Creditors & Creditors' Committees

Secured creditors require a strategic approach to preserve collateral value and maintain bargaining power. We advise on lien enforcement, DIP financing, adequate protection, and valuation disputes, often under tight timelines and heightened regulatory scrutiny. Our team positions secured lenders to influence case outcomes while mitigating exposure through carefully negotiated forbearance and intercreditor agreements.

SJKP LLP has extensive experience serving as counsel to official committees of unsecured creditors (UCCs) in some of the nation’s largest and most complex bankruptcies. We help committees investigate debtor conduct, assess avoidance actions, and propose alternative plans that promote equitable recoveries. Our attorneys also coordinate with financial advisors to analyze capital structures, ensuring that unsecured creditors’ interests are prioritized throughout the reorganization process.

We frequently represent ad hoc creditor groups, including bondholder syndicates, noteholder coalitions, and distressed investors, seeking to influence debtor strategy. Our counsel helps unify stakeholder positions, negotiate term sheets, and develop litigation or settlement frameworks that preserve collective leverage. Whether coordinating among multinational lenders or specialized hedge funds, we deliver strategies that advance recovery while maintaining cohesion among diverse investors.

In bankruptcy sales, creditors can often use their debt positions strategically. We counsel on credit bidding, stalking horse protections, and equitable treatment under court-approved sale procedures. Our attorneys help clients convert claims into ownership interests or alternative consideration, ensuring compliance with the Bankruptcy Code and securing fair value recognition.

Our team assists committees in scrutinizing asset valuations and sale marketing processes. We challenge undervalued transactions, identify conflicts of interest, and file objections where debtor conduct or process deficiencies threaten creditor recoveries. Through rigorous financial and legal analysis, we ensure that sale outcomes reflect true market value and fairness across creditor classes.

DIP financing often determines the trajectory of a bankruptcy case. We negotiate DIP loan packages on behalf of creditors and committees, advocating for market-based interest rates, enforceable covenants, and robust lien protections. Our attorneys ensure that financing terms do not unduly favor debtors or new lenders at the expense of existing stakeholders.

We operate in bankruptcy courts across the United States and regularly appear in major restructuring venues including New York, Delaware, Texas, and California. Our familiarity with local procedures and judicial expectations enables efficient advocacy and accelerated resolution timelines for our clients.

Our practice spans industries such as retail, energy, healthcare, telecommunications, manufacturing, financial services, and real estate. We understand the industry-specific pressures driving insolvency and tailor our strategies to reflect market dynamics and asset valuation complexities unique to each sector.

In an increasingly global marketplace, insolvency proceedings often involve cross-border assets and competing legal regimes. We represent international creditor groups in Chapter 15 recognition cases, COMI disputes, and coordination with foreign administrators. Our attorneys collaborate with foreign counsel to align cross-jurisdictional strategies and maximize recovery in multinational restructurings.

Our attorneys have represented official creditors’ committees in numerous high-profile restructurings, including billion-dollar Chapter 11 reorganizations across the energy, retail, and healthcare sectors. We have successfully negotiated enhanced recoveries, improved DIP loan terms, and restructured debt portfolios to achieve favorable post-emergence positions for our clients. This proven record underscores our reputation as trusted advocates in the most challenging restructuring environments.