Distressed Debt and Claims Trading

Mintz Levin’s Distressed Debt and Claims Trading practice helps clients take advantage of the opportunities in the distressed debt market. Our team, comprised of bankruptcy and litigation attorneys, has assisted numerous clients with all aspects of the acquisition and sale of distressed investments, including bank loans and trade claims. Our clients include both the sellers and buyers of these instruments and range from domestic and international private equity and hedge funds to private investment funds specializing in distressed investments, and trade creditors seeking to liquidate their bankruptcy claims. Members of our team are some of the leading experts on the law as it pertains to the trading of claims, and have been called upon for expert testimony in this capacity.

Our team members have earned a stellar reputation successfully representing numerous parties in this industry. We are well versed in the operations of the distressed debt marketplace and regularly advise our clients on all aspects of transactions relating to distressed debt and the purchase and sale of trade claims. From the negotiation of confidentiality agreements, to the negotiation of trade confirmations and purchase and sale agreements, we can help with and anticipate all of our clients’ needs. One area in which our group has unique experience is dealing with disputes between inexperienced sellers and members of the claims trading industry. We regularly advise both buyers and sellers to mitigate any misunderstandings. When disputes arise, our litigators are prepared to assist. Notably, we have successfully litigated the seminal case involving a dispute between an international corporation, with no experience in trading claims, and a major distressed claims trader. 

This group’s unique skill set, combined with our nationally-recognized restructuring expertise, allows us to provide clients with a broad perspective and a deep level of experience in matters relating to all aspects of bankruptcy law, including claims trading and distressed debt investing.

Our clients also benefit from the depth of experience in our corporate and tax practices.

Recent Client Representation

• Achieved summary judgment for a multinational corporation in a dispute regarding the sale of certain bankruptcy claims it held in the Delphi Bankruptcy proceeding. The court’s decision in this matter is significant, as it provides a guide for the operation of the multi-billion-dollar trade claim market and interaction of parties in this industry. Bear Stearns Investment Products, Inc. v. Hitachi Automotive Products (USA), Inc. and Tokico (USA), Inc., 401 B.R. 598 (S.D.N.Y. 2009).
• Represented numerous buyers and sellers of claims in the General Motors, Chrysler, Mirant Corporation, Enron, Delphi Automotive, and Lehman bankruptcy cases.

Read our recent articles on claims trading.

Please click here for a pdf of our Distressed Debt and Claims Trading brochure.