- Category
- Announcements
- Date
- Feb. 05, 2001
- Title
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Kramer Levin Wins for DeGeorge Financial Corporation Creditors' Committee
On February 5, 2001, the DeGeorge Financial Corporation Creditors' Committee, represented by Kramer Levin, confirmed a Chapter 11 plan of reorganization over the heated opposition of Residential Funding Corporation ("RFC"), a GMAC-affiliate represented by Cummings & Lockwood. Kramer Levin partners Charlotte Moses Fischman and Robert Schmidt led a team that included associates Amy Caton, Sharon Rudich, Marjorie Sheldon, and Joshua Davis, and legal assistants Santo Cipolla and Rosemarie Witter. They prevailed over RFC's team led by the head of Cummings & Lockwood's bankruptcy group, Chuck Tatelbaum. U.S. Bankruptcy Judge Dabrowski confirmed the plan after litigation spanning eight months, dozens of depositions, a week-long trial, and two weeks of post-trial briefing.
DeGeorge makes construction loans to individuals who are build their own houses. RFC, once DeGeorge's working capital lender, triggered DeGeorge's bankruptcy by cutting its credit line. RFC sought to avoid liability for its actions by doing everything it could to sabotage the DeGeorge plan, which makes immediate cash distributions to small creditors and gives large ones a stake in both the reorganized DeGeorge and the litigation against RFC. The Kramer Levin team overcame the tactics of RFC, whose manifold objections and tactics forced Judge Dabrowski to write a 51-page decision in favor of confirmation.
Related People
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Robert T. Schmidt
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- Counsel
- New York
- vcard
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Marjorie E. Sheldon
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- Special Counsel
- New York
- vcard
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