Cross & Simon has represented a wide variety of parties and interests in chapter 11 and chapter 7 corporate bankruptcy cases, including debtors seeking protection and liquidation or reorganization, trustees administering the recovery, liquidation and distribution of estate assets, creditors seeking to recover goods and maximize the value of their claims, and landlords seeking to protect their leasehold interests. The firm has appeared as lead counsel in avoidance actions, turnover claims, reclamation actions, proceedings to enforce and compel payment of administrative expense claims, and other related litigation in the United States Bankruptcy Court for the District of Delaware, and on appeal to the United States District Court for the District of Delaware, and the United States Court of Appeals for the Third Circuit.
The firm represents and has represented debtors, trustees and creditor trusts to aid in the recovery of estate assets for the benefit of the estate and creditors. The firm also has experience as counsel to official committees of unsecured creditors in chapter 11 cases. The firm represents, or has represented, Constellation NewEnergy, Inc., Nissan North America, Inc., Capital One, N.A., Nautilus, Inc., Ocean Beauty Seafood, Parsons Corporation, Montgomery Ward, Saint Paul Fire & Marine Insurance, Deutsche Bank, Dole Food Company, SGD Holdings, Ltd., and has appeared as lead counsel for official committees of unsecured creditors in the Foley Jeweler’s Christiana, CF Capital, and the Netexit, Inc. chapter 11 cases.
Increasingly, we find that our clients require the services of bankruptcy counsel prior to actually filing a petition for relief. Accordingly, we have represented a number of parties in work out negotiations with their secured lenders before formal bankruptcy proceedings begin. We have found that these discussions can lead to successful settlements and allow our clients to avoid the fees and expenses which are entailed in formal bankruptcy proceedings.
Examples of recent representations include the following*:
- Chapter 11 Estates – Representation of corporate debtors in all aspects of the bankruptcy case, including related litigation. Among other engagements as debtor counsel, we represented Applied Solar, Inc., which sold its assets with the approval of the United States Bankruptcy Court for the District of Delaware and generated a return for unsecured creditors, and Global Charter Services (also known as BusBank), which had its Plan of Reorganization approved in a very challenging economic environment.
- Official and Ad Hoc Committees – Representation of Official and Ad Hoc Committees of Creditors as both lead and Delaware counsel.
- Chapter 7 Estates – Representation of the Chapter 7 Trustee as lead counsel overseeing all aspects of the case as well as special counsel with respect to various adversary proceedings.
- Avoidance Actions – Representation of creditors, debtors and trustees in the prosecution and defense of preference and other avoidance actions under chapter 5 of the Bankruptcy Code. Collectively, attorneys at Cross & Simon have represented parties in thousands of avoidance actions in Delaware and other jurisdictions. We are proud of our ability to focus on the bottom line in preference cases and litigate them efficiently and effectively, avoiding tactics which increase our clients’ expenses without reducing their exposure.
- Reclamation Claims – Representation of reclamation claimants, including adversary proceedings to recover claims.
- PACA Trust Claims – Representation of claimants under the Perishable Agricultural Commodities Act to recover trust funds, including adversary proceedings seeking injunctive relief.
- Landlords – Representation of large multi-lease commercial landlords in complex chapter 11 cases.
- Creditors – Representation of secured and unsecured creditors in many different contexts. When DBSI and its affiliates filed for Chapter 11 relief in Delaware, we represented over 800 investors with claims against the Debtors. We worked with other similarly-minded groups in opposing the Chapter 11 Trustee. Our efforts resulted in a plan which provided a much better return for our clients. We are pleased to be able to assist attorneys from other states who require relief from stay in Delaware bankruptcy cases.
- Acquirors – Delaware’s numerous corporate bankruptcy cases provide exciting opportunities for asset acquisition. We have represented parties looking to purchase properties from debtors and landlords who wish to avoid the risks which arise when debtors sell leases in bankruptcy proceedings.
* Examples are provided to show the depth of experience and cases handled by the firm. Results in a given case are not intended to provide expectations of future results.