About Terence G. Banich

Terence Banich has more than 20 years of in-depth experience managing complex litigation and first-chairing evidentiary hearings and trials in bankruptcy cases and proceedings, as well as federal equity receiverships and civil actions. He has represented nearly every type of constituent in Chapter 7 and 11 cases, including Chapter 7 trustees, Chapter 11 trustees, debtors, debtors in possession, secured creditors, unsecured creditors, committees of unsecured creditors, insiders of debtors and adversary defendants. Terry also has represented several federal equity receivers appointed in civil enforcement actions commenced by government agencies, such as the Securities and Exchange Commission and the Federal Trade Commission, as well as civil actions filed by private plaintiffs.

Deftly handling disputes both in and out of court

Clients rely on Terry's decades of experience in both civil actions and bankruptcy cases to achieve their business objectives. He consistently provides creative, cost-effective, business-driven solutions to all types of disputes through negotiation, mediation and litigation. From large multinational corporations to single-asset limited liability companies, Terry is strategic in his approach to handling disputes of varying levels of complexity, resolving matters by negotiating with counterparties and redrafting critical agreements. Clients particularly value Terry’s clear and persuasive writing and effective and eloquent oral advocacy, as well as his professionalism and civility.

Terry has spoken to organizations on receivership law and procedure and construction law issues. He has served on the Banking Law Journal's Board of Editors and authored a column called "Banking Briefs," which highlighted notable federal and state court cases touching on interesting issues of banking law. Terry also served on the Board of Editors of Pratt's Journal of Bankruptcy Law and authored the column "From a Litigation Perspective," which commented on interesting litigation issues arising in bankruptcy cases and proceedings.

Terry is an adjunct professor at Loyola University Chicago School of Law, teaching a course on advanced civil procedure. He also is a professional guitarist and bass guitarist.

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Practice Focus

  • Insolvency litigation
  • Chapter 7 and Chapter 11 cases and proceedings
  • Mediation and out-of-court agreements
  • Receiverships
  • Construction litigation

Representative Experience

  • 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. *
  • Managed litigation that resulted in judgment protecting priority of bank’s mortgage lien on assets of insolvent Florida condominium developer against competing construction liens, mortgage liens and purported equitable liens. *
  • Obtained reversal of preliminary injunction from Illinois Appellate Court against a private cable operator in an ownership and service dispute with incumbent franchisee. *
  • Represented elected public officials, pharmaceutical executives and a major defense contractor in grand jury investigations, federal criminal trials and qui tam litigation.
* Experience prior to Katten

Publications

  • The Man on Five Sometimes Ends Up With Zero | Pratt's Journal of Bankruptcy Law
    June 2017
  • The Barton Doctrine: A Penetrable Shield | Pratt's Journal of Bankruptcy Law
    April/May 2017
  • You Can't Sue a Rubric, or a River for That Matter | Pratt's Journal of Bankruptcy Law
    February/March 2017
  • In Pari Delicto: The Seventh Circuit Gives New Life to Evil Zombies | The Bankruptcy Strategist
    August 2012
  • What You Need to Know about Twombly and Iqbal | American College of Bankruptcy
    Spring 2010
  • Banking Briefs | The Banking Law Journal | Monthly
    January 2003 to March 2007
  • Chapter 11 ‘New Value' Plans of Reorganization: Panacea or Pandora's Box | Bloomberg Corporate Law Journal | Vol. 1, Issue 3
    Summer 2006
  • Protecting Contractor Rights in Public Construction Projects in Illinois | Real Estate Finance Journal
    Spring 2003
  • Pay When Paid Clauses, An Important Consideration for General Contractors and Subcontractors | Real Estate Finance Journal
    Winter 2003