Oftentimes, we are called upon to effectively use litigation as a tool to enhance recoveries. On other occasions, we are asked to vigorously defend our clients against claims that may be asserted against them during the course of a workout, bankruptcy, collateral disposition, or exercise of rights and remedies under loan or other transaction documents.
Chapman’s litigation experience covers a wide range of large, sophisticated matters at the trial and appellate levels that arise in bankruptcy cases or in connection with defaulted loans or securities, securitizations, restructurings, or workouts. Our litigation lawyers have experience in virtually every type of commercial dispute a creditor or trustee may encounter in connection with a troubled transaction. Our representation includes:
Creditor and Trustee Claims
We routinely advise creditors and trustees on, and represent them in, litigation in connection with issues including lender liability, intercreditor disputes (including enforcing and protecting rights under intercreditor or subordination agreements), breaches of representations and warranties (including with respect to loans), possible instances of fraud, breach of fiduciary duty or other wrongful conduct, and the enforcement, interpretation, and protection of contractual rights under loan documents, security agreements, promissory notes, guaranties, subordination/intercreditor agreements, PSAs, trust agreements, indentures, servicing agreements, ISDA swap agreements, or other relevant transaction documents.
Fraudulent Transfers and Claim Challenges
We have litigation experience in matters involving fraudulent transfers and preferences, challenges to lenders’ or trustees’ or noteholders’ claims, security interests and liens, liquidating damage claims, prosecuting swap termination claims, transferring servicing platforms, monitoring compliance with servicing standards, equitable subordination, and third-party discovery matters in both civil and criminal matters, such as civil or grand jury subpoenas directed to a lender for documents, depositions, or other testimony.
Receiverships/Assignments for the Benefit of Creditors (“ABC”)
Chapman attorneys represent creditors in liquidation and receivership proceedings as well as with assignments for the benefit of creditors. In addition, we assist corporate and indenture trustees with the wind-down of trusts and liquidation of trust assets upon trust termination.
Valuation Litigation/Adequate Protection
Our attorneys help assess the value of collateral including an asset or group of assets, intellectual property, or ownership interests when the need arises in certain litigation situations or to provide adequate protection from an automatic stay.
When the foreclosure process is engaged with court oversight, Chapman attorneys provide counsel on proper procedures, defense strategies, and possible liabilities. Our attorneys assist our clients throughout the entire process, including enforcement of a final judgment and sale of the related collateral.
- Represented secured lender in judicial foreclosure of multiple farming and cattle‑raising operations in multiple jurisdictions with appointment of receivers and sales of related collateral.
- Represented agent bank in connection with the assignment for the benefit of creditors of a community‑development corporation and liquidation of related collateral.
- Represented major national bank in state court receivership liquidation of foundry, which included competing claims of state employment agency, private equity, mortgagee, and municipal electric supplier, and customers’ claims to work-in-progress, tooling, and patterns.