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About James T. Bentley

James T. Bentley

James is special counsel Schulte Roth and Zabel's Business Reorganization practice.  He has significant experience in bankruptcy and out-of-court restructurings.  James assists clients with acquisitions and divestitures of distressed companies and their assets, financing and use of cash collateral, and identifying exit strategies.  He also litigates various disputes including labor issues, preference and fraudulent claim challenges, financing and cash collateral issues, and stay relief and adequate protection claims.


Articles by James T. Bentley

How Unsecured Creditors Push Ahead of Lenders Who in Fact Invested, Part III – Equitable Subordination vs. Recharacterization

In part one of our series on recharacterization, we discussed the elements of judicial recharacterization of loans as equity interests.[i]  In part two of the series, we considered how debtors can “claw back” putative “loans” that they may have repaid years earlier because the “loans” were in fact equity investments and their repayment was invalid.[ii]  […]


How Unsecured Creditors Push Ahead of Lenders Who in Fact Invested, Part II – Clawback of “Loan Repayments”

In our last article[i], we discussed the judicial recharacterization of loans as equity interests.  As we described, a court will recharacterize a lender’s debt claim as equity if it determines the “loan” actually was intended to be, and was treated by the parties as, an equity investment.  Recharacterization is a powerful tool for creditors and […]


How Unsecured Creditors Push Ahead of Lenders Who in Fact Invested, Part I – What is Recharacterization in Bankruptcy?

In bankruptcy, a debt claim has a higher priority than an equity interest (or share) in the debtor company, and should be (and ordinarily is) paid in full before equityholders receive any distribution from the debtor.  Better, then, to acquire or hold a debt claim — an elegant swan — than to hold an equity […]


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