Creditors' Rights

KJK’s creditors’ rights attorneys assist a variety of clients on all aspects of insolvency-related matters, including extensive experience in bankruptcy cases, clawback actions, state court receiverships, secured lender workouts and out-of-court restructuring. We protect your secured collateral position by ensuring all actions are commercially reasonable in liquidation and foreclosure proceedings. KJK is also diligent in pursuit of commercial collection, maximizing value to unsecured creditors.

KJK’s significant experience with commercial workouts includes real-estate financing, C&I financing and equipment leasing. KJK routinely prosecutes and defends actions when transactional workouts cannot be achieved. Enforcement actions include replevins, foreclosures, motions for relief from the bankruptcy stay, adversary proceedings, fraudulent transfers and other claims. We also negotiate and draft documents to implement forbearance or restructuring and efficiently prepare documentation for a swift resolution.

We assist clients with commercial collection of all types of debt to keep their balance sheet healthy, including actions on account, commercial lease enforcement and other breaches of contract. To enforce the judgments we obtain, we are skilled at discovering concealed assets through debtor’s examinations, subpoenas of financial records, creditor’s bill actions and other post-judgment efforts.

KJK’s attorneys are experienced representatives of court-appointed receivers of a wide range of distressed businesses and commercial real estate. We have represented receivers over “big box” shopping centers, residential apartment complexes, hotels, restaurants, retail businesses, FedEx delivery routes, manufacturing companies and sporting event centers.

KJK’s attorneys are well-versed in prosecuting and defending claims that assets were fraudulently transferred, subject to preference liability and other clawback actions. Among other clients, our experience includes representing a Chapter 7 Trustee in the management and litigation of more than 100 adversary proceedings related to a Ponzi scheme, which resulted in a multi-million dollar recovery for the estate.

KJK represents receivers, trustees, secured lenders or other commercial entities, in the acquisition and divestiture of distressed assets. KJK’s experience includes representing buyers and sellers of distressed assets out of bankruptcy and receiverships. We advise on and structure § 363 sales in bankruptcy, commercial auctions, stalking horse bidding and private sales out of receiverships under revised code section 2735.

Bankruptcy litigation moves at a lightning-fast pace, requiring lawyers to respond quickly to best protect their clients’ interests. During the first days of a Chapter Eleven corporate bankruptcy case, the court addresses and often enters binding orders concerning major issues including financing and use of cash collateral, employee retention and compensation, assumption and rejection of leases and other contracts, and payment of priority creditors and critical vendors. Within weeks, an official committee of unsecured creditors may be formed. Accordingly, it is essential that bankruptcy trial lawyers possess a comprehensive understanding of both the substance and procedure of bankruptcy law and practice.