Bankruptcy, Restructuring and Insolvency
GSRM lawyers are known across Tennessee as leaders in the representation of commercial entities and business owners facing economic crisis. The firm serves clients on all sides of controversy involving a troubled business, and our expertise includes bankruptcy and reorganization, workouts and turnarounds, creditors’ rights and remedies, debtor-in-possession matters, bankruptcy litigation and state and federal receiverships.
Businesses of every size and from every industry are faced with challenges that can trigger a financial crisis. GSRM advises these organizations from the initial stages of evaluating insolvency alternatives, to assisting with prepetition planning, to guiding the client through the reorganization process, to creating and implementing the plan of reorganization. Many successful reorganizations are a true “team” effort, and our attorneys work cooperatively with accountants, appraisers, auctioneers, consultants and turn-around professionals to enhance the efficiency and success of these endeavors.
A workout can be a viable and practical alternative to litigation or bankruptcy, and often serves our client’s best interest. GSRM attorneys utilize out-of-court workouts, as an alternative to Chapter 11 and other court proceedings, to assist scores of high profile borrowers, as well as lenders, to resolve problem debt situations. Whether our practitioners are renegotiating a bank loan, revising a debt instrument, or working out a new payment schedule with vendors, clients are assured they receive the most diligent legal assistance available.
GSRM represents borrower and lender clients on loan transactions with debtors-in-possession (DIPs) in Chapter 11. Such representation may involve obtaining authority for a client to borrow funds as a DIP. Alternatively, the firm may counsel the DIP lender or a prepetition lender. GSRM may represent other prepetition creditors to monitor the DIP lending transaction and to protect those creditors against inappropriate encroachment on their interests.
GSRM represents creditors in matters that do not involve bankruptcy. This expertise includes foreclosing upon real property on behalf of lienholders, filing or defending state court actions to recover collateral and collect debts, as well as initiating or defending actions to enforce mechanics’ and materialmen’s liens.
GSRM represents other constituencies in bankruptcy cases. Our attorneys offer particular experience representing committees and indenture trustees who, in turn, serve the interests of groups of secured or unsecured creditors. Further, the firm represents constituencies such as purchasers of assets and defendants in bankruptcy litigation, including actions seeking to avoid or set aside prepetition transfers of property.
GSRM works with clients on tax planning, because tax considerations frequently arise in a bankruptcy, reorganization or workout. This often involves outside accountants that advise on the tax effects of the reorganization or restructuring in a workout or in a bankruptcy case. Alternatively, the firm assists creditors, shareholders and lenders in defining pending tax challenges with a debtor’s plan of reorganization. For individuals, GSRM evaluates a taxpayer’s ability to discharge or satisfy tax liability through a bankruptcy case. Disputed tax liabilities can be litigated in the Bankruptcy Court. An analysis of any tax collection matter must include consideration of bankruptcy. However, many collection matters can be resolved through offers-in-compromise or installment payment agreements.
Litigated matters can be plentiful and varied in insolvency proceedings under the Federal Bankruptcy Code. Many cases that involve contract and other commercial disputes end up in Bankruptcy Court because one of the parties is a debtor in a bankruptcy case. In fact, much of the developing commercial law comes from Bankruptcy Court decisions.
GSRM is experienced in representing all types of constituencies in many industries on virtually all issues that give rise to litigation to protect and enforce rights in a bankruptcy case, including preferences, fraudulent transfers, post-filing transfers, relief from the automatic stay, assumption/rejection of leases, licenses and executory contracts, plan formulation and confirmation, sales and purchases of assets, exemptions, appointment of trustees, proofs of claim, dischargeability of debts and involuntary bankruptcy, among other matters.