Southmark Corporation

The Firm represented two principals of Southmark Corporation in Chapter 11 proceedings in one of the largest real estate bankruptcies in the United States.

Southmark Corporation was one of the largest real estate based financial companies with a valuation exceeding $9 billion. Beginning in the mid-1980s, Southmark Corporation invested heavily in junk bonds. When the junk bond market collapsed in April of 1989, Southmark Corporation announced a $1 billion write-down of its asset values and later filed for Chapter 11 bankruptcy protection.

The Firm represented the principals during the restructuring and in subsequent litigation brought after confirmation, successfully protecting post-restructuring interests and securing a substantial return.