Detroit Bankruptcy Lawyers Larose, Kohn Join Chadbourne

Chadbourne & Parke LLP added Lawrence Larose and Samuel Kohn, former Winston & Strawn lawyers involved in Detroit's bankruptcy case, to the firm's New York-based bankruptcy team.

Larose and Kohn began last week as partners in Chadbourne's bankruptcy and financial restructuring practice, the firm said in a press release Monday. At Winston & Strawn, the two provided out of court and in-court counsel to creditors in "virtually every" recent major municipal restructuring, Chadbourne said.

"We anticipate municipal bankruptcy to be an area of ongoing and significant growth as municipalities continue to suffer from excessive bond debt, underfunded pension plans and decreasing sources of revenues," Howard Seife, global chair of Chadbourne's bankruptcy and financial restructuring practice, said in an email.

Default trends and large-scale bankruptcies indicate that the level of recoveries from troubled municipal bond debt may be significantly lower in the future, Kroll Bond Ratings Agency said in a September report. Larose and Kohn, currently involved in the nation's highest-profile bankruptcy proceedings, will continue to represent those clients as partners at Chadbourne, the firm said.

The two are engaged in bankruptcy proceedings in Detroit and Jefferson County, Ala., as well as out-of-court municipal debt restructurings in Harrisburg and Scranton, Pa. Larose currently represents Assured Guaranty in the Detroit and Jefferson County cases. The financial guarantor is exposed to more than $3 billion of bonds in the two cases combined, Larose said in an interview.

"Larry and Sam are highly experienced and skillful bankruptcy lawyers who, as a team, have developed an impressive practice representing the largest creditors in these situations," Seife said. "We are excited to add them to our deep bench of bankruptcy and restructuring lawyers."

The two new partners' experience in the municipal industry was a major factor in bringing them to the firm, according to Chadbourne partner David LeMay.

"The idea of Larry and Sam joining the firm is strategic, as we see this as a growth area," LeMay said of the municipal bankruptcy field. "One of the reasons we were so interested in them is that we think that practice on the municipal side represents an opportunity for growth."

Chadbourne's bankruptcy team has also served as counsel in the restructuring case of Ambac Assurance Corp., as well as MBIA's transformation litigation. The firm represented banks that were the swap counterparties with exposure to the assets that sent insurers tumbling, LeMay said.

Larose will continue to represent MBIA's bond insurance company National Public Finance Guarantee as a client, he said.

Larose and Kohn also advise corporate clients with restructurings, including mergers and acquisitions. Their experience involves counseling major financial institutions including investment and commercial banks, as well as financial guarantors and other insurers, Chadbourne said in the announcement. The two also have experience in industries such as energy and retail.

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