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Representing The Difficult Client

Katheryn Coleman discusses strategies for representing difficult clients in the restructuring arena. She emphasizes the importance of setting expectations early, establishing trust, and providing clear communication. Key points include the need for clients to understand the immersive nature of bankruptcy, the importance of providing comprehensive information, and the necessity of educating employees on issues like the automatic stay and prepetition debt. Coleman also highlights the significance of managing creditor expectations and the benefits of obtaining counsel for senior management. She stresses the importance of empathy and transparency to avoid client frustration and maintain a productive working relationship.

Tags:
Keywords:

trust, expectations, information, communication, automatic stay, prepetition debt, employees, senior management, creditors, adverse developments

Duration:

30 minutes 52 seconds

Kathryn A. Coleman is a partner in Hughes Hubbard & Reed LLP’s New York office. She has handled
a wide range of chapter 11 representations and other high-stakes insolvency-related matters in her more
than 35 years in practice, including dealing with “bet-the-company” litigation claims, representing ac-
quirers in chapter 11 sale transactions, representing DIP lenders, and handling cross-border insolvency
matters, out-of-court restructurings and distressed investments. Ms. Coleman’s clients include individu-
als and companies defending trade secret theft and RICO lawsuits, publicly traded and privately held
companies restructuring their financial affairs, traditional and nontraditional secured lenders, unsecured
creditors (both official committees and significant creditors for their own account), equityholders, po-
tential acquirers, equity sponsors, and financial and strategic buyers. She also is experienced in advis-
ing management and boards of directors on corporate governance, fiduciary duty and D&O insurance
matters. Ms. Coleman has advised clients on, and litigated at the trial and appellate levels, the signifi-
cant legal issues inherent in modern restructuring and finance practice, including contested plan con-
firmations, prepackaged plans, credit bidding, exclusivity, debtor-in-possession financings, valuation,
adequate protection of security interests, the ability to collaterally attack orders of the bankruptcy court
and cash-collateral usage. She has experience litigating venue, remand, removal and stay issues, and has
represented recovery trustees dealing with myriad post-confirmation issues and litigation. Ms. Coleman
is a Fellow of the American College of Bankruptcy (ACB) and serves on the board of the ACB’s chari-
table foundation. She also serves on the ACB’s Education Committee. Ms. Coleman served two terms
on ABI’s Board of Directors, co-chairs its annual Complex Financial Restructuring Program, and has
served on the advisory boards for the annual VALCON and New York City educational programs. She
frequently speaks on bankruptcy law and distressed investing, participating in programs sponsored by
the Practising Law Institute, ABI, the Turnaround Management Association, AIRA, The M&A Advisor,
the New York City Bar Association, the California Continuing Education of the Bar and the American
Bar Association. She also serves on the Steering Committee of the NYC Bankruptcy Assistance Project.
Ms. Coleman is ranked by Chambers USA as a leading restructuring lawyer, and she has twice been
named to Lawdragon’s list of 500 Leading U.S. Bankruptcy & Restructuring Lawyers. She also was
recognized in 2019 by Crain’s New York Business’ Notable Women in Law List for her comprehensive
knowledge of insolvency law, and she was named a 2018 Bankruptcy MVP by Law360 and as one of the
100 Most Influential Women in Business by the San Francisco Business Times. In addition, Ms. Cole-
man was designated a leading lawyer in bankruptcy in The Best Lawyers in America, and her experience
in cross-border insolvency was noted in the IFLR 500 and in PLC’s Cross-Border Restructuring and
Insolvency Handbook. She received her undergraduate degree magna cum laude from Pomona College
and her J.D. from Boalt Hall School of Law (U.C. Berkeley), subsequently clerking for Hon. C. Martin
Pence, U.S. District Judge for the District of Hawaii.

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