Bankruptcy Litigation

The Firm handles major bankruptcy litigation on behalf of debtors and trustees to recover for the debtor's estate.

COREN | RESS attorneys handle complex litigation related to bankruptcy and insolvency cases for debtors, trustees, creditors and other interested parties. The Firm frequently represents clients in high-profile bankruptcy adversary proceedings, contested matters and insolvency-related litigation. We regularly conduct fraud investigations in connection with bankruptcy cases, and prosecute and defend against significant fraudulent transfer, preference, dischargeability and successor liability actions. COREN | RESS attorneys also have successfully briefed and argued appeals from bankruptcy court decisions. Our experience with contingent and alternative fee arrangements and other results-based compensation helps bankruptcy estates maximize recoveries while minimizing up-front expenses and risk.

Representative Cases

American Business Financial Services, Inc.

Represented chapter 7 trustee in a variety of claims against the debtor’s former financial institutions, officers and directors, counsel, auditor and others arising out of the collapse of a sub-prime mortgage company. Recovered more than $150 million (including $100 million from the debtor’s former underwriters and warehouse lenders, $20 million from the debtor’s former counsel, $16.5 million from the debtor’s former officers and directors and $17.5 million from the debtor’s former auditor).

In re DSI Renal Holdings LLC, et al.

Represented chapter 7 trustee in litigation seeking to avoid and recover fraudulent transfers arising out of the restructuring and sale of a medical services company.  Asserted claims against the debtor’s former officers, directors and equity holders, and recovered more than $50 million.

In re Island View Crossing II, L.P.

Represented chapter 7 trustee in lender-liability litigation against the debtor’s former lender, asserting claims for breach of contract, including breach of the covenant of good faith and fair dealing, to avoid and recover fraudulent transfers, and to equitably subordinate the lender’s claims to those of other creditors. Recovered more than $8 million, avoided lender liens and subordinated lender claims.

In re J&M Sales, Inc., et al.

Representing chapter 7 trustee in claims to recover more than $200 million against former insiders and affiliates of the debtor arising out of fraudulent transfers and breaches of fiduciary duty, along with avoidance claims against third-parties exceeding $10 million.

In re Bayou Steel BD Holdings, L.L.C., et al.

Representing chapter 7 trustee in claims to avoid and recover a $30 million distribution made to debtor’s equity holders, to recover more than $65 million against former officers, directors, and insiders for breach of fiduciary duty, and to equitably subordinate insider claims.

In re Our Alchemy, LLC, et al.

Representing chapter 7 trustee to recover for fraudulent transfers, preferences, breach of fiduciary duty, and breach of contract.  Recovered more than $5 million against former insiders and continue to pursue claims against non-settling defendants.

In re NewStarcom Holdings, Inc., et al.

Represented chapter 7 trustee in litigation seeking to avoid and recover damages arising out of the transfer of the debtor’s operating subsidiary to insiders. Recovered $3 million on behalf of the bankruptcy estate.

In re CeramOptec Industries, Inc., et al.

Represented chapter 7 trustee in litigation seeking to avoid and recover transfers arising out of the failure of a medical device company, and asserted claims against the debtor’s former officers and directors and counsel.  Recovered multi-million dollar settlement and the avoidance of insider debt.

In re Image Masters, Inc.

Representing chapter 7 trustee in litigation seeking to avoid and recover transfers exceeding $24 million made by the Debtors to various financial institution defendants in furtherance of an admitted Ponzi Scheme.

In re WJ Bradley Mortgage Capital, LLC

Representing chapter 7 trustee in the investigation of and potential recovery of claims in excess of $25 million against former officers and directors of a failed mortgage origination business. Recovered $3 million arising out of claims for breach of fiduciary duty against former officers and directors.

In re Covenant Partners, L.P.

Represented chapter 7 trustee of a failed investment firm. Recovered more than $7 million.

In re WL Homes LLC et al.

Represented chapter 7 trustee in litigation arising out of the failure of a large home builder.

In re Total Containment, Inc.

Represented chapter 7 trustee in claims for, inter alia, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, fraudulent transfer and deepening of the insolvency; asserted claims against shareholders, former officers and directors, and other related parties, recovered in excess of $6 million against insiders, along with $500,000 from a lender and subordination of lender’s $4 million claim.

In re The Brown Schools, Inc.

Represented chapter 7 trustee in litigation to recover damages against former officers, directors, and counsel, asserted claims for, inter alia, breach of fiduciary duty, fraudulent transfer and civil conspiracy; recovered in excess of $5 million.

In re Elrod Holdings Corp.

Represented chapter 7 trustee to recover damages against former insiders and affiliates, asserted claims for, inter alia, breach of fiduciary duty, and fraudulent transfer arising out of leverage buyout transaction and subsequent restructuring.