Insolvency matters are rarely straightforward—for debtors or creditors.

For debtors, our experience gained from decades of guiding financially distressed companies covers early stage evaluations, planning and implementing out-of-court restructurings, and chapter 11 bankruptcy reorganizations.

Likewise, we offer representation to secured and unsecured creditors, creditors’ committees, landlords, and equity holders in creative recovery solutions, as well as strategic purchasers of distressed assets. We also have extensive experience in insolvency-related litigation, including preference and fraudulent transfer claims, along with debt enforcement actions.

We get to know our clients’ businesses—whether debtor or creditor—grow personally involved in the work, and aim for the best possible outcome.

Pre-Bankruptcy and Bankruptcy Counsel

A company on the brink of insolvency often will need to restore a level of integrity in their business operations to ensure that others—including vendors, lenders, and employees—believe they are doing all that they can do to make good on their debts and avoid bankruptcy. In pre-bankruptcy matters, our team approaches each client’s particular circumstances, considering their business goals, market trends, and potential outcomes. We can help build and negotiate sustainable workout plans with creditors, restructure finances and operations for more efficiency, and find other solutions to prevent bankruptcy, such as new financings, sales, joint ventures, and licensing deals.

In addition, we work closely with other Farella practice groups, including real estate, insurance coverage, intellectual property, and tax to provide customized, multi-disciplinary assistance, advice, and representation to meet our clients’ needs.

Bankruptcy and Insolvency-Related Litigation

In bankruptcy litigation, we address the compressed time frames common to bankruptcy courts and leverage the unique substantive law and procedural rules that make it different from other commercial litigation. We represent clients in contentious litigation matters brought under the Bankruptcy Code or non-bankruptcy law.

Areas of litigation we regularly handle include:

  • Fraudulent transfer claims (under both Bankruptcy Code and state law)
  • Preference actions
  • Fraud and other misconduct claims
  • Breach of fiduciary duty and other director and officer liabilities
  • Equitable subordination claims
  • Claims seeking to re-characterize debt as equity
  • Alter ego/piercing the corporate veil claims

Additionally, we have decades of litigation experience representing creditors in enforcing debts owed to them. We excel in pursuing provisional remedies, including prejudgment attachment of assets and receiverships, as well as proceedings to locate and seize assets to satisfy debts owed to our clients.

Real Estate Specialty

While our experience covers a range of industries, from wineries and hospitality to alternative energy and insurance, our insolvency specialists are frequently engaged by real estate interests to navigate the unique rules which affect the landlord-tenant relationship both in and outside of bankruptcy. We have particular success in enforcing rights in retail bankruptcy cases that negatively impact commercial shopping center properties, whether through negotiation or litigation.

Clients in real estate-heavy industries also engage us to protect their equity investments and defend claims made or threatened against them as guarantors, directors, or officers, among others.

Asset Sales and Recovery

Buying or selling a distressed business raises a host of risks and potential problems not typically found in the acquisition of a healthy, solvent business. Our lawyers specializing in this area provide savvy, sophisticated counsel, and handle everything from due diligence and negotiations to the preparation of complex closing documentation for both buyers and sellers of financially distressed businesses.

In asset recovery matters related to insolvency, our attorneys excel at drafting agreements to maximize clients’ rights, including perfecting security interests in all types of collateral and negotiating and documenting complex inter-creditor and subordination agreements.

Other Restructuring and Insolvency Services

Firm Highlights

News

Jeff Fisher Named Among California’s 2019 Top Trade Secrets Lawyers by the Daily Journal

SAN FRANCISCO, October 9, 2019: Farella Braun + Martel is proud to announce that Jeffrey M. Fisher was named among the “Top Trade Secrets Lawyers” in California by the Daily Journal . Fisher has...

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Event

CalCPA: Wine Industry Conference

Lauren Gilbreth will present the session "Succession Planning" at the CalCPA - Wine Industry Conference. The ever dynamic wine industry is fraught with complicated tax, labor and accounting issues. Please join us as we...

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Event

PFAS Litigation Conference

Sarah Bell will be speaking at Law Seminars International's PFAS Litigation Conference program, "Lines of Defense" on December 10. Details: Assessing and choosing among the legal options for defending toxic tort, mass tort, and...

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News

Farella Braun + Martel Deepens Environmental Practice With Partner Donald Sobelman

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Publication

Securing Against Trade Secret Pitfalls and Dangers Arising From Employee Mobility Situations

Published on ACCDocket.com . By Walt Norfleet, Smiths Group plc and Eugene Y. Mar, Farella Braun + Martel LLP Picture this: Your company is in a highly competitive industry with several leading players heavily supported...

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Publication

San Francisco Now Requires 100% Renewable Energy for Commercial Buildings

The San Francisco Board of Supervisors passed an ordinance this week requiring owners of all nonresidential buildings in San Francisco of at least 50,000 square feet to provide all on-site electricity demands from 100...

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Publication

Reimbursement of Employment-Related Expenses Is Not a “Wage and Hour” Claim Within the Meaning of EPLI Exclusion

A recent California appellate court decision found that a wage and hour exclusion in an Employment Practices Liability Insurance (“EPLI”) policy did not bar coverage for claims under California Labor Code sections 2800 and...

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News

Douglas Young Installed as President of the American College of Trial Lawyers

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Event

Litigating Civil and Criminal Trade Secret Cases: Trends, Best Practices, and Lessons Learned

Trade secret litigation is on the rise, both civil litigation and follow-on criminal prosecution for trade secret theft. Companies are grappling with how to protect their valuable information and minimize risk in their technological...

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Publication

What Employers Should Know About the California Consumer Privacy Act Taking Effect January 1, 2020

On January 1, 2020, the California Consumer Privacy Act (CCPA), a consumer-friendly privacy law inspired by the European Union’s General Data Protection Regulation, is set to take effect. The CCPA is aimed towards bolstering...

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