Practice Overview
Drummond Woodsum’s bankruptcy, restructuring, and creditors’ rights attorneys specialize in both litigation and transactions involving distressed commercial matters. They help clients from the first sign of trouble through the most complex financial restructuring or bankruptcy case, achieving exceptional results both in the courtroom and at the negotiating table.
Bankruptcy
Drummond Woodsum’s bankruptcy attorneys are regularly recognized by Chambers USA, Best Lawyers, the American Bankruptcy Institute and the American College of Bankruptcy as among the most respected in the country. They have extensive experience representing parties in all aspects of chapter 11 cases in New England and nationally. Their clients include financial institutions, bondholders, official and ad hoc creditors’ committees, asset purchasers, trustees, DIP lenders, directors/officers, and debtors. They also regularly represent parties in chapter 7, 12, and 13 cases, as well as bankruptcy litigation matters involving preferences, fraudulent transfers, director/officer claims, and appellate matters.
Representative bankruptcy matters handled by our attorneys include:
In re Lincoln Paper and Tissue (Maine): Drummond Woodsum represented the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of this paper company. They successfully litigated or settled claims against directors, officers, and owners of the debtor company for breaches of fiduciary duty and fraudulent transfers, recovering millions for unsecured creditors.
In re Sanctuary Care (New Hampshire): Drummond Woodsum represented a financial institution in facilitating a distressed sale of a nursing home through a Chapter 11 bankruptcy. They also negotiated and documented a debtor in possession (DIP) loan to fund the sale process, which was repaid in full.
In re Montreal Maine & Atlantic Railway Ltd. (Maine): After this railroad experienced a catastrophic explosion that killed 47 people, it filed for bankruptcy in Maine and Quebec. Drummond Woodsum represented the purchaser of the assets out of bankruptcy, including shielding the purchaser from successor liability related to the explosion and negotiating a historic environmental settlement with the State of Maine.
In re IDL Development (Massachusetts): Drummond Woodsum represented the owner of intellectual property that was stolen by a competitor who then filed for bankruptcy to try to shield the IP from recovery. They protected the client’s interests in the IP, preserving claims against both the competitor and the purchaser.
In re Calais Regional Hospital (Maine): Drummond Woodsum represented the Official Committee of Unsecured Creditors in the Chapter 11 case of a rural critical access hospital. They successfully negotiated and confirmed a Chapter 11 plan with the senior secured lenders that sold the hospital to a strategic partner, which preserved a rural healthcare provider, saved jobs, and maximized the recovery for all creditors.
Restructuring & Creditors’ Rights
Drummond Woodsum’s attorneys are highly experienced in the areas of restructuring and creditors’ rights. They regularly represent financial institutions, borrowers, and other parties in out-of-court debt restructurings, receiverships, foreclosures, and distressed asset and loan purchases/sales. They also have expertise in all manner of debtor/creditor litigation, including fraudulent transfers, commercial collections, statutory lien actions, unwinding leveraged buyouts, and both prosecuting and defending breach of fiduciary duty claims.
