Special Situations and Bankruptcy Litigation

Represented Wilmington Trust Co. in a key win over the FDIC to secure ownership of an expected tax refund of over $400 million for the bankruptcy estate of Downey Financial Corp. as quickly as possible.

Representation of various mezzanine lenders in connection with plan objections and associated litigation, including a challenge to enterprise valuation, in connection with the bankruptcy of Almatis B.V., et al.

Represented largest individual investor in SIPA liquidation proceeding involving Bernard L. Madoff Investment Securities LLC, resulting in largest SIPC settlement in history.

Defended large foreign bank, one of three administrative agent banks for multi-billion-dollar loan facilities to Adelphia Communications Corp., in cluster of suits in bankruptcy court and district court arising from collapse of the giant cable company.

Obtained a judgment granting pre-discovery motion for summary judgment on behalf of secured creditors of debtor in bankruptcy of Allied Holdings Systems Inc. Also represented the secured creditors in Chapter 11 petitions and adversary proceeding against the company’s controlling equity holders.

Counseled prepetition first lien lenders and DIP lenders in action against the debtor’s directors and officers, and in suit seeking to disallow a portion of, and equitably subordinate, the clients’ claim.

Successfully secured confirmation of a reorganization plan for the debtor, the subsidiary of a major public company, in its heavily litigated Chapter 11 case.

Obtained jury verdict for prime broker client, exonerating it against fraudulent transfer claims seeking $141 million, and obtained dismissal of other fraudulent transfer claims seeking in excess of $3.6 billion.

Represented one of the largest economic stakeholders in litigating the viability of commercial mortgage-backed securities.

Represented private equity firm in $1.6-billion fraudulent transfer suit arising out of leveraged buyout.

Represented Goldman Sachs Execution & Clearing LP and Mario Gabelli and his funds in separate suits against the officers and directors of the multinational conglomerate Allegheny International Inc.; its accountants, KPMG Peat Marwick; and its investment banker, Dillon Read & Co.

Represented Tennenbaum Capital Management and TPG Specialty Lending Inc. as prepetition first lien lenders in contested priming DIP litigation in Chapter 11 case.

Represented ad hoc committee of second lien bondholders and credit bid acquiror in contested credit bid acquisition during Chapter 11 case.

Represented Goldman Sachs’ affiliate Liberty Harbor, Highbridge Capital Management, Tennenbaum Capital Partners, Hale Capital Partners and Tinicum Incorporated as unsecured creditors in a contested plan confirmation in Chapter 11 case.

Represented D.B. Zwirn Special Opportunities Fund LP as secured creditor, DIP lender and credit bid buyer in a contested credit bid acquisition in Chapter 11 cases.

Represented directors and secured creditors in connection with lender liability and breach of duty litigation in Chapter 11 cases.

Represented various collateral managers and noteholders of Lehman-backed CDO obligations in the so-called “flip clause” litigation.

Represented private equity firm in defending $1-billion claim for purported breach of agreement to purchase bankrupt entities’ assets.