Bankruptcy Mediation

Bankruptcy Mediation Can Resolve Disputes, Protect Values and Reduce Costs

Complex Chapter 11 cases can generate a great deal of litigation on every issue imaginable, ranging from asset values to the priority of competing security interests. Nothing jeopardizes a reorganization's success more than litigation, and parties are well-advised to consider alternative dispute resolution methods before litigated adversary proceedings take on lives of their own.

Albert Togut is an experienced mediator approved by the U.S. Bankruptcy Court for the Southern District of New York, and he has achieved outstanding results in cases that appeared intractable.

Contact our New York City bankruptcy mediation lawyers online today, or call 212-594-5000 to discuss your specific needs with a member of our team.

Mediation Could Be an Excellent Path to Resolution

For example, in the Calpine Chapter 11 case, the creditors and the equity interests had differing views of the debtor corporation's asset value. The factions were $10 billion apart in a heated valuation fight with enormous consequences for the debtor's reorganization prospects. Mr. Togut, as the attorney for a court-appointed valuation expert, used his mediation skills to help bring the warring parties together and assisted in achieving consensus about the value of the corporation. As a result, the $10 billion gap was closed and the debtor was able to have an uncontested confirmation hearing. The debtor has since emerged from Chapter 11 as a viable business.

In the Solutia reorganization, it was necessary to obtain the parties' agreement to a litigation moratorium before mediation of $120 million in note holder claims could get underway. Mr. Togut then served as the neutral mediator. Through Mr. Togut's efforts, the litigation settled and the debtor achieved confirmation of its Chapter 11 plan.

Complete Bankruptcy Mediation Services

A successful bankruptcy mediator must combine a thorough knowledge of the legal, financial and practical aspects of the dispute at hand with the personal attributes of tact, diplomacy and patience. Albert Togut knows how to get parties in sharp disagreement to understand the advantages of a settlement and to work productively toward a solution. The resulting savings in time and money can mean the difference between successful reorganization on terms acceptable to creditors and the liquidation of the estate's remaining assets at significant losses to all involved.

Contact a NYC Corporate Bankruptcy Dispute Resolution Attorney

Call 212-594-5000 to learn how experienced New York bankruptcy mediators can help litigants realize the efficiencies of a facilitated settlement. You may also contact our firm online and a member of our team will reach out to learn more about your situation.