About Paul T. Musser

Paul Musser focuses his practice on helping middle-market lenders maximize their recovery in out-of-court workouts and in-court proceedings. He regularly counsels secured creditors and other stakeholders in bankruptcies, breach of note and guaranty actions, receiverships, fraudulent transfer actions and commercial foreclosures. Paul also helps his clients navigate distressed asset and business sales and acquisitions, including through Article 9 UCC sales and 363 sales. His diverse experience in both transactional and litigation matters informs a drive for practical, cost-effective solutions centered on client recovery.

Practical, cost-effective solutions for distressed loans

Paul regularly represents senior secured lenders, administrative agents and bank groups. He also represents corporate debtors pursuing out-of-court and in-court restructuring as well as independent directors by assisting in interdisciplinary investigations. Paul's experience spans a wide range of industries, including health care, real estate, financial services, franchising, manufacturing, staffing, and cryptocurrency and digital assets.

Paul maintains an active pro bono practice and has worked with organizations such as the National Immigrant Justice Center and the Chicago Lawyers' Committee for Civil Rights. Prior to becoming an attorney, Paul was a professional jazz bass player and arranger.

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Practice Focus

  • Restructuring and workouts
  • Bankruptcy and receivership actions
  • Asset and business sales, inside or outside of court
  • Fraudulent transfer litigation seeking recovery or defending claims, inside or outside of bankruptcy
  • Commercial foreclosure litigation
  • Health care, real estate, financial services, franchising, retail and energy industries

Representative Experience

  • Lead counsel in representation of national bank, as administrative agent for senior secured lenders, in out-of-court workout and Chapter 11 bankruptcy case involving behavioral health care companies in Massachusetts, Pennsylvania, North Carolina and Georgia, helping client navigate several Article 9 UCC sales, multiple Section 363 bankruptcy sales, negotiations with state and federal authorities regarding COVID emerging funding and tax obligations, as well as confirmation of liquidating plan.
  • Lead counsel in representation of national bank in receivership action and Chapter 11 bankruptcy case involving outdoor apparel company, helping client to challenge third-party DIP financing, obtain relief from stay of prepetition accounts receivable and inventory, and confirm reorganization plan.
  • Led counsel in representation of national bank as senior secured lender in federal court receivership case of detention and security companies, helping client to liquidate assets and negotiate several settlements with receiver and various sub-contractors to aid in client’s recovery.
  • Led insolvency team in representing commercial finance company, as senior secured lender, in out-of-court workout of radiation and medical network that included the sale of numerous subsidiaries.
  • Led insolvency team in representing private investment firm in acquiring air care product line through Article 9 UCC sale.
  • Lead counsel in representation of REIT in workout of two Illinois independent living facilities, while navigating diverse real estate as well as trust and estate issues and successfully acting as lead counsel in defending multiple state court breach of contract actions.
  • Represented national bank, as senior secured lender, in obtaining more than $40 million in judgment against real estate developer involving commercial foreclosures, breach of loans and guaranties, as well as fraudulent transfers to a Cook Islands trust. Also oversaw post-judgment collection litigation that forced the individual into bankruptcy, where the parties negotiated a settlement that repatriated certain assets and liquidated certain commercial real estate.
  • Represented national bank, as senior secured lender, in Chapter 11 bankruptcy case of commodities shipper as well as federal district court breach of guaranty action against principals. Guided the lender through the guaranty action, use of cash collateral, dismissal of adversary action against lender, and confirmation of reorganization plan.
  • Represented national bank, as senior secured lender, in Chapter 11 bankruptcy case of stone panel manufacturer, helping client navigate Section 363 bankruptcy sale and dismissal of $30 million avoidance action against lender.
  • Represented bitcoin mining manufacturer in successfully defeating involuntary chapter 7 petition and motion to appoint chapter 7 trustee, as well as guiding debtor through Section 363 bankruptcy sale and chapter 11 case.
  • Represented national bank, as senior secured lender, in Chapter 11 bankruptcy case of direct mail companies and state court guaranty action, helping client navigate a Section 363 bankruptcy sale, confirmation of liquidating plan and dismissal of avoidance actions.
  • Represented private lender, as administrative agent for senior secured lenders, in Chapter 11 bankruptcy case of a branded and private-label BBQ company, helping client navigate Section 363 bankruptcy sale and confirmation of liquidating plan.
  • Represented national bank, as administrative agent for senior secured lenders, in numerous restaurant and franchise out-of-court workouts, including forbearance agreements, loan amendments, refinancings and distressed sales.

Publications

  • December 2015
    Castleton: 7th Circuit's Answer to 203 N. LaSalle's Market Test | Published by American Bankruptcy Institute Journal | Author
  • January 2012
    Third-Party Purchaser Payments to Seller's Unsecured Creditors: Recoverable as Preferential Transfers? | Published by American Bankruptcy Institute Journal | Co-author
  • June 2010
    Successful Defenses for Assets Acquired under FDIC Purchase and Assumption Transaction (Part II – Federal Holder in Due Course Defenses) | Published by Hoosier Banker | Author
  • May 2010
    Successful Defenses for Assets Acquired under FDIC Purchase and Assumption Transaction (Part I – D'Oench Duhme Doctrine Defenses) | Published by Hoosier Banker | Author

Presentations and Events

  • March 5, 2024
    Speaker
  • June 20, 2023
    Annual Workout Lender's Panel | Presented by Turnaround Management Association Chicago/Midwest
    Moderator
  • March 29, 2023
    Fiduciary Considerations in a Crypto World
    Speaker
  • March 21, 2023
    Turnaround Management Association's MidAmerica Regional Conference
    Moderator | Distressed Debt Workout Issues and Trends for 2023 and Beyond
  • November 30, 2022
    Turnaround Management Association's Chicago/Midwest Chapter Presentation
    Moderator | Tackling Franchise Distress—Confronting Challenges and Capitalizing on Opportunities
  • April 26, 2022
    Turnaround Management Association's MidAmerica Regional Conference
    Moderator | Distressed Debt Workouts Issues and Trends for 2022 and Beyond
  • February 16, 2022
    Annual Workout Lender's Panel | Presented by Turnaround Management Association Chicago/Midwest
    Moderator
  • June 23, 2021
    Speaker