Our attorneys practicing in this area routinely represent clients at the trial and appellate levels in both state courts and federal courts, including the United States Bankruptcy Court. Just as important, the most strategic and valuable assistance our attorneys provide the firm’s clients often comes before a matter ever reaches the courthouse; counseling creditor clients on how to better position themselves and protect their rights in the event a transaction takes a bad turn, or a debtor becomes insolvent or files for bankruptcy protection; and, counseling debtor clients on restructuring their affairs, negotiating workouts with their creditors, and choosing the proper responsive strategy should their creditors commence litigation or an involuntary bankruptcy proceeding.
Bankruptcy is increasingly a strategic business tool, and creditor/debtor issues arise in the context of what may initially be a situation far removed from the bankruptcy arena. In the course of many bankruptcy cases, issues arise involving any and every area of law. The firm’s practices work closely together, enabling Gallagher & Kennedy attorneys to integrate their expertise and seamlessly handle interconnected issues involving bankruptcy and creditor’s rights, taxation, real estate, environmental, and other matters.
In state court, Gallagher & Kennedy attorneys have substantial expertise and experience in enforcing creditors’ rights, including:
- Foreclosures
- Provisional remedies
- Appointment of receivers
- Post-judgment collections
- Landlords’ rights
In bankruptcy court, the firm has represented creditors, creditors’ committees, and corporate, partnership and individual debtors in every aspect of all types of cases ranging from Chapter 7 liquidation proceedings, to Chapter 13 adjustment proceedings, to complex Chapter 11 reorganization cases. Gallagher & Kennedy has represented numerous local and out-of-state financial institutions, landlords, prospective asset purchasers, and creditors’ committees in:
- Cash Collateral Disputes
- DIP Financing Proceedings
- Stay Relief Litigation
- Asset Sales
- Preference and Fraudulent Conveyance Litigation
- Lease/Contract Assumption and Rejection
- Plan and Confirmation Negotiation, Formulation, and Litigation
- Appointment Of Trustee and Conversion Litigation
Our representation of clients in the areas of bankruptcy and creditor’s rights has included:
- Representing America West Airlines as local counsel in its successful reorganization under Chapter 11 of the Bankruptcy Code;
Successfully foreclosing on, reselling, and defending a wrongful foreclosure action, regarding a commercial outlet mall securing debt exceeding $40 million;
- Intervening in, and replacing management of, a failing Chapter 11 case of a firearms manufacturer, and engineering an asset sale to Bushmaster firearms, resulting in a significant return to creditors where none was expected;
- Representing the Baptist Foundation of Arizona as special litigation counsel, and several Baptist Foundation subsidiaries as bankruptcy counsel, in the nation’s largest nonprofit entity Chapter 11 filed to date, wherein creditors received a substantial recovery after litigation against prior management and directors; and
- Representing creditors’ committees in many of the largest cases recently filed in Arizona, resulting in increased recoveries to creditors, including cases such as All Star Gas; International Fibercom; Hi-Rise Recycling; Phoenix Memorial Hospital; Arizona Fast Foods; Triumph Corp.; and EBIZ Enterprises.
