Creditors' Rights
Goldberg Kohn's Bankruptcy & Creditors' Rights Group began as an adjunct to the firm's internationally renowned Commercial Finance practice. Representing secured creditors, both as agents in syndicated transactions and as individual lenders, the firm has negotiated, documented and litigated intercreditor agreements, complex forbearance agreements to facilitate workouts, DIP financing agreements and orders (including takeout, roll-up, hybrid and new financing orders), cash collateral orders, exit financings, and going-concern and liquidating asset sale agreements. As counsel to unsecured creditors, Goldberg Kohn regularly represents landlords, other lessors, vendors, intellectual property rights holders and subordinated debt holders.
Representative Matters
- Giordano's (N.D. Ill.)
Represented Fifth Third Bank, N.A. as lender to Chapter 11 debtors, consisting of multiple real estate borrowers, company owned stores, the franchisor of Giordano's pizza restaurants, the product distribution company and related entities. Owner lost control of companies in favor of a Chapter 11 trustee; the trustee then terminated the owner's employment and commenced an orderly sale process of the real estate and restaurant businesses, hiring William Blair and Hilco as investment banker and real estate disposition specialist, respectively. Ultimately, a sale was approved by the bankruptcy court for a price sufficient to repay the lender's loans in full. - Sexy Hair LLC (C.D. Cal.)
Represented Bank of Montreal (“BMO”) in BMO’s capacity as administrative agent for a syndicate of senior lenders to Sexy Hair LLC (“SH”). The firm was retained to represent BMO following a payment default and engineered the exercise of remedies by BMO to replace the SH board of directors with an independent board. Thereafter, the new board of directors, supported by BMO, elected to pursue a sale of the business after restructuring negotiations with the equity sponsor and subdebt holder failed to produce a proposal acceptable to senior lenders. The sale process ultimately led to an acceptable offer and after considering out of court and UCC sale alternatives, a decision was made to effectuate the sale through bankruptcy. Goldberg Kohn represented BMO throughout the bankruptcy including in connection with plan confirmation. The existing lenders (led by BMO) agreed to provide exit financing to the purchaser of the SH business which was effectuated through a plan of reorganization. The exit facility provided by BMO and the prepetition lenders was subsequently refinanced resulting in an overall full recovery to BMO and the senior lenders. - Lear Corporation (S.D.N.Y.)
Represented Johnson Controls, Inc. and its affiliates ("JCI") as the exclusive licensee of patented technology for the secure remote access of garage doors, which JCI integrates into transmitters that are incorporated into millions of vehicles each year. Before Lear Corporation ("Lear") filed Chapter 11 bankruptcy, JCI sued Lear for infringement of these patents. Goldberg Kohn prosecuted and preserved JCI's patent infringement claims in Lear's Chapter 11 case, obtaining a reserve for JCI's prepetition damages comprised of stock and warrants worth over $50 million. Goldberg Kohn then was added to JCI's litigation team after stay relief was granted. Goldberg Kohn helped JCI continue its patent infringement claims in the Northern District of Illinois, including numerous discovery, summary judgment and other pretrial proceedings and disputes. Among other things, Goldberg Kohn successfully defeated Lear's summary judgment motion to limit JCI's potential recovery to only the stock and warrants held in reserve from Lear's bankruptcy filing. This success meant all damages suffered by JCI during and after Lear's bankruptcy case could be recovered in addition to the over $50 million set aside in the bankruptcy. After all summary judgment motions were decided, 7th Circuit Court Judge Richard Posner was designated to sit as trial judge in the District Court. On the eve of the trial before Judge Posner, the parties settled.
News
- September 1, 2023
- June 20, 2023
- April 28, 2023
- February 17, 2023
- November 21, 2022
- November 17, 2022
- November 14, 2022
- November 8, 2022
- November 1, 2022
- May 9, 2022
- September 2, 2021
- February 3, 2021
- June 29, 2020
- September 30, 2019
- September 30, 2019
- May 26, 2019
- January 28, 2019
- Randall Klein Authors "How the New UST Fee Schedule Is a Ticking Tax-Bomb for Middle Market Debtors"May 4, 2018
- January 25, 2018
- January 13, 2017
- January 8, 2016
- January 5, 2015
- May 23, 2014
- January 13, 2014
- November 15, 2012
- May 29, 2012
- February 10, 2011
Publications
- January 31, 2023
- November 14, 2022
- May 4, 2018The Bankruptcy Strategist
- March 22, 2013Journal of Corporate Renewal
- September 21, 2010American Bankruptcy Law Journal
- April 29, 2009The Secured Lender
- July 1, 2002Reproduced with permission from The Secured Lender, published by the Commercial Finance Association
Speaking Engagements
- September 15, 2017
- January 15, 2016
- October 9, 2015
- December 1, 2014
- September 10, 2014
- August 15, 2014
- May 1, 2014
- January 15, 2014
- July 15, 2012
- June 1, 2012
- October 1, 2010
- May 15, 2010
- May 1, 2010
- March 1, 2009