Michael T. Delaney

Associate

Los Angeles
T +1.310.442.8858
F +1.310.820.8859

Overview

Michael Delaney's insolvency practice focuses on the representation of debtors in possession, trustees, secured and unsecured creditors, creditor committees in chapter 11 reorganizations, and trustees in chapter 7 liquidations, as well as receivers and assignees in assignments for the benefit of creditors. In such matters, Michael has represented a variety of individuals and companies including high-profile entertainers, foreign and domestic lenders, entertainment companies, oil and gas companies, manufacturers and real estate investors. Michael has also represented clients in reorganizations involving cutting-edge industries and technology, including cryptocurrency and the manufacturing of Bitcoin mining computers.

The business litigation aspect of his practice includes the representation of companies in disputes pertaining to the ownership of intellectual property rights and the related entertainment programs and businesses, the representation of franchisees in disputes pertaining to the rights under the franchise agreements and the rights of partners in joint ventures relating to franchise agreements, as well as trustees, debtors and creditors in fraudulent transfers actions both in bankruptcy court and California state court.

In addition to his practice, Michael holds several leadership positions with insolvency-related professional organizations. He is a member of the Insolvency Law Committee of the California Bar Association, a member of the Executive Committee for the Bankruptcy Section of the Beverly Hills Bar Association, and an editor on the Editorial Board of the California Bankruptcy Journal. Michael also frequently speaks on bankruptcy-related issues and contributes to several publications, for which he authors articles relating to insolvency, creditors' rights, commercial law and intellectual property law.

In recognition of his achievements, Michael was selected as a Southern California Rising Star for 2016 and as one of 40 young attorneys from across the country to participate in the Next Generation Program during the upcoming National Conference of Bankruptcy Judge Conference in San Francisco. 

Select Experience

  • Michael represents a California healthcare district in its chapter 9 bankruptcy case. As with many other California healthcare districts, the district faced an extended period of fiscal decline and rising operational expenses that created a nearly insurmountable budgetary deficit and ultimately resulted in the resignation of management and the closure of some of the facilities operated by the district. Thereafter, partner Ashley McDow was consulted about potential restructuring options and strategies. After the board voted to declare a fiscal emergency and commence a bankruptcy case under chapter 9, Ashley and Michael were retained as bankruptcy counsel for the district.
  • Michael represents an oil and gas company in the course of its chapter 11 bankruptcy case. The company is engaged in oil exploration in the Gulf of Mexico and refinement. Due to the diminished value of crude oil and other financial pressures, the company retained BakerHostetler to serve as general insolvency counsel. Led by partner Elizabeth Green, the team successfully negotiated and obtained DIP financing and continues toward the formulation of a reorganization plan.  
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Experience

  • Michael represents a California healthcare district in its chapter 9 bankruptcy case. As with many other California healthcare districts, the district faced an extended period of fiscal decline and rising operational expenses that created a nearly insurmountable budgetary deficit and ultimately resulted in the resignation of management and the closure of some of the facilities operated by the district. Thereafter, partner Ashley McDow was consulted about potential restructuring options and strategies. After the board voted to declare a fiscal emergency and commence a bankruptcy case under chapter 9, Ashley and Michael were retained as bankruptcy counsel for the district.
  • Michael represents an oil and gas company in the course of its chapter 11 bankruptcy case. The company is engaged in oil exploration in the Gulf of Mexico and refinement. Due to the diminished value of crude oil and other financial pressures, the company retained BakerHostetler to serve as general insolvency counsel. Led by partner Elizabeth Green, the team successfully negotiated and obtained DIP financing and continues toward the formulation of a reorganization plan.  
  • Michael represented a film and television actress in her individual chapter 11 reorganization. The bankruptcy case was precipitated by the client's inability to service debt secured by two parcels of realty in Bel Air, California, and Jackson, Wyoming. Ashley McDow and Michael were retained to file a chapter 11 bankruptcy case in order to effectuate a controlled liquidation of these assets and restructure her obligations. Through the bankruptcy case, the team liquidated the subject properties and addressed significant tax liabilities arising from the substantial increase in the value of the Bel Air property during the client's 40-year ownership of the property. Following the controlled liquidation, Ashley and Michael expeditiously and efficiently resolved the case through a structured dismissal, which resulted in a significant decrease in administrative expenses and increased equity distributions to the client.  
  • Michael represented the official committee of unsecured creditors in the bankruptcy case of the manufacturer of Bitcoin mining computers and related hardware. During the bankruptcy case, the committee defeated an attempt to fire-sale the tangible and intangible assets of the estate, substantively consolidated the estates of the manufacturer and parent company to make valuable intellectual property held by the parent company available to satisfy the debts of the manufacturer's estate, and defeated the motion of the United States Trustee to appoint a chapter 11 trustee or, in the alternative, convert the case. Thereafter, the committee succeeded in confirming a plan of liquidation for the manufacturer and its parent company. Following the plan’s confirmation, Ashley McDow and Michael were retained by the liquidating trust to serve as general bankruptcy counsel. The trust has successfully negotiated the resolution of multiple preferential transfer actions and claim objections.  
  • Michael served as special counsel for the liquidating trust of a national electronics retailer. In this capacity, Ashley McDow and Michael represented the liquidating trust in its efforts to address a $30 million claim filed by the California Self-Insurers' Security Fund and recover more than $10 million that the fund had drawn from a line of credit secured by the company for potential workers' compensation liability. In the course of the representation, Ashley and Michael successfully negotiated a release of the fund's $30 million claim.  
  • Michael serves as general bankruptcy counsel to the chapter 7 trustee in a bankruptcy case involving a contentious dispute regarding the ownership of certain mining claims. Prior to the commencement of the bankruptcy case, the debtor entered into a joint venture to acquire certain patented and unpatented mining claims. Following the acquisition of the mining claims, the joint venturer transferred the claims to entities solely owned by the joint venturer and disputed the debtor's interest in the corporate entities and mining claims. The trustee retained Ashley McDow and Michael to assist in the recovery and administration of the mining claims, among other assets. With the assistance of counsel, the trustee was able to defuse a contentious dispute and negotiate a settlement agreement that provided for the administration of the debtor's disputed interest in the mining claims without extensive litigation.  
  • Michael served as counsel for the state court-appointed receiver for a precision machining company engaged in the manufacture of components used in military and aerospace applications, among others. Despite the appointment of a receiver, mismanagement and managerial misconduct persisted; accordingly, the receiver authorized the commencement of a voluntary chapter 11 bankruptcy case. Ashley McDow and Michael were relieved as receivership counsel and retained to represent the company in bankruptcy. With the support of the majority shareholder, the company liquidated its assets through bankruptcy under the control of the receiver. The company continues to prosecute claims against the former management for misconduct and misappropriation of corporate assets, and to formulate the terms of a plan of reorganization.
  • Michael serves as counsel for the chapter 7 trustee in the bankruptcy case of a recognized songwriter and record producer. Following the commencement of the bankruptcy case, the debtor failed to turn over royalties derived from pre-petition copyrighted works. Through counsel, the trustee pursued the misappropriated funds and ultimately obtained a judgment against the debtor in the amount of the misdirected royalties. The trustee is presently liquidating the copyright catalogue for the benefit of creditors.
  • Michael serves as counsel for the chapter 7 trustee in the bankruptcy cases of two entertainment companies involved in the production and distribution of family-oriented films and television programming. In this role, Michael has assisted the trustee in managing the operations of the debtors' enterprises pending administration and, along with Ashley McDow, resolved a dispute regarding a pre-petition foreclosure on certain programming through a settlement and joint sale agreement, which maximizes the benefit of these assets for creditors of the estate.
  • Michael represents a commercial real estate development and management company in its chapter 11 reorganization. Prior to the commencement of the bankruptcy case, the company owned commercial real estate in Ontario, California. The secured creditor threatened to foreclose on the property; accordingly, the company retained BakerHostetler to file a voluntary chapter 11 bankruptcy case. While the case was pending, Ashley McDow and Michael negotiated a discounted pay-off agreement with the secured creditor and facilitated the sale of the subject property for a sum in excess of $20 million, which is likely sufficient to pay all claims in full plus a distribution to equity.
  • Michael represented an Internet advertising company in the acquisition of certain domain names and associated intellectual property. Following the acquisition, a dispute arose between the client and a service provider for the purchased domain names. Ashley McDow and Michael continue to represent the client in negotiating a resolution of these disputes.
  • Michael represents a finance company engaged in lending money for the purchase and lease of commercial and industrial equipment in various bankruptcy cases nationwide. In the course of this representation, Michael has successfully negotiated the beneficial treatment of the claims under multiple plans of reorganization.

Recognitions and Memberships

Recognitions

  • National Conference of Bankruptcy Judges: Next Generation (2016) 
  • Southern California Super Lawyers "Rising Star" (2016, 2017)

Memberships

  • California Bankruptcy Forum
    • Co-Chair for the Young Insolvency Professionals Program at California Bankruptcy Forum 2014 and 2015 Annual Conferences
    • Producer for Mediation Panel of the Young Insolvency Professionals Program at California Bankruptcy Forum 2013 Annual Conference
  • Los Angeles Bankruptcy Inn of Court

Prior Positions

  • Law Clerk to the Honorable Ernest M. Robles of the United States Bankruptcy Court for the Central District of California

Admissions

  • California

Education

  • LL.M., Intellectual Property Law, The George Washington University Law School, 2009
  • J.D., Chapman University School of Law, 2008
  • B.A., University of Southern California, 2005