Attorneys in Katten's Distressed Debt and Claims Trading practice have represented investors in distressed companies in connection with thousands of transactions with an aggregate value in the billions of dollars. Our experienced team of professionals guides investment banks, commercial banks, and domestic and international hedge funds through the acquisition and sale of distressed investments, including bank loans, trade claims and swap claims, as well as privately traded securities.
The Distressed Debt and Claims Trading practice combines the talents of attorneys from several disciplines—derivatives, structured products, financial services, insolvency and restructuring, private equity, and tax, among them—to provide support in all aspects of distressed debt and claims related transactions. Our team has particular strength in handling bespoke or "off the run" opportunities.
We routinely represent clients in the acquisition of trade claims against debtors in Chapter 11 and Chapter 7 proceedings. These transactions have involved the transfer of secured, administrative expense and general unsecured claims. In addition to negotiating assignment agreements, we provide diligence into the validity and size of the claims and risks presented by counterparties. When disputes arise in bankruptcy cases, we assist our clients (whether original or secondary holders) in negotiation of settlements with the debtor’s estate, often involving preferential payments. Additionally, we have developed a proven auction process for the rapid monetization of recognized claims.
Our experience in secondary trading includes negotiating trade confirmations, purchase and sale agreements, participation agreements and collateral agreements for both par and distressed trades, and advising on confidential information issues in loan trading. We have represented both providers and purchasers of the right to sell accounts receivable at prenegotiated prices upon an event of default by one or more customers.
Katten is a member of both the Loan Syndications and Trade Association (LSTA) and the Loan Market Association (LMA), and our attorneys are actively involved in the development of standard documentation and resolution of market disruptions in the US market. The firm's presence in London ensures that clients operating in the US and European markets have access to our resources in real time.
With robust industry knowledge, deep transactional capabilities, and extensive debt and claims trading experience, Katten's Distressed Debt and Claims Trading practice offers a comprehensive approach to this specialized investment strategy.