The Restructuring and Bankruptcy Department has extensive experience in all aspects of bankruptcy law, representing creditors, secured and unsecured, debtors, committees of unsecured creditors, trustees and buyers and sellers of distressed assets.

Its attorneys have written and spoken extensively on issues concerning the rights of secured creditors in Chapter 11, the intersection of intellectual property and bankruptcy law, the intersection of labor law and bankruptcy, and distressed healthcare.

The department has particular industry expertise in healthcare, entertainment, fashion and design, real estate, retail and vehicles.

It has also developed a particular expertise in structuring financial, entertainment, music, software, real estate and motion picture transactions so as to minimize or eliminate potential bankruptcy risks for our clients. Our record in defending these “bankruptcy remote” structures, in those instances where subsequent bankruptcy litigation has been threatened or occurred, is exemplary. As a corollary to this expanding practice field, we have developed significant knowledge and familiarity with issues involved in the securitization of various collateral ranging from motion picture libraries to automobile contracts and the rights of licensors and licensees of intellectual property when a party to the contract is in bankruptcy.

We also offer expertise in litigation in bankruptcy court including but not limited to motions for relief from the automatic stay, defense of preference and fraudulent conveyance claims, and pursuit of remedies with regard to executory contracts. We have extensive experience in the analysis and enforcement of contract, lease, and license claims against bankruptcy estates and when we represent the debtor, we can anticipate the issues that non-debtor parties will raise.

Representative Matters
For creditors

• Represent official committee of unsecured creditors in hospital, SNF, and RV cases.
• Represent unofficial committee of capitated providers in Maxicare bankruptcy case.
• Represent secured entertainment lender in restructurings and bankruptcies.
• Represent official committee of unsecured creditors in entertainment case decided based on the value of of the rights in the library.
• Represent secured real estate lenders in prosecuting receivership litigation and seeking remedies in Chapter 11.
• Represent secured lender with security interest in horses and foals.
• Obtain attachment for unsecured lender and prosecute creditor's rights in bankruptcy court.
• Advise lenders on bankruptcy issues relating to loan structure.
• Defend businesses charged with having received fraudulent conveyances or preferences.
• Represent major recoridng studio in a non-dischargeability complaint against a former lead singer of a major recording group who attempted to file bankruptcy to avoid his contractual obligations to our client.
• Assisted major bond company providing negative storage, physical property storage and related services to the motion picture industry in asserting warehouseman's liens on materials stored by bankrupt entities.
• Confirm for copyright owners in In re Chan, for the first time since the pivotal 1985 Supreme Court ruling Kawaauhuu v. Geiger, that copyright infringement can rise to the level of a "willful and malicious injury," which cannot be discharged and evaded in bankruptcy. This decision protects from discharge the largest copyright verdict in U.S. history, a $136 million judgment secured by MS&K in 2003 and upheld by the 9th Circuit in 2004.
• Assist sizeable China-based importer with attachment of assets and enforcement of breach of contract action against U.S. distributor, with significant issues relating to inventory, accounts, the UCC, and insolvency of the target.

For distressed businesses

• Represent hospital in Chapter 11 case.
• Represent medical device maker in Chapter 11 case.
• Represent Chapter 11 trustee in ambulatory surgery center case.
• Represent ambulatory surgery center in Chapter 11 reorganization.
• Represent ambulatory surgery center in out of court workout.
• Advise healthcare entities about restructuring options.
• Negotiate overpayments claimed against distressed entities by the Centers for Medicare and Medicaid Services and the California Department of Public Health.
• Represent retail business in its internal reorganization based upon rejection of leases for unprofitable store locations.
• Litigate and negotiate all types of claims.
• Prosecute actions to assume or reject executory contracts.

For purchasers

• Represent small hospital chain in its acquisition of a hospital out of Chapter 11.
• Advise parties as to pros and cons of various kinds of acquisitions.
• Consult with bidders on acquisition tactics.

Structuring advice

• Ongoing advice to major commercial lessor in connection with structuring of leases and protection of the lessor's rights vis-a-vis bankrupt tenants and guarantors.
• Assist numerous major licensors and subdistributors of intellectual property, including film distribution rights, in structuring distribution contracts supported by secured claims on intellectual property.