Secured Creditor Representation

Represented a municipal authority in connection with the Maryland Chapter 11 filing of one of its commercial customers. We obtained orders on two emergency motions, requiring the debtor to provide adequate assurance pursuant to Section 366 of the Bankruptcy Code and for relief from stay to permit certain state court litigation to proceed in order to perfect municipal liens. We also advised and assisted our client in efforts to collect water and sewer payments directly from the debtor’s tenants and handled disputes with a Chapter 7 trustee over collection of those amounts.

Represented a lender in connection with a workout involving a cooperative that owned an apartment building.  The apartment building converted to a condominium regime, and the workout involved complex issues involving real estate law, including rent control and tenant rights under local law.  We subsequently represented our client in negotiating and closing on a note sale, under which our client received a significant recovery of its outstanding debt.  

Represented the senior secured lender in a Chapter 11 bankruptcy case filed in the United States Bankruptcy Court for the Western District of Pennsylvania.  The Debtor owned and operated a hotel, which was the collateral for our client’s loan. The case was complicated due to junior lienholders and the franchisor, whose interests were not aligned with the interests of our client.  The case was also challenging due corporate governance and control issues involving the Debtor entity and its members. The case started in an adversarial manner, but we were able to negotiate a consensual Plan of Reorganization, which resulted in our client maximizing the value of its collateral.

Represented a national lender in a workout of multiple credit facilities involving term loans and lines of credit, which was secured by various pieces of real estate and UCC collateral. The borrower was a health care provider who has over 30 health care facilities. We represented our client in negotiating and documenting a restructure of the loan, which positioned the borrower to ultimately obtain refinancing and pay our client in full. The case involved a complex finance structure, and we also advised our client on lender liability allegations asserted by the obligors.