Kaplan Kirsch clients rely on our lawyers to navigate the complex world of bankruptcy courts for creditors, with a particular focus on public sector creditors. While our team has experience representing debtors in bankruptcy proceedings, most of our work has focused on preparing public agencies for the potential bankruptcy of tenants, users, contractors, and polluters and then assisting our clients in protecting their interests through the bankruptcy process. The Firm also has assisted private sector clients in navigating the acquisition of distressed property and associated assets out of bankruptcy and receivership.
In bankruptcy, environmental enforcement or injunctive measures are more likely to avoid application of the Bankruptcy Code than claims for monetary damages. Timing of claims and equitable considerations also can affect the likelihood that environmental claims will survive. The Firm has advised public and private clients regarding the extent to which bankruptcy protections do and do not extend to environmental regulatory requirements and liabilities and how best to preserve environmental claims against bankrupt and insolvent polluters.
The Firm also understands the interaction of environmental due diligence and risk management tools used in contaminated property acquisition and redevelopment with the mechanisms used to transfer these properties and assets from receivership and bankruptcy. Examples of these mechanisms include deeds-in-lieu of foreclosure and stalking horse bidding procedures.
Environmental liability issues frequently arise alongside bankruptcies in other sectors as well. Kaplan Kirsch regularly advises clients navigating the environmental dimensions of airline bankruptcy and rail and transit bankruptcy proceedings, drawing on the Firm’s cross-disciplinary experience in aviation, rail, and infrastructure matters.