Business Reorganization and Financial Restructuring

The Duane Morris Business Reorganization and Financial Restructuring Practice Group has earned a reputation for thoroughly understanding the rights and obligations of the various constituencies involved with a financially distressed company, developing a plan of action designed to achieve clients’ goals, and executing that plan under what are often very difficult and rapidly changing circumstances. Regardless of whether the plan of action involves representation in a bankruptcy case, the enforcement of creditors’ rights, an out-of-court financial restructuring transaction or cross-border insolvency, Duane Morris lawyers are fully prepared to protect and advance our clients’ interests.

Financial news organization The Deal has consistently ranked Duane Morris among the top bankruptcy practices in the United States from 2018 to 2024. In addition, our lawyers continuously stay apprised of all major developments in the law affecting our clients' rights. They organize and speak at conferences and professional meetings, and regularly author materials on significant legal developments, other timely topics and the current environment in the capital markets.

Duane Morris has bankruptcy, restructuring and creditors' rights lawyers in many major business and financial centers, including New York, Wilmington, San Francisco, Philadelphia, Dallas, Chicago, North Jersey and Singapore.

Range of Services

Creditors’ Rights and Advisory Services

Due primarily to the firm’s long history of representing financial institutions, banks and other commercial lenders, lawyers in the Business Reorganization and Financial Restructuring Practice Group have extensive experience in the protection and advancement of creditors’ rights in insolvency situations. Our clients include institutional lenders, CMBS servicers, REITs, debt funds and other diverse businesses.

Often, the protection of a creditor’s rights requires filing a claim or taking some other action in a debtor's bankruptcy case. Just as often, however, creditors’ rights are protected outside of bankruptcy court by recourse to various state and federal laws such as fraudulent transfer and conveyance laws (based on either the Uniform Fraudulent Transfer Act or the Uniform Fraudulent Conveyance Act), the Uniform Commercial Code, title and lien recording statutes, laws regarding receiverships and assignments for the benefit of creditors, as well as various provisions of state corporation and business association laws.

Knowledge of the vast body of debtor-creditor law also translates into the ability to advise clients regarding business strategies and transactions, and to structure and prepare documentation for transactions or business programs in order to help identify and, where possible, limit the client's exposure to counterparty credit risk. Our lawyers are often called upon by clients to structure agreements in anticipation of a counterparty's bankruptcy, insolvency or failure to perform. These range from litigation settlement agreements to warehousing agreements, and from collateral trust to securities lending, swap and other derivatives transaction agreements. The Duane Morris team also handles all aspects of commercial loan workouts, bankruptcies, real estate finance and lender liability litigation, and commercial loan and real estate transactions.

Insurance Rights

Duane Morris provides advice to insurers on structuring transactions to minimize the risk to which they may be exposed in an insured’s bankruptcy. Duane Morris routinely counsels insurers on bankruptcy and reorganization matters including complex Chapter 11 filings of their insureds. As part of these representations, Duane Morris advises insurers regarding, among other things, collateral issues, renewal offerings, claims handling and various pleadings including those relating to insurance, financing, sales and plans. Duane Morris also negotiates and documents collateral settlements, loss portfolio transfers and buyback programs including obtaining bankruptcy court approval thereof.

We have litigated matters for our insurer clients in both state and federal trial courts and in appellate courts. Cross-experience in bankruptcy and insurance law provides Duane Morris attorneys with a unique advantage, and we commonly take leading roles on behalf of insurers in some of the nation's most prominent bankruptcies, including those involving policyholders facing asbestos, silica, environmental, opioid, sexual abuse and other mass tort and products-related liabilities. We represent a large number of domestic and foreign insurers in these actions.

Bankruptcy litigation tends to be unusually fast-paced, requiring that motions, oppositions, briefs and objections be filed on tight time frames. Discovery is frequently expedited as well. Our bankruptcy team's deep experience in policyholder bankruptcies allows us to efficiently and effectively present our insurer clients' views to bankruptcy courts even where the time for discovery, research and writing might seem inadequate to others.

Finance and Restructuring Transactions

Our lawyers routinely represent individual lenders, lending syndicates, agents and borrowers in both "front-end" asset-based loans and other forms of business financing transactions, as well as all types of financial restructuring transactions, including forbearance and/or amendment agreements, refinancing transactions, debt-for-equity swaps, recapitalizations, mergers, acquisitions and divestitures. From simple bilateral transactions involving one lender to syndicated, multitranche and multifacility transactions, our transactional lawyers have the knowledge and experience to help our clients get the deal done in a timely manner, regardless of whether court supervision is required.

Bankruptcy and Fiduciary Representations

Debtors’ and Trustees’ Counsel

As counsel to debtors-in-possession and trustees, our lawyers handle all aspects of commercial bankruptcy cases, from the pre-petition planning to the initial flurry of first-day filings, the arrangement of debtors-in-possession and exit financing, asset sales and, finally, the development and consummation of a plan of reorganization or liquidation. Duane Morris lawyers have extensive experience in formulating restructuring or liquidating plans through negotiation, related transaction documentation and, if necessary, litigation.

Our debtor clients usually carry on their day-to-day operations while they reorganize. Thus, our lawyers are adept at managing everyday dealings with lenders, trade creditors, lessors, utility companies, employees, the U.S. trustee, and creditors’ and equity committees. To help further ensure the continued smooth operation of their businesses, clients often call upon lawyers from Duane Morris’ corporate, real estate, tax, insurance, intellectual property, ERISA and environmental groups.

Debtor-in-Possession Financing

Whether representing a debtor or a lender, our lawyers are skilled at effectively negotiating, documenting and obtaining court approval of the financing agreements necessary to maintain a debtor’s operations during a Chapter 11 case or to consummate a plan and exit Chapter 11.

Section 363 Asset Sales

Investment companies and other operating businesses often seek to acquire the assets of a bankrupt company. Duane Morris regularly advises clients interested in purchasing or investing in distressed and insolvent businesses on the risks and potential rewards involved. In addition to assisting with due diligence, negotiations and the preparation of the transaction documentation, we guide clients through the bankruptcy court bidding and sale process.

Litigation

Because the bankruptcy process is inherently contentious, with diverse constituencies competing over limited assets, clients benefit from the firm’s substantial litigation experience before the U.S. bankruptcy courts. Whether prosecuting or defending claims, we advise each client on the risks and likelihood of success with each course of action and then team with each client to determine the best litigation strategy.

Cross-Border and Multinational Insolvencies

The firm has experience filing Chapter 15 petitions. Our lawyers have also represented foreign companies asserting their interests against domestic debtors and in their efforts to acquire assets from a bankrupt debtor's estate. In addition, our lawyers have been involved in numerous overseas financial restructuring transactions involving multinational companies and the restructuring of indebtedness owed to both domestic and foreign lenders.

For More Information

For more information, please contact Meagen E. Leary, Wendy M. Simkulak or any of the practice members referenced in the Attorney Listing.

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