Two Commerce Square
Suite 3900
2001 Market Street
Philadelphia, PA 19103
(215) 735-8700

Bankruptcy Litigation

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

KCR attorneys have handled major litigation matters related to bankruptcy and insolvency cases for debtors, trustees, creditors and other interested parties. KCR 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. KCR 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.

Representing chapter 7 trustee in litigation seeking to avoid and recover transfers exceeding $400 million arising out of the restructuring and sale of a medical services company, and asserting claims against the debtor’s former officers, directors, equity holders and other insiders.

In re Homebanc Mortgage Corp., et al.

Representing chapter 7 trustee in litigation against a repo lender; seeking to recover damages exceeding $100 million arising out of the allegedly improper liquidation of the securities of the debtor, a residential mortgage company.

In re CeramOptec Industries, Inc., et al.

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

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.

In re NewStarcom Holdings, Inc., et al.

Representing 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 to date and pursuing claims against others on appeal.

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 Covenant Partners, L.P.

Representing chapter 7 trustee of a failed investment firm. Recovered more than $7 million to date in one case, and pursuing a second case against former officers and directors seeking damages in excess of $5 million for breach of fiduciary duty.

In re WL Homes LLC et al.

Representing 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, asserting claims for, inter alia, breach of fiduciary duty, and fraudulent transfer arising out of leverage buyout transaction and subsequent restructuring.

In re National Medical Imaging, LLC

Prosecuting bad faith claims on behalf of a defunct company formerly engaged in the medical services business; asserting claims arising out of a dismissed, involuntary bankruptcy filing.