Bankruptcy & Restructuring

From the beginning of every engagement, we use a results-oriented approach to maximize outcomes for our clients and resolve problems in the shortest time possible to minimize expense. We develop creative strategies unique to each situation. Frequently, a client’s best course of action is to avoid lengthy and expensive litigation by restructuring troubled loans through forbearance agreements or other consensual arrangements. Other situations call for an aggressive litigation approach or in-court restructuring proceedings. Always – we focus on the most effective and efficient strategy to achieve our clients’ goals.

We have the sophistication and expertise to handle difficult matters long before a company enters the bankruptcy arena. However, in the context of bankruptcy proceedings, our clients and colleagues tell us that we are among the most aggressive in the nation – a status acquired by always putting our clients’ needs and objectives first. We are consistently recognized by Chambers USA as a distinguished law firm in Pennsylvania in the area of bankruptcy and restructuring, including individual rankings for three of our attorneys in 2024. According to Chambers USA, “Klehr Harrison Harvey Branzburg LLP has an experienced group acting for debtors, creditors’ committees and trustees in a variety of complex bankruptcy and restructuring matters. It is particularly noted for its work with secured lenders, as well as for its expertise in Chapter 11 proceedings and out-of-court workouts.”

In 2022, according to Chambers USA, clients reported, “They are very proficient at tackling complex organization structures and legal issues.“  and “The team is responsive and timely.” In 2021, clients also shared, “They are smart and responsive. They take a very practical and pragmatic approach.” 

We serve clients in a broad range of industries, including hotels, restaurants, hospitality, energy, chemicals, pharmaceuticals, automotive, retail, communications, marketing, manufacturing, financial institutions and health care.

Delaware Depth

We are a “go-to” firm in Delaware for lead counsel roles in middle-market distressed situations and major national restructurings. We serve as local counsel to some of the largest AmLaw 100 national firms, who continually turn to us because they trust our Delaware experience.

Our practice’s Delaware office is typically involved in many of the filings in the District of Delaware. We are deeply rooted in Delaware’s bankruptcy practice community, which gives us great insight not only into the jurisprudence of the Bankruptcy Code but also into how the Delaware judges have handled issues and cases.

Select Representative Matters

• Counsel to the Debtors in Bar Louie (BL Restaurants) Chapter 11 was filed in Delaware in 2020 during the height of the COVID-19 pandemic. Ultimately, the sale was approved in late April 2020 and closed and funded in May 2020. The result is a chain of 50 owned and 23 franchised locations that will employ approximately 2,300 people. During this process, we negotiated a deal with the DIP lender and creditors’ committee that provides sufficient assets to fund a liquidating plan and a dividend to creditors.
• Counsel to an equipment rental company that, as a result of the pandemic, was adversely affected and needed to restructure over $100 million of secured debt. We handled the restructuring effort, which was critical to the survival of the company.
• Co-counsel with AmLaw 100 firm for one of the largest North American automotive aftermarket parts suppliers of underbody products for passenger vehicles and light to heavy-duty commercial vehicles as a debtor in possession in Chapter 11 proceeding. (Wilmington, Delaware)