Combining the strengths of our Litigation and Arbitration and Bankruptcy and Financial Restructuring departments, Chadbourne has a long track record of achieving successful results for our clients in complex bankruptcy litigation matters. Our team is bolstered by the strength of our Commercial Litigation practice, which is widely recognized as a leading practice by numerous industry publications. The Legal 500, quoting a client, singles out our Litigation team as providing “excellent service and focused advice.” We have been involved in some of the largest Chapter 11 proceedings, and our litigators regularly appear in federal bankruptcy courts. In addition, we have significant experience in cross-border restructuring matters and have successfully advised international clients in challenging cross-border litigation matters. Chambers USA recognizes the firm annually in the bankruptcy/restructuring area, noting that we are “a highly respected player in the bankruptcy market, with a team that brings specific expertise in international and cross-border restructurings.”
Chadbourne serves as counsel to the English Liquidators of an insolvent foreign telecommunications company, Hellas Telecommunications (Luxembourg) II SCA, in bankruptcy litigation in New York against major private equity firms and other defendants, seeking damages of more than US$1.3 billion. The lawsuit contends that the private equity firms used Hellas to carry out a highly leveraged acquisition before causing Hellas to borrow well in excess of US$1 billion in additional funds that were then immediately removed from the company without consideration.
Residential Capital Chapter 11 Examiner
Chadbourne represented former Chief Bankruptcy Judge (SDNY) Arthur Gonzalez as the court-appointed examiner to conduct the massive investigation in the Chapter 11 case of this mortgage lending unit of Ally Financial Inc. Chadbourne conducted a ten-month investigation and wrote a comprehensive 2,200-page report that facilitated a global settlement that provided US$2.1 billion to the estate and resolved disputes between creditors, the estate, the parent companies and numerous third parties.
Chadbourne represented Citigroup Global Markets Inc., a financial advisor to the 2007 leveraged buyout of the Extended Stay hotel chain that filed for bankruptcy in 2009. The Litigation Trust of the Extended Stay bankruptcy brought claims seeking to recover the US$2.1 billion in value that allegedly was taken out of the company in that LBO, plus US$6.3 billion in punitive damages. The action was referred to in the press as “one of the largest ever filed over a failed leveraged buyout.” In 2013, Chadbourne obtained a very favorable settlement for its client.
Creditors’ Committee in Tribune Company Chapter 11
Chadbourne represented the Creditors' Committee in the Tribune Company's high-profile Chapter 11 proceeding in Delaware bankruptcy court. Our litigators undertook a comprehensive investigation into potential claims that could be brought by the Committee and represented the Committee in a three-week contested confirmation hearing before the Delaware bankruptcy court. Chadbourne advanced the interests of the unsecured creditors on a variety of fronts by aggressively negotiating and pursuing confirmation of a reorganization plan supported by the Tribune debtors, the creditors’ committee and certain prepetition lenders.
City of Detroit Chapter 9 Case
Chadbourne represented Assured Guaranty, a monoline bond insurer that insures approximately US$2.5 billion in bonds issued by the City of Detroit. On behalf of Assured, Chadbourne had a leading role in representing the interests of financial creditors in this Chapter 9 case, the largest and most complex in US history. In this role, Chadbourne was instrumental in defending the rights of bondholders under state law and in bankruptcy, through direct actions against Detroit and its emergency manager, objections to Detroit’s plan, intensive mediation, and, ultimately, settlement. Following extensive negotiations led by Chadbourne that resulted in favorable settlements of Assured’s claims, and after more than two months in hearings that featured approximately 40 witnesses, 2,300 exhibits and 45 individuals submitting personal testimony, the court confirmed Detroit’s plan of adjustment.
Marc Ashley has extensive experience representing domestic and foreign clients in various types of complex and high-stakes commercial litigation, with a focus on bankruptcy litigation, securities litigation, antitrust litigation and class actions. He has substantial trial, arbitration and...
Thomas Hall is co-head of Chadbourne's commercial litigation practice and one of the firm’s leading trial attorneys (over 40 trials to verdict and arbitrations to award). Mr. Hall has extensive experience in a broad range of complex commercial litigation matters, including environmental, banking...