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

Publication

End of a Decade - Checklist for California Nonprofits

As 2019 comes to a close, we thought about our customary note to nonprofit officers and directors to take a few moments to confirm that important year-end responsibilities have not been overlooked. But since this...

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Event

Risk Management Summit for Agriculture and Cannabis

Rebecca Stephens will be presenting the topic "A Closer Look at Ag/Cannabis Employment Issues Surfacing in 2020" at Newfront Insurance's Risk Management Summit for Agriculture & Cannabis. Join us for a free, all-day event...

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News

Threat of Cyberattack by Iran Still Critical, Experts Say

Insurance Recovery Partner Tyler Gerking commented in  The Wall Street Journal article "Threat of Cyberattack by Iran Still Critical, Experts Say." In the article, Tyler said that such direct actions by a nation-state against...

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News

Farella Braun + Martel’s Jerome Braun Honored With Bill Edlund Award for Professionalism in the Law

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Publication

Trade Secret Hygiene for Current Employees

Published on  ACCDocket.com . By Walt Norfleet, Smiths Group plc and Eugene Y. Mar, Farella Braun + Martel LLP In the first two parts of this series on best practices in protecting trade secrets, we...

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Event

2020 Insurance Coverage Litigation Committee CLE Seminar

Raymond Sheen will speak at the 2020 Insurance Coverage Litigation Committee CLE Seminar session, "Fingerprints, Facial Recognition, Permission? Oh My! Biometric Privacy Coverage Litigation Arriving Soon in Your State." Details: The Illinois Biometric Privacy Act...

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Event

ABA 34th National Institute on White Collar Crime

Jessica Nall will be speaking at the 34th National Institute on White Collar Crime session, "Updates in Cybercrime: Are We Fighting an Impossible Battle?" Details: Information security has now become an essential part of corporate...

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News

Farella Braun + Martel Announces 2020 Partner Elevations

SAN FRANCISCO/ST. HELENA, Calif., January 21, 2020: Northern California legal powerhouse Farella Braun + Martel is pleased to announce the election of senior associates Evan Abrams, Lauren Galbraith, and Alex Reese to the partnership...

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Publication

AB 37: State Tax Deductions for Cannabis Businesses

cannabis leaf
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Publication

New Laws for California Employers in 2020

The California Legislature and Governor Newsom have passed a sizable list of new laws governing the workplace in 2020. Employers are, once again, advised to evaluate their workplace rules and practices to insure they keep...

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