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Bankruptcy and Creditors' Rights Litigation

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We regularly represent our clients in every aspect of a bankruptcy case, ranging from motion practice to complex adversary proceedings. While many matters can be resolved through negotiation, others require aggressive, sophisticated litigation.  

For example, we represent clients in the following:

  • Contested claim allowance and estimation hearings;
  • Serving on creditors’ committees;
  • DIP Financing and cash collateral motion practice;
  • Rule 2004 discovery;
  • Plan negotiations;
  • Contested confirmation battles;
  • Section 363(f) “free and clear” sales of property, representing both buyers and affected counterparties; and
  • Challenges to experts and appointments of professionals under the Bankruptcy Code; and
  • Prosecution and defense of avoidance actions.

We routinely work on complex matters that require unique, creative solutions to problems not often seen in bankruptcy cases. We understand our clients, their industries and their goals, and we bring our experience in dealing with challenging, seldom-seen issues to achieve those goals. For example, in one ongoing high-profile matter, the USA Gymnastics bankruptcy case, we developed a creative strategy that involved having our client (an insurer, not a traditional lending institution) provide debtor-in-possession financing, customized to meet our client’s specific needs in the bankruptcy case, including limiting the debtor’s coverage litigation against our client.  The bankruptcy court not only approved the financing proposal, but acknowledged our client’s productive approach to the case. 

Our litigation experience extends far beyond bankruptcy courts. We regularly represent our clients in litigation in state and federal courts throughout the country, as well as in arbitration proceedings, to enforce their rights as creditors. For example, we represent our clients in receivership proceedings, including litigation of disputed settlements and obtaining injunctive protections for clients in conjunction with asset purchases. We also represent our clients in commercial foreclosure cases, including bringing claims to enforce the breach of “bad boy” clauses in non-recourse loans.  We also represent our clients in business tort matters, collection litigation, breach of contract claims, eviction proceedings, and pursuit of other statutory and tort-based recoveries.

Related Practices

  • Workout, Restructure and Bankruptcy

Experience

Bankruptcy and creditors' rights litigation

In re DirectStream, LLC, Bankr. D. Del. (filed 2020)

Represented defendant in adversary proceeding to avoid and recover alleged preferential and fraudulent transfers exceeding $100,000; obtained voluntary dismissal of adversary proceeding with no payment to the bankruptcy estate prior to responsive pleading deadline.

In re Calais Regional Hospital, Bankr. D. Me. (filed 2019)

Represented creditor in dispute concerning recoupment rights that was favorably resolved through a settlement embodied in plan of liquidation.

In re Mercy Diagnostics, Inc., Bankr. W.D.N.C. (filed 2019)

Represented insurance company in assisting Chapter 7 Trustee’s pursuit of health care fraud claims against debtor’s principals, which resulted in significant recoveries and a likely seven figure recovery for client.

Insights

News

November 2, 2023

Shipman Ranked Among U.S. News' 2024 "Best Law Firms"

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June 28, 2022

Shipman’s Jaime Welsh to Participate in National Conference of Bankruptcy Judges 2022 NextGen Program

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Events

Tuesday, April 11, 2023

Workout 2.0: Receivers, Bankruptcy, and More!

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Wednesday, March 8, 2023

Navigating Borrower Defaults, Workouts and Enforcement Actions

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Primary Contacts

Eric Goldstein bio photo
Eric S. Goldstein

Partner

860.251.5059

egoldstein@goodwin.com
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