Insolvency Litigation and Enforcement

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Insolvency Litigation and Enforcement

Insolvency Litigation and Enforcement

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Our insolvency litigation and enforcement lawyers have represented plaintiffs and defendants in some of the world’s most high-profile, precedential insolvency and financial distress cases. As trial lawyers and contentious matter specialists, our broad and balanced perspective on your case’s strengths and weaknesses means you can approach the process with clarity and confidence. Our experience as successful advocates means that we remain grounded and commercial at all times.

We work closely with you throughout the litigation process, collaborating with you every step of the way. Whatever help you need—on an equitable subordination, channeling injunction or other matter—Dentons is passionate and resolute in pursuing your interests and safeguarding your rights. To us, your case is the most important one on the docket.

You can approach our insolvency litigation and enforcement team knowing that we have deep experience specific to your matter in many areas, including:

Fraudulent transfer or conveyance
Preferential transfers to creditors
Fraud and wrongful trading
Judicial foreclosures and receiverships
Arbitration award enforcement
Recharacterization of true sales
Lender liability
Substantive consolidation, veil piercing and agency
Successor liability
Valuation and reorganization plans
Director, officer and fiduciary liability
Insurance coverage
Pursuit of claims and forensic investigations
International Swaps and Derivatives Association closeout and netting
Conciliation challenges
Governmental entity investigation and prosecution

Agility, perseverance and effectiveness allow Dentons’ timely pursuit of your business’ recovery. We work with you to deter wrongful challenges to your business and its future.

Experience

Accuride Corporation: Serving as counsel for the Official Committee of Equity Security Holders in the Chapter 11 case of this leading supplier of wheels, seats and other components to heavy-duty truck manufacturers. We prepared and argued for a comprehensive alternative valuation, which exceeded the debtors' valuation by more than US$250 million, on behalf of the Official Committee of equity security holders. We also presented alternative senior and mezzanine financing proposals to replace the debtors' proposed exit financing-an expensive rights offering and backstop package, which was highly dilutive to existing equity. We vigorously and successfully defended attacks on the formation and existence of the equity committee and its right to retain professionals. The confirmation hearing was adjourned at the equity committee's request. Ultimately, a global settlement was structured with additional recoveries for shareholders, including the agreement of an insider shareholder to forego part of its recovery under the plan for the benefit of other shareholders.
Antony Woodings as liquidator of The Bell Group Limited: Representing the liquidator in relation to ongoing litigation proceedings brought by our client arising from the collapse of the Alan Bond empire. The litigation is one of the largest civil cases ever heard in Australia in terms of value and length of trial. Our present involvement relates to a particular defendant, and includes aspects of work in the UK, Canada and Australia.
Bank Pekao (UniCredit group): Advising in relation to the bankruptcy of one of Europe's largest appliance makers, the Polish Fagor Mastercook, in Spain. Dentons was retained by Bank Pekao to: analyse the bank’s position as a creditor in the bankruptcy proceedings under Spanish law; the possibility of pursuing claims under a bank guarantee; corporate guarantees granted by the parent company – Fagor Electrodomésticos, also declared bankrupt in Spain; and prepare claim filings as part of both insolvency proceedings. This bankruptcy case is a rare example of a situation where the main bankruptcy proceedings with respect to a Polish company commenced abroad.
ECM Real Estate Investments A.G.: Representing a group of bondholders, including RBS, UniCredit Bank, Credit Suisse, administrators of Lehman Brothers and Maple Leaf, in multi-jurisdictional litigious insolvency proceedings regarding the exchange-listed, Luxembourg-based Czech developer with assets in Czech Republic, Poland, Hong Kong and Russia. The claims of the bondholders were first denied and then accepted in a multi-lateral settlement.
Exide Technologies: Serving as special litigation counsel to the Official Creditors’ Committee of the world’s largest producer of lead-acid industrial and automotive batteries. At a heavily contested confirmation hearing, the Creditors’ Committee defeated the plan of reorganization proposed by the debtors and lenders. As special litigation counsel, our team obtained a ruling from the bankruptcy court that the proposed Chapter 11 plan included an unreasonably low settlement amount with respect to litigation brought by the Creditors’ Committee against the company’s pre-petition lenders. As a result of our efforts, a settlement was reached that provided US$200 million to the unsecured creditors. This new settlement amount was US$190 million more than the unsecured creditors stood to collect under the prior proposed plan. In addition, we obtained a ruling whereby the court became the first Delaware Court to recognize the Committee’s deepening insolvency claim as a cognizable claim under Delaware law, and made other groundbreaking rulings in favor of the Committee.
Ida Fishman Revocable Trust: Representing 30 individuals and family partnerships that were sued by Irving H. Picard, Trustee for the SIPA liquidation of Bernard L. Madoff Investment Securities, LLC., for return of withdrawals from their brokerage accounts in excess of their principal investments ("claw backs"). The Second Circuit Court of Appeals returned by affirming the lower court ruling and dismissing Picard's claims.
Official Committee of Retirees for the City of Detroit: Representing in the largest Chapter 9 bankruptcy case in US history. The committee represented the interests of approximately 23,500 public safety and general city retirees, as well as the interests of approximately 9,000 dependents, who were owed approximately US$9 billion in pension and retirement health care benefits. With the assistance of Dentons, almost all pension benefits were protected and health care benefits payments continued. Dentons was awarded The M&A Advisor’s 2014 "Restructuring of the Year Award" and Global M&A Network’s 2015 "Turnaround Atlas Award" for this representation.
P. Schoenfeld Asset Management LLC: Representing P. Schoenfeld Asset Management in the Chapter 11 filing of Energy Future Holdings, formerly TXU Energy, with respect to holdings in bonds issued by debtor-subsidiaries of Texas Competitive Electric Holdings and potential litigation relating to rights under the debtors' restructuring support agreement. The matter is related to the significant US$45 billion leveraged buyout of TXU in 2007, the largest in history.
Perella Weinberg: Representing as majority holder of €495 million F.C.T. Windermere XII bonds issued by Hold in respect of La Tour Cœur Défense, in connection with the debt restructuring, the court imposed safeguard proceedings, and seeking the sale of Cœur Défense.
Solarwatt AG: Advising on a successful restructuring in the context of a protective shield proceeding as a debtor-in-possession within a three month period from the filing for insolvency until the termination of the insolvency proceeding. Work involved drafting and proposing a restructuring plan including the reorganization of the company’s performance and finances; implementing the restructuring concept via a capital reduction to zero with a subsequent cash and capital increase; and applying the new provisions to the insolvency plan procedure. In addition, we recently advised the company on the successful acquisition of the distribution units of the Centrosolar brand in Europe, which reflects the sustainability of this restructuring and is an opportunity for Solarwatt to extend further its market position in Europe and its portfolio.
Swedbank: Representing in multiple International Swaps and Derivatives Association and foreign exchange transaction disputes with various Lehman Brothers entities, including an appeal of first impression from an order issued in the Lehman Brothers Holdings Inc. reorganization case. The bank asserted a right to setoff funds transferred into the debtor’s deposit account after the commencement of the reorganization case against the debtor’s pre-petition obligations to the bank under various financial contracts. On appeal, the bank sought determinations that the “safe harbor” provisions of the US Bankruptcy Code permitted the bank to exercise its setoff rights against the deposit notwithstanding any other Bankruptcy Code provision that Lehman argued would limit such rights.

Insights

What is a determinate period of time – section 459R(2) Corporations Act

May 6, 2025

Australia: The Full Court of the Federal Court of Australia in Badenoch Integrated Logging Pty Ltd v Bryant [2024] FCAFC 167 recently clarified that an extension of time under section 459R(2) of the Corporations Act 2001 (Cth) does not need to specify a date to be effective.

Giving a company the best opportunity to continue in existence

April 29, 2025

Australia: Part 5.3A and Schedule 2 of the Corporations Act 2001 (Cth) (Act) aims to allow a company facing financial difficulty the best opportunity to continue to operate.