Hunton Andrews Kurth LLP regularly handles major bankruptcy and creditors’ rights representations for a wide range of national institutional and other clients in federal and state courts across the United States, including the traditional bankruptcy forums of the Southern District of New York and the District of Delaware.

The bankruptcy practice group is comprised of lawyers resident in New York, Virginia, Texas and California who practice exclusively in the area of bankruptcy, financial restructuring and creditors’ rights. Two of our lawyers are admitted to practice in the Bankruptcy Court in Delaware, and all of our lawyers regularly appear in jurisdictions outside of their office locations. Chambers USA ranks Hunton Andrews Kurth in their top tier of bankruptcy and restructuring practices in Virginia. The guide notes that clients “consider them as much a business partner as I do a legal partner” and “[look] for solutions that not only serve their client well, but work well across all constituencies to provide an effective, efficient solution.”

Chapter 11 Bankruptcies

Chapter 11 bankruptcy work is the mainstay of Hunton Andrews Kurth’s bankruptcy, restructuring and creditors’ rights practice. The team has represented debtors, creditors, committees and trustees in Chapter 11 cases. These include private and public debtors in the software, retail, telecommunications, manufacturing, commercial real estate and textile industries, creditors’ committees and their chairpersons, equity security holder committees, DIP lenders, bank groups, franchisors, secured and unsecured creditors, indenture trustees, Chapter 11 trustees, as well as parties seeking to use bankruptcy as a mergers and acquisition vehicle. Hunton Andrews Kurth bankruptcy attorneys also have developed a unique niche of representing securitization trustees and certificate insurers and other credit support providers in Chapter 11 bankruptcies of seller/servicers in asset securitization transactions.

Workouts

Capitalizing on its close integration with the firm’s expansive and highly regarded corporate and finance, asset securitization and real estate teams, Hunton Andrews Kurth’s bankruptcy, restructuring and creditors’ rights team has handled out-of-court workouts and financial restructurings of all types, including prepackaged Chapter 11 bankruptcy plans. Hunton Andrews Kurth attorneys have played lead roles in the restructuring of large revolving asset-based loans, real estate term loans, and defaulted bond issuances, and, more recently, in workouts of more complex asset securitization and leveraged lease transactions.

Transactional Structuring Advice and Opinions

Hunton Andrews Kurth’s bankruptcy, restructuring and creditors’ rights team has extensive experience in structuring asset acquisitions, asset securitizations, leveraged leases and other complex transactions to minimize bankruptcy-related risk. In doing so, team attorneys have worked closely with all nationally recognized statistical credit rating agencies and issued legal opinions on such issues as substantive consolidation, “true sale” and “true lease” characterizations, repo and securities contract safe harbors, fraudulent conveyance liability, FIRREA matters, and validity and perfection of security interests. The team stays well-versed in the constantly evolving area of structuring transactions to obtain “off balance sheet” treatment for accounting purposes under SFAS166 and 167. Team members also have substantial experience in the use and structuring of derivative instruments, including repos and credit swaps, to avoid certain traditional bankruptcy and insolvency risks.

Commercial Litigation

All of the lawyers comprising Hunton Andrews Kurth’s bankruptcy, restructuring and creditors’ rights team are litigators, and as such, have substantial trial experience in nearly all types of creditors’ rights, Uniform Commercial Code, construction and other commercial litigation, including landlord-tenant matters, bank deposits and collections, bulk sales, enforcement of letters of credit, swaps, repos and other financial instruments, seizures of collateral, attachments, injunctions, mechanic’s liens, garnishments, levies and Miller Act claims. In addition to the steady flow of commercial loan and securities enforcement work, the team regularly defends major institutions in loan-related litigation, including mortgage and consumer finance class actions and all manner of lender liability cases. The team also has substantial experience in the collection of large judgments, particularly when it has required the institution of piercing the corporate veil, fraudulent conveyance, receivership and similar litigation.

Advice to Lenders

The firm regularly advises commercial, mortgage and consumer lenders on problem loans, portfolio sales and regulatory compliance issues both, inside and outside of bankruptcy. The team boasts experience in the law of truth-in-lending, fair lending, fair housing, credit reporting, collection practices and other state and federal statutes and regulations affecting lenders.

Experience


  • I. Debtor

    • U.S. Energy Biogas Corp. - Representation of landfill gas electricity generation company and its 32 subsidiaries in Chapter 11 cases in the Southern District of New York.
    • U.S. Energy Systems, Inc. - Representation of publicly traded, green-energy company with operations in 10 states domestically and in the UK in Chapter 11 cases in the Southern District of New York.
    • Ciena Capital, LLC, f/k/a Business Loan Express - Representation of third-largest SBA loan originator and servicer in the country with assets of approximately $350 million of secured and unsecured debt in Chapter 11 cases in the Southern District of New York.
    • Uni-Marts, LLC - Representation of 280+ store convenience store chain with sales in excess of $500 million in Chapter 11 cases in the District of Delaware.
    • Lancer Partners, L.P. - Representation of domestic hedge fund with scheduled assets exceeding $225.0 million, in both Connecticut and South Florida.
    • Home Interiors & Gifts, Inc. - Representation of largest direct seller of home accessories in North America, with operations in the United States, Canada and Mexico in Chapter 11 cases in Northern District of Texas.
    • Credit-Based Asset Servicing and Securitization, LLC - Representation of leading issuer, servicer, and investor in credit-sensitive residential mortgage assets in consensual, out-of-court restructuring of more than $4 billion in secured, repurchase, senior unsecured and trust preferred obligations involving more than 40 banks and institutional investors.
    • Luminent Mortgage Capital, Inc. - Representation of publicly traded mortgage REIT and its affiliates with more than $350 million in secured, unsecured and subordinated trust preferred debt in Chapter 11 cases in the District of Maryland.
    • Accredited Home Lenders Holding Co., et. al. - Representation of Accredited Home Lenders Holding Co., et. al. in their Chapter 11 Bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware.
    • Canal Corporation, f/k/a Chesapeake Corporation - Representation of Canal and 18 of its affiliates as debtors-in-possession in their Chapter 11 cases in the Eastern District of Virginia.
    • Oakwood Homes Corporation and Oakwood Acceptance Corporation - Representation of Oakwood Homes Corporation and Oakwood Acceptance Corporation as debtors-in-possession in their Chapter 11 cases pending in the District of Delaware in connection with various servicing and other asset securitization-related bankruptcy issues.
    • Harriet & Henderson Yarns - Representation of textile manufacturer with operations in the southeastern United States in Chapter 11 cases in the Eastern District of North Carolina.
    • Cellular carrier - Representation of publicly traded local exchange and cellular carrier with more than $630 million in debt in Chapter 11 cases in the Eastern District of Virginia.
    • Standard Brands of America - Representation of Standard Brands of America as debtor-in-possession in its Chapter 11 proceedings and related bankruptcy litigation.
    • BDK Healthcare Management Inc. - Representations of BDK Healthcare Management Inc. and five subsidiaries in Chapter 11 resulting in a landmark decision concerning the sale of Medicare provider numbers and Florida certificates of need free and clear of recoupment rights.
    • Midwest Real Estate Shopping Center - Representation of Midwest Real Estate Shopping Center, a publicly traded affiliate of Lehman Brothers, as debtor-in-possession in its Chapter 11 bankruptcy in the Southern District of New York.
    • Interlink Home Health Care - Representation of Interlink Home Health Care as debtor-in-possession its contested Chapter 11 case in the Northern District of Texas.
    • RBX Corporation - Representation of RBX Corporation as debtor-in-possession in its Chapter 11 bankruptcy in the Western District of Virginia.
    • Tultex Industries - Special bankruptcy counsel in the Tultex Industries Chapter 11 case in the Western District of Virginia.
    • Lombard Technologies, Inc. - Representation of holding company and its four metal finishing company subsidiaries in liquidating Chapter 11 cases in the District of Maryland.

    II. Chapter 11 Trustees/Receivers

    • Chapter 11 Trustee for the Saddle Creek Energy Development - Representation of Chapter 11 Trustee in energy case before the United States Bankruptcy Court for the Eastern District of Texas.
    • Chapter 11 Trustee in the Fas Mart Convenience Stores - Representation of the Chapter 11 Trustee in the Fas Mart Convenience Stores Chapter 11 cases in the Eastern District of Virginia involving the sale of the convenience store chain.
    • Chapter 11 Trustee for the Con-Equip, Inc. - Representation of post-confirmation trustee in construction equipment company in the United States Bankruptcy Court for the Southern District of Texas.
    • Chapter 11 Trustee for the Cornerstone Products, Inc. - Representation of post-confirmation trustee for a plastics manufacturing company in the United States Bankruptcy Court for the Eastern District of Texas.
    • Chapter 11 Trustee for HomeGold and HomeGold Financial - Representation of the Chapter 11 Trustee in their Chapter 11 cases in the District of South Carolina.
    • Trustee of Gary Bradley bankruptcy estate - Representation of Trustee in connection with setting aside transfers and establishing debtor trust as self-settled and not exempt from creditor claims.

    III. Creditor / Financial Institutions

    • Global financial institution - Representation of a global financial institution as indenture trustee and collateral agent for $1.75 billion credit facility in connection with Chapter 11 bankruptcy proceeding of Taylor Bean & Whitaker Mortgage Corp. pending in the Middle District of Florida.
    • Beal Bank - Representation of Beal Bank as successor first lien agent, and collateral trustee on a credit of approximately $480 million in the WestPoint Stevens Chapter 11 case in the Southern District of New York.
    • BNY Mellon - Representation of BNY Mellon, as trustee, in the Chapter 11 cases of the Thaxton Group in Delaware.
    • C-BASS - Representation of C-BASS as the DIP lender in the Chapter 11 case of Fieldstone Mortgage Company.
    • Global lender - Representation of global lender as the pre-petition and DIP lender in the Jevic Transportation cases in the District of Delaware.
    • Credit Agricole Corporate and Investment Bank, f/k/a Calyon - Represented Credit Agricole as agent, market swap provider, and participant for mortgage repurchase, swap and debt facilities, respectively, totaling in excess of $2.5 billion in the American Home Mortgage, Inc. Chapter 11 case in the District of Delaware.
    • Fannie Mae - Representation of Fannie Mae in its capacity as the holder of more than $7 billion in asset-backed securities in the Conseco and Conseco Financial Corporation Chapter 11 cases in the Northern District of Illinois.
    • Genworth Financial, Inc. - Representation of Genworth in connection with various issues related to the Lehman Brothers Chapter 11 and SIPA cases in the Southern District of New York.
    • Various lenders - Representation of DIP lenders in Chapter 11 cases.
    • Global financial institution - Representation of a global financial institution as the pre-petition secured lender to Friedman’s Corporation in its Chapter 11 proceedings in the Southern District of Georgia.
    • Global financial institution - Representation of a global financial institution in its capacity as agent and pre-petition lender, to Crescent Jewelers in its Chapter 11 case in the Northern District of California.
    • Global financial institution - Representation of a global financial institution as both pre-petition and DIP agent and lender to Garden Ridge in its Chapter 11 case in the District of Delaware.
    • Global financial institution - Representation of a global financial institution as the pre-petition secured lender and prospective DIP lender in the Syratech Corp. Chapter 11 in Boston, Massachusetts.
    • Global financial institution - Representation of a global financial institution’s LaSalle Bank National Association in its capacity as trustee to multiple CMBS securitizations in the Lehman Brothers Chapter 11 cases in the Southern District of New York.
    • BNY Mellon - Representation of BNY Mellon as Indenture Trustee in multiple Chapter 11 cases, including the Chapter 11 cases involving US Airways, Prime Succession, Inc. and Piccadilly Cafeterias, Inc.
    • Beal Bank - Representation of Beal Bank as the DIP lender providing a $100 million secured facility in THCR/LP Corporation (i.e. Trump Hotel) Chapter 11 cases in the District of New Jersey.
    • Beal Bank - Representation of Beal Bank as the pre-petition secured lender and DIP lender on a credit of approximately $45 million in the Complete Retreats/Tanner & Haley Chapter 11 cases in the District of Connecticut.
    • Global lender - Representation of global lender as exit lender in Crescent Jewelers, Inc. in its Chapter 11 proceedings in Oakland, California.
    • Global lender - Representation of global lender as the exit lender to Friedmans Corporation  in its Chapter 11 proceedings in the Southern District of Georgia.
    • Global lender - Representation of the global lender participant and administrative agent in $315 million exit loan to Allied Transportation in its Chapter 11 case in Atlanta.
    • U.S. Bank - Representation of U.S. Bank as indenture trustee in the KCS Energy Chapter 11 in Wilmington, Delaware, and in the Southeast Bank bankruptcy in Miami.
    • Various lenders - Representation of various lenders in structured finance vehicles secured by aircraft in the Chapter 11 cases of, inter alia, United Airlines, Delta Airlines, Northwest Airlines, US Airways and Atlas Air.
    • Various lenders - Representation of various lenders in the Chapter 11 cases of single asset real estate debtors.
    • Global Lenders - Representation of global lenders in multi-million dollar commercial real estate workouts.

    IV. Official Committees of Unsecured Creditors

    • Bear Island Paper Company, LLC - Representation of the Official Committee of Unsecured Creditors in the Bear Island Paper Company Chapter 11 bankruptcy in the Eastern District of Virginia.
    • Excelex Manufacturing - Representation of Official Committee of Unsecured Creditors in Excelex Manufacturing in the Northern District of Texas.
    • The Dominion Club, LC - Representation of the Official Committee of Unsecured Creditors in the The Dominion Club, LC Chapter 11 bankruptcy in the Eastern District of Virginia.
    • Movie Gallery, Inc. - Representation as Co-Counsel for Official Committee of Unsecured Creditors in second Movie Gallery Chapter 11 bankruptcy in the Eastern District of Virginia.
    • Heilig-Meyers Company - Representation of the Official Committee of Equity Securityholders in the Heilig-Meyers Company Chapter 11 bankruptcy in the Eastern District of Virginia.
    • JGB Industries - Representation of Official Committee of Unsecured Creditors in the JGB Industries Chapter 11 case in the Eastern District of Virginia.
    • The Free Lance-Star Publishing Co. - Representation of the Official Committee of Unsecured Creditors in The Free Lance-Star Publishing Co. of Fredericksburg, Va. and William Douglas Properties, LLC Chapter 11 bankruptcy cases in the Eastern District of Virginia.
    • National Steel - Representation of chairperson of the Official Committee of Unsecured Creditors in the National Steel Chapter 11 case in the Northern District of Illinois.
    • This End Up - Representation of Chairman of Official Committee of Unsecured Creditors in This End Up Chapter 11 case in the District of Delaware.
    • Cajun Electric - Representation of trade association and chairman of Official Committee of Unsecured Creditors in Cajun Electric Chapter 11 case in the Middle District of Louisiana.
    • Bethlehem Steel - Representation of member of the Official Committee of Unsecured Creditors in the Bethlehem Steel case in the Southern District of New York.
    • Pharmaceutical Formulations - Member of the Official Committee of Unsecured Creditors in the Pharmaceutical Formulations Chapter 11 case in the District of Delaware.

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