Bankruptcy and Insolvency Litigation

Haynes and Boone’s bankruptcy and insolvency lawyers regularly appear in bankruptcy courts throughout the country to represent clients in myriad litigation matters that arise in a bankruptcy case.

Bankruptcy and insolvency matters present a fertile environment for litigation. This litigation can involve fast paced “contested matters” as well as more traditional “adversary proceedings.” From initial filing, discovery and trial of a matter, we have dealt with virtually every type of dispute that arises in a bankruptcy context. Our lawyers have deep experience in dealing with the following types of bankruptcy litigation matters:

• Involuntary Bankruptcy Proceedings, whether for a debtor, the petitioning creditors, or lender
• Debtor in Possession Financing and Cash Collateral Matters, whether for a debtor, lender, creditors committee, or other competing secured creditor
• Disputes on Asset Sales, for the debtor, committee, interested party, or successful bidder or stalking horse
• Disputes over performance of Leases and Contracts, whether for the debtor, the counterparty, or other parties in interest
• Motions for Relief from Stay, defending and prosecuting
• Disputes over Abstention from a Case and remand
• Litigation Regarding Appointment of an Examiner or Trustee
• Disputes over a Debtor's to Extend Plan Exclusivity Time Periods
• Litigation Concerning the Adequacy of a Disclosure Statement
• Disputes on Plan Solicitation, Voting and Confirmation
• Disputes on the Allowance of Claims
• Contempt Proceedings
• Objections to jurisdiction and venue
• Turnover Actions for Recovery of Estate Property
• Avoidance of Liens, Security Interests and Interests in Property
• Recovery of Preferential Transfers
• Avoidance of Fraudulent Transfers, whether constructive or intentional
• Subordination or Recharacterization of Claims or Interests
• Objections to Discharge and Dischargeability
• Actions to Set Aside Confirmation or Other Order of the Court
• TRO and Injunction Matters
• Receiverships
• Fraud and Fiduciary Duty Claims
• Officer and Director Claims
• Insurance Coverage Disputes
• Breach of Contract and Debt Collection
• Derivative suits affecting a Debtor
• Litigation Concerning Insurance Coverage for a Debtor, particularly in mass tort cases
• Claim Estimation, particularly in mass tort cases
• Objections to Exemptions
• Litigation Regarding Retention and Payment of Counsel Under the Bankruptcy Code
• Litigation Regarding the Substantive Consolidation of Bankruptcy Debtors with Affiliates
• Proceedings to Review or Vacate Court Orders

Bankruptcy litigation matters present special challenges and a substantial body of unique substantive law and procedural rules that make litigation in a bankruptcy court different from regular civil litigation. Our bankruptcy team includes the co-author of the American Bar Institute’s “Bankruptcy Litigation Manual,” an essential tool for civil litigators who are confronted with litigation in a bankruptcy context.

Value Conscious
Our lawyers have experience in litigation matters ranging from matters in which billions of dollars are in dispute as well as more modest disputes. We have a keen understanding for what clients want from their litigation counsel. We work closely with our clients and each other to focus the representation to what the client’s needs and goals are.

Representative Matters
Our lawyers have regularly represented clients in cases of national interest. We most recently concluded defense of a large foreign client in multi week fraudulent transfer trial which defended claims for more than $10 billion from the client, which simultaneously representing the client in promoting a alternative plan of reorganization in the main bankruptcy case. Elsewhere, our group, represented the administrative agent for a multi-billion dollar credit facility in significant litigation claims against the Bank Group and agent to deny efforts to obtain either affirmative recovery or disallowance or subordination of claims. We regularly conduct trial proceedings before the bankruptcy court, and our lawyers have been instrumental in a number of reported decisions from courts throughout the country. Some of these reported decisions include the following:

In re Adelphia Commc'ns Corp., 365 B.R. 24 (Bankr. S.D.N.Y. 2007)

In re Am. HomePatient, Inc., 420 F.3d 559 (6th Cir. 2005)

Am. LaFrance, LLC, Case No. 08-10178 (BLS), D. Del. Litigation over contested plan of reorganization that resulted in confirmed plan in under 100 days after filing the case as counsel for the debtor.

Asarco LLC, et al., Case No. 05-21207, S.D. Tex. Representation of the sole shareholder of the debtor in both contested confirmation of a plan by which ownership of the debtor was to be changed notwithstanding client's competing proposal to pay creditors and also as trial counsel in defense of $10 billion fraudulent transfer claim asserted by the debtor against the client in noncore trial proceeding.

In re Contractor Tech., Ltd., 345 B.R. 800 (Bankr. S.D. Tex. 2006)

Custom Forest Prod., Ltd., Case No. 06-50059, W.D. Tex. Representation of the Liquidating Plan Trustee in pursuit of preference claims and as counsel concerning issues arising in the prosecution by special litigation counsel of noncore fraudulent transfer and business tort claims incident to the failure of the business.

Delphi Corp., Case No. 05-44481 (RDD), S.D.N.Y. Representation of substantial bondholder and creditor in litigation regarding presentation and acceptance of a competing bid for assets of the company.

In re Dow Corning Corp., 250 B.R. 298 (Bankr. E.D. Mich. 2000). Reoresentation of the Tort Claimants Committee in successfully disputing claims by the government that it was due hundreds of millions for reimbursement of government paid health benefits.

Dow Corning Corp., Case No. 00-cv-00005, E.D. Mich. Representation of the Tort Claimants Committee during the main bankruptcy case leading to confirmation of a Joint Plan as well as the tort claimants representatives post confirmation on issues relating to the allowance of late claims on behalf of claimants and on significant reduction of substantial contribution claims asserted in the case.

In re Enron Corp. Sec., Derivative & 'ERISA' Litig., 236 F.R.D. 313 (S.D. Tex. 2006)

Kaiser-Francis Oil Co. fka Waterford Energy, Inc. v. State of Okla., ex re. Comm'rs of the Land Office (In re Waterford Energy, Inc.), Adv. P. No. 04-03839, S.D. Tex. Defense of the State of Oklahoma on contempt and discharge violation claims associated with the claim by the plaintiff that the previous chapter 11 confirmed plan barred the assertion of prebankruptcy claims by the state for unpaid royalty and other business tort claims against the debtor’s successor.

Lexxus Intern., Inc. v. Loghry, 512 F. Supp.2d 647 (N.D. Tex. 2007)

Lone Star Milk Producers, Inc. v. Litzler, 370 B.R. 671 (Bankr. N. D. Tex. 2007)

Lothian Oil Inc., et al.; Case No. 07-70121; W.D. Tex. Litigation by creditors and investor claimants regarding the bona fides of several asset sales conducted by the debtor.

In re Mirant Corp., 197 Fed. Appx. 285 (5th Cir. 2006)

Mirant Corp. v. The Southern Co., 337 B.R. 107 (N.D. Tex. 2006)

In re Musslewhite, 177 Fed. Appx. 455 (5th Cir. 2006), involving successful affrimance of denial of claims made against the client by the debtor’s receiver seeking to recovery substantial multi-million dollar amounts on account of contract disputes.

The Na'l Benevolent Ass'n of the Christian Church (Disciples of Christ), et al., Case No. 04-50948-RBK, W.D. Tex. Successful representation of bondholders who opposed the debtors’ efforts to use cash collateral for further operations in lieu of paying the bondholders on account of current indebtedness.

Seaquest Diving, LP, Case No. 07-32068, S.D. Tex. Representation of secured and unsecured creditor to force subordination of competing judgment creditor in order to generate substantial return on client's claims.

Scotia Dev. LLC, et al., Case No. 07-20027-C-11, S.D. Tex. Representation of creditor group on contested plan confirmation involving multiple proposals and competing offers.

Tri-Union Dev. Corp., Case No. 03-44908-H1-11, S.D. Tex. Representation of the Debtor on contested issues relating to plugging and abandonment obligations for offshore properties.

In re Xacur, 116 Fed. Appx. 516 (5th Cir. 2004)