Other Distressed Debt, Restructuring and Related Services

As a natural outgrowth of our firm’s focus on secondary loan and bankruptcy claim trading, KLF also offers services to assist clients in managing troubled company positions that they already hold.

Bankruptcy and Restructuring Analysis and Advice

Our firm is frequently asked by our clients to conduct legal research and analysis, and to review indentures, intercreditor agreements and other legal due diligence materials, in connection with pending Chapter 11 cases, adversary proceedings and out-of-court restructurings in which our clients are or may become involved.

Broken Trade and Breached Assignment Litigation

Though broken trades are rare in the secondary loan market (if slightly less so in the bankruptcy claim market), when they do occur and litigation ensues, significant lost profits and potential liabilities may be at stake.  KLF’s understanding of the underlying policies and nuances of distressed debt documentation currently in use makes us an excellent candidate to help buyside investors obtain the benefit of their bargain through litigation when amicable resolution of the parties’ dispute cannot be obtained.

KLF managing member Steve Kieselstein has been requested to serve as an expert witness in mutliple broken trade litigations, and KLF itself has negotiated a seven-figure settlement at the conclusion of a trial in a state court litigation on behalf of a buyside client over a bankruptcy claim put provision.

Our firm has also been called upon to advise buyside clients to analyze whether particular provisions of assignments, participation agreements and other debt transfer documents have been breached, and to identify credible arguments that might be made to support favorable settlements of pending claims assignment disputes.

Swaps and Other Derivatives

We are also conversant with the ISDA documentation regimen, as our clients have historically considered swaps and other derivatives transactions to supplement or compliment their more traditional distressed debt investments.  Our attorneys have assisted clients both in negotiating ISDA Schedules and Confirmations in individual trades and interpreting and analyzing distressed situations in which they are an issue, including the purchase and sale of swap and other derivatives claims.

NDA Reviews

KLF also assists its clients to manage their troubled company deal flow by frequently reviewing counterparty non-disclosure agreements for potential distressed investments and acquisitions.  Methodologies developed by our firm in this area enable us to be as responsive as our clients need us to be while still maintaining flexibility of staff time, and consistency of comments on diverse NDAs among all legal staff.