David M. Hillman practices in the areas of corporate restructuring and creditors’ rights litigation, with an emphasis on the representation of secured and unsecured creditors, ad hoc groups, hedge funds, private equity funds, buyers of distressed assets and other major stakeholders in Chapter 11 bankruptcy cases across a wide array of industries. David currently represents an ad hoc group of secured lenders in the Westmoreland Coal Company Chapter 11 cases, Murray Energy Corporation as a creditor in the First Energy bankruptcy cases and Tennenbaum Capital as a DIP lender, secured creditor and sponsor in the Real Mex bankruptcy cases. David has significant experience litigating issues involving solvency, valuation, plan confirmation, financing and cash collateral disputes, contested 363 sales, fraudulent transfers, preferences, equitable subordination, recharacterization, substantive consolidation, breach of fiduciary duty and similar disputes.

David is listed as a “leading individual” in bankruptcy/restructuring by Chambers USA, which noted that interviewees praised him as “wonderful to deal with,” “very effective” and an “excellent litigator and strategist” who “thinks outside the box.” Chambers also noted that David is “an excellent counselor for distressed situations with significant litigation elements” and “a terrific, conscientious and focused lawyer.” He has also been recognized as a leader in his field by New York Super Lawyers as wellA member of the American Bankruptcy Institute, David speaks frequently on bankruptcy-related topics including recent decisions affecting secured creditor rights and preparing creditors for bankruptcy risks. His articles have appeared in Practising Law Institute’s 28th Annual Current Developments in Bankruptcy & Reorganization, Aspen Law & Business’ Bankruptcy Litigation ManualPratt’s Journal of Bankruptcy LawWestlaw Journal – BankruptcyReorg ResearchLaw360The Bankruptcy Strategist, Bankruptcy Court Decisions and NYU Journal of Law and Business

Representations

Ad Hoc Groups and Committees

Ad hoc group of first lien term loan lenders in Westmoreland Coal Company bankruptcy cases (energy).

Creditors' Committee in Maxus Energy Corp. bankruptcy cases (energy).

Ad hoc group of equity holders in Republic Airways Holdings, Inc. (regional airline).

Ad hoc group of unsecured bondholders of Seventy Seven Energy Group (oil & gas).

Ad hoc group of first lien lenders in Chapter 11 case of Global Geophysical Systems, Inc. (oil field services).

Ad hoc group of first lien lenders in connection with out-of-court restructuring of Allen Systems Group (technology).

Ad hoc group of first lien noteholders and DIP lenders in Chapter 11 case of Digital Domain Media Group, Inc. (technology).

Ad hoc group of second lien bondholders as DIP lenders and credit-bidding buyer in Chapter 11 case of Real Mex Restaurants, Inc. (restaurant industry).

Ad Hoc group of bondholders in Chapter 11 case of GSI Group, Inc. et al. (manufacturing).

Counsel to ad hoc group of noteholders in out-of-court restructuring (pharmaceutical).

Creditors’ committee in Global Power Equipment Group et al. (manufacturing).

Secured Creditors

Tennenbaum Capital Management as DIP lender, prepetition secured creditor and equity sponsor in Real Mex bankruptcy cases (restaurant industry).

THL Corporate Finance as prepetition lender and agent  under a first lien credit agreement in Chapter 11 case CRS Reprocessing, LLC (manufacturing).

TPG Specialty Lending Inc. as prepetition agent and lender under a $140-million first lien credit facility in Chapter 11 case of Milagro Oil & Gas Inc. (oil & gas).

Cerberus Capital Partners LP as secured creditor in Chapter 11 case of RadioShack Corp. (retail).

Black Diamond and Spectrum Investment as prepetition first lien lenders and DIP lenders in Chapter 11 case of Allied Systems Holdings Inc. (automotive).

Ableco Finance LLC, as agent for first lien lenders, in Chapter 11 case of Highway Technologies, Inc. (traffic safety company).

D.B. Zwirn Special Opportunities Fund LP as secured creditor, DIP lender and credit bid buyer in Chapter 11 cases of Everything But Water et al. (retail).

Secured creditor in out-of-court restructuring (radio broadcasting).

Secured creditor in out-of-court asset foreclosure (automotive/account servicing).

Secured creditor in out-of-court equity foreclosure (manufacturing).

Ableco Finance LLC as agent for prepetition secured lenders and as agent for post-petition lenders in Chapter 11 bankruptcy cases of Global Motorsports Group and affiliates (retail).

Distressed M&A

Murray Energy Corporation in connection with its acquisition of assets from Chapter 11 debtor Armstrong Energy Corporation (energy).

A bidder for 21 skilled nursing facilities in Chapter 11 cases of 4 West Holdings, Inc., et al. (healthcare).

Albertsons Companies as stalking horse bidder in Chapter 11 cases of In re Central Grocers Inc. (supermarkets).

Albertsons Companies as purchaser in Chapter 11 cases of In re Haggen Holdings LLC et al. (supermarkets).

Numerous credit bidding acquisitions on behalf of secured creditors.

Bankruptcy-Related Litigation

Numerous defendants in connection with fraudulent transfer litigation in In re Boston Generating LLC (energy).

Cerberus Partners LP, Lubert-Adler and Klaff Realty LP in $1-billion fraudulent transfer action in connection with Chapter 11 bankruptcy case of Mervyn’s LLC (retail).

Cerberus Partners in connection with fraudulent transfer in connection with Chapter 11 case of Residential Capital (financial).

Equity Sponsor litigation in connection with Chapter 11 case of KB Toys (retail).

Equity Sponsor litigation in connection with Chapter 11 case of Twinlab (retail).

Publications

US Supreme Court Limits Securities Safe Harbor Protection From Bankruptcy Clawback Suits,” SRZ Alert, March 1, 2018; cited in Harvard Law School Bankruptcy Roundtable, March 6, 2018

“Third Circuit Endorses Market Interest Rate for Cramdown Plan in Momentive,” SRZ Alert, Oct. 23, 2017 (co-author)

“Dealing With Secured Lenders,” Reorganizing Failing Businesses (American Bar Association, Business Bankruptcy Committee), 3rd ed. 2017 (co-author)

“Bankruptcy Litigation Update: Determining Adequate Capital,” The Bankruptcy Strategist, August 2017 (co-author)

“Navigating the Bankruptcy Court's Power to Modify a Secured Creditor's Lien,” Equipment Leasing Newsletter, February 2017 (co-author); republished in The Bankruptcy Strategist, April 2017

“Second Circuit Reverses District Court in Marblegate, Making It Easier to Restructure Bonds Outside of a Chapter 11 Case,” SRZ AlertJan. 25, 2017 (co-author); republished in The Bankruptcy Strategist, March 2017, New York Law Journal, March 3, 2017 and Daily Business Review, March 14, 2017

“Bankruptcy Judge Requires Investment Funds to Disclose Major Investors,” SRZ Alert, Dec. 16, 2016 (co-author); republished in Westlaw Journal – Bankruptcy, January 2017

“Seventh Circuit Limits Bankruptcy Safe Harbor Protection,” SRZ Alert, Sept. 8, 2016 (co-author); republished in Westlaw Journal – Bankruptcy, Sept. 22, 2016

“Cramdown: Reorganization Plan Litigation for Secured Creditors” and “Valuation Litigation,” PLI 28th Annual Current Developments in Bankruptcy Reorganization, 2006 and Bankruptcy Litigation Manual (Aspen Law & Business), rev. ed. 2015-2016

“U.S. Supreme Court Preserves Bankruptcy Court Power to Hear Disputes,” Pratt’s Journal of Bankruptcy Law, July/August 2015 (co-author)

“District Court Affirms Controversial ‘Cramdown’ Plan in Momentive Case,” Westlaw Journal – Bankruptcy, June 12, 2015 (co-author)

“‘Redemption Option Value’: Mandatory Distributions to Out-of-the-Money Stakeholders,” The Bankruptcy Strategist, April 2015 (co-author)

“Expert Views: Schulte Client Alert Discusses Priming DIPs Under ABI Commission Recommendations,” Reorg Research, Dec. 29, 2014 (co-author)

“Proposals to Reform Ch. 11 Target Secured Creditors,” Law360, Dec. 18, 2014 (co-author)

“ABI Commission Report: Highlights of Proposed Chapter 11 Reforms,” SRZ Alert, Dec. 8, 2014 (co-author)

“5th Circ. Limits ‘Value’ In Fraudulent Transfer Defense,” Law360, Dec. 2, 2014 (co-author)

“Health Care Business Restructuring for Secured Lenders,” Bloomberg BNA – Bankruptcy Law Reporter, Sept. 25, 2014 (co-author)

“New York Bankruptcy Judge Disallows Payment of Make-Whole Premium,” SRZ Alert, Sept. 15, 2014 (co-author)

“Hot Topics in Coal Company Bankruptcies,” Bloomberg BNA – Bankruptcy Law Reporter, Aug. 21, 2014 (co-author)

“Understanding the Tronox Case,” The Review of Banking & Financial Services, May 2014

“Credit Bid Buyers Beware: Delaware Bankruptcy Court Caps Credit Bid,” The Bankruptcy Strategist, May 2014 (co-author)

“Private Foreclosure Sales: Successor Liability Risks for Buyers — Mere Continuation Theory,” Uniform Commercial Code Law Journal, August 2013 (co-author)

“Secured Lender’s Loss of Possessory Lien Affirmed,” The Bankruptcy Strategist, July 2013 (co-author)

“Recovery of Make-Whole Premiums,” The Bankruptcy Strategist, May 2013 (co-author)

“Inside The Latest Make-Whole Claim Case,” Law360, April 30, 2013

“Eleventh Circuit Reverses TOUSA District Court Decision and Holds Lenders Liable for Fraudulent Transfer,” Pratt’s Journal of Bankruptcy Law, July/August 2012 (co-author)

“Trend Watch: The Safety of Reorganization Financing,” Law360, July 9, 2012 (co-author)

“Update on Reorganization Financing: Prepayment Premiums, Commitment Fees and Post-Bankruptcy Interest,” SRZ Alert, June 19, 2012 (co-author)

“Reception Unclear: Media Company Restructurings Present Unique Issues,” Turnarounds & Workouts, February 2012 (quoted)

“Restructuring Troubled Media Firms: Practical Tips for Creditors,” Troubled Company Reporter, Dec. 22, 2011 (co-author)

“Equipment Lenders Beware: Out-of-Court Foreclosure May Not Insulate Assets from Successor Liability Claims Asserted by the Borrower’s Creditors,” Equipment Leasing Newsletter, July 2011 (co-author)

“Buyer Beware: Purchaser of Assets in UCC Article 9 Foreclosure Sale May Be Subject to Claims of Debtor’s Unsecured Creditors,” The Bankruptcy Strategist, June 2011 (co-author)

“Not So ‘Silent’: Second Lien Creditor Allowed to Oppose Bid Procedures,” ABI Committee News, Secured Creditor Committee, December 2010 (co-author)

“Treatment of ‘Make-Whole’ and ‘No-Call’ Provisions by Bankruptcy Courts,” Pratt’s Journal of Bankruptcy Law, April 2011 (co-author)

“Debtors Cannot Assume or Assign Trademark License Without Licensor’s Consent,” The Bankruptcy Strategist, April 2006 (co-author)

“Chapter 11 Debtors Cannot Assume or Assign Trademark License Without Consent From Licensor,” Bankruptcy Court Decisions, January 2006

“Bankruptcy Impact on Fiduciary Duties and D&O Liability Insurance: A Practical Guide for Directors, Officers, Creditors, Shareholders and Insurers,” SRZ Memorandum, January 2005

“Deepening Insolvency Litigation Risks for Lenders and Directors When Out-of-Court Restructuring Efforts Fail,” NYU Journal of Law and Business, December 2004

Speaking Engagements

“Creditor Group Participation,” ABI 20th Annual New York City Bankruptcy Conference, New York, May 2018

“Navigating Issues in Fraudulent Transfers,” ABI VALCON, Las Vegas, May 2018

“Industry Issues in Structured Finance, Lending and Derivatives,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts 2018, New York, January 2018

“Courtroom Presentation and Evidentiary Issues,” Delaware Bankruptcy Court Inaugural Delaware Bankruptcy Trial Practice Seminar, Wilmington, Del., November 2017

“When is a Future Event Deemed Known or Knowable?” AICPA Forensic & Valuation Services Conference, New York, November 2017

“Bankruptcy Litigation,” ABI 19th Annual New York City Bankruptcy Conference, New York, May 2017

Impact of Retail Bankruptcies on Bank Lenders,” Evercore/ISI Webinar, May 2017

“Preparing Expert Valuation Reports,” ABI VALCON, Las Vegas, March 2017

“Preparing for Bankruptcy Risks and Industry Issues — Dealing with the Lender's Potential Risks and Claims,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts 2017, New York, January 2017

“Credit and Hybrid Funds,” SRZ 26th Annual Private Investment Funds Seminar, New York, January 2017

“UCC Security Interests in Proceeds of Collateral: Navigating Perfection, Priority and Impact of Debtor's Bankruptcy,” Strafford Webinar, October 2016

“Coal’s Legacy: Legal Liabilities,” The Sabin Center for Climate Change Law and the Center on Global Energy Policy at Columbia University US Coal in the 21st Century: Markets, Bankruptcy, Finance and Law, New York, September 2016

“Bankruptcy for Beginners,” LSTA Webinar, June 2016

“Bankruptcy Litigation,” ABI 18th Annual New York City Bankruptcy Conference, May 2016

Moderator, “Best Practices to Mitigate Fraudulent Transfer Risk at the Front-End of a Transaction,” ABI VALCON, Las Vegas, March 2016

“Oil & Gas Restructuring: Potential Impact on RBL Lenders,” Evercore Webinar, March 2016

“Dealing with the Lender’s Potential Risks and Claims,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts, New York, January 2016

“Bankruptcy Litigation: Emerging Tactics and the Do’s and Don’ts,” ABI Delaware Views from the Bench Conference, Wilmington, Del., November 2015

Moderator, “Restructurings After Marblegate and Meehancombs,” SRZ 4th Annual Distressed Investing Conference, New York, November 2015

“Recent Developments in Global Bankruptcy Regimes,” LSTA and LMA Conference: Current Market and Legal Developments from Both Sides of the Pond, New York, May 2015

Moderator, “Recent Decisions Affecting Secured Creditor Rights and the Potential Impact of Such Cases,” ABI 17th Annual New York City Bankruptcy Conference, May 2015

Moderator, “Valuation Adjustment,” ABI VALCON, Las Vegas, February 2015

American College of Bankruptcy 4th Circuit Program: Considering ABI’s Report on Chapter 11 Reform, Washington, D.C., February 2015

“Preparing for Bankruptcy Risks and Industry Issues — Dealing with the Lender’s Potential Risks and Claims,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts, New York, January 2015

Moderator, “Recent Court Decisions Affecting Distressed Investors,” SRZ 3rd Annual Distressed Investing Conference, New York, November 2014

“Coal Mining Industry Financial Health Overview,” AIRA Webinar, November 2014

“UCC Security Interests in Proceeds of Collateral: Navigating Perfection, Priority and Impact of Debtor’s Bankruptcy,” Strafford Webinar, September 2014

“So You’ve Filed a 363 Motion; Now, What About…” ABI 16th Annual New York City Bankruptcy Conference, May 2014

“Are Blanket Liens Really Blanket? Allocating the Going-Concern Surplus,” ABI VALCON, Las Vegas, February 2014

“Preparing for Bankruptcy Risks and Industry Issues — Dealing with the Lender’s Potential Risks and Claims,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts, New York, January 2014

“The New AIRA Standards for Distressed Business Valuation — What Valuation Analysts Need to Know,” AIRA 12th Annual Advanced Restructuring & Plan of Reorganization Conference, New York, November 2013

“Valuation Panel: What’s Missing in the Valuation?,” ABI 15th Annual New York City Bankruptcy Conference, May 2013

“Preparing for Bankruptcy Risks and Industry Issues: Dealing with the Lender’s Potential Risks,” PLI Recent Developments in Distressed Debt, Restructurings and Workouts, New York, January 2013

“Sponsors and Their Portfolio Companies in Distressed Situations,” SRZ 22nd Annual Private Investment Funds Seminar, New York, January 2013

“Subjecting Business Projections to Scrutiny in Valuation Disputes,” ABI Webinar, July 2012

“Subjecting Business Projections to Scrutiny in Valuation Disputes,” ABI 14th Annual New York City Bankruptcy Conference, May 2012

“What are Stakeholders Fighting About? Expansion Rule of 9019, Competing Plans, Collective Actions and Binding Minority Lenders in the Same Credit, Tousa,” ABI 13th Annual New York Bankruptcy Conference, May 2011

“Rule 2019 Disclosure and Committee Membership Issues” and “Pre-Packaged and Pre-Arranged Bankruptcies,” SRZ Distressed Investing: Inside the Bankruptcy Process Seminar, June 2009

Memberships

  • American Bankruptcy Institute
  • New York City Bankruptcy Assistance Project
    • Steering Committee 
  • VALCON Advisory Board 

Distinctions

  • Chambers USA
  • New York Super Lawyers

Prior Experience

  • Mayer, Brown & Platt, 1995-2001 
    • Associate