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Credit Crisis Solutions
The housing and subprime lending meltdown and resulting credit crisis continue to develop, presenting significant challenges and opportunities. Analysts estimate eventual write-downs of affected investments may approximate one trillion dollars, with some suggesting possible losses as high as two trillion dollars. Major financial institutions have come under intense financial pressure or been forced into bankruptcy or insolvency. Waves of litigation and investigations have swept over the financial industry, and numerous new regulations and laws have been proposed or enacted at the local, state and federal levels.
The Credit Crisis Solutions Group of Katten Muchin Rosenman LLP offers creative legal solutions to clients navigating this critical period of market uncertainty. Specifically, the Group is able to help clients successfully execute transactions through the multidisciplinary skills of its Distressed Asset Team, and to respond to lawsuits and investigations related to such transactions through the deep experience of its Credit Crisis Litigation Team.
Credit Crisis Litigation Team
The Credit Crisis Litigation Team focuses on all aspects of litigation and investigations related to the subprime meltdown and credit crisis, and includes attorneys from Katten’s financial services litigation, structured finance and securitization, securities litigation, bankruptcy, real estate litigation and white collar criminal and civil litigation practices.
Distressed Asset Team
The Distressed Asset Team leverages the firm’s expertise in structured finance and securitization, distressed debt trading, bankruptcy, real estate, financial services, corporate, public finance, tax and ERISA matters to help clients successfully execute transactions and capitalize on opportunities related to the ongoing credit crisis.
Professionals
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New York
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Chicago
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New York
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New York
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Charlotte
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Chicago
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Los Angeles
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New York
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Chicago
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Chicago
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Charlotte
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Washington, D.C.
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London
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Chicago
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Washington, D.C.
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New York
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Chicago
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New York
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New York
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New York
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Los Angeles
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Chicago
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Chicago
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Los Angeles
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July 13, 2009
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May 20, 2009
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May 4, 2009
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April 16, 2009
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March 26, 2009
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March 18, 2009
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March 12, 2009
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March 3, 2009
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February 26, 2009
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February 20, 2009
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February 12, 2009
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February 10, 2009
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January 27, 2009
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January 16, 2009
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January 13, 2009
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Winter 2008
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December 23, 2008
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December 17, 2008
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December 15, 2008
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December 2, 2008
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December 1, 2008
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December 1, 2008
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November 18, 2008
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November 13, 2008
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November 12, 2008
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October 15, 2008
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October 13, 2008
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October 13, 2008
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September 29, 2008
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September 23, 2008
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September 22, 2008
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August 19, 2008
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May 2008
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August 14, 2008
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Credit Crisis Litigation Matters
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Represent major financial institution in connection with governmental inquiry regarding subprime instruments and valuations.
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Represent originator of subprime mortgages in consumer fraud class actions and suits by municipalities alleging common law nuisance.
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Represent underwriter in shareholder class action alleging misrepresentations and omissions by corporate issuer regarding issuer's exposure to subprime and Alt-A mortgage-backed securities.
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Represented financial institution in consumer fraud class action lawsuits filed in numerous states which alleged that the terms of home mortgages violated consumer protection laws, deceptive trade practices and breach of contract and fraud.
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Represented financial institution’s mortgage services company and its predecessor in dozens of lawsuits against originators and sellers of subprime loans seeking to enforce their contractual obligation to repurchase deficient subprime loans that they sold to our client.
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Represent defendants in a securities fraud action brought by investors in a hedge fund that invested in subprime automobile finance loans. The defendants allege that the hedge fund and its affiliates misrepresented the extent to which there was a secondary market into which the subprime loans could be resold if necessary to provide liquidity to fund redemptions by the investors.
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Represented a multibillion-dollar hedge fund during an internal investigation and in response to investigations by various regulators. Katten conducted an extensive investigation into transactions involving the complete range of mortgage-backed investment vehicles, which involved a detailed analysis of the structure of the products, the marketplace for those products and the methodology for pricing mortgage-backed instruments. All investigations were closed without any action taken against the client.
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Represented a director in connection with civil and governmental actions brought in connection with improper accounting and lending practices by the institution. This case involved allegations of improper and abusive lending practices in connection with large commercial real estate transactions. In the end, no action was taken against the director.
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Represented a senior officer of a financial institution in connection with governmental and private civil litigation. This case involved allegations of improper and abusive lending practices in connection with large commercial real estate transactions. No criminal charges were brought against the director and no individual settlement was required.
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Represented lenders in connection with commercial real estate bankruptcies, including bankruptcies in which we represented the lender in obtaining stay relief to allow foreclosure.
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Represented secured lenders in litigation concerning (i) a debtor’s attempt to enjoin the secured lender from exercising its right of sale (non-judicial foreclosure) under the applicable deed of trust; and (ii) a guarantor’s liability for the borrower’s violation of non-recourse covenants.
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Represented major mortgage originator in investigation of fraudulent mortgage elimination scheme and related litigation to establish lien priority, and in the investigation and prosecution of other fraud-based claims against brokers, closing agents and other settlement service providers.
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Represented mezzanine lenders in commercial bankruptcies.
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Represented lenders in state court-contested receiverships of distressed real estate with respect to (i) a hotel; (ii) a chain of fast food restaurants, resulting in the sale of the chain and related realty, including leasehold interests, as a going concern; and (iii) a manufacturing facility that had significant environmental (CERCLA) problems, resulting in foreclosure.
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Represented issuer of proprietary credit card securitizations in connection with bankruptcy-related claims by creditors committees.
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Represented insolvent manufacturing companies and companies that owned land where manufacturing was conducted in connection with Environmental Protection Agency claims and Superfund claims.
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Represented fiduciaries of a large pension plan in negotiating the repurchase of subprime securities by an investment manager which allegedly purchased the securities for the plan in violation of its investment policy statement.
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Distressed Asset Team Transactions
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Represented manager of hedge fund in connection with formation of opportunity fund to invest in distressed residential mortgage-backed securities (RMBS).
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Represented investment bank in multiple issuances and private placements of resecuritization (Re-REMIC) securities backed by distressed underlying RMBS.
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Represented CDO and CLO investors in due diligence reviews of issuer documentation and collateral acquisitions; counseled investors and collateral managers in restructurings of CDO and CLO transactions; and represented sponsors and issuers in liquidations of warehouse financing arrangements.
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Represent U.S. manufacturing company as issuer of notes in trade receivable securitization with respect to significant restructuring of facility in connection with changing market conditions.
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Represent hedge funds and investment banks in (i) purchase and sale of distressed bank loans to domestic and international companies; (ii) acquisition of trade claims against chapter 7 and 11 debtors arising from defaulted trade receivables; and (iii) negotiation of accounts receivable put programs.
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Represented hedge funds engaged in financing transactions, including loan origination, investments in funds engaged in financing transactions, and structuring incubation arrangements with investment managers in this space.
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Represent borrowers, issuers, credit enhancers, underwriters and derivative counterparties in multiple restructurings of tax-exempt auction rate securities in connection with failed auctions and downgrades of monoline insurers.
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Represent numerous lenders in deed in lieu of foreclosure of commercial real estate transactions throughout the country.
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Represent a mezzanine lender in implementing a strategy to deal with the holder of a senior mortgage on a property in Connecticut, as well as preparing for a possible UCC foreclosure sale on pledged membership interests and a suit on a guaranty.
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Represent the acquirer of a major position in a tranched loan from Bear Stearns, as agent, including renegotiation of intercreditor agreements and clarifying obligations of the Federal Reserve with respect to representations and duties of the agent.
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Represent an investor in the recapitalization of an owner, including negotiations of preferred return, controls and cramdown rights.
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Represented sellers and buyers in sales and acquisitions of defaulted and near-defaulted mortgage loans and loan portfolios.
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Represented aircraft financing parties in connection with most of the airline reorganizations during the last decade.
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Advise plan fiduciaries on due diligence with investment managers and investment funds to determine whether plan is exposed to inappropriate assets.
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