Sidley’s bankruptcy litigation lawyers have represented clients in some of the most sophisticated and complex bankruptcy matters across the United States, playing a significant role in important cases over the last decade. The ability to utilize our deep bench of litigators experienced in all aspects of bankruptcy cases from across the firm’s many practice areas adds uncommon value for clients, demonstrating our proficiency in sensitive matters involving high-profile, industry-leading clients. Additionally, we work closely with colleagues in the energy, financial services, hospitality, healthcare, life sciences, media and entertainment, real estate, and REITS practices, among others.
Harnessing this talent and industry experience, we provide seamless advice and a nuanced strategic perspective to large debtors, industry creditors, banks, hedge funds, agents and trustees, and private equity firms, among other types of clients. Whether litigating adversary proceedings, asset sales or plan confirmations, appeals, or helping clients navigate restructuring-related issues, Sidley’s bankruptcy litigators have a record of achieving results, often under the pressure of time-sensitive matters.
Tier 1 Nationwide Ranking in Bankruptcy
Benchmark Litigation 2023
A Multidisciplinary Approach
Our work spans the scope of bankruptcy litigation matters, including:
- Contested DIP credit facilities
- Civil and criminal actions concurrent with Chapter 11 filings, including mass tort liabilities and shareholder litigation
- Complex transaction-related litigation, including difficult affiliate and insider issues in adversary proceedings throughout the country
- Overcoming oppositions to acquiring assets subject to Section 363 free and clear of claims
- Proofs of claims in bankruptcy court against debtors
- Administration of large-scale alternate dispute resolution processes
- Contested plans of reorganization
Ranked Among Top Firms for Litigation: General Commercial in California, Dallas/Fort Worth, Illinois, New York, and Washington, D.C.
Chambers USA 2021
Representative Matters
A small sampling of our more recent bankruptcy litigation experience includes representing:
Debtor Representation
- An oil and gas E&P company in connection with various contested matters, including the approval of DIP and exit facility, disclosure statement, and confirmation.
- A consumer products company in connection with its pre-packaged bankruptcy filing in the United States Bankruptcy Court for the District of Delaware, which was completed in two months.
- A manufacturing company which closed its former lead acid battery plant, winning the appeal in a favorable opinion from the bankruptcy court to the U.S. District Court for the District of Delaware.
Creditor Representation
- A lender to a global food supplier and several of its affiliates in Chapter 11 and Chapter 15 cases. The supplier was one of the largest fishing companies in the world. Our client was part of a senior lender group prosecuting a motion for appointment of a Chapter 11 trustee over the debtors based on fraud by the owners of the debtors, as well as the creditors’ loss of trust in management.
- A secured and DIP lender to a major oil and gas company in connection with various contested matters, including the approval of DIP and exit facility and confirmation.
- A Committee of Unsecured Creditors of a dairy processor and distributor in connection with various issues, including a disputed key employee incentive plan and key employee retention plan.
- A statutory committee of unsecured creditors in an investment management firm’s Chapter 11 bankruptcy case. Our client sought Chapter 11 protection in Delaware ahead of a Chancery Court hearing on summary judgment approval of a US$189 million arbitration award won by investors in one of the firm’s funds after a multiyear battle. Although the firm has some US$2.5 billion in assets under management, our efforts were instrumental in moving the venue of the bankruptcy case from Delaware to Dallas and in installing an independent board that was hand-selected by the committee to administer the Chapter 11 case.
Other Representations
- An investment firm in an action brought by the Madoff Securities Investor Protection Act (SIPA) trustee to recover funds allegedly received by our client from a feeder fund, which in turn had invested in Madoff’s fund in a fraudulent transfer adversary proceeding that is ongoing after multiple pre-answer motions to dismiss on various grounds.
- A former parent of an energy company and several of parent’s current subsidiaries in action brought by liquidating trustee of the energy company. The trustee alleged fraudulent transfer and alter ego claims, in which the trustee sought to hold our client and its former parent liable for all of the company’s debts, including potentially US$14 billion in environmental claims. Sidley lawyers successfully argued the summary judgment motion that resulted in the Court dismissing most of the Trustee’s damages, leading to a successful and comprehensive settlement.
- An investment management company in affirming a trial victory in the U.S. Court of Appeals for the 3rd Circuit in a precedential opinion. The Chapter 7 trustee for the debtor alleged that our client improperly valued and liquidated securities that were subject to repurchase agreements and sought approximately US$200 million in damages.
- Several banking clients, one of which acted as an agent and faced a contested debtor-in-possession (DIP) and exit facility application, and another that was an asset-based lending (ABL) agent in connection with various matters, including a contested valuation dispute regarding the sale of assets.
- A natural gas pipeline in an action brought by the company against an oil and gas distributor that involves the interplay between the bankruptcy code and FERC regime with respect to the rejection in bankruptcy of a transportation services agreement.
- A private equity sponsor in a dispute with portfolio company management team resulting from management’s unauthorized bankruptcy filing.
- A creditor forcibly removed as manager of debtor’s luxury hotel chain prevailed in estimation process after both a bankruptcy court trial and related arbitration, rejecting debtor’s attempts to limit our client’s damages. Sidley obtained a multi-million dollar award notwithstanding liquidated damages provision and Covid-19 related defenses asserted by debtor.
- A lender in obtaining rights to its secured collateral and obtaining recovery on the collateral after the collateral was auctioned. Sidley filed objections to debtors use of cash collateral and a lift stay motion which ultimately drove a negotiated resolution allowing debtor to achieve its primary goal of recovering and monetizing its collateral.
