McKool Smith principals Kyle Lonergan, Josh Newcomer and James Smith, along with associates Grant Johnson and David Kellam, co-authored “Creditors Strike Back at PE’s Bankruptcy Raids,” published by Turnarounds & Workouts. The article examines how creditors’ committees and litigation trustees are increasingly winning suits against private equity sponsors to claw back large dividends and transfers taken from portfolio companies before they filed for bankruptcy. It points to recent cases such as Tops Holding, Instant Brands, High Ridge Brands and Lucky Bucks as a roadmap, and explains the main claims used: fraudulent transfer, illegal dividends and breach of fiduciary duty.
This article was first published in Turnarounds & Workouts, October 2026.
