Bankruptcy & Creditors' Rights
The practice of Bankruptcy & Creditors' Rights law requires not only experience and expertise, but the ability to react to financial emergencies and deftly manage what can sometimes be an emotional and financial minefield. At Cairncross & Hempelmann, we have all these attributes, as well as the ability to smoothly transition between this and many other areas of our business-related practices.

Bankruptcy and Insolvency Matters
We represent creditors, debtors, creditors’ committees, financial institutions and other third-party entities in all types of bankruptcy proceedings. In particular, we are highly effective in representation of any party in complex Chapter 11 proceedings. While the majority of our work is in the state of Washington, we are able to provide representation in any state.
Commercial Chapter 11 Proceedings
We are particularly skilled in managing commercial Chapter 11 cases. A well-planned and managed reorganization can provide fair treatment of creditors and position a reorganized company for a new start. To that end, our Bankruptcy specialists work closely with employers and practitioners in other key areas to retain key employees and maintain good relations with vendors and suppliers. Our team’s holistic attention to the organization provides a comprehensive and unique review of the structural difficulties, followed by swift and creative problem solving with an eye toward providing the best solution to the current business problems.
Washington State Receiverships
We have represented Receivers, petitioning secured creditors, and voluntary petitioners in statutory receiverships in the Washington state courts. The subjects of our receivership proceedings have included manufacturing plants, assisted living homes, fruit storage facilities, apartments, condominium projects, distribution facilities, retail stores and centers, and construction companies. We have excellent relationships with a number of highly regarded Receivers who provide excellent value to our clients.
Distressed Mergers & Acquisitions
Our Bankruptcy & Creditors' Rights team has augmented its talents with select firm members from other groups in forming our Distressed Mergers & Acquisitions group. This group advises clients on the purchase or sale of assets in bankruptcies, receiverships, reorganizations, restructurings and workouts, counseling clients on the risks and opportunities presented by the purchase and sale of distressed assets. Under the over-arching demand of being able to proceed with prompt dispatch, our teams have experience in structuring and negotiating transactions, and our Bankruptcy team provides the expertise imperative to ensure the protection of client interests if an insolvency proceeding is involved. To date, this group has represented financial institutions, debtors, secured creditors, landlords, investors, and other strategic buyers in these distressed transactions.
Real Estate Workouts
In conjunction with our Real Estate group, our Bankruptcy & Creditors' Rights team has extensive experience in representing lending institutions in dealing with all phases of distressed commercial real estate loans - from portfolio analysis to disposition of assets. We have represented banks, pension funds, insurance companies and other institutional lenders, and worked on all property types from single-family suburban land development to downtown high-rise office and residential buildings. We are experienced in the specific vehicles associated with distressed real estate loans, including:
  • Mortgage Foreclosure
  • Consent Foreclosure
  • Deed in Lieu of Foreclosure
  • Single Asset Bankruptcy, including "Cram Down" Analysis, Lift Stay and Bad Faith Filing
  • Restructurings
  • UCC Sales
  • Negative Amortization
  • Springing Guarantees
  • Consolidations and Spreaders
  • Lock Boxes
  • Participating Mortgages
  • Debt to Equity Conversions
  • Secured Debt to Mezzanine Conversions
  • Mezzanine Debt Foreclosure
  • Debt Sales
  • Receivership Mortgagee in Possession
  • Non-recourse Carve-out Analysis and Collection
  • Ground Lease Terminations
We have represented numerous institutional creditors in negotiated restructurings, bankruptcies and foreclosures of distressed real estate investments. As to real estate owners, we help to work through the complex issues involved in restructuring debt so our clients can more effectively manage their businesses and meet their financial obligations.

Our Bankruptcy attorneys have also represented numerous institutional mortgagees in enforcing their lien rights in out-of-court restructurings and in Chapter 11 cases.
Collections Litigation
In conjunction with our Litigation group, we can efficiently and aggressively assist clients with collection of secured and unsecured debts, from open accounts, lease defaults and judgment collections to complex contract litigation using negotiations, and collection lawsuits. We provide cost-effective ideas and staff actions in an effort to minimize costs and maximize results.

For more information: Contact Group Leader John Rizzardi directly at 206.254.4444 or via email at jrizzardi@cairncross.com.