Counsel to Major National Banking Association in Defense of Lender Liability Suit
Represented a major bank in connection with defaults by its borrower, a public company that manufactured and distributed generic drugs. After six or more forbearance agreements, the bank was paid in full, but the former borrower later brought a lender liability action against the bank. Motion to dismiss was successfully affirmed following presentation to the Second Circuit Court of Appeals.
Counsel to Importer of Gourmet Italian Food Products in Post-Chapter 11 Proceedings
Engaged by a distributor of Italian food products following the confirmation of its plan of reorganization and disputes arose with the Creditors’ Trust, and with the secured lender. Strategic plan resulted in having the trustee replaced and defeating the community bank’s efforts to force a default that would have resulted in a foreclosure action. The bank’s second lien position was refinanced and its senior mortgage loan on the client’s real estate is performing in accordance with its terms.
Representation of Financially Distressed Gold Coast Not-For-Profit Private School
Called upon to strategize and facilitate a plan to save a 100+ year private boarding school. The school was losing students and was at risk of running out of funds to enable it to compete the school year. After extended negotiations with an intended purchaser who was an operator of “for profit” private schools, achieved a settlement whereby the purchaser made a loan of the entire purchase price together with an option to purchase after certain conditions were attained.
Created Outside-the-Box Lending Solution for Asset-Based Lender
Lender was asked to make a loan to remediate an environmentally contaminated site to enable the owner to sell the land to a developer who refused to purchase until the land had been cleaned. On behalf of the lender, strategized a loan, secured by the owner’s neighboring land which fully secured the loan to be made for the remediation. The loan funded the removal of the contamination, allowing the sale to go forward. The developer proceeded with the project and today, a multi-purpose community stands with residential, commercial and entertainment tenants connected by a bridge over the interstate.
Counsel to Lender in Sale of Debtor Collateral, Repayment of Loan
Represented the lender in providing a debtor-in-possession loan with appropriate protections for the lender after borrower filed for protection under Chapter 11. When a liquidation became necessary, the debtor-borrower brought a motion to sell its assets under Section 363 of the Bankruptcy Code. Research on the judge disclosed an aversion to sub rosa plans (a sale of substantially all of a debtor’s assets without an approved plan of reorganization) and brought a prophylactic motion for stay relief. Provided proper notice for a private secured party sale pursuant to Article 9 of the Uniform Commercial Code. When the judge denied the motion to sell and granted the motion for stay relief instead, the parties proceeded immediately to close the Article 9 sale, resulting in full payment of the bank’s loan.