ZEK has a thriving creditors' rights practice, representing banks and financial institutions, bankruptcy trustees and others. These services encompass bankruptcy litigation, corporate restructuring of debtor corporations, restructuring of commercial real estate transactions, debtor-in-possession financing and investigation and litigation of various fraudulent transactions, pursuing preference and fraudulent transfer claims, with particular expertise in representing financial institutions. Our practice also includes the representation of insurers as creditors in more than one hundred commercial bankruptcy matters, of corporations seeking to acquire assets in bankruptcy proceedings, and of creditors committees, trustees and debtors. In the absence of viable defenses, many debtors resort to following the adage “the best defense is a good offense.” As a result, the Firm has developed an expertise in defending lender liability type claims.
A recent example of ZEK's representation in this field was a matter in which ZEK achieved a favorable settlement resulting in its client retaining more than 92% of payments made on behalf of a debtor within the 90-day pre-bankruptcy period on account of an antecedent debt. The favorable result was achieved through application of the little-used “earmarking doctrine” (a judicial exception to the statutory avoidance laws), which provides that payment by a third party who is secondarily liable for the debt paid is not avoidable, provided there is no resulting reduction in the funds available for the general creditor body.
The Firm also has significant experience in the field of restructuring, including representing official committees, DIP lenders, secured lenders, senior creditors, holders of subordinated debt, lessors and debtors. We have particular expertise in representing special servicers in connection with restructuring loans in the context of pools of collateralized mortgage-backed securities.