About Katherine Scherling

With more than 10 years of experience, Kate Scherling has established herself as trusted counsel for bankruptcy-related litigation matters. Clients look to her for guidance in the most complex Chapter 11 cases.

Sophisticated Chapter 11 and litigation counsel

Kate focuses her practice on corporate bankruptcies and bankruptcy-related litigation, including fraudulent transfer, preference and recharacterization actions. She has particular experience in handling contested matters, including debtor-in-procession (DIP) financing challenges, rejection motions and contested plan confirmations. Kate has worked with clients from a variety of industries, including the energy sector.

Kate is able to draw on her in-depth, specialized knowledge from her time working with the US Senate Office of the Legislative Counsel, where she helped draft legislation related to bankruptcy and banking.

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Practice Focus

  • Chapter 11 proceedings
  • Bankruptcy-related litigation
  • Fraudulent conveyance actions
  • Preference actions
  • Derivative standing actions
  • Recharacterization and equitable subordination actions
  • DIP financing challenges
  • Contract rejection matters
  • Legislative drafting

Representative Experience

  • Counsel to an ad hoc group of bondholders of a petroleum company and subsequent lead counsel to the reorganized company. With primary responsibility for all objections to claims of more than $5 million, obtained a ruling—affirmed twice on appeal—that a claim for “deemed dividends” was subject to mandatory subordination under Section 510(b) of the Bankruptcy Code and entitled to no distribution. *
  • Represented debtors in obtaining a precedential ruling authorizing client to reject its FERC-regulated natural gas pipeline transportation agreement. *
  • Counsel to debtors’ largest unsecured creditor in the bankruptcy proceedings of a global communications company, guiding foreign client through the Chapter 11 process that resulted in assumption of underlying contracts pursuant to confirmed plan of reorganization. *
  • Represented bondholder groups in litigation and mediation in connection with the PROMESA Title III proceedings of the Commonwealth of Puerto Rico and COFINA. *
  • Counsel to ad hoc group of unsecured bondholders in the bankruptcy of an E&P corporation. Successfully objected to the proposed DIP financing. Represented creditor representative in the post-confirmation litigation seeking to avoid prepetition secured creditors’ liens on estate assets. *
  • Represented administrative agent for an unsecured credit facility that was the target of a UCC motion for derivative standing to avoid LBO debt as a fraudulent transfer. *
  • Drafted reorganization law for an independent Commonwealth country. *
  • Represented privately held industrial group and its founder in a lawsuit brought by litigation trustee seeking to avoid LBO-related payments as fraudulent transfers and to avoid repayment of a $300 million draw under revolving credit facility as a preference. *
* Experience prior to Katten