Cross-Border Insolvency Disputes and Investigations
Kobre & Kim serves as special counsel in high-stakes, complex restructuring and insolvency litigation and investigations for corporate boards, investment funds, special committees, creditors and creditor committees, debtors, liquidators, trustees and other investors. We often work cooperatively with clients’ existing legal teams as special counsel and can be adverse to virtually any institution.
Kobre & Kim represents stakeholders including creditor committees, debtors, trustees, independent directors, lenders, bond and equity holders, foreign insolvency representations and special committees in high-stakes, complex insolvency and restructuring disputes and investigations.
Lead Trial Counsel in Restructuring & Insolvency Litigation.
We take an aggressive approach to restructuring and insolvency matters, often serving as lead trial counsel, and have been involved in some of the largest and most complex restructurings in recent times. Even in matters that do not proceed to trial, our focus on the key proof and pressure points substantially improves court outcomes and settlement dynamics.
Team Players Enhancing Existing Legal Team.
We work as team players to handle whatever role is most appropriate and to collaborate efficiently with the client’s existing legal team to maximize the client’s interests. Because we do not typically pursue institutional client relationships, we are frequently called upon by other major law firms to conduct investigations on behalf of their clients where credibility and independence are required.
Special Counsel in Bankruptcy & Restructuring Investigations.
Our team, which includes insolvency practitioners, civil litigators and former U.S. federal prosecutors based around the world, holistically investigates potential claims and liabilities on behalf of corporate boards, independent directors and special committees. Having acted on behalf of debtors, official committees, indenture trustees, bondholders and creditors, we understand the competing interests at play in bankruptcy and insolvency proceedings.
Offshore Team Focused on Insolvency and Commercial Disputes.
Our team includes English solicitors and barristers (including English King’s Counsel), offshore lawyers in the British Virgin Islands and Cayman Islands, and Hong Kong solicitors, among others, with substantial experience in high-stakes insolvency litigation and commercial disputes. We have handled financial and commercial disputes involving the full spectrum of complex corporate structures typically used in offshore jurisdictions.
Representation of Mainstream Renewable Power Ltd. in the US Bankruptcy Court for the Southern District of Texas in an expedited litigation seeking dismissal of a Chapter 11 case filed by parties purporting to act on behalf of two of Mainstream's subsidiaries. After opening arguments at the evidentiary hearing on the motion, the parties reached a favorable settlement resolving global litigation brought by a major hedge fund in Chile, New York, and Texas.
Representation of the Liquidating Trust of Petters Company Inc., in multiple fraudulent transfer cases seeking the return of over $300 million in “false profits” received by various hedge funds and investment managers from the Petters Ponzi scheme.
Defense of Lehman Brothers Holdings Inc. in its Chapter 11 case against hundreds of claims filed by former brokerage customers that totaled US $20 billion+ and a US $1.2 billion avoidance action claim asserted by Freddie Mac.
Representation of former board members of China-based Luckin Coffee Inc. in investigations and legal proceedings with respect to alleged fabricated transactions, including in offshore winding-up proceedings in the Cayman Islands arising from allegations of fraud.
Representation of the U.K. liquidators of international cryptocurrency exchange Dooga f/k/a Cubits in theirinternational asset recovery efforts, including through U.S. Chapter 15 bankruptcy proceedings and related discovery and asset recovery measures.
Representation of certain Swiss banks in defense of multiple fraudulent transfer actions and related appeals arising from the SIPA liquidation of Bernard L. Madoff Investment Securities LLC and the chapter 15 cases of certain Madoff feeder funds.
Representation of an Ad Hoc Group of Minority Secured Noteholders of Incora in a dispute among several senior secured creditors of the company regarding a liability management transaction in both bankruptcy and New York State courts.
Representation of Elliott Capital Management & Siris Capital Group in claims brought against them as the private equity sponsors of Travelport in the wake of a liability management transaction. Settlement was reached at the discovery stage, leading to a voluntary dismissal of claims against our clients.
Representation of the unsecured creditors committee in the SunEdison bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, in adversary proceedings against first- and second-lien noteholders.
Representation of Hong Kong-based investment funds owed over US $200 million in their enforcement of a judgment award against the debtors based on defaulted bond debt, involving simultaneous proceedings in New York state court, Alabama bankruptcy court and the India High Court. The case team successfully obtained orders from the New York court requiring the judgment debtors to turn over their cash and equity interests in various subsidiaries and the appointment of a receiver, and obtained a rare dismissal of the judgment debtors’ Chapter 11 bankruptcy cases that were filed in an attempt to block the enforcement campaign.
Representation of China-based judgment creditors in the international enforcement of an HKIAC arbitration award against a Chinese debtor with operations and assets in Hong Kong, the British Virgin Islands, United States, United Kingdom and mainland China.
Representation of the senior lender group, as co-counsel to Davis Polk & Wardwell, in Revlon’s Chapter 11 case concerning Citibank N.A.’s mistaken US $900 million wire transfer arising from an “uptier” transaction.
Representation of Genesis Global Capital and two of its affiliates as special litigation counsel in their Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of New York.
Representation of Marble Ridge Master Fund LP as special counsel in the Neiman Marcus Chapter 11 proceedings, defending against claims for breach of fiduciary duty and equitable subordination based on allegations of bid-rigging for assets in the bankruptcy. The complaint sought $55 million in damages and subordination of over $60 million in bankruptcy claims, and we successfully settled the case for $5 million, with full allowance of the Fund’s bankruptcy claims.
Representation of the Joint Liquidators of IIG Structured Finance Fund Ltd and IIG Global Trade Finance Fund Ltd. in Cayman Islands proceedings and as special litigation counsel in Chapter 15 and adversary proceedings in the Southern District of New York.
Representation of Baha Mar as special litigation counsel in winding-up proceedings initiated by China State Construction. We acted for the real estate project sponsor in workout negotiations, defending applications for the appointment of provisional liquidators, and obtaining dismissal of many of the winding-up petitions. The representation encompassed cross-border insolvency proceedings and negotiations ranging from Beijing, Bahamas, Delaware, Hong Kong and London.
Representation of the provisional joint liquidators for a Bermuda investment company in multiple sets of proceedings regarding preservation and ownership of assets worth US $3.2 billion, including DOJ tax enforcement/forfeiture issues arising from an alleged multi-billion tax fraud scheme.
Representation of the special committee of independent directors of GenesisCare Finance in conducting an independent investigation in connection with the company’s Chapter 11 cases in the Southern District of Texas.
Acting as special counsel to Rite Aid Corporation, acting through its independent directors, in connection with the Rite Aid Chapter 11 cases in the District of New Jersey.
Service as independent investigator to the Special Investigation Committee of the Financial Oversight and Management Board for Puerto Rico. After comprehensive review of the factors contributing to Puerto Rico’s fiscal crisis, we published an approximately 600-page public report containing policy recommendations to restore Puerto Rico’s access to the capital markets and potential causes of action for consideration by relevant stakeholders.
Representation of the special committee of independent directors of a distressed IT services provider. The prebankruptcy investigation assessed the propriety of anticipated releases to various parties in connection with a Chapter 11 plan as well as the strengths and weaknesses of potential claims.