Bankruptcy Litigation

Orrick lawyers handle all aspects of bankruptcy litigation.  This vast experience ranges from noteworthy and complex litigation in, among others, asbestos and energy cases, to confirmation and valuation issues, to more common but still challenging disputes over adequate protection, adequate assurances, avoidance actions (including alleged fraudulent conveyances and preferential transfers) and creditors' rights and claims.  Recognizing that one size does not fit all, we employ a full range of options, including negotiation, mediation and litigation to achieve the best and most efficient results for our clients.

Significant current and recent matters include the representation of:

• A former officer and several affiliated companies as defendants in complex fraudulent conveyance and preference avoidance actions brought on behalf of the estate of AmeriServe Food Distribution, Inc.
• The future claimants' representative in the pursuit of various preference and avoidance actions on behalf of the estate of Combustion Engineering, Inc. 
• The future claimants' representative in the plan-related litigation in the case of Congoleum Corporation.  
• Potomac Electric Power Company (Pepco) in complex, cutting-edge litigation concerning the ability of Mirant Corporation, a debtor power generator, to reject electric power contracts. Our defense of Pepco resulted in new law in the U.S. Court of Appeals for the Fifth Circuit that requires courts to consider the public interest before approving the rejection of a power contract.
• Quickturn Design Systems in the elevation of its lien against the assets of Aptix Corporation, from second to first priority, which was affirmed on appeal to the U.S. Court of Appeals for the Federal Circuit, followed by denial of certiorari by the U.S. Supreme Court.  During that process, the business was sold as a going-concern in the Chapter 11 case of Aptix, with essentially all proceeds being paid to Quickturn, a subsidiary of Cadence Design Systems, Inc.
• The trustee of the litigation trust created under the plan in the case of RCM Global Long Term Capital Appreciation Fund, Ltd.  
• Former directors and officers in litigation brought by the Chapter 7 trustee of Trace International Holdings, Inc. and Trace Foam Sub, Inc. 
• A former director and officer in litigation brought by Unicapital Corporation, the debtor.
• New England Power Company, The Narragansett Electric Company, Massachusetts Electric Company, Nantucket Electric Company, Granite State Electric Company and National Grid USA Service Company, Inc. in litigation relating to USGen New England, Inc.'s asset sales and our clients' $200 million plus claims, which ultimately were paid in full.