practices in the Southeast, it represents secured and unsecured lenders, DIP lenders, and providers of exit financing or acquisition loans for the purchase of distressed companies, whether in bankruptcy, workout negotiations or otherwise.
REAL ESTATE AND COMMERCIAL LOAN WORKOUTS
A large component of our group’s recent practice has been secured lender representation in workouts, bankruptcies and civil litigation. Representative matters include liquidating properties diminished by subprime lending, failed condominium developments, buying and selling assets for hedge and venture capital funds, negotiating real estate loan workouts requiring intercreditor agreements between multiple lenders and collateral trustees to fund reserve accounts, foreclosures, setting up special purpose entities to buy, manage, and sell REO property, seizure of shopping center rents, legal advice to lender funding and the completion of partially constructed projects, coordinating loan extensions and auction of bulk condominiums, prosecuting and defending materialmen and construction liens, litigating homeowner and lender disputes concerning contractual and statutory obligations to homeowner associations per condominium declarations, and prosecuting DIP financing with troubled borrowers in bankruptcy.
An ever-growing area of the practice is litigation relating to financial restructuring, credit defaults and insolvency. Our lawyers regularly represent clients in a broad range of lawsuits including contract disputes, fraudulent transfers, preferences, sales and dispositions of collateral, zone of insolvency claims, levies and liens, enforcements of judgments, judicial foreclosures and repossessions, and collection actions arising from credit defaults including proceedings against borrowers, guarantors and other responsible parties.
PUBLIC FINANCE DEFAULTS
Working with our robust Public Finance Groups, our insolvency practitioners represent indenture trustees, bondholders, bond insurers, credit enhancers and municipal issuers in matters that arise in tax-exempt and other municipal finance transactions. We have successfully planned and participated in numerous out-of-court and judicial restructurings, including receiverships and Chapter 11 reorganizations, obtaining favorable results for bondholders and other stakeholders. Our practice group is particularly attuned to the remedies that are available when a public finance project under-performs, as well as the special duties required of trustees, issuers and borrowers.