Creditor Claims Against Distressed Companies

(314 Ratings)

Produced on: March 03, 2017

Course Format On Demand Audio

Taught by

Categories:

Course Description

Time 62 minutes
Difficulty Intermediate

When the business relationship between a company and its creditor is going well, the creditor does not often spend much time thinking about the rights and remedies it might have if the company suffers financial distress later. Oftentimes, creditors do not focus on what rights they have until after distress sets in. When a company enters bankruptcy, creditors’ rights and remedies can be altered significantly, and creditors who do not pursue their rights until after a bankruptcy filing could find themselves with diminished recoveries.

Michael J. Riela and Richard W. Trotter, attorneys in the Creditors’ Rights and Business Reorganization practice group at the law firm of Tannenbaum Helpern Syracuse & Hirschtritt LLP, will discuss the principal rights and remedies that different types of creditors may have against companies that are in financial distress but are not yet in bankruptcy. They will also discuss how those rights change when a company enters bankruptcy. Finally, they will provide practical tips about how creditors can better protect their interests, both before and during bankruptcy.

Learning Objectives: 

  1. Identify some of the principal rights and remedies that various types of creditors may have against distressed companies before bankruptcy, and the legal bases for such rights and remedies
  2. Explore how creditors’ rights are altered when a distressed company enters bankruptcy
  3. Understand the priority of claims in bankruptcy, and how differently-ranked creditors can receive materially different recoveries
  4. Recognize how creditors can better protect their interests, both before and during bankruptcy

Faculty

Michael Riela

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Mike Riela is a partner in Tannenbaum Helpern’s Creditors’ Rights and Business Reorganization practice. With more than 15 years of experience, Mike advises companies on complex restructuring, distressed M&A, loan transactions and bankruptcy related litigation matters. Mike has in-depth experience in advising clients on corporate and real estate bankruptcies, workouts, Chapter 11 and Chapter 7 bankruptcy cases, debtor-in-possession (DIP) and bankruptcy exit loan facilities, secondary market trading of distressed debt and trade claims, Section 363 sales and bankruptcy retention and fee agreements and disputes. His clients include banks, administrative agents, indenture trustees, hedge funds, private equity firms, professional services firms, trade creditors, contract counterparties, shareholders, debtors and investors.

Mike has represented buyers of assets in Section 363 and out-of-court sales from sellers such as Evergreen Solar, Inc., Sonic Telecommunications International, Ltd, Urban Communicators PCS Limited Partnership, US Aggregate, Inc., and Vectrix Corporation, as well as representing lenders, trustees and administrative agents in major Chapter 11 cases and workouts such as Delta Air Lines, Inc., Extended Stay Inc., Buffets Inc., Legends Gaming LLC, Nortel Networks, Premier International Holdings Inc., and many others.

Mike also works with clients on cybersecurity and data privacy issues, including the assessment and investigation of information security and data breach incidents. Before any data breaches occur, Mike prepares and helps clients implement written information security programs, systems access policies, and incident response plans. After clients suffer a breach, Mike assists with their response and advises on their legal duties, including clients’ duties under various security breach notification laws.

Prior to joining Tannenbaum Helpern, Mike was a shareholder at Vedder Price and was a counsel at Latham & Watkins. He has been recently selected to serve on the 2016 Bankruptcy editorial advisory board for the Law360 publication.


Richard Trotter

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Richard Trotter is an associate in Tannenbaum Helpern’s Litigation and Bankruptcy practice groups. His diverse practice includes litigating a wide variety of complex commercial litigation and bankruptcy disputes in state, federal and bankruptcy court. Such disputes have involved issues of contract, securities, real estate and bankruptcy law. He has experience with both commercial and municipal bankruptcy context and has worked to preserve and enforce the rights of different parties at all stages of bankruptcy.

Reviews

DR
Diane R.

Excellent course.

RM
Rumbi M.

Material was very substantial.

EG
Erik G.

Good program. Not an area that I deal much in, but provided a good background.

DM
Diana M.

Excellent in every way! This is the best Lawline video on the topics of Chapter 11 and Chapter 7 that I have seen thus far! Thank you for the excellent and informative presentation! Bravo to the younger associate/attorney for working so perfectly with the partner; they seemed to enjoy working together! Perfect written materials too; they were clear and not too overwhelming. I would rate this almost a "perfect ten" in terms of CLE presentations.

PH
Paul H.

nice intro to bankruptcy

ES
Elaine S.

Too general

DF
Daniel F.

Job well done by the presenters.

JB
Julie A. B.

Helpful commentary.

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$ 59 Business, Corporate, & Securities Law and Bankruptcy & Restructuring In Stock

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