Schuyler G. Carroll

Schuyler G. CarrollPractice Areas

Schuyler Carroll is a partner in the Bankruptcy and Financial Restructuring Group. Schuyler’s practice focuses on complex restructuring, transaction, litigation and advisory work, in which he uses his experience to develop solutions that will protect or maximize his client’s position. He has represented a wide variety of debtors, committees, creditors, bondholders, indenture trustees, trustees, landlords, investors and purchasers in Chapter 11 and 7 bankruptcy proceedings, out of court workouts and non-judicial reorganizations and restructurings in such industries as financial services, real estate, health care, manufacturing, e commerce, technology and telecommunication and resort, hotel and hospitality.

Client Work

 

Schuyler has often succeeded in devising unique solutions to complex bankruptcy reorganization and liquidation matters, including the following:

  • Schuyler represents the Creditors’ Committee in the Chapter 11 cases of Impath Inc., et al. in which all unsecured creditors were paid in full, plus interest, in cash before a plan of reorganization was confirmed or a disclosure statement was approved. In this unprecedented case, he was successful in devising a unique solution to a complex case, which allowed his clients to be paid long before other parties.
  • In representing the Creditors’ Committee in the liquidating Chapter 11 case of Metiom Inc., Schuyler was successful first, in defeating an expensive and ill-conceived KERP motion and, later, in ousting management and transferring control of the liquidation to the committee. He then guided the committee’s use of a combination of preference, fraudulent transfer and state law breach of contract remedies against one of the world’s largest software manufacturers to obtain the withdrawal of its claim, which dwarfed the total of all other claims. The committee’s efforts resulted in the reduction of the total claims against the estate to only 8 percent of the total originally filed. Schuyler also prevailed at the summary judgment stage in litigation before the Bankruptcy Court against the Debtor’s former C.E.O. on a promissory note and substantial alleged offsets and counter-claims. Although several significant obstacles remain before this case will be concluded, creditors recently received a significant second distribution and additional distributions are expected.
  • After the board of TruMarkets Inc., a start-up that ran out of money and accumulated substantial debt before bringing its bond trading software platform to market, voted to file a Chapter 7 liquidation, Schuyler was asked to represent the company. After persuading the board to seek a strategic purchaser rather than pursue liquidation, he was successful in completing a multimillion-dollar sale transaction with a joint venture formed by Lehman Brothers, CSFB, Salomon Brothers and Bear Stearns. He was also successful in obtaining dismissal of an involuntary petition filed against the company by several dissident creditors, permitting payment in full to nearly all creditors and permitting equity to retain a substantial percentage of the new joint venture.
  • In an out-of-court restructuring of a large Long Island City jewelry manufacturer, Schuyler was successful in taking the company from the brink of bankruptcy through two refinancings and restructures, to the point where the company could grow and repay its creditors while preserving the equity holders’ investment.

Schuyler has represented committees, debtors and creditors in such major bankruptcy cases as In re Planet Hollywood International Inc.; In re Impath Inc.; In re Insilco Technologies Inc.; In re Metiom Inc.; In re Winstar Communications Inc.; In re 47th Street Photo Inc.; In re Caldors; In re United Artists Theatres Inc.; In re Moe Ginsburg Inc.; and In re H. Park Central LLC.

He is particularly skilled in counseling parties on potential bankruptcy issues related to non-bankruptcy transactions, such as securitized lending arrangements, and mergers and acquisitions. Schuyler regularly issues opinion letters to issuers, underwriters and servicers of securitized debt and on behalf of borrowers and acquirers related to bankruptcy issues, including substantive consolidation, true sale and others. He also often represents buyers and sellers of distressed debt and equity and has extensive experience in representing acquirers of assets of insolvent and bankrupt companies.

Schuyler has extensive experience in enforcement of creditors’ rights, and creditors’ rights state and federal court litigation, including fraud claims, loan recovery and collection actions, fraudulent conveyance actions, foreclosures and replevin actions, enforcement proceedings, reclamation and other actions under the Uniform Commercial Code, loan participation and syndication actions, defense of lender liability, and usury and fraud claims.

Professional Activities

Schuyler is a member of the American Bankruptcy Institute and participates on several committees including the Unsecured Trade Creditors, HealthCare, Real Estate and Business Reorganization committees. Schuyler is also a member of the Bench-Bar Bankruptcy Council of the American Bar Association.

Publications, Presentations and Recognitions

Schuyler is a frequent speaker on bankruptcy issues and has published several articles, including the following:

Bar and Court Admissions

New York Bar
US District Court, Northern District of New York
US District Court, Southern District of New York
US District Court, Eastern District of New York
US District Court, Western District of New York

Education

St. John’s University School of Law, JD (cum laude; dean’s list), 1992
     - Law Review
SUNY Binghamton, BA, 1988

 

Citation source: arentfox.com

 

Date published: Jan 05, 2009

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