Recovering Preferences in Complex Corporate Bankruptcies
Togut, Segal & Segal LLP has unique and extensive experience with the identification, valuation, litigation and settlement of preference actions across a wide range of situations in complex Chapter 9 and Chapter 11 cases. Our team has prosecuted the preference actions brought by the City of Detroit; James River Coal Co.; SemCrude LP's SemGroup Litigation Trust; Collins & Aikman; Saint Vincents’ Catholic Medical Centers; Grubb & Ellis; Enron; Tower Automotive; and Jacom Computer Services, and we have defended preference actions in many other cases. We believe that we have handled more preference actions than any other firm in the United States.
Learn more about how Togut, Segal & Segal can help you recover preference payments in a corporate bankruptcy by calling 212-594-5000 today. You may also contact our New York fraudulent conveyances attorneys online to schedule an initial consultation.
New York Chapter 11 Law Firm
Togut, Segal & Segal has developed its own proprietary software for the efficient collection, maintenance and analysis of preferential payment data. This allows us to evaluate and pursue preferences in a highly cost-effective manner. Our lawyers can pursue and liquidate preference claims on behalf of the debtor-in-possession, on behalf of a court-appointed trustee, as conflicts counsel, or on behalf of a trustee or plan administrator appointed after confirmation of a Chapter 11 liquidating plan.
What Is a Preference Payment?
Preferences are payments made by the debtor to its creditors on the eve of bankruptcy that are subject to recovery during the bankruptcy case. Preferential payments are often made without any improper motive, but they nonetheless are recoverable because they favor one creditor over another. The law of preferences seeks to ensure that similarly situated creditors share equally in the debtor's assets and that all of them receive a pro-rata distribution.
The 2005 amendments to the Bankruptcy Code added extra protection for the recipients of preferences. Nevertheless, it is not at all unusual for our attorneys to recover millions for the benefit of creditors through the careful review of potentially preferential payments. In just three cases — Enron, Collins & Aikman, and Tower Automotive — we recovered more than $175 million in cash.
At Togut, Segal & Segal, our experience and skill with preference litigation represent only part of the value that we offer our clients. We also take pride in our ability to minimize the administrative expenses involved in the review and recovery of preferences. Moreover, our independence in any bankruptcy case means that we can pursue the estate's rights against recipients of preferences vigorously.
Contact a New York City Chapter 11 Bankruptcy Lawyer
Contact Togut, Segal & Segal online today, or call 212-594-5000 to learn more about our bankruptcy services and how we can help resolve your debt matters.