Creditors' Rights & Bankruptcy Litigation and Enforcement

Prosecuted and defended numerous preference and fraudulent transfer actions and claims.

Prosecuted numerous motions for relief from automatic stay.

We served as counsel to a large international financial institution in an action brought against it by the Chapter 11 Trustee (the “Trustee”) for Thornburg Mortgage in the United States Bankruptcy Court for the District of Maryland (the “Bankruptcy Court”). The Trustee’s suit alleged that during the economic crisis of 2007, Barclays breached its financing arrangement with Thornburg when it wrongfully called a default under its loan documents and then proceeded to sell the collateral provided by Thornburg in a commercially unreasonable manner. The Trustee sought damages in excess of $94 million in his Complaint. In the initial stages of the case, we were successful in having the case removed from the Bankruptcy Court to the United States District Court for the District of Maryland and having one count of the Trustee’s Complaint dismissed. After extensive discovery and pre-trial proceedings, including successfully defending the Trustee’s dispositive motion, we were able to settle the litigation for a fraction of the amount initially sought by the Trustee.

We represented the client in connection with a receivership, two foreclosures, and the forced sale of multiple real estate developments. When the client’s borrower defaulted on several loans that were secured by various real estate development projects in Baltimore City, we instituted confessed judgment litigation and foreclosure actions against all of the obligors. In addition, during the course of our representation, one of the developments securing the borrower’s obligations was forced into receivership by the City of Baltimore. We were successful in obtaining judgments against the obligors and garnishing the obligors’ accounts. These actions, as well as the pressure of the pending foreclosure actions, ultimately lead to the sale of the Bank’s collateral to another developer and obviated the need for selling the development projects at foreclosure. Additionally, we were deeply involved in the Baltimore City receivership proceeding and worked with the City of Baltimore to allow the sale of the Bank’s collateral to another developer in lieu of having a receiver sell the development at a below market price . As a result of our representation, and notwithstanding the numerous obstacles posed by the borrower, we were ultimately able to force the sale of two properties to another developer and the client was paid in full, including all fees and costs, from the sale of the collateral.