Bankruptcy, Reorganization and Creditors’ Rights

Recent court proceedings demonstrate the extent courts may go to authorize alternative means of service. When service methods by process server or mail, whether certified or express, are unsuccessful, you should consider the other alternative means courts have allowed. In In re Three Arrows Cap., Ltd., No. 22-10920 (MG), 2022 WL 17985969 (Bankr. S.D.N.Y. Dec. 29, 2022), after an insolvency proceeding…

In the new year, cryptocurrency bankruptcies will be breaking new ground over the ability to recover customer deposits. An understanding of the ruling in the Bernie Madoff SIPC liquidation could provide guidance for such recoveries. Bankruptcy Code sections 548 (a) and 550 (a) give chapter 11 debtors, appointed trustees and post-confirmation liquidating trustees the power to sue and recover money…

As cross-border restructurings grow, especially in the wake of the global COVID-19 pandemic, global companies filing for insolvency relief in foreign countries may utilize chapter 15 of the Bankruptcy Code to facilitate the protection of assets located in the U.S. In Chapter 15 proceeding, assistance is available upon recognition of the foreign proceeding under Section 1521 (a) (4) of the…

In 1998, The U.S. Supreme Court in Grupo Mexicano de Desarrollo S.A. v. Alliance Bond Fund, 527 U.S. 308, held that the District Court had no authority to issue a preliminary injunction preventing petitioners from disposing of assets pending adjudication of the respondents’ contract claim for money damages. Subsequently, courts have interpreted Grupo to carve out exceptions for equitable actions…

On August 30, 2021, the Second Circuit decided in Irving Picard, trustee for the Liquidation of Bernard L. Madoff Investment Securities, LLC v. Citibank N.A., 20-1334, on “appeals of the latest installment in the long-running litigation arising from Bernard Madoff’s Ponzi scheme” whether the District Court properly dismissed actions brought against initial and subsequent transferees, to avoid and recover transfers,…

The CARES Act, which sought to provide economic assistance during the global health pandemic, is exalted as an essential federal initiative. One of the most visible pieces of that Act is the PPP, which seeks to provide immediate financial assistance in the form of SBA-guaranteed loans to small and medium-sized businesses impacted by the economic uncertainties of the novel coronavirus. An important yet severe consequence is the rise of fraud in connection with misuse of PPP loan proceeds.

With the economy on troubling grounds, there is a greater desire to protect assets. But, there is a difference between hiding and protecting assets. Hiding assets is a form of protection, but done for illicit purposes to keep away from current creditors.

Congrats Rick S. Rein and Nathan E. Delman on securing a nondischargeability ruling in a Chapter 7 case on a $10 million claim after a two day trial in the U.S. Bankruptcy Court for the District of Nevada. The claim involved a loan that was obtained under false pretenses, resulting in a non-dischargeable debt in favor of the client.

Congratulations Nathan E. Delman on being appointed as Vice Chair of the Chicago Bar Association Bankruptcy and Reorganization Committee! Nate was selected for his exceptional achievements and extensive experience in bankruptcy and reorganization law.

During this session, Nate will discuss the latest bankruptcy and insolvency issues in the cannabis industry including recent cases, receiverships and traditional workout and restructuring options.

HMB is thrilled to sponsor The M&A Advisor’s 2023 Distressed and Investing Summit in Palm Beach, FL. As the Conference Chairperson, Aaron Hammer will welcome attendees at the opening reception, discuss turnaround experiences in a program session and participate in the Awards Gala. Aaron will also be honored with the Turnaround Award “Legal Advisor of the Year” at the Awards Gala.

On March 8, 2023, Aaron L. Hammer and Rick S. Rein joined the Law Firm Alliance for their Bankruptcy Community Meeting.

Congratulations to Jeralyn H. Baran, Keith H. Berk, Aaron L.Hammer, Jeffrey H. Hechtman, James L. Jerue and Jeffrey A. Zaluda for being named 2023 Leading Lawyers! Only lawyers who are most often recommended by their peers and later approved by the Leading Lawyers Advisory Board are selected.

Congratulations Aaron L. Hammer on being named Legal Advisor of the Year by The M&A Advisor Turnaround Awards! Aaron was selected for outstanding track record of successful transactions and lifelong contributions to the turnaround industry.

In this article, Aaron L. Hammer, Rick S. Rein, Dan Wen and Claudia Suszczynska provide an overview of the decline in the cryptocurrency industry in 2022, otherwise known as a “crypto winter,” and the potential impacts of a surge in Chapter 11 bankruptcy filings by players in the space.

You asked, we answered! Please join Aaron L. Hammer and our esteemed panel for a 30-minute encore, Q&A webinar hosted by S&P Global.

HMB is the recipient of The M&A Advisor Turnaround Award for Out-of-Court Restructuring Deal of the Year. HMB was recognized for its representation of Europa Sports Products, LLC (“Europa”) in its successful sale to Europa Sports Partners, LLC (“ESP”). Congratulations to: Aaron L. Hammer, Keith Berk, Nathan E. Delman, Dan Wen, Casey E. Rivard and Elise Anderson.

Join Aaron L. Hammer for an upcoming webinar, “The Bankruptcy Outlook and a Trifecta of Factors: Global Risk, Inflation, Rising Rates,” with S&P Global on June 23rd where he and his co-presenters will dive deeper to refresh the bankruptcy outlook.

Bankruptcy fraud, which lessened during the pandemic, could increase this year according to HMB’s Rick S. Rein and Brad Sargent, Founder of The Sargent Consulting Group, LLC. In an article published by the Association of Certified Fraud Examiners (ACFE) FRAUD magazine, Rick and Brad provide an overview of bankruptcy fraud and constructive fraud.

Aaron L. Hammer was recently featured on The Winning Momentum Podcast with Scott Sinclair. Aaron and Scott discuss entrepreneurship and Aaron shares his experience as both a corporate bankruptcy attorney and an entrepreneur.

HMB’s Aaron L. Hammer predicts corporate bankruptcies will remain low this year in an S&P Global article.

Aaron L. Hammer discusses corporate bankruptcy filings with S&P Market Intelligence.

HMB is pleased to welcome Dan Wen to its growing Bankruptcy, Reorganization & Creditors’ Rights practice.

Jeffrey A. Hechtman and Aaron L. Hammer Discuss Deal Making Insights at the Mid-Market Dealmaker Symposium.

Aaron L. Hammer and Nathan E. Delman Present, “I Don’t Wanna Hear It! – All About the Equitable Mootness Doctrine” at the CBA Bankruptcy and Reorganization Committee Meeting.

On July 26, 2021, the Official Committee of Unsecured Creditors of Something Sweet Acquisition, Inc. selected HMB Legal Counsel (“HMB”) as its counsel, with the U.S. Bankruptcy Court for the District of Delaware approving HMB’s retention on September 23, 2021. Something Sweet Acquisition, Inc. and Something Sweet, Inc. (together “Something Sweet”) are industry leaders in the production and sale of…

HMB’s Bankruptcy, Reorganization and Creditors’ Rights Team including Aaron Hammer, Nathan Delman and the late John Guzzardo, representing FishDish, LLP, preferred shareholders holders of the bankrupt VeroBlue Farms USA, Inc. at the U.S. Court of Appeals for the Eighth Circuit, successfully argued that the District Court prematurely dismissed FishDish’s appeal by improperly invoking the judicial doctrine known commonly known as “Equitable Mootness.”

It is with great sadness that we inform you of the untimely passing of our dear friend and colleague, John Guzzardo. John passed away on Friday, June 4th at the age of 49 due to a car crash while on vacation with his family in California. John was a Partner at HMB, the Chair of the firm’s Litigation Group, a mentor to many and a friend to all.

CHAPTER 11 FILINGS IN 2020 AND BEYOND Unless your January 2020 payroll included Nostradamus, the forthcoming global pandemic and resulting mass quarantines were largely unforeseeable. Last year’s unpredictability did, however, lead to the rather predictable material increase in Chapter 11 bankruptcy filings. Epiq Companies recently reported to the American Bankruptcy Institute that commercial Chapter 11 filings increased 29% in 2020.…

Aaron L. Hammer was featured on the cover of Turnaround Management Association Chicago's Newsletter of Corporate Renewal celebrating its 30 year anniversary. The newsletter celebrates the TMA's focus on growing networks, identifying business opportunities, adding to its members' knowledge base, providing leadership and having fun with great people. As Aaron said, "TMA is -- and always will be -- family.…

3/17/21 Chicago, IL The lively duo of Nathan E. Delman and Michael Miller from the Semrad Law Firm will get you caught up on the latest and greatest in both commercial and consumer bankruptcy law developments from the Seventh Circuit and the Supreme Court. Register for the event here.     …

In this ABI Journal article, Aaron L. Hammer discusses the impact of COVID-19 on the restaurant industry and managing Red South Beach through the crisis. Download the full article here. The 2019 novel coronavirus disease (COVID-19) has created unprecedented distress in many industries. Arguably, the hardest hit to date is the restaurant industry. Getting through a workout during COVID-19 has…

In this article by Law360, Aaron L. Hammer discusses GenCanna filing an adversary proceeding seeking $1.2 million back that the company paid to law firm, Pillsbury Winthrop Shaw Pittman LLP ("Pillsbury"). Read the full article by Law360 here (paid subscription required). GenCanna, now known as OGGUSA Inc. after the company sold its assets as part of its Chapter 11 bankruptcy, paid…

Aaron L. Hammer, John W. Guzzardo and Nathan E. Delman of HMB Legal Counsel have been retained as counsel for the wind-down trustee in In re OGGUSA, Inc. (f/k/a GenCanna Global USA, Inc.). Earlier this year, CBD giant GenCanna made national headlines when its creditors forced the company into a Kentucky bankruptcy court After a high stakes court battle which…

HMB is proud to announce that John W. Guzzardo has been appointed by the United State Trustee of Region 11 to the Panel of Chapter 7 Trustees for the Northern District of Illinois, Eastern Division. John is Chair of HMB’s Litigation Group and a partner in HMB’s Bankruptcy, Reorganization and Creditors’ Rights practice. "Over the past eleven years of my…

11/11/20 1:15PM CT Be sure to join the next TMA Town Hall where a robust discussion, featuring former TMA Chicago/Midwest President and restaurant owner Aaron L. Hammer (TMA Chicago/Midwest), along with other industry heavyweights, will leave you with plenty of food for thought as they look ahead toward 2021. Whet your appetite for this session by reading Global Pandemic Is…

RED South Beach and its turnaround professionals have been awarded the Small Business Turnaround of the Year Award from the TMA’s Chicago/Midwest Chapter. HMB attorneys Aaron L. Hammer, John W. Guzzardo and Nathan E. Delman served as legal counsel to RED South Beach in its turnaround. Although this year’s celebration will be virtual, the Chapter’s Awards Committee and Board will…

Over the past twelve months, HMB Legal Counsel (“HMB”) helped navigate a smooth landing for distressed aircraft manufacturer Thrush Aircraft, Inc. (“Debtor”), culminating in a successful sale of substantially all its assets and the subsequent confirmation of a joint plan of liquidation in August 2020. In September 2019, HMB was appointed as counsel to the Official Committee of Unsecured Creditors…

***This article has been updated from the version posted on May 29th, 2020*** Actions Taken by the Circuit Court of Cook County In General Effective July 6, 2020, the Circuit Court of Cook County will begin hearing all matters in all Districts and Divisions with the exception of jury trials.  Unless otherwise ordered, all attorneys and self-represented litigants shall be…

In an opinion for our troubled times, Northern District of Illinois Bankruptcy Judge Donald Cassling granted debtor Hitz Restaurant Group (“Hitz”) some reprieve from § 365(d)(3)’s strict requirements due to a combination of COVID-19 shutdown orders and a favorably-worded force majeure clause. Hitz’s landlord, Kass Management Services, Inc. (“Kass”) moved to lift the automatic stay after Hitz stop making its…

View the PDF from Turnaround Management Association's Journal of Corporate Renewal here. John W. Guzzardo and Nathan E. Delman, with John B. Pidcock of Oxford Restructuring Advisors LLP, discuss how Red South Beach responded to the COVID-19 crisis by quickly taking a number of actions designed not only to survive but to emerge financially stronger once the crisis is over.…

Actions Taken by the Bankruptcy Court The COVID-19 pandemic notwithstanding, the United States Bankruptcy Court for the Northern District of Illinois remains open for business, although not business as usual. Recognizing the need to maintain social distancing, the Court has made several significant changes to its daily operations. After two months of hearing routine motions telephonically, the Court has implemented…

The Coronavirus crisis has arrived. This global pandemic has placed a hard stop on economic activity across the board, sending markets into freefall and skyrocketing unemployment claims to unprecedented heights. Chapter 11 filings are anticipated to surge, forcing bankruptcy courts to clean up large swaths of the crisis’ aftermath. But for now, it is anyone’s guess when the uptick in…

The outbreak of the COVID-19 pandemic has impacted businesses and commercial relationships worldwide. As commercial operations continue to be shuttered and revenues cut off, principals of companies will likely find themselves questioning where their obligations and responsibilities lie when the entity’s solvency is questionable.  When a corporation is solvent, the fiduciary duties of the corporation's board of directors run to…

UCC-1 Financing Statements are an integral tool in a secured creditor’s toolbox. They perfect a lender’s interest and broadcast notice of this perfected lien to all present or future creditors, putting out the warning that a security interest against the debtor’s collateral exists. An effective financing statement has three requirements: (1) the debtor’s name; (2) the creditor’s name; and (3)…

One attorney from HMB's Litigation Group has been named as a 2020 Illinois Super Lawyer. Additionally, three attorneys were named to the 2020 Illinois Rising Stars list. Super Lawyers is a rating service of outstanding attorneys from over seventy practice areas who have attained a high degree of peer recognition and professional achievement. The following HMB attorney was selected for…

Chicago, IL December 12, 2019 HMB Legal Counsel, a preeminent provider of legal services in Business and Finance, State and Local Tax, Trusts and Estates, Bankruptcy, Reorganization and Creditors' Rights, Real Estate and Litigation announced that three associate attorneys were elevated to partner. David W. Machemer David is a member of the firm's State and Local Tax (SALT) Group.  He…

On 9/17/19 Aaron Hammer and Rick Rein presented "Hot Topics in Cross Border Restructurings" at the Offices of Gowling WLG LLOP in Toronto, Canada. Aaron and Rick discussed the role of chief restructuring officers and other turnaround professionals in Canadian restructuring, flash points in today's cross border insolvencies, and the cannabis space. This program was intended for lenders, turnaround professionals…

On September 24, 2019, the Official Committee of Unsecured Creditors of Thrush Aircraft, Inc. selected HMB Legal Counsel (“HMB”) as its counsel, with the U.S. Bankruptcy Court for the Middle District of Georgia approving HMB’s retention on October 2, 2019. Thrush Aircraft ( “Thrush”) is a leading designer and manufacturer and of single-engine light aircraft, primarily used in agriculture operations. Thrush…

With President Trump’s signature August 23rd, the Small Business Reorganization Act of 2019 (“SBRA”) will officially take effect in February 2020. The SBRA is designed to fill a gap in the current bankruptcy laws by providing a framework for small businesses to successfully reorganize in bankruptcy court.  As noted by the senate bill’s sponsor, Iowa Senator Charles Grassley, “Chapter 11…

10/14/19 Chicago, IL The Seventh Circuit Consumer Bankruptcy Conference will present an overview of savings in chapter 13, coverage counsel at § 341 meetings and navigating bankruptcy appeals. There will also be a Seventh Circuit case law update as well as a look at recommendations made in the Final Report of the ABI Commission on Consumer Bankruptcy. Nathan is a…

9/17/19 Offices of Gowling WLG LLP Toronto, Canada Aaron Hammer and Rick Rein present "Hot Topics in Cross Border Restructurings" at the Offices of Gowling WLG LLP on September 17th. The discussion will include: The Role of Chief Restructuring Officers and Other Turnaround Professionals in Canadian Restructuring • Would Canadian restructurings benefit from an increased use of CROs, similar to…

CHICAGO, IL - HMB Legal Counsel, a preeminent provider of legal services in business and finance, litigation, trusts and estates, real estate, state and local taxes and bankruptcy, reorganization and creditors' rights announced that attorney Nathan E. Delman joined the firm as an associate in its growing bankruptcy, reorganization and creditors' rights practice. Nate has over ten years’ experience as a…

John Guzzardo and Rick Rein wrote an article for NABT American Bankruptcy Trustee Journal regarding the use of Consent Directives to locate offshore assets. A consent directive is a "rare bird" investigatory tool that litigants in the US may use to discover assets and information from debtors or third parties located anywhere in the world. Recently, the Ninth Circuit Bankruptcy…

CHICAGO, IL (April 5, 2018) - Horwood Marcus & Berk Chartered ("HMB"), a preeminent provider of legal services in business and finance, litigation, trusts and estates, real estate, state and local taxes and bankruptcy, reorganization and creditors' rights announced that attorney John W. Guzzardo joined the firm as a partner in it's growing bankruptcy, reorganization and creditors' rights practice. John represents…

CHICAGO, IL (March 16, 2018) - The M&A Advisor announced the winners of the 12th Annual Turnaround Awards on Thursday, December 21st.  Horwood Marcus & Berk Chartered ("HMB") was named a winner of the Section 363 Transaction of the Year ($10MM - $25MM) for Aaron L. Hammer's representation of Central Iowa Healthcare ("CIH") in its successful chapter 11 sale before…

PRESS RELEASE Contact: Jason Klika Horwood Marcus & Berk Chartered 312.281.1102 CHICAGO, IL (March 6, 2018) - Horwood Marcus & Berk Chartered ("HMB"), a preeminent provider of legal services in business and finance, litigation, trusts and estates, real estate and state and local taxes, announced that accomplished corporate reorganization, bankruptcy and creditor's rights attorney Aaron L. Hammer joined the firm…