Introduction
Dykema’s Restructuring, Workout and Foreclosures practice combines the firm’s
skilled bankruptcy practitioners, transactional attorneys, and seasoned
litigators to provide strategic solutions for clients involved in or dealing
with distressed or non-performing loan situations. Our attorneys apply an
interdisciplinary approach to best represent lenders, mutual funds, hedge funds,
insurance companies and middle market businesses facing restructuring of
existing credit facilities, in- and out-of-court workouts, and
insolvency-related litigation.
The firm has substantial experience in workouts and restructurings of
distressed real estate and commercial credit facilities. With extensive
experience representing both lenders and borrowers in loan transactions, as well
as in bankruptcy proceedings, Dykema attorneys help lenders identify options and
strategies that will maximize their recovery in troubled credit situations,
while minimizing risk and expense.
For decades, Dykema and its predecessor firms have been nationally known for
their bankruptcy expertise. We frequently represent lenders, and occasionally
borrowers, in Chapter 11 reorganizations. On behalf of secured creditors,
unsecured creditors and creditors’ committees, we work with clients to recover
pledged collateral, prosecute claims, realize upon liens and security interests
and defend creditors against whom claims have been asserted. We represent
financial institutions in restructuring loans, financing Chapter 11 debtors
through debtor-in-possession financing and cash collateral orders, negotiating
adequate protections for use, or prohibiting use of a creditor’s assets by a
company in bankruptcy, and recovering possession of client’s property from
borrowers both in an outside of bankruptcy cases. We also represent creditors
filing involuntary bankruptcy petitions, and have represented creditors in
successfully blocking the discharge of their claims against bankrupt borrowers.
We have represented secured and unsecured creditors in contested confirmation
hearings, and have filed and confirmed reorganization plans on behalf of secured
and unsecured creditors, thereby taking control of the reorganization process to
facilitate recovery on creditors’ claims.
Our attorneys’ representation of financially distressed businesses encompasses
all types of debtor businesses. Clients include entrepreneurs, nationwide
retailers, finance companies, manufacturers, wholesalers, distributors, service
organizations, trucking companies, hotels, shopping centers, office buildings
and apartment complexes. Representation includes every aspect of restructuring
and reorganization, including working with secured and unsecured creditors,
settling guaranteed obligations, collecting assets and liquidating claims. Our
attorneys routinely advise purchasers of assets from companies in Chapter 7 or
Chapter 11 proceedings and counsel receivers and assignees for the benefit of
creditors. We also work with solvent companies to change their corporate
structures in an effort to improve financial performance and enhance value.
Dykema regularly performs real estate workouts for special servicers, i.e.,
loan servicing firms (such as CWCapital) that receive a rating from one of the
rating agencies to serve as designated servicer on commercial real estate loans
that become delinquent or otherwise nonperforming. On behalf of such servicers,
Dykema manages and performs all varieties of workout work and related
litigation.
The methods we use to solve the problems of financially distressed businesses
include cases under Chapter 11 of the Bankruptcy Code, out-of-court
compositions, liquidations, receiverships, assignments for the benefit of
creditors and asset sales conducted in cooperation with the debtor’s lenders and
trustees. While our bankruptcy attorneys have decades of experience representing
clients in Chapter 7 and 11 proceedings, we are also knowledgeable in avoiding
bankruptcy proceedings through out of court workouts.
Dykema’s litigation attorneys have experience with all types of
insolvency-related litigation, arbitration and dispute resolution. We have
substantial experience in commercial collection litigation, international asset
collection, real estate foreclosures and other insolvency-related litigation
matters.
Our litigators have successfully pursued lawsuits involving collections on notes
and guarantees, resolved inter-creditor disputes and pursued foreclosure on
assets securing asset-based loans. Our attorneys have represented lenders
foreclosing on commercial, retail, and office properties, apartment buildings,
farms, partially completed residential developments, industrial, and specialty
and mixed-use properties. We have liquidated virtually every type of asset,
including shipping vessels, sailboats, locomotives, airplanes, metalworking
plants, woodworking plants, perfume factories, bakeries, roofing material
manufacturers, restaurants, cellular phone businesses, racetracks and other
esoteric businesses. We also have assisted in matters involving receivers and
mortgagees-in-possession, and have been involved in several cutting-edge matters
involving receivers, including their right to seize rents and other assets held
by owners/borrowers.
Members of the Restructuring, Workout and Foreclosures group actively
participate in industry associations, including the American Bankruptcy
Institute, American College of Bankruptcy, Illinois CPA Society, National
Association of Bankruptcy Trustees, Turnaround Management Association, Risk
Management Association, The American College of Mortgage Attorneys, American Bar
Association Banking & Lending Litigation Committee and the International Bar
Association. In addition, our attorneys frequently write and speak about
bankruptcy and insolvency topics.
For more information about our Restructuring, Workout and Foreclosures practice contact:
