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Thompson Coe offers the rare combination of experienced business and commercial bankruptcy lawyers who have in-depth knowledge of the complex insurance issues involved in bankruptcy or reorganization. We are skilled courtroom advocates who can handle both dispute resolution and transactional concerns in for insurers and other creditors in bankruptcy and reorganization. Our lawyers regularly appear in Texas federal and state courts (including all four Texas federal bankruptcy courts), and frequently represent clients outside the state. We have a broad based practice and can handle almost anything that arises in insolvency, whether before or after a bankruptcy filing.

Our creditor representation, in addition to insurers, includes such parties as subcontractors, franchisors, landlords, vendors, manufacturers, oil companies, software companies and other creditors. We rely on Thompson Coe’s strong capabilities in tax, real estate, securities and commercial litigation to resolve their bankruptcy and reorganization issues as creditors. That includes handling large corporate reorganizations as well as loan workouts and distressed asset situations.

Insurer Representation

In a bankruptcy or reorganization both creditors and debtors can be involved in an insurance-related matter. Our primary focus is on representing insurers in recovery actions and settlements involving insureds, and we have had substantial success in collateral estoppel and res judicata proceedings that can resolve claims involving other creditors in the bankruptcy.

We have represented insurers in bankruptcy matters that have involved:

  • Determining the scope of a Section 524(g) channeling injunction in asbestos litigation.
  • Prosecuting collection of a fraud judgment in a complex Chapter 11 chiropractic company case involving multiple co-judgment defendants and debtors.
  • Averting application of the Stowers bad faith settlement doctrine in a wrongful death action for a trucking company that had filed bankruptcy.

Bankruptcy Litigation

Litigation can be a necessary part of the bankruptcy process, and our lawyers are accomplished at representing clients in all the points of contention that come before the bankruptcy courts. That includes representation of insurers and other creditors in fraudulent conveyance and preference litigation involving contested use of cash collateral, assumption and rejection of executory contracts, discharge and dischargeability matters, claims litigation and plan confirmation issues. We will also handle our clients’ interests in both federal and state courts, for actions involving breach of contract, receivership, replevin, judicial foreclosure, and guaranty and collection of judgments.

Once a case is before the bankruptcy court, our focus is on whether a reorganization or liquidation of the debtor is the action best suited to our clients’ business goals. Creditors with interests at risk in bankruptcy depend on our help with all issues governed by the Uniform Commercial Code, such as sales, secured transactions, bank deposits and commercial paper. Our lawyers also help these clients with their collection needs, including obtaining pre-judgment and post-judgment remedies.

Creditor and Investor Perspectives

Our bankruptcy practice covers all creditor and investor perspectives on loan recovery and debt restructuring in insolvencies and bankruptcies, including Chapter 11 reorganization proceedings and other troubled situations. We have litigated cases that resulted in significant court decisions establishing insurers’ rights of subrogation with respect to recoveries by bankrupt entities.

Because real estate is often the most important collateral involved in a bankruptcy filing, we help lender and investor clients resolve problems in the management and operation of foreclosed real estate, the servicing of mortgages and the general administration of loan portfolios. We have extensive experience in the workouts of problem properties and mortgage investments, including restructurings, foreclosures and bankruptcies.


For insurers, creditors and debtors, bankruptcy is ultimately about doing business under difficult circumstances. We realize that the real goal in bankruptcy is not victory. The Bankruptcy Code allows for a wide range of business options, and we pursue the ones that best meet our clients’ needs. They rely on us to develop effective and creative strategies that get the best business result and protect their investment in any bankruptcy or reorganization.


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