Financial Restructuring, Workouts, and Debtor and Creditor Rights


Davis Malm’s financial restructuring attorneys handle complex and sophisticated matters related to insolvency or financial default for a variety of clients, including domestic and foreign business corporations, both publicly traded and privately held; financial institutions; investment and mutual funds; venture capital firms; real estate and other partnerships; condominium management firms; and not-for-profit corporations.

Davis Malm’s financial restructuring attorneys have extensive and diverse experience negotiating loan restructuring, forbearance, and foreclosure agreements on behalf of both borrowers and lenders. For example, we regularly represent clients in commercial mortgage foreclosures of all types of asset classes, including large scale office buildings and shopping centers, as well as lenders to automobile dealerships in floor plan workouts. Our expertise serves our clients on either side of the matter. Thus, we often know what the opposing parties and their lawyers expect, and can help our clients work efficiently and effectively toward a solution.

We regularly recoup monies owed to our clients in default situations, efficiently and promptly, including initiating suits to collect monies due under promissory notes and guarantees, judicial and non-judicial foreclosures of commercial real estate mortgages, and enforcement of assignment of rent agreements for mortgaged properties. We advise clients seeking to become mortgagee-in-possession and condominium associations in foreclosures situations. We also regularly represent secured parties in insolvency proceedings and secured party sales of UCC collateral.

We represent secured and unsecured creditors in Chapter 11 reorganization proceedings and are experienced in obtaining relief from bankruptcy stays in order to foreclose on defaulting debtors. We also have extensive experience representing both buyers of assets out of bankruptcy, as well as sellers of assets through the bankruptcy process. We frequently advise clients on their rights and defenses concerning prebankruptcy transfers to them by a debtor and regularly advise clients as to whether a challenge to a debt discharge may help leverage their recovery.

Representative Matters

  • Successfully negotiated a multimillion-dollar loan restructuring for a retailer of cereal products.
  • Successfully negotiated a multimillion-dollar loan restructuring for a large manufacturer and distributor of picture frames and related products.
  • Represented secured lenders to commercial and residential landlords, including shopping malls, which present unique cash collateral and debtor-in-possession financing issues.
  • Represented a public company in the purchase from bankruptcy of a $500 million environmental services company.
  • Represented lenders to automobile dealerships in situations involving frauds and sales-out-of-trust.
  • Represented a venture capital fund in the foreclosure of its security interest in the assets of a failed portfolio company, including dealing with licensed IP rights.