Bankruptcy Litigation

Benesch’s Bankruptcy Litigation lawyers possess exceptional depth and breadth of transactional and litigation experience, with a 360-degree perspective gained from representing and advising clients through all phases and on all sides of financially distressed situations. Combining that experience with our industry knowledge and an understanding of our client’s specific goals and concerns, we help determine the best path forward and deftly devise cost-effective and creative solutions for debtor clients and maximize recoveries for creditor clients.

Collaborating closely with our Corporate & Securities, Corporate Finance, Insolvency & Creditors’ Rights and Bankruptcy Reorganizations Practice Groups, we develop and execute strategically tailored, pragmatic approaches to each engagement and, when litigation arises, ensure that our litigation strategy aligns with our clients’ transactional goals and supports their business aspirations. 

Members of our Bankruptcy Litigation Group represent clients in state, federal and appellate courts throughout every stage of an issue, from litigation risk assessment, pre-bankruptcy litigation planning and bankruptcy alternatives to a matter’s final resolution, including Chapter 11 and Chapter 15 Bankruptcy cases, restructurings, loan workouts or Chapter 7 liquidation. In addition to litigating matters, we counsel clients on aspects of Delaware and federal bankruptcy law and effective risk mitigation practices and protocols.

Our experience includes:

• Debtor-in-possession issues and financing
• Preferential transfer and fraudulent conveyance claims
• Section 363 sales
• Contested confirmation and objections to debt discharge
• Debt restructuring and out-of-court loan workouts
• Distressed mergers, acquisitions and sales of distressed companies and assets
• Collateral preservation and protection
• Debt enforcement, collection and recovery
• Automatic stay-related issues
• Liquidations
• Executory contracts and unexpired leases
• Clawbacks/Ponzi schemes
• Fiduciary duty breach claims
• Commercial mortgage foreclosures and receiverships
• Enforcement of guarantees, liens and security interests
• UCC foreclosure sales
• Structuring of credit facilities
• Reorganizations
• Secured transactions

Middle-Market Proficiency

With particular experience and knowledge of middle-market clients and issues, we represent creditors’ committees, trade creditors, fiduciaries, distressed businesses, equity sponsors, secured and unsecured lenders, indenture trustees, Chapter 7 and 11 trustees, asset purchasers and parties to adversary proceedings in Delaware, Pennsylvania, New Jersey and nationwide. Our lawyers have successfully represented clients in a broad cross-section of industries, including energy, healthcare, lending, manufacturing, private equity, real estate, retail, technology, energy, telecommunications and transportation.

A Top-Tier Team

Benesch is ranked nationally and in Cleveland and Delaware in Best Lawyers® “Best Law Firms” for Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, and in Delaware for Litigation-Bankruptcy. Additionally, our firm is repeatedly ranked by Chambers USA in Bankruptcy/Restructuring.

Representative Matters

• Official Committee of Unsecured Creditors of Yellow Corporation
  Benesch was selected as Delaware counsel to the Official Committee of Unsecured Creditors appointed in the chapter 11 cases of Yellow Corporation and its affiliates filed in the U.S. Bankruptcy Court for the District of Delaware. The case involves the wind down of one of the nation’s largest less-than-truckload freight carriers and over $1.2 billion in funded debt obligations.
• GenCanna Global USA, Inc.
  Benesch acted as lead debtor’s counsel to GenCanna Global USA, Inc., a producer/distributor of hemp products and developer of hemp genetics, in connection with its chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the Eastern District of Kentucky in which the business was restructured through a successful section 363 sale for consideration in excess of $75 million.
• Official Committee of Unsecured Creditors of The Hertz Corporation
  Benesch acted as Delaware counsel to the Official Committee of Unsecured Creditors appointed in the chapter 11 cases of The Hertz Corporation and certain of its affiliates filed in the U.S. Bankruptcy Court for the District of Delaware. The case was one of the largest and most successful chapter 11 reorganizations in recent times, with creditors being paid in full under the confirmed chapter 11 plan.
• Nespresso USA, Inc.
  Benesch represented Nespresso USA, Inc. in the chapter 11 case of Nespresso’s third-party logistics provider in the U.S. Bankruptcy Court for the District of Nevada. Following a transition to a new 3PL partner upon the close of a section 363 sale, Nespresso obtained a substantial recovery on its breach of contract claims through a negotiated settlement consummated through a confirmed chapter 11 plan. 
• Acquisition of Weiss Memorial Hospital & West Suburban Medical Center
  Benesch represented Resilience Healthcare and Ramco Healthcare Holdings in connection with their $90 million acquisition of Weiss Memorial Hospital (Chicago, Illinois) and West Suburban Medical Center (Oak Park and River Forest, Illinois) from Pipeline Health System through a section 363 sale in Pipeline’s chapter 11 bankruptcy cases in the U.S. Bankruptcy Court for the Southern District of Texas.