Insolvency and Restructuring

Katten’s Insolvency and Restructuring Practice focuses on meeting clients’ economic objectives, managing the business and legal risks inherent in the restructuring process, and offering practical and innovative solutions to complex problems. Our attorneys have a full range of experience representing creditors and other parties in interest in connection with complex, out-of-court restructurings, bankruptcy proceedings and state-law enforcement actions. We have earned an excellent reputation for managing the diverse interests of lenders toward a common end in very difficult situations. Our insolvency and restructuring partners have been at the center of efforts to resolve some of the most complex and highly visible bankruptcy reorganization and liquidation proceedings. Katten’s insolvency and restructuring attorneys are also actively involved in front-end counseling of clients in structuring of commercial transactions to identify and minimize risks related to insolvency and bankruptcy.

Financial Restructuring

Katten is a market leader in the representation of banks, financial institutions and lender groups in connection with out-of-court workouts and bankruptcy proceedings. We regularly represent foreign and domestic banks and financial institutions in their capacity as administrative agent in connection with large syndicated loans, as well as “club” and middle-market loans. We are also nimble and efficient enough to represent individual lenders in connection with bilateral facilities and in their role as an individual member of a steering committee or lender group.

Bankruptcy Financing

We regularly represent lenders in making loans to borrowers as debtors-in-possession. These loans are often “defensive,” made to protect or improve a pre-petition credit position. Other times they are “offensive,” where the primary motivation is the potential profitability of the transaction and the opportunity to provide exit financing.

We understand that a borrower often needs immediate access to liquidity and working capital, and as a result lenders are often called upon to make quick decisions to accommodate a borrower’s financial needs. We are well positioned with the resources and experience necessary to provide thoughtful advice and prompt, market-tested structures and documentation with respect to such transactions.

Distressed Asset Transactions

Our attorneys have significant experience in connection with the acquisition and disposition of businesses and assets out of distressed situations, including in the context of bankruptcy proceedings and through the use of various state-law procedures. In the bankruptcy context, we frequently represent “stalking horse” bidders and have also represented other third-party bidders through the process. Our bankruptcy attorneys work closely with our corporate and other transactional attorneys to provide the optimal mix of experience in any transaction.

Litigation Strength

Katten’s insolvency and restructuring attorneys have been highly effective and successful in litigating contested matters and adversary proceedings before the bankruptcy, district and circuit courts, including in the prosecution of actions with respect to the automatic stay, the use of cash collateral, a debtor’s exclusive right to file a plan of reorganization, and the plan disclosure and confirmation process. Our attorneys have also been highly successful in the defense of preferences, fraudulent transfers, lender liability and various insolvency-related lawsuits. We have effectively prosecuted litigation outside of bankruptcy to enforce our clients liens, security interests, guarantees and other payment rights.

Unsecured Creditors’ Committees Representation

Our insolvency and restructuring attorneys have extensive experience both in the representation of official and ad hoc unsecured creditors’ committees, and in the representation of individual members of such committees with respect to various matters arising during bankruptcy proceedings, including potential conflict situations involving, for example, membership on the committee and the ability to continue trading.

Debtor Representation

We have substantial experience in representing chapter 11 debtors. Given the overall creditor focus of our bankruptcy practice, our representation of debtors primarily involves special cases that do not pose significant conflicts with our many bank and financial institution clients. In such cases we have a demonstrated ability to effectively identify and resolve the myriad issues necessary to enable the competing interests in the case to develop and implement a successful reorganization strategy that preserves the business when appropriate and maximizes recoveries by all stakeholders.