Bankruptcy & Financial Restructuring

Bankruptcy & Financial Restructuring ends what wasn't working, and starts something that does
As the economy continues to force companies, both large and small, in all sectors to contract, access to capital that is essential for the maintenance and growth of operations has become limited. Lenders are left with either huge volumes of loans or developments or enterprises or assets that require additional investment to preserve or enhance their value.

Compounding these challenges, technological and cross-border and global advances increasingly render time-tested business models and assumptions irrelevant and outdated. An expansion-heavy boom year can be followed by bankruptcy or the need to restructure the next year. As an investor or lender or operator, you want to maximize recoveries in distressed debt situations. As a tenant or debtor, you must prioritize your obligations and emerge from bankruptcy or restructuring with a future. Either way, Manatt will guide you through the rough waters, back to calmer waters and a safe harbor.

In a world that's constantly being turned upside down, a well-balanced law firm helps keep you right-side up
Typically, bankruptcy and financial restructuring firms specialize in only one aspect of a case or matter. Manatt believes success comes from substantive and pragmatic experience gained from working both side's of bankruptcy and restructuring and their related litigation and knowing what to expect from the other side or side's counsel.

We've represented shopping center and office building and hotel owners and operators and multifamily unit developers and tenants; Chapter 7 and Chapter 11 debtors; Chapter 7 and Chapter 11 trustees and those being sued by trustees; secured lenders and syndicates of secured lenders and unsecured creditors; bondholders and bondholder indenture trustees and bondholder committees; and increasingly, volatile fund management firms including hedge funds, money managers and venture funds.

Regardless of what led you into bankruptcy or a need to restructure, we strive to develop solutions that preserve value and lead you out of problems and issues and that leave you stronger than before.

Specialization comes in all forms
Manatt's Bankruptcy & Financial Restructuring attorneys are recognized as key domestic and international players in workouts, financial restructuring and bankruptcies in the following industries and segments:

• banking and financial services
• healthcare
• entertainment
• sports franchises
• media companies
• transportation
• hospitality
• public utilities
• municipalities

Banking and Institutional Lenders
Manatt understands the regulatory, business and legal issues involved in representing financial institutions. Manatt recognizes that there may not be just one so-called opposing side; there are various and divergent interests and constituencies that need to be considered, dealt with and resolved in order to achieve a successful result.

As a further sign of the troubled economic times, bank holding companies sometimes become the debtor in their own bankruptcy proceedings when a bank is taken over by regulators. Manatt attorneys have represented several bank holding companies in their own Chapter 11 cases where orderly liquidations are appropriate and there are important and relevant bank holding regulatory, tax and SEC matters that must be dealt with.

Manatt attorneys have represented and continue to represent banks and institutional lenders in sophisticated and major loan works, not only dealing with individual loans but also large portfolios of loans. Whether it is a partially completed and partially developed residential development of 200 homes or a portfolio of loans with real estate components, Manatt's lawyers have the experience and the reputation for solutions and achieving realistic value for clients.

Foreign Bankruptcies
From offices in California, New York and Washington, D.C., Manatt also manages bankruptcy cases around the world. Our attorneys are routinely called upon to represent clients and provide counsel when bankruptcy issues arise in Mexico and South America. In these situations, Manatt combines formidable bankruptcy restructuring savvy and extensive experience in international financial transactions with the skills of bilingual lawyers who are also fluent in both civil and common law legal systems.

Healthcare Bankruptcies
With operating costs steadily increasing and reimbursements declining, the healthcare industry, particularly in California, is experiencing unique challenges. In collaboration with Manatt's renowned healthcare transaction and litigation team, our bankruptcy lawyers provide experienced counsel and reorganization workout guidance to public and private healthcare businesses.

Our success is measured in outcomes, inside and outside the courtroom:

• After the alleged fraudulent transfer of a California acute care hospital, Manatt represented a bankruptcy trustee and pursued litigation that led to a recovery in excess of $10 million.
• Manatt advised the California Department of Managed Health Care, the regulatory body that oversees all managed care in the state, in connection with the Chapter 11 cases of MedPartners Provider Network, Inc.; KPC Global; and Maxicare.
• Our lawyers served as bankruptcy counsel to the City of Los Angeles during the Chapter 11 case of Adelphia Communications Corporation.
• When a prominent California city began experiencing budget shortfalls, Manatt was brought in to enhance its revenue by securing federal stimulus dollars and Department of Homeland Security funds.
• Our lawyers successfully defended a major casino operator against a $26 million fraudulent transfer claim where a trustee alleged the casino knew or should have known that the gambled funds were the result of a Ponzi scheme.
• When several Southeastern United States banks were defrauded in a major real estate development, Manatt lawyers, representing several of the banks, successfully prosecuted nondischargeability actions for the banks.
• When major sports franchises have filed bankruptcy or neared bankruptcy, Manatt lawyers have successfully dealt with protecting and preserving multimillion-dollar broadcast licensing fees.
• Manatt lawyers have protected and preserved healthcare businesses, including several acute care hospitals, while preserving value and preserving secured loans for major lenders and providers.