Bankruptcy & Insolvency



Selendy & Gay has deep experience representing private equity funds, hedge funds, trustees and other clients in high-stakes insolvency-related proceedings. We combine our litigation and trial expertise with our knowledge of bankruptcy and insolvency law to develop effective solutions and strengthen our clients’ positions in forums including federal bankruptcy court and the Delaware Court of Chancery.

We lack the conflicts that disable larger firms and we have a track record of litigating and winning against the major money center banks—and so are often brought into adversary proceedings as conflicts counsel and courtroom specialists.

Our partners have represented clients in a wide range of insolvency-related cases, including:

  • McKinsey & Company, a worldwide management consulting firm, against claims by Jay Alix, founder of consulting firm AlixPartners, and Mar-Bow Partners, a company founded by Jay Alix, challenging McKinsey’s Chapter 11 disclosures under Rule 2014.
  • Athilon Capital Corp., a financial consulting firm, in a trial victory in the Delaware Court of Chancery, involving claims of breach of fiduciary duty, breach of contract, and fraudulent transfer claims which sought hundreds of millions of dollars in damages, as well as a court order which would have forced our client, the defendant, to liquidate its assets and close the business entirely. The press described this trial victory as a “resounding win” in a “literal bet the company case” that set precedent concerning the test for insolvency under Delaware law and that was affirmed by the Delaware Supreme Court.
  • Fairfield Sentry Limited, a New York City-based investment firm, in seeking to recover funds against more than 100 defendants.
  • Cayman Islands-based Joint Official Liquidators of Herald Fund SPC in clawback litigation brought by the Madoff Trustee against the Fund. Successfully negotiated a precedential settlement with the Trustee involving satisfaction of the clawback claims and admission of a $1.6 billion SIPA claim, and currently advising the liquidators in cross-border insolvency and litigation matters.
  • ResCap Liquidating Trust, a trust established to liquidate and distribute assets of debtors in the ResCap bankruptcy, in suits against dozens of loan originators for indemnity and breaches of contract arising from the sale of defective mortgage loans. Achieved settlements of $590 million in proceedings in multiple state and federal jurisdictions, including in the Southern District of New York Bankruptcy Court.
  • An ad hoc committee of secured lenders in the Capmark Financial Group bankruptcy. Successfully obtained approval of a $975 million settlement after a month-long trial in the District of Delaware, allowing Capmark to pay back a $1.5 billion loan at a 9% discount in return for the release of avoidance claims by Capmark’s junior creditors, which challenged the payment as a fraudulent transfer.
  • Samsung, IBM, Infineon Technologies, and Elpida Memory, four of the world’s largest semiconductor companies, in a landmark Chapter 15 insolvency matter to establish the right of U.S. patent licensees to the protections of Section 365(n) of the Bankruptcy Code despite contrary German law governing the foreign main proceeding. The Bankruptcy Court decided in our clients’ favor, which was later affirmed by the 4th Circuit.
  • Washington Mutual, a savings bank holding company, in a lawsuit against JPMorgan in Delaware federal bankruptcy court—which arose out of one of the largest bankruptcies in history and resulted in a settlement of over $6 billion.