Given the elevated rights available to secured and priority creditors, it is often the interests of the general creditors that are most exposed in the bankruptcy process. Pete Zemanian has developed significant expertise in all of the special rights that may be available to general creditors, including offset/recoupment, reclamation and creditors' committees. 

    Offset/Recoupment. To the extent that a general creditor both owes an obligation to and holds a claim against the debtor, that creditor may be able to effect a dollar-for-dollar "offset" on "recoupment". This affords the unsecured creditor the equivalent of secured-creditor status up to the value of the offset or recouped obligation. The requirements for establishing offset or recoupment rights can be complex, sometimes turning on very subtle differences. We offer unmatched expertise on these special trade creditor remedies. 

    Reclamation. For an extremely limited span following delivery of goods that have been sold to an insolvent buyer, the seller has the ability to affect a "reclamation" and thereby obtain enhanced rights. Failure to timely act will effect a loss of those rights. We are experienced in all aspects of preserving and asserting reclamation rights. 

    Creditors' Committees. Consistent with the collective nature of the bankruptcy process, most chapter 11 reorganization cases will afford the general creditors an opportunity to organize a "committee" of representative creditor interests. In addition to combining forces on issues common to the entire unsecured creditor base, participation in an unsecured creditors' committee enables trade creditors to influence the terms of the debtor's chapter 11 plan, negotiate for concessions with a greater degree of leverage, and ultimately to pass back to the bankruptcy estate some or all of the costs of bankruptcy representation. Pete Zemanian has experience, either as lead or local counsel, in many of the most significant committee engagements in the Norfolk and Newport News divisions, including the cases of American Drafting & Laminating Company, Stewart Foods, Inc., Flight International, Inc., Marine Hydraulics International, Inc., Fine's Men's Shops, Inc. and East Coast Building Supply Corp.