Terence G. Banich

Representative Experience

• Serve as principal attorney for federal equity receiver appointed to investigate transactions and recover assets resulting from largest Ponzi scheme perpetrated in the Central District of California.
• Represent debtors as first-chair litigation attorney in large preference campaign in Sears and K-Mart Chapter 11 cases.
• Represented independent directors of debtors in Chapter 11 cases of Le Tote, Inc., and defended same in litigation pertaining to contested motion to settle with secured creditor and creditor’s committee motion for derivative standing.
• Represented independent directors appointed to evaluate debtors’ proposed transactions in out-of-court restructuring of major aircraft ground support equipment supplier.
• First-chaired nine-day trial in defense of liquidating trustee’s claims against former insiders of bankrupt scrap aluminum company for equitable subordination, recharacterization of debt to equity and breach of fiduciary duty. Bankruptcy court rejected all claims except for equitable subordination, which the district court reversed on appeal. Resulted in complete victory for clients. Principal attorney in all appellate briefing and proceedings. *
• First-chaired bench trial representing federal equity receiver in cross breach of contract claims over failed sale of $30 million hotel. Managed years of discovery and briefing. *
• Managed litigation for large music corporation as largest unsecured creditor in its judgment debtor’s Chapter 11 case. Resulted in conversion to Chapter 7 following discovery, extensive briefing and evidentiary hearings. Principal attorney for all discovery, briefing and evidentiary hearings. *
• Managed several related fraudulent transfer adversary proceedings on behalf of Chapter 7 trustee involving complex and novel issues of “mere conduit” status under 11 U.S.C. § 550(a). First-chaired multi-day bench trial that resulted in judgment for trustee and eventual favorable settlements. *
• Defended Chapter 7 trustee of bankrupt futures commission merchant in claims brought by debtor’s former foreign exchange customers. First-chaired trial that resulted in judgment for trustee, handling all appellate briefing and proceedings, including argument before the US Court of Appeals for the Seventh Circuit. *
• Managed litigation defending corporate borrower’s former directors and officers against multimillion-dollar tort lawsuit brought by secured lender and bankruptcy trustee. Obtained dismissal of all claims with prejudice. US Court of Appeals for the Seventh Circuit affirmed. *
• Defended debt relief agency and its lawyers in four-day trial against claims brought by US Trustee. Principal attorney in all appellate briefing and proceedings, including 3+-hour oral argument before the Chief US District Judge for the Western District of Virginia. Resulted in reversal of significant monetary sanctions. *
• Successfully prosecuted administrative expense claim asserted by president of “racino” in Chapter 11 over vociferous opposition by senior and mezzanine creditors. Managed extensive discovery, including testimony of gaming expert on value of client’s management services. *
• Managed litigation to enforce client’s large money judgment against judgment debtors. Client prevailed before the federal district court. US Court of Appeals for the Seventh Circuit affirmed. *
• Managed litigation to protect priority of bank’s mortgage lien in and to assets of insolvent Florida condominium developer against competing construction liens, mortgage liens and purported equitable liens. *
• Managed avoidance, recovery, turnover and claim-objection litigation for real estate developer and machine tool distributor in Chapter 11 proceedings. *
• Protected bank’s secured claim against insolvent offshore gaming company’s estate from competing claim asserted by an injured seaman. Persuaded bankruptcy court and, on appeal, district court that seaman’s claim was untimely and improper. Client obtained favorable settlement. *
• First-chaired six-day trial against the former principals of bankrupt telecommunication company in which client, as Chapter 7 trustee, obtained a judgment that the defendants were not entitled to bankruptcy discharges. *
• Protected bank’s secured claim against bankrupt rubber and vinyl manufacturer’s estate in dispute with pension insurer over lien validity and priority, and with the debtor over confirmation of its “new value” Chapter 11 plan of reorganization. Client obtained favorable settlement. *
• Represented federal equity receiver in recovering approximately 68% of investor funds in litigation arising out of an SEC civil enforcement action against church organization for improperly selling securities to its congregation. *
• Defended former senior officers of a bankrupt pharmaceutical company in a putative class action adversary proceeding brought by certain debtor equity holders seeking to subordinate the officers’ claims. Won dismissal of the subordination claim with prejudice. *