Areas Of Concentration
- Laura Appleby
- David Audley
- Cynthia Baker
- David Barritt
- Michael Benz
- Andrew Cannon
- Gregory Clore
- Rafael Cook
- Brian Coughlan
- Mia D'Andrea
- Anthony DiGiacomo
- Todd Dressel
- Michael Friedman
- Sara Ghadiri
- Larry Halperin
- Steven Hastings
- James Heiser
- Joon P. Hong
- Bryan Jacobson
- Sarah Kessler
- Aaron Krieger
- Scott Lewis
- Joseph Lombardo
- Eric Silvestri
- James Sullivan
- Peter Szurley
- Simone Tatsch
- Stephen Tetro II
- David Thill
- Franklin Top III
- Brittany Viola
- Steven Wilamowsky
- Richard Wohlleber
- Andrew Wool
Chapman’s Bankruptcy and Restructuring Group constitutes one of our firm’s core practice areas. Our practice knowledge covers a wide variety of financial products and financing instruments, including secured and unsecured loans, note issuances, agent-led loan syndications, securitized assets, credit enhancement and derivative/swap products, cash management services arrangements, and municipal securities.
Clients. Our Bankruptcy and Restructuring team represents creditors of varying types — lenders, investment funds, investment management companies, specialty finance companies, institutional investors, and trustees, both in and out of bankruptcy.
Practice Depth. Our Bankruptcy and Restructuring team understands the evolving needs of financial services clients and skillfully combines legal acumen with business and market insight to deliver solutions for virtually any distressed investment, restructuring, workout, creditors’ rights, or claims recovery matter our clients may face.
Commitment to Value. Our commitment to value goes beyond resolving an insolvency matter — we share our market intelligence to help clients advance their own business goals. Further, we have a clear understanding of clients’ expectations that their counsel demonstrate a commitment to value and efficiency.
Bankruptcy, Restructuring and Workouts Updates
- ArticleLaw360November 22, 2016
In a break from recent decisions, on November 17, the Third Circuit Court of Appeals reversed the District Court’s decision in the Energy Future case, finding that make-whole premiums were in fact payable upon a “redemption” even if such redemption occurred after a bankruptcy filing and the automatic acceleration of the underlying debt where the applicable indentures did not otherwise provide.
- ArticlePratt's Journal of Bankruptcy LawNovember/December 2016 (Originally Published August 31, 2016)
A recent bankruptcy court decision in the Aéropostale bankruptcy case pending in the bankruptcy court for the Southern District of New York may provide some comfort to secured creditors seeking to credit bid in a sale process commenced by a debtor pursuant to Section 363 of the U.S. Bankruptcy Code.
- Chapman InsightsMunicipalities in Distress? How States and Investors Deal with Local Government Financial Emergencies
The second edition of Chapman's book is a valuable resource for municipal debt marketplace participants, including state and local government officials, municipal credit analysts, credit enhancers, investors, legislators, and administrators.
- ArticleLaw360October 21, 2016
Earlier this month, the Sixth Circuit provided to creditors of municipalities emerging from bankruptcy proceedings additional assurance that they can rely on the bankruptcy plan approved by a court.
- Client AlertOctober 12, 2016
Last week, the U.S. Sixth Circuit Court of Appeals provided to creditors of municipalities emerging from bankruptcy proceedings additional assurance that they can rely on the bankruptcy plan approved by the court.
- InterviewOctober 6, 2016
Chapman attorneys Laura Appleby and Michael Friedman participated in a podcast interview with Debtwire Radio's Richard Goldman.
- ArticleLaw360September 27, 2016
Despite the Supreme Court cautioning that the “reasonably equivalent value” principle would in most cases remain similar to a market-value definition, and refusing to force its holding on other forced-sale proceedings, on Sept. 8, 2016, the Ninth Circuit became the third federal appeals court to extend BFP’s holding to real estate tax sales.
- ArticleACIC Private NotesSeptember 2016
The services agreements under which midstream oil and gas companies operate are routinely structured as long-term contracts requiring a large initial expenditure. In these cases, the midstream service providers’ investment is only recouped over the life of the agreement, and early termination or rejection of such agreements can be devastating.
- Client AlertSeptember 19, 2016
On September 8, 2016, the Ninth Circuit held in In re Tracht Gut, LLC v. L.A. Cnty. Treasurer & Tax Collector that California real estate tax sales are for reasonably equivalent value and cannot be set aside as fraudulent transfers.
- Client AlertJune 30, 2016
Congress has approved the Puerto Rico Oversight, Management, and Economic Stability Act, and President Obama is expected to sign the measure into law by July 1, 2016. Puerto Rico owes its bondholders a $1.9 billion debt payment on July 1 that by all accounts it cannot make.
- ArticleAIRA JournalJune 2016
This article discussed leveraged lending guidelines, unitranche facilities and the risks associated with unitranche facilities, including with respect to “agreements among lenders” as illustrated by the recent case of In re Radio Shack Corporation.
- Client AlertMake-Whole Update: Delaware Bankruptcy Court Rules Intercreditor Agreement Does Not Permit First Lien Noteholders to Demand Payment of Previously Disallowed Make‑Whole from Junior NoteholdersJune 27, 2016
On June 3, 2016, the United States Bankruptcy Court for the District of Delaware ruled that the intercreditor agreement between first lien noteholders and junior noteholders in In re Energy Future Holdings Corp. did not require the junior noteholders to bear the cost of a previously disallowed make-whole payment to the first lien noteholders.
- ArticleLaw360June 23, 2016 (Originally Published May 31, 2016)
On May 27, 2016, New Jersey Gov. Chris Christie signed into law the Casino Tax Property Stabilization Act in an effort to help Atlantic City get back on the path to fiscal stability.
- Client AlertJune 15, 2016
The U.S. Supreme Court placed the final nail in the coffin of the Puerto Rico Public Corporation Debt Enforcement and Recovery Act. The Court found that Puerto Rico was not entitled to create its own restructuring process because such a process is prohibited by the Bankruptcy Code.
- Client AlertMay 31, 2016
New Jersey has taken steps to aid troubled Atlantic City in an apparent attempt to avoid a bankruptcy filing that may not only impact the distressed city but also other cities and towns in the State.
- Client AlertAre You an Over-Secured Lender in Your Borrower’s Bankruptcy? Beware: You May Still Not Be Entitled to Receive Post-Petition InterestMay 26, 2016
It is a basic principle in bankruptcy that a secured lender is entitled to receive interest and other charges arising post-petition to the extent the lender is over-secured. A recent decision challenges this principle in cases where the value of a lender’s collateral diminishes during the course of the bankruptcy case.
- ArticleLaw360May 25, 2016
A recent decision issued by a federal district court in North Carolina challenges the familiar principle that in a borrower’s bankruptcy, the lender, if it is oversecured as of the bankruptcy filing date, is entitled to receive post-petition interest, attorneys’ fees and other charges arising post-petition to the extent of the value of its collateral.
- ArticleThe Wall Street JournalMay 24, 2016
Atlantic City is in the midst of a financial crisis that has been in the making for years. Increased competition and a host of unfortunate spending and hiring decisions have led to a state of affairs that currently features the nation’s highest home foreclosure rate, junk bond credit status and an alarmingly large budget deficit.
- Client AlertThe Seventh Circuit Ups the Ante in an Instructive Decision Affirming the Power of Bankruptcy Courts to Stay LitigationPratt's Journal of Bankruptcy LawApril/May 2016 (Originally Published January 22, 2016)
Pratt's Journal of Bankruptcy Law republished a Chapman Client Alert.
- Client AlertMarch 30, 2016
In a widely expected ruling, the Illinois Supreme Court has upheld a Cook County state court ruling holding that a state law, Public Act 98-641, reducing annuity benefits for employees and retirees of the City of Chicago, in exchange for increased contributions to certain pension funds, was unconstitutional.
- Client AlertMarch 24, 2016
Retail bondholders recently filed two class action suits in the United States District Court for the Southern District of New York challenging exchange offers under the Trust Indenture Act.
- Client AlertMake-Whole Update: Delaware District Court Follows New York’s Lead in Disallowing Make-Whole Premium in Bankruptcy — Dispute Moves to Third CircuitFebruary 29, 2016
On February 16, 2016, the District Court for the District of Delaware affirmed the decision of the Delaware bankruptcy court in In re Energy Future Holdings Corp., that noteholders’ claims for make-whole premiums may be blocked by the automatic stay of the U.S. Bankruptcy Code.
- ArticleLaw360February 18, 2016
On Feb. 8, 2016, the United States Court of Appeals for the Ninth Circuit held that a claim of an “insider,” which is not counted for the purposes of creating an accepting impaired class for confirmation of a contested plan of reorganization, does not retain insider status once transferred to a third party that is not an insider.
- Client AlertPratt's Journal of Bankruptcy LawFebruary/March 2016 (Originally Published October 15, 2016)
Pratt's Journal of Bankruptcy Law republished a Chapman Client Alert.
- ArticleLaw360November 12, 2015
On November 2, 2015, the Delaware bankruptcy court ruled that where a majority of bondholders direct an indenture trustee to withdraw its confirmation objections, the remaining minority who did not file independent objections to confirmation may not step in to press the indenture trustee’s objections.
- Client AlertSo Long as It’s Your Own Money — Third Circuit Allows Secured Creditors to Gift Value to Junior Creditors to Resolve Sale Objection Even When More Senior Creditors Receive NothingSeptember 24, 2015
In a decision that may ease the resolution of future bankruptcy proceedings, the Third Circuit Court of Appeals affirmed a bankruptcy court’s approval of a sale of substantially all of a debtors’ assets based on a settlement in which the secured creditors gifted funds to general unsecured creditors.
- Client AlertJudgment Creditors: How Building a Strong Record During Citation Proceedings Can Pay Dividends in BankruptcyPratt's Journal of Bankruptcy LawSeptember 2015 (Originally Published June 24, 2015)
Pratt's Journal of Bankruptcy Law republished a Chapman Client Alert.
- Client AlertUnitranche Facilities and the Jurisdiction of Bankruptcy Courts: RadioShack's Chapter 11 Leaves Questions UnansweredAugust 13, 2015
Though the RadioShack proceeding sheds light on how bankruptcy courts may interpret an agreement among lenders, unfortunately, it still remains unclear as to whether U.S. bankruptcy courts will assert jurisdiction to consider arguments arising under an agreement among lenders.
- ArticleLaw360July 30, 2015
On July 13, 2015, the United States Court of Appeals for the Eleventh Circuit reversed lower court orders that had precluded a lender from collecting accrued default interest from a debtor as a condition for reinstatement of the loan under a confirmed plan of reorganization.
- Client AlertJuly 27, 2015
In a move intended to fortify the rights of holders of California municipal general obligation debt as well as lower borrowing costs for California municipalities, California Governor Jerry Brown signed SB 222 into law earlier this month.
- ArticleLaw360July 24, 2015 (Originally Published June 15, 2015)
Law360 republished a Chapman Client Alert.
- Client AlertAnother One Bites the Dust — Energy Future Decision Likely Precludes Future Arguments to Lift the Automatic Stay in the Make-Whole ContextJuly 23, 2015
Recently, before awarding bondholders any amounts on account of a make-whole provision upon a debt prepayment, courts have repeatedly insisted on clear language in the credit documents requiring such payment notwithstanding a bankruptcy filling and a related automatic acceleration.
- ArticleS.D.N.Y Affirms MPM Silicones' "Prime Plus" Formula for Cramdown Interest Rates, Likely Harming Creditor RecoveriesPratt's Journal of Bankruptcy LawJuly/August 2015
Pratt's Journal of Bankruptcy Law published an article written by Chapman attorneys.
- Client AlertFirst Circuit Affirms Invalidity of Puerto Rico’s Public Corporations Debt Enforcement and Recovery ActJuly 14, 2015
In a decisive opinion, the U.S. Court of Appeals for the First Circuit affirmed a lower court ruling that the Puerto Rico Public Corporations Debt Enforcement and Recovery Act is preempted by the U.S. Bankruptcy Code and therefore unconstitutional.
- Client AlertMarblegate II and the “Tyranny of the Minority” – Another Weapon is Added to Bondholders' Arsenal to Disrupt Exchange Offers and RestructuringsJuly 8, 2015
A recent decision in the Southern District of New York interpreting the Trust Indenture Act will likely provide bondholders additional leverage in out-of-court restructurings.
- Client AlertClient AlertJuly 2, 2015
The U.S. Supreme Court’s 6-3 split decision in Baker Botts LLP v. Asarco LLC will have long standing implications for all bankruptcy professionals’ compensation, potentially making it much more costly for all professionals retained in chapter 11 cases.
- White PaperWhite PaperJune 2015
Chapman's white paper, Selected Bankruptcy Issues for Equipment Lessors, provides a detailed overview of bankruptcy issues affecting the equipment leasing market.
- Client AlertClient AlertJune 16, 2015
In Delaware, arms-length negotiations may no longer be sufficient to protect an unwitting lender from a derivative claim brought by a borrower’s shareholder with respect to certain change of control defaults contained in credit agreements.
- Client AlertCan You Vote More Than Once? The Bankruptcy Code’s Current “Numerosity” Standard Under § 1126(c) and Possible ReformClient AlertJune 15, 2015
Under current law, affiliated creditors holding debt arising from the same loan transaction will not likely be lumped together when determining the number of creditors that have voted to approve or reject a plan, particularly where such affiliates held such debt prior to a bankruptcy filing and assert their claims through separate proofs of claim.
- White PaperWhite PaperJune 2015
On December 8, 2014, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its Final Report and Recommendations for amendment to the current Bankruptcy Code. The proposals are significant, and on the whole, largely harmful to the rights of secured creditors.
- Client AlertS.D.N.Y. Affirms MPM Silicones' "Prime Plus" Formula for Cramdown Interest Rates, Likely Harming Creditor RecoveriesClient AlertMay 18, 2015
The United States District Court for the Southern District of New York recently affirmed the Bankruptcy Court’s decision in In MPM Silicones, LLC, establishing Judge Drain’s “prime plus” formula as the appropriate interest rate required in connection with new notes issued to secured creditors under a cramdown plan of reorganization in the Southern District of New York.
- Client AlertClient AlertMay 12, 2015
This is the fifth installment of Chapman and Cutler LLP’s discussion of the proposals contained in the Final Report and Recommendations of the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11.
- Client AlertDoes Your Intercreditor Agreement Properly Protect You? Common Mistakes and How to Fix Them — Lessons Learned From the MPM Silicones and RadioShack CasesClient AlertMay 5, 2015
In order to avoid future intercreditor disputes, investors can learn from past mistakes and draft or revise their intercreditor agreements accordingly. In this Client Alert, we attempt to highlight a number of specific considerations that may improve intercreditor agreements, to better achieve their intended purpose of delineating the respective priorities and rights of senior and junior secured creditors while avoiding intercreditor conflict.
- Client AlertThe Trust Indenture Act has Reemerged as a Powerful Tool for Objecting Bondholders Outside of BankruptcyClient AlertMarch 13, 2015
Out-of-court debt restructurings may face greater hurdles to success in light of two recent federal court decisions out of New York broadly expanding dissenting bondholders’ rights under the Trust Indenture Act.
- ArticleIf It Walks Like a Duck... In re Duckworth: Another Warning to Lenders to Take Care in Drafting Security DocumentsPratt's Journal of Bankruptcy LawFebruary 19, 2015
Pratt's Journal of Bankruptcy Law recently published an article based on a recent Chapman Client Alert.
- Client AlertClient AlertFebruary 10, 2015
On February 6, 2015, the U.S. District Court for the District of Puerto Rico issued a decision holding Puerto Rico’s Public Corporations Debt Enforcement and Recovery Act unconstitutional, noting that it was “not a close case.”
- Client AlertFebruary 6, 2015
As discussed in our previous client alert on this subject, litigation over whether $1.5 billion in prepetition loans to GM were secured or unsecured has been pending before the Second Circuit Court of Appeals. The Second Circuit recently issued a decision upholding the termination.
- Client AlertFebruary 2, 2015
This is the fourth installment of Chapman’s discussion of the proposals contained in the American Bankruptcy Institute’s Final Report and Recommendations to amend the Bankruptcy Code.
- Client AlertClient AlertJanuary 27, 2015
One of the well-known benefits of bankruptcy is that assets can be sold free and clear of claims and interest in the property. But unknown future claims have presented difficulties for purchasers of assets in bankruptcy sales and courts have struggled to devise a clear rule for dealing with such claims.
- Client AlertTwin Daggers: Proposed 363(x) Amendments and Revisions to Adequate Protection Provisions Would Significantly Erode Secured Creditors’ RecoveriesClient AlertJanuary 15, 2015
As discussed in our first two installments, the American Bankruptcy Institute released its Final Report and Recommendations containing proposals to modify the Bankruptcy Code, many of which will have significant and negative implications for secured creditors.
- Client AlertClient AlertJanuary 5, 2015
As discussed in our first installment, the American Bankruptcy Institute released its Final Report and Recommendations containing proposals to modify the Bankruptcy Code, many of which will have significant and negative implications for secured creditors.
- Client AlertPratt's Journal of Bankruptcy LawJanuary 2015
Pratt's Journal of Bankruptcy Law published an article based on a recent Chapman Sidebar.
- Client AlertIf It Walks Like a Duck…In Re Duckworth: Another Warning to Lenders to Take Care in Drafting Security DocumentsClient AlertDecember 23, 2014
Can a lender use evidence outside the four corners of a security agreement to prove that it has a valid security interest against the bankruptcy trustee?
- Client AlertThe ABI Commission on Reform of Chapter 11 Issues Final Report: What Secured Creditors Need to UnderstandClient AlertDecember 17, 2014
Last week, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its Final Report and Recommendations for amendment to the current Bankruptcy Code.
- Client AlertClient AlertNovember 5, 2014
The Delaware Supreme Court ruled recently that a secured party’s security interest in collateral can be terminated upon the filing of a UCC termination statement even though there was a mistake in the document.
- White PaperOctober 2014
Chapman and Cutler attorneys have been monitoring decisions and developments with respect to creditors' rights and have compiled the client alerts published to date that provide important insight regarding the implications of these decisions for holders of secured debt and highlight what every creditor should know in order to effect rights under its credit agreement.
- Client AlertMPM Silicones Latest Court to Whittle Away at Secured Creditor Protections: Plan Confirmed Providing Secured Creditors with Below Market Replacement NotesClient AlertSeptember 29, 2014
In an important bench ruling in the MPM Silicones case, Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York has provided debtors with a potentially coercive tool to use as leverage against their secured creditors.
- Client AlertChapman SidebarSeptember 4, 2014
As prices for distressed loans have risen, holders of secured claims are focusing not only on the recovery of principal but also on repayment of interest, fees and pre-payment-premiums or “make whole” payments.
- Client AlertChapman SidebarAugust 20, 2014
A Nebraska bankruptcy court recently upheld the longstanding principle that a creditor filing a proof of claim may seek the entire amount due despite amounts collected from other obligors who may be jointly and severally liable for the debt.