Dilworth’s Bankruptcy & Insolvency Group is one of the largest bankruptcy, debtor, and creditor rights and insolvency practices in the Philadelphia region. Our lawyers regularly represent commercial borrowers and debtors, secured lenders, unsecured trade creditors, and Chapter 7 and 11 trustees in a wide variety of industries and cases. Our representation of these diverse, and philosophically adverse parties, provides our lawyers with the unique ability to appreciate, understand, and quickly analyze the key issues faced by each of these parties.
Dilworth Paxson’s Bankruptcy & Insolvency Group has lawyers who focus on Chapter 11 cases and state-court insolvency proceedings and maintain a litigation-oriented practice, as well as lawyers that focus their transactional skills on out-of-court workouts and debt restructurings. Our lawyers have represented clients in bankruptcy and insolvency proceedings across the nation and proactively address and defend our clients with an eye to a prompt, favorable, and cost-effective resolution.
The cumulative experience of the members of the Bankruptcy & Insolvency Group has proven invaluable in recognized industry groups ranging from chemicals, coal, commercial real estate development, health care, and hospitality to publishing, retail, telecommunications, and technology.
The firm has represented:
- Ongoing representation since 2002 of members of the Rigas Family, former officers, directors and founders of Adelphia Communications Corporation, in complex litigation arising out of the bankruptcy of Adelphia including civil RICO adversary proceeding in the federal bankruptcy court in New York, multi-district securities fraud and shareholders’ derivative litigation in the Southern District of New York, litigation in the federal bankruptcy court and Eastern District of Pennsylvania involving advancement of defense costs under a directors’ and officers’ liability policy, state fraud claims brought by former auditor of Adelphia in Pennsylvania state court, the re-sentencing and appeal of the criminal sentences of two members of the Rigas Family in the Southern District of New York and a criminal tax case brought against those two members of the Rigas Family in the Middle District of Pennsylvania.
- Representation of the Philadelphia Orchestra as lead Debtor’s counsel in its bankruptcy proceeding.
- A regional museum in Chapter 11 reorganization through a confirmed plan in the Eastern District of Pennsylvania.
- The publisher of the major Philadelphia daily newspapers and its various subsidiaries in vigorously contested Chapter 11 cases. One of the highlights of this representation was securing a Third Circuit opinion ruling that a secured creditor does not have a statutory right to credit bid at a plan auction.
- Various trade creditors in complex Chapter 11 cases in Delaware and New York negotiating various agreements to ensure payment of the client’s pre-petition claims and waiver of potential preferential transfer claims. One of the highlights of these representations was on behalf of The Dow Chemical Company, in which we secured an opinion of first impression that section 502(d) of the Bankruptcy Code cannot be used to disallow a section 503(b)(9) administrative claim for goods sold to a debtor within 20 days of its petition date.
- Several national banks and financial institutions in loan documentation and collateral review and enhancements; out-of-court workouts and forbearance arrangements; state and federal court replevin actions, receiverships and foreclosures; restructures of non-performing and/or underperforming structured financings and securitizations, and collection of non-performing loans.
- An international client in connection with a Chapter 11 case filed in New York by a power company in negotiating, drafting and overseeing court approval of various steam and electricity purchase contracts, real property leases and power plant operation and maintenance agreements.
- A series of hotels, as debtors’ counsel in Chapter 11 cases, subject to approximately $100 million in pre-petition debt mostly held by tax exempt New York IDA bonds.