Insolvency & Restructuring

The Devine Millimet Insolvency & Restructuring Team assists creditors in their debtor relations and maximizing recoveries. Although we know the courts and apply litigation pressure where necessary, our abilities extend far beyond that linear approach. We think “outside the box” and apply proactive strategies to collections.  To this end, we have helped clients through the use of nontraditional approaches such as legislative initiatives and pre-collections planning. Where necessary, however, our trial lawyers stand ready to litigate.  We represent individual investors, institutional lenders, long-term care facilities, hospitals, and other creditors in non-bankruptcy creditors' rights and collections litigation, as well as bankruptcy matters, throughout the Northeast.

Our Services

Collections Law

We have extensive experience in collecting debt. We can oversee a case from pre-suit planning and negotiations through trial to execution on a judgment. This includes problem loan and collateral position analysis, forbearance agreements, repossession and replevin actions, foreclosures, liquidations, attachments, trustee process, and mechanic’s lien proceedings (including experience in multimillion dollar construction disputes), and enforcement of foreign judgments.

Long-Term Care/Healthcare

We are well-known for our work on behalf of care facilities in pre-collections planning advice, advising on intake procedures, and drafting admission agreements and financial disclosures. We know the specific pitfalls of collections in the healthcare arena, and the importance of each facility’s reputation. One of our greatest strengths is our ability to tailor a collections policy that fits the client, taking into consideration the need to maximize recoveries while at the same time understanding public relations concerns that have a greater importance in certain business sectors such as the healthcare community.

Creditor’s Rights-Workouts

We provide a wide range of services to creditor clients. Beyond litigation, we negotiate and draft workout and forbearance agreements and advise secured creditors on the use of restructuring professionals, such as chief restructuring officers, to improve the performance of distressed borrowers. If these tools are insufficient, we counsel secured creditors on distressed sales to third parties and, if all else fails, we arrange and oversee foreclosures and secured party sales. We also counsel clients on selling or purchasing commercial paper.

Bankruptcy Law

We advise secured and unsecured creditors in every aspect of formal bankruptcy cases. Our experience includes proofs of claim, relief from the automatic stay, fraudulent transfer litigation, debtor-in-possession or “DIP” financing, adversary proceedings (particularly non-dischargeability proceedings and defense of preference actions), adequate protection issues and use of cash collateral, and issues relevant to voting on and confirmation of Chapter 11 plans (including opposing “cram down”). We are recognized leaders in this area and it shows. Our attorneys have had substantial roles in the major bankruptcy matters in the district over the past twenty-five years including In re Public Service New Hampshire (representing the State of New Hampshire), In re Foss Manufacturing Inc. (representing major secured lender), In re Amherst Technologies, LLC et al (representing the Official Committee Of Unsecured Creditors), and In re GT Advanced Technologies Inc. et al (representing the Official Committee of Unsecured Creditors).

“Section 363” Sales-Buying Assets Out of Bankruptcy

Our attorneys have experience in purchasing assets from insolvent debtors. We know how to utilize the debtor’s disclosure obligations under the bankruptcy code to facilitate due diligence and the court’s authority to transfer assets free and clear of prior liens. We go beyond that, however, to perform our own in-depth due diligence, utilizing our experience and resources in investigating debtors and target assets to further gauge and limit the client’s risk. By virtue of these skills, we can arrange an economical and effective purchase that provides supplementary protection for clients from pre-bankruptcy claims against acquired assets.

Representative Matters

• Represented official committees of unsecured creditors in large Chapter 11 cases.
• Represented major secured and unsecured creditors in various Chapter 11 cases.
• Represented large secured creditor in connection with Chapter 11 bankruptcy of owner of hydroelectric assets located in New Hampshire.
• Represented long-term care facilities and hospitals in collections matters.
• Represented healthcare providers in enacting groundbreaking legislative initiatives, including SB 127 (2016) and SB 138 (2013).
• Drafting and obtaining enactment of two “first-in-the-nation” Medicaid related bills creating personal liability for any person who participates in transfers resulting in an asset transfer disqualification under Medicaid or for any fiduciary who negligently fails to promptly complete and pursue a Medicaid application or who refuses to pay the patient liability amount due under Medicaid; and,
• the “Special Medicaid Representative” who may be appointed upon the request of a care facility in the event of noncooperation of a patient or resident (or their family members or fiduciaries) to complete and submit an application for Medicaid coverage.
• Represented a city in a multimillion dollar claim against a Chapter 11 New York developer.
• Represented three municipalities in preserving payment of millions of dollars in real estate taxes from a Chapter 11 debtor which was a joint owner of power generating facility.
• Represented the successful bidder in the multimillion dollar purchase of the assets of a Chapter 11 telecommunications company.
• Represented large secured creditor in the Chapter 11 bankruptcy case filed by a major New Hampshire ski area.
• Represented a company in environmental claims litigation against a Vermont corporation which had filed a Chapter 11 bankruptcy case in Delaware.
• Represented large secured creditor in negotiations with a bankrupt hockey rink company, leading to consensual plan of reorganization.
• Represented group of software users in the Chapter 11 proceeding of the software developer to protect users' rights under license including access to source code.
• Represented the State of New Hampshire in the bankruptcy proceedings of two New Hampshire electric utilities.
• Represented aircraft finance corporation in Chapter 11 proceedings of regional airline.
• Represented a local savings bank in a Chapter 11 health care related matter including as a secured creditor in the main case and in a related adversary proceeding.