The members of the Bank Debt and Claims Trading Group of Kleinberg Kaplan have many years of experience representing hedge funds, investment banks and other financial service  companies in connection with the purchase and sale of par and distressed bank loans, using both LSTA and LMA documentation, as well as the purchase and sale of other monetary claims against companies in bankruptcy or subject to insolvency proceedings.

We assist clients in all aspects of bank debt and claims trading, including organizing new vehicles to purchase the loans (which may be desirable for tax or other reasons), negotiating confidentiality agreements, analyzing credit agreements and advising on bankruptcy, income tax, withholding tax, ERISA and securities law issues pertaining to the possession of material non-public information. Since we also have expertise in derivatives and other financial products, we assist clients in the analysis and due diligence required in connection with the purchase or sale of financial claims such as those arising under ISDA Master Agreements.

In addition, our litigation and bankruptcy groups are experienced in representing investors in many types of bank debt litigation and have been lead or co-counsel in some seminal cases including:

• Enron Transferee Litigation (whether equitable subordination and disallowance “travels” with the debt)
• Owens Corning (recusal of Judge Wolin and appeal of equitable subordination)
• Adelphia (whether creditors’ votes should be designated)

We have represented secondary holders of bank debt and other claims with respect to the assertion of causes of action that were transferred with the claims.  As a full-service law firm for hedge funds and other financial service companies, we take a multi-disciplinary approach to all of our engagements and lawyers in the bank debt and claims trading practice group regularly call upon the expertise of lawyers in the corporate, tax, bankruptcy and litigation groups.