Creditors dealing with bankruptcy and insolvency situations turn to our attorneys to develop and implement strategies for protection and enforcement of their interests. We have broad experience resolving debtor-creditor disputes under federal and state law, across all industries, and particularly in the marketing communications, real estate and financial services sectors, where we are often called on to enforce protective strategies we previously put in place as part of initial deal structures. When counterparties or borrowers in bankruptcy attempt to avoid and recover transfers — including by way of preferential transfer and fraudulent transfer claims — our industry-specific know-how allows us to pursue the most effective course for resolution, whether through settlement or defense of litigation.
Understanding Media Liability
When advertisers become insolvent or file for bankruptcy relief, advertising agencies and other intermediaries can be left with significant obligations to third parties — such as for media purchases — on behalf of their clients. Distressed advertisers and other principals can also be faced with competing claims to their assets and uncertainty as to their priority. The firm’s deep knowledge of the marketing communications space often proves decisive in protecting our clients and working through favorable solutions. Our long experience with the law of agency and “sequential liability” — a concept unique to the advertising business — affords us a real advantage in negotiating global settlements among advertisers, agencies, media vendors and other third parties.
Resolving Commercial Tenant Bankruptcy Issues
As economic distress takes its toll on retailers and other establishments, clients rely on our broad understanding of both the commercial leasing market and the give-and-take of landlord-tenant dispute resolution. Our clients’ distressed commercial tenants often occupy spaces in attractive locations and don’t wish to liquidate, but their circumstances force them to seek rent reductions or other lease modifications to remain in business. While the Bankruptcy Code provides bankruptcy tenants with a breathing spell and negotiation leverage, we are able to maximize recoveries for our landlord clients by understanding the special protections afforded commercial landlords under the Bankruptcy Code — the rights of creditors generally — and by enforcing such protections and rights, either through litigation or settlement.