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Litigation And Dispute Resolution

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. The Togut Firm has highly sophisticated and seasoned litigators who are experts in creditors’ rights and corporate restructurings.

Unlike most firms, Togut, Segal & Segal LLP does not have any retainer clients so that it can be truly independent. It is able to be adverse to any bank, hedge fund, equity fund, or other large financial company. The Togut Firm regularly sues banks and others.

Here are some examples of the work we have done in this area:

Roman Catholic Diocese of Rockville Centre, New York

The Togut Firm served as litigation counsel to Catholic Cemeteries of the Roman Catholic Diocese of Rockville Centre, Inc. as defendant in an adversary proceeding commenced by the Official Committee of Unsecured Creditors of the debtor, one of the largest Catholic dioceses in the country, seeking to avoid over $200 million in allegedly fraudulent transfers. The Togut Firm assisted Catholic Cemeteries to obtain a consensually mediated settlement that resolved all asserted claims.

Eletson Holdings

The Togut Firm served first as counsel to petitioning creditors holding more than $330 million in outstanding unsecured notes in successfully prosecuting involuntary petitions against the debtors, an international shipping company. Then, during the highly contention chapter 11 cases, the Togut Firm assisted the petitioning creditors to obtain confirmation of their chapter 11 plan of reorganization over the debtors’ proposed plan following a multi-day trial. The Togut Firm now represents the reorganized debtor in implementing the plan abroad, including by obtaining bankruptcy court orders compelling various insider to implement the plan in foreign jurisdictions and seeking recognition of the chapter 11 plan in foreign jurisdictions, including Liberia and Greece.

LATAM

The Togut Firm, as co-counsel to the debtors with Cleary Gottlieb, assisted the debtors with all aspects of the chapter 11 cases, including reconciling and objecting to thousands of filed claims. In January 2022, the Togut Firm assisted the debtors with obtaining approval of two settlements on a contested basis that collectively resolved dozens of proofs of claim that had been asserted at more than $4 billion.

Chrysler

Co-counsel for the Old Carco Liquidation Trust as successor in interest to Old Carco LLC (f/k/a Chrysler LLC). Addressed and responded to supplier-related issues and objections, resolved over 560 cure objections relating to more than $750 million in disputed cure amounts, and handled 330 reclamation demands totaling over $711 million. The Togut Firm also had primary responsibility for claims objections related to suppliers and was responsible for expunging and/or reclassifying more than $5.7 billion in claims.

General Motors

Conflicts counsel for Motors Liquidation Company (f/k/a General Motors Corporation). Among other things, the Togut Firm challenged and resolved a $24 million setoff claim against the debtors and achieved over $137 million in savings related to various lease and rejection claims asserted against the debtors.

Aro Liquidation

Co-counsel to the debtors and administrator. The Togut Firm successfully negotiated and litigated a reduction of administrative proofs of claim from more than $350 million to under $7 million to satisfy a key condition precedent to the effective date of the plan.

Aurora Commercial Corp.

Counsel to the debtors, subsidiaries of Lehman Brothers Holdings Inc. The Togut Firm reduced the claims pool from approximately $343 million to $55,000, which enabled the debtors to confirm a fully consensual plan providing for payment in full for all allowed claims.