Our Practices

Bankruptcy

For over 30 years, Caplin & Drysdale's bankruptcy litigation practice has protected the rights of creditors in courts throughout the United States. We are regularly retained in Chapter 11 bankruptcy cases to analyze and resolve high-profile, complex and cutting-edge disputes. From the unique to the routine, our practice encompasses the full range of issues potentially affecting creditors in bankruptcy proceedings.

 

Areas of Practice

  • International Insolvency
  • Creditors' Rights

International Insolvency

Increasingly, as markets become global, commercial insolvency cases in the United States are taking on a cross-border dimension.  In 2005, the United States Congress added Chapter 15 to the Bankruptcy Code, which incorporates the Model Law on Cross-Border Insolvency adopted in other countries.  In addition, foreign debtors with assets in the U.S. are eligible to reorganize and discharge their debts under Chapter 11 of the Bankruptcy Code. 

In this environment, international companies, who may be unfamiliar with U.S. bankruptcy law and procedures, are nonetheless looking to protect their interests.  Caplin & Drysdale's highly skilled insolvency practitioners can help.  Our firm has represented creditors and official creditors committees in the Chapter 11 reorganizations of non-U.S. debtors.  In addition, our firm has worked with practitioners outside the U.S. to obtain foreign recognition of orders and judgments of the U.S. bankruptcy court and to negotiate and structure financial transactions involving assets in multiple countries. 

We have also worked with overseas counsel in coordinating the conduct of litigation filed outside the U.S.  Our emphasis on close communications with clients, relatively lean staffing, and hands-on involvement by senior lawyers is key to our group's success in delivering legal services of the highest quality at an excellent value.  

Creditors' Rights

Caplin & Drysdale has represented more than 20 official committees representing tort claimants in the bankruptcies of major corporate defendants in bankruptcy courts across the country. Multiple tens of billions of dollars have since been transferred to trusts set up for the benefit of those claimants. Caplin & Drysdale also represents secured and unsecured creditors with substantial interests at stake in Chapter 11 bankruptcies across the country. Our attorneys address every facet of commercial bankruptcy, including valuation disputes, fraudulent conveyance claims, successor liability issues, discovery disputes and related litigation, substantive consolidation, plan confirmation, and other subjects of interest to creditors. 

Representative Engagement

  1. Caplin & Drysdale was instrumental in creating the very first asbestos trust in the Johns-Manville bankruptcy case, a trust that was innovatively formed to address both then-existing asbestos liabilities as well as liabilities extending into the indefinite future.

    Result: The plan withstood appellate challenge, and its structure was subsequently enacted into law in the form of Section 524(g) of the Bankruptcy Code.

  2. Caplin & Drysdale represented a major financial institution in protecting its interests as a secured creditor in the bankruptcy of a mortgage loan originator.

    Result: Our attorneys successfully negotiated a settlement whereby our client obtained full releases as to certain pre-petition transactions and also received substantial funds as to which the debtor had asserted a claim.

  3. Caplin & Drysdale pursued a wrongful corporate spinoff and fraudulent transfer case in a major Chapter 11 procceding.

    Result: Compensation estimated at over $1 billion dollars was recovered.

  4. Claimants injured by chemical exposure retained Caplin & Drysdale to protect their interests when their defendant corporation filed for bankruptcy.

    Result: Our attorneys negotiated an agreement providing for a payment of tens of millions of dollars to settle those claims.

  5. Caplin & Drysdale represented plaintiffs against a company who contended that plaintiffs' claims for more than $60 million in environmental clean-up costs had been discharged in the company's earlier bankruptcy reorganization.

    Result: We achieved summary judgment in favor of the plaintiffs and their claims were preserved.

  6. Caplin & Drysdale represented over 1,000 asbestos personal injury claimants who were named as defendants in an adversary proceeding brought by debtors, who sought a declaratory judgment that they were not liable for the asbestos-related liabilities of a former affiliate.

    Result: After a trial in the bankruptcy court and an appeal to the district court, the litigation was settled for over $390 million for the benefit of the asbestos victims of the affiliate.

  7. Caplin & Drysdale represented the Official Committee of Unsecured Creditors holding Asbestos-Related claims in the Motors Liquidation Company (formerly known as General Motors) bankruptcy, in which proofs of claim for billions of dollars of asbestos and non-asbestos unsecured claims were filed. Caplin & Drysdale also represents the MLC Trust Advisory Committee for the Asbestos Trust.