Distressed Company and Bankruptcy Litigation

When the ocean level falls, the rocks are exposed. Relationships between investors and portfolio companies can become strained when signs of financial distress emerge, precipitating disputes and litigation as various parties seek to preserve their economic interests. This litigation often spills over into venues beyond bankruptcy courts as parties pursue alternatives to recover their losses.

O’Melveny litigators have prosecuted and defended numerous claims and actions in large-scale disputes arising from distressed and bankrupt companies. Clients for whom O’Melveny has delivered cost-effective and significant victories include large financial institutions, general partners and limited partners in private investment funds, and major operating companies across a wide range of industries. We have handled multi-party, cross-border disputes between investors and for bidders for assets of insolvent companies. We have pursued fraudulent transfer claims against persons and entities located domestically and abroad, and defended companies against fraudulent transfer, preference, and misuse of information actions. Our lawyers often represent private equity and venture capital investor board members in addressing financially troubled or bankrupt portfolio companies. We have also handled major appeals from adverse judgments resulting from litigation in the bankruptcy courts.

We combine our trial skills, extensive litigation experience and knowledge of insolvency proceedings to achieve the optimal outcome for our clients in a challenged environment. Our seasoned restructuring litigators frequently represent clients in contested matters in a bankruptcy context, including matters where the viability of an enterprise or an investment is at stake. For example, we have litigated numerous disputes over debtor-in-possession financing, enterprise valuation, intellectual property ownership and plan confirmation. We also have experience assisting investors in distress who are at risk of having a deal come to a standstill. Our litigators have represented debtors, senior creditors, insurers and creditor committees in high profile bankruptcies, and taken lead roles in investigations, trials and other contested proceedings where superior litigation courtroom skills can make the difference.

Industry Reach

• Asbestos-Related and Other Mass Torts
• Entertainment and Media
• Financial Services and Private Equity
• Health Care
• Insurance
• Labor
• Life Settlements and Premium Finance
• Mortgage / Subprime Lending
• Real Estate
• Retail
• Technology
• Telecommunications

Practice Strengths