Bankruptcy, Insolvency & Workouts

Uncertain economic times provide businesses and individuals with many challenging financial situations.  Our attorneys are experienced in assisting clients in overcoming economic difficulties through the bankruptcy process and out-of-court workouts. We have the experience to advise clients and help them determine which solution works best for their particular situation.  We routinely represent debtor, creditor committees and equity holders in Chapter 11 reorganizations.

Our bankruptcy and workouts deal with many varying situations, including:

• Restructuring businesses as going-concerns to ensure continued success for all stakeholders, including owners, employees and creditors
• Tax driven bankruptcies and workouts, including the discharge of taxes and the use of Chapter 11 to resolve tax issues with IRS and Connecticut DRS
• Representation of unsecured creditor committees in Chapter 11 cases
• Representation of bond holders
• Representation of equity holders
• Acquisitions or dispositions of financially distressed entities or their assets
• Debtors in Chapter 11 cases and out-of-court restructuring
• Landlords with respect to financially distressed tenants
• Litigation of insurance coverage disputes arising from bankruptcies
• Representation of boards, individual directors, and management of financially stressed companies
• Structured financings and asset based lending
• Secured and unsecured creditors, including parties providing debtor-in-possession financing
• Uniform Commercial Code issues and litigation

Business and Corporate Restructurings

During difficult economic times, it is important to have a partner that is focused on your goals as a business owner or operator.  We will provide you with candid and particularized advice to ensure that all of your company’s interests are protected.  Our attorneys pay close attention to costs and fees to afford you excellent representation at a reasonable price.  We often employ “alternative” billing arrangements (not hourly fees) to ensure expenses are controlled.

We also understand that as a business owner, you are concerned about more than just your company.  Your company is not a replaceable entity.  Rather, your company is a system that provides employees, vendors and others with a livelihood and purpose.  We will work with you to address technical legal issues as well as assist with improving business processes.  Our most important goal is to solve the problem you have presented and leave your company stronger.

Unsecured Creditor Committee/Ad-Hoc Committee Representation

Unsecured creditors – businesses that supply goods and services to other businesses – are often the under-appreciated “victims” of a business bankruptcy.  The symbiotic relationship between businesses (one as a seller and the other as a buyer), permits both the debtor and creditor businesses to flourish.  Recognizing this, the bankruptcy laws allows for “Official Committees of Unsecured Creditors”, which are appointed in Chapter 11 cases, to represent the interest of creditors so as to ensure their rights are protected as against the debtor, but, often more significantly, secured creditors (such as banks and or other lenders) who have mortgages and liens.   We also represent “unofficial” creditor groups, both inside and outside of bankruptcy, permitting the pooling of resources to obtain better results.

Our attorneys have significant experience representing unsecured creditors, including: vendors, trade creditors, bond holders, and note holders in Chapter 11 cases.  We understand that to maximize your recovery, innovative techniques are required.  Because of our broad experience we provide goal-oriented and efficient representation to ensure that the maximum possible return is obtained in a cost effective manner.

Tax-Driven Restructurings

Governmental taxing authorities have collection powers unlike any other creditor.  For example, the IRS can seize your property, claiming it belongs to someone else, without a court order.  Further the government may not be willing, or due to regulatory requirements, be able to negotiate a resolution to tax debts like business creditors.

Our firm is an innovator in using the bankruptcy process to resolve tax disputes.  Because of our experience in both bankruptcy and tax law, we have successfully restructured businesses that were risk of being closed because of tax debts.

Green & Sklarz attorneys routinely represent business clients in complex bankruptcy cases in jurisdictions outside of Connecticut, including the Southern District of New York. Pressed by an overwhelming flood of opioid litigation cases, Purdue Pharma L.P., along with 22 of its affiliates, filed chapter 11 bankruptcy petitions on September 15, 2016 in the United States Bankruptcy Court for the Southern District of New York, at White Plains. Green & Sklarz is aptly able to assist clients involved in the Purdue Pharma case at rates that are highly competitive relative to New York based law firms. Green & Sklarz can also serve as local counsel in the Purdue Pharma case for those firms outside of the district that require a local firm well versed in the practice and procedures of the Southern District of New York bankruptcy courts.