The Defaulted Bonds practice at Spencer Fane represents bond trustees in situations when a loan is in default or threatening to go into default, helping to determine the financial institution’s best methods for protection and recovery of the bondholders’ investments.
Spencer Fane has particular depth of experience handling defaulted bond matters. Our attorneys have served as trusted advisors and handled matters across the country involving troubled hospitals, charter schools, shopping districts, convention centers, entertainment facilities, industrial parks, prisons, and residential developments such as retirement and assisted living communities and apartment complexes. What sets us apart is our experience not only in dealing with legal issues relating to governmental and political entities beset by financial difficulties, but our business acumen in helping bond trustees realize their objectives for both the financial institution and the bondholders.
Our approach is to help bond trustees find solutions that maximize recovery, whether the situation involves lagging sales tax revenue, changes in special assessments, fluctuations in the market, or fraud. We clearly understand the spectrum of obligations that bond trustees have depending on the status of the deal, as well as the risks that they seek to minimize. We can provide assistance with any of the available methods for recovery including negotiations, restructuring through involuntary court proceedings, restructuring, liquidations, traditional litigation, receivership, or even bankruptcy.
Additionally, our team can handle trust instruction proceedings when involved parties reach a point of resolution. This gives individual bondholders an opportunity to show up to court if they disagree with the status of the deal and the reorganization approach. We handle these to give added assurance and protection to the bond trustees when a judge backs the actions being taken between the major parties involved in the deal.