Throughout her career, Kathleen has developed a practice dedicated to representing clients in all facets of Chapter 11 and Chapter 7 bankruptcy cases; including significant litigation experience both in and out of the courtroom. Kathleen frequently appears in the bankruptcy courts for both the Southern and Eastern Districts of New York as well as the District of New Jersey.
Kathleen primarily represents Chapter 7 trustees in large, medium and small wind-downs and liquidations, including asset sales, litigation against former directors and officers, and claims objections. Kathleen has represented debtors in Chapter 11 reorganizations, as well as fiduciaries appointed to operate and wind the debtor down in liquidating Chapter 11 cases. In addition, Kathleen has significant experience representing creditors’ rights in Chapter 7 and Chapter 11 bankruptcy cases, including landlord rights, secured lenders and other unsecured creditors and defense of claims objections. She has experience performing this work in a variety of industries, including real estate development, restaurants, transportation and retail. Kathleen both prosecutes and defends clients in Chapter 5 avoidance actions in both Chapter 11 and Chapter 7 bankruptcy proceedings, including a large national furniture chain, a major financial institution, an international media company, healthcare and transportation.
· Represented Trustee in liquidating Chapter 11 case involving the sale of real property, which realized more than 140% of the initial estimated value of the property, confirmed a Chapter 11 plan and resolved all remaining claims against the net proceeds in a global settlement approved by all creditors and the bankruptcy court.
· Represented Chapter 11 Trustee in liquidating Chapter 11 case involving a debtor who is the co-owner of multi-family rental properties in Bronx, New York, which involved oversight and management of the properties and, ultimately, liquidation of the properties in connection with confirmation of a liquidating Chapter 11 plan.
· Represented four related real estate development companies in Chapter 11 by restructuring multi-million dollar mortgages, encumbering two parcels of real property in various stages of development into shopping centers, including the release of personal and corporate guarantees for the Debtors’ officers and family members.
· Represented Chapter 7 Trustee in winding down a large, international law firm, including closing debtor’s remaining offices; assessed assumption or rejection of equipment and property leases; preserving assets with value for liquidation; managed a team of attorneys and outside agents to implement a process for former clients and attorneys to retrieve client files from off-site storage; and oversaw accounts receivable collection.
· Represented Chapter 7 Trustee of the single asset real estate holding company of the H&H Bagel operations and successfully sold real property for amount exceeding scheduled value by several million dollars, which resulted in a 96% distribution to general unsecured creditors.
· Represented Chapter 7 Trustee in liquidation of a NY-based broker-dealer and its parent company in the wake of criminal convictions of several of the debtors’ officers and directors for orchestrating an international bribery scheme in violation of anti-money laundering regulations and the Foreign Corrupt Practices Act. Prosecuted two fraudulent conveyance actions against the former directors and officers and other third parties on behalf of the Trustee, one of which resulted in a bench trial where Ms. Aiello served as co-counsel.
· Represented Chapter 7 Trustee in prosecuting approximately 500 avoidance actions against defendants in the shipping and transportation industries.
· Represented numerous clients in defense of Chapter 5 Avoidance Claims in Chapter 11 and Chapter 7 bankruptcy cases, including, for example, Lehman Brothers, SunEdison, American Apparel, Brown Publishing Company, Quebecor and others.
Honors & Awards
· Named to Super Lawyers "Rising Star" in the New York Women’s Edition (2016-2018)
· Named to Super Lawyers’ New York Metro Rising Stars (2015-2017)
· New Jersey
· New York
· Rutgers Law School (J.D., 2008)
· Georgetown University (B.S., 2002)
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