In another showing of successful cross-practice functionality, the Mandelbaum Barrett team of bankruptcy attorneys and litigators successfully negotiated the removal of a debtor from possession of its assets due to suspected multi-million dollar fraud committed against our commercial lender client. In addition to taking possession of the debtor’s assets, the independent trustee will also begin an investigation into the company, its operations and prior transactions, and the actions of its owner.
Having successfully won a motion to transfer the venue of this matter to the District of Columbia, Mandelbaum next moved to remove the debtor from being in possession of this entity based on “cause” related to alleged misconduct against our client. After engaging in an aggressive discovery schedule in advance of the hearing on Mandelbaum’s motion, the principal of this entity relented and agreed to relinquish possession. Mandelbaum then cemented its victory through thoughtful legal briefing and argument to ensure the presiding bankruptcy court was confident in its authority and “cause” to grant the relief requested under the relatively new Subchapter V of Chapter 11 of the Bankruptcy Code. The Judge started the hearing by complimenting Mandelbaum’s Chris Zona on the quality of his brief, his framing of the questions, and providing the Judge with answers to her anticipated questions.
The removal of this debtor from being in possession and appointment of an independent trustee to run this entity marks a significant victory for our client in trying to recover its losses and vindicate its rights. This achievement also highlights Mandelbaum’s role in shaping the development of law in the evolving Subchapter V landscape.
Our client is represented by Richard Simon and Jeffrey Rosenthal. Bankruptcy and financial services attorneys, Vincent Roldan and Ann Lee, were essential to this effort on the bankruptcy side. While litigator, Chris Zona, was responsible for litigating discovery as well as briefing and arguing the contested matter before the D.C. Bankruptcy Court.
These stories are successful case results from our attorneys. Please note that results may vary depending on your particular facts and legal circumstances.