Practice Areas & Industries: Beirne, Maynard & Parsons, L.L.P.

Practice/Industry Group Overview

The Financial Restructuring and Insolvency Group at Beirne, Maynard & Parsons is dedicated not only to solving the legal problems and issues facing our clients, but also to understanding their business needs. This in depth understanding of the client's operations and industry, in addition to technical proficiency in the applicable law, is key to achieving success in a complex bankruptcy representation or financial reorganization.

We have more than 30 years combined experience representing debtors, creditors, trustees, examiners, official and unofficial committees, and secured and unsecured creditors. We have handled all types of bankruptcy proceedings and out-of-court reorganizations across the United States and in several foreign countries. This multifaceted exposure to all of the various points of view in a bankruptcy case makes us better prepared to handle the issues our clients face because we have stood in the shoes of the other parties. We know their strengths and weaknesses.

Services Available

We work in every area of the law related to bankruptcy, insolvency, and financial reorganization. Generally, however, our practice can be broken down into three broad categories: Chapter 11 representations, bankruptcy litigation, and distressed asset acquisition.

Chapter 11 Representations

The bulk of our practice consists of representing debtors and creditors in all aspects of a Chapter 11 case, from pre-petition negotiations to post-confirmation representation. Our debtor clients generally have total debt portfolios in the $10 - $500 million range. We have represented publicly traded and privately owned business debtors in the insurance, benefits administration, manufacturing, construction, telecom, energy, energy transportation, traditional oil & gas, steel, retail, real estate, restaurant and food service, transportation, and healthcare industries. Over the course of a typical debtor representation, we complete dozens of individual transactions on behalf of the client (negotiating plan terms, negotiating and drafting credit agreements, etc.) as well as representing the debtor in dozens of individual pieces of litigation (claim objections, adversary proceedings, confirmation hearings).

We also represent creditors throughout the Chapter 11 process, and our creditor clients come from an equally diverse array of industries. We represent both secured and unsecured creditors, as well as official and unofficial creditor committees. Because bankruptcy is a federal law practice, and because all bankruptcy courts use the electronic case filing system, we are able to represent our clients in any bankruptcy venue in the United States.

Bankruptcy Litigation

Our bankruptcy litigation docket consists of: 1) representing clients in causes of action created by the bankruptcy code; and 2) representing clients in causes of action created by state law, but brought in a bankruptcy court.

Causes of action created by the bankruptcy code include, among other things, preferential transfer litigation, fraudulent transfer litigation, automatic stay violations, and claims objections. These are generally brought as independent cases ancillary to a Chapter 11 reorganization, and are called "adversary proceedings." The same bankruptcy judge who is handling the Chapter 11 case generally handles all adversary proceedings that relate to that case. As a rule, adversary proceedings are fast-tracked, with the bankruptcy court issuing a scheduling order that requires us to complete discovery, mediate, and be ready for trial within four months of the adversary proceeding being filed.

The bankruptcy code also allows debtors to file their state law causes of action in bankruptcy court as an adversary proceeding. We have represented clients in a wide variety of state law cases which were brought in bankruptcy court.

Distressed Asset Acquisition

We represent clients interested in acquiring the assets of distressed or insolvent companies in both Chapter 11 cases and out-of-court transactions.

Chapter 11 debtors often find themselves in a position where they have to sell some or all of their assets through a process called a "363 sale." This process can be contentious and is heavily litigated. We represent purchasers in 363 sales, handling not only the transactional elements (due diligence, contract negotiation, drafting), but also the litigation elements required by the 363 process (gaining court approval of bidding procedures, sale confirmation hearings, post-sale litigation).

We also advise clients when they are acquiring assets from a distressed company in an out of court transaction. When acquiring assets from a distressed company, it is wise to assume the company will eventually end up in bankruptcy. We advise clients on ways to protect themselves from the ill effects of such a bankruptcy and make their out-of-court acquisitions as "bankruptcy proof" as possible.

A Bankruptcy Practice in a Litigation Law Firm

A bankruptcy practice, while it has transactional elements, is primarily a litigation practice. Almost everything we do requires a contested hearing. Even a distressed asset acquisition, the most "transactional" part of our practice, requires no less than two contested hearings. These hearings can have any number of parties involved, each of them adversarial to the rest. Each party may present witnesses and documentary evidence, and the hearing may take several days to complete. It is, in essence, a mini-trial.

Further, a bankruptcy practice requires not only specialized expertise in a particular area of the law, but familiarity with many other areas of the law. Beirne, Maynard & Parsons has the necessary wide-ranging experience and depth to make a bankruptcy practice even stronger. Conversely, a strong bankruptcy practice enhances a litigation law firm's ability to serve the full spectrum of its clients' needs.