Bankruptcy & Restructuring
Our national practice, with a reputation for excellence, routinely places us on the cutting edge of creative use of this dynamic business tool.
With a national practice and a reputation for excellence, expertise in the insolvency arena has long been a fundamental strength of Hahn & Hessen. Our experience is broad and reflective of economic trends: recent cases involve hotel and apartment owning entities, mortgage banks, retailers, retail franchisees, utilizing CMBS structures, monoline insurers, student loan companies, automotive supplies, structured investment vehicles, shipping companies, airlines, hedge funds, manufacturers, and a well-known insolvent investment bank.
With both a formidable creditors’ committee and lender practice, our client is often a financial institution (or group of such institutions) that has extended credit and is facing insolvency or limited liquidity on the part of its counterparty. But whether in an out-of-court restructuring or a Chapter 11 reorganization, unsecured or collateralized by assets, or driven by strategic or financial concerns, our clients benefit from our depth of knowledge and experience, and fundamental creativity, in applying bankruptcy and restructuring principles in achieving their goals.
Our reputation and performance has led to our selection as counsel to creditors’ committees in many cases of national importance and reputation, such as Extended Stay/Homestead Hotels, New Century Financial Corporation, American Home Mortgage Holdings, Inc., and Teleglobe Communications Corp. and most recently Filene’s Basement/Syms Corp, 4Kids Entertainment, PJ Finance Company, C-Bass, and Loehmanns.
With that said, our representations extend to every actor in the insolvency drama: distressed debt funds and investors, purchasers (of assets, claims, and companies), lessors and lessees, repo, swap and other capital market participants, trade creditors, hedge funds, indenture trustees and debtholders of all classes, preferred and common shareholders and financial advisors, and litigation defendants. We are national preference action defense counsel for divisions of two Top 50 Bank Holding Companies, representing these entities nationwide in all bankruptcy preference actions. This complements our thriving practice representing trustees, plan administrators, and wind down agents, in pursuing avoidance action recoveries on behalf of creditor constituencies.
As the line between the securities and lending industries has grown less visible, we have helped market participants understand and minimize the bankruptcy risk of contemplated credit extensions and financial asset investments, counseling them on the special treatment accorded to certain classes of securities and counterparties under the Bankruptcy Code and similar statutes. We are in the small universe of firms which can claim to be fully knowledgeable on the Securities Investor Protection Act, having served in numerous cases as both SIPA trustee and counsel to the trustee in connection with the wind down of SIPA insured broker dealers.
The talents of the entire firm are routinely integrated with our practice. This ensures that all aspects of a bankruptcy, workout or refinancing are handled by lawyers who are experts in the issues to be addressed. Similarly, our depth in number of lawyers, and the breadth of their practice, permit us to staff each matter with lawyers of appropriate seniority with “hands-on” experience in the particular type of matter involved, whether it is a garden variety situation or such highly specialized proceedings as those involving maritime law or structured finance vehicles. This not only facilitates achieving the best possible results, but does so in a timely and cost effective way.