G&E has extensive experience representing creditor interests in bankruptcy cases of all sizes, prosecuting claims and defending creditors from debtor “clawback” and other recovery actions. Firm attorneys have a practiced understanding of the Bankruptcy Code and skills in litigation arising out of major U.S. Chapter 11 bankruptcies and other U.S. and offshore insolvency and winding-up proceedings, some of which are noted below.

Company
Description
Caesars Entertainment Corporation
Danner v. Caesars Entertainment Corporation, et al.

Southern District of New York

G&E represents the lead plaintiff in a purported class action against Caesars Entertainment Corporation (“CEC”) and its subsidiary Caesars Entertainment Operating Company (“CEOC”) relating to a series of unsecured notes that were issued by CEOC and guaranteed by CEC. The complaint alleges that CEC, CEOC and certain preferred noteholders unlawfully amended the applicable indenture  to eliminate CEC’s guarantee in violation of the Trust Indenture Act of 1939 and in breach of that contract.  CEC’s motion to dismiss Danner’s complaint was denied in its entirety as it applied to CEC. CEOC, meanwhile, filed a voluntary petition for relief under the Bankruptcy Code, thereby staying litigation against CEOC. Nonetheless, G&E has aggressively pursued the claims against CEC and opposed CEOC’s efforts in the bankruptcy court to enjoin and stay the Danner case. G&E has also been deeply involved in the bankruptcy proceedings and related litigation in furtherance of the interests of its client and the class of noteholders.

Cantor Fitzgerald
Refco Group, Ltd. v. Cantor Fitzgerald, LP, et al.

Southern District of New York

G&E is currently representing plaintiffs in a suit alleging that Cantor Fitzgerald deprived Refco of assets due pursuant to an investment and partnership interest. Particularly, Refco claims that its $8 million investment in exchange for a 10% holding in a Cantor Fitzgerald subsidiary was not fairly compensated when Cantor shut down that subsidiary, acquiring its proprietary technology and intellectual property. Refco alleges that Cantor continued to develop the business without compensating the estate. In June 2014, the case survived the motion to dismiss, and is now proceeding toward trial.

Flag Litigation Trust
Flag Litigation Trust v. Bande, et al.

Southern District of New York

G&E represented a litigation trust established by the Bankruptcy Court for the Southern District of New York for the purpose of pursuing litigation on behalf of the creditors of Flag Telecom Holdings Ltd. The complaint in this case alleged breaches of fiduciary duty under Bermuda law by Flag’s officers and directors, aided and abetted by certain third parties, in connection with various fraudulent conveyances and the company’s filing of materially false financial statements. The suit was filed in New York Supreme Court, and was subsequently removed to federal court by the defendants. In November 2010, the suit settled for $24.4 million.