Bankruptcy, Receivership and Creditors' Rights

• For the quasi-public Rhode Island Economic Development Corporation (RIEDC), we worked to recover a defaulted $30 million loan to Alpha-Beta Technology.  Thanks to our extensive experience in insolvency matters and familiarity with Rhode Island receivership law, we were able to forestall an attempted assignment for benefit for creditors in Massachusetts by instituting a receivership proceeding in Rhode Island.  As a result—and due to our vigorous representation of RIEDC during the proceeding—the debtor’s assets were liquidated at a fair price and RIEDC was paid a substantial amount toward its claim.
• In representing the bankruptcy trustee of a failed mortgage institution, AP&S attorneys handled a number of difficult real estate conveyance issues, including one that involved fraud, breach of fiduciary duty and constructive trust, resulting in $2 million-plus judgment for the trustee.  Thanks to our efforts, significant monies were recovered from the fraudulent principal, assets liquidated and creditors paid a dividend.
• Another complex RIEDC case involved two types of collateral—one where only the first priority creditor had a lien and another where both the first-secured creditor and RIEDC, as second-priority secured creditor, had liens.  Faced with the possibility of liquidated collateral thus going to unsecured creditors and not the RIEDC, AP&S lawyers successfully argued to the bankruptcy court that the RIEDC—rather than unsecured creditors—should receive the proceeds from the joint collateral.  As a result, our client was paid a substantial amount on its claim.