Tracy L. Klestadt

Mr. Klestadt has been practicing in the fields of bankruptcy, workouts, corporate reorganizations and commercial law for nearly 23 years, and has been involved in many prominent national and local cases representing institutional, corporate and individual clients involving a wide variety of industries. Mr. Klestadt has represented parties on virtually all possible sides of bankruptcy cases – debtor, secured creditor, unsecured trade creditor, creditors’ committees, landlords, equipment lessors and others. As a result, he brings a unique, practical business perspective to resolving difficult situations, maximizing asset valuations and minimizing losses.

Among Mr. Klestadt's significant recent representations:

• Mr. Klestadt was elected Trustee by creditors of Alliance Bancorp and Alliance Mortgage Investments, Inc., two subprime mortgage lenders, in their chapter 7 cases pending in the United States Bankruptcy Court for the District of Delaware.
• Official Committee of Unsecured Creditors of Dreier LLP, a 250 attorney law firm in its chapter 11 case resulting from the alleged criminal activities of its sole equity holder, Marc Drier.
• Coudert Brothers LLP, a former major international law firm, in its chapter 11 case in the Southern District of New York.
• The largest unsecured creditor and Co-Chair of the Creditors’ Committee in the Hartmarx Corporation chapter 11 case pending in Chicago.
• Air America Radio (Piquant LLC), in its chapter 11 case in the Southern District of New York.
• Sypris Technologies, Inc., as the largest trade creditor and member of the Creditors’ Committee in the Dana Corporation chapter 11 case, and Textron Fastening Systems, Inc. in the Delphi Corporation case, both in the auto parts industry.
• Tender Loving Care Health Care Services, Inc., a $250 million home health care company, in its chapter 11 case. Creditors recovered 100% of their claims plus interest.
• Several creditors in the chapter 11 cases of Enron Corporation, WorldCom, Inc., PSInet, Inc., and Adelphia Communications Corporation.

Mr. Klestadt’s practice includes representing clients involved in various breach of contract commercial litigations and arbitrations. He also has counseled numerous lenders and lessors in receivable, inventory, real estate, aircraft and vessel financing transactions. Mr. Klestadt has also represented numerous real estate developers, management companies, mortgagees, landlords, and co-operative apartment corporations in real estate related bankruptcy cases.

Prior to founding his own firm in February 1995, Mr. Klestadt practiced with the bankruptcy group of LeBoeuf, Lamb, Greene & MacRae, L.L.P., a national law firm. Mr. Klestadt graduated from the University of Chicago Law School in 1986, and from Columbia University, where he majored in Economics, in 1983. He is admitted to practice in the States of New York and New Jersey, the U.S. Court of Appeals for the Second Circuit, and the U.S. District and Bankruptcy Courts, Southern and Eastern Districts of New York and District of New Jersey. He is also a member of the panel of mediators certified by the United States Bankruptcy Court for the Southern District of New York. Martindale-Hubbell Law Directory has awarded Mr. Klestadt its highest rating, signifying that his legal abilities and professional ethics meet the highest standard as measured by members of the Bar.  He has also been recognized by New York Super Lawyers in 2007 and 2008.   

Mr. Klestadt has coauthored with Wayne D. Holly numerous articles on bankruptcy, which have been published in the "Outside Counsel" column of the New York Law Journal. Mr. Klestadt is also the author of "Professional Sports Teams in the Financial Penalty Box: How Bankruptcy Law Could Affect the Business of Playing Ball," Norton Bankruptcy Law Adviser, April 1995; "An Introduction to Chapter 11 Bankruptcy," Shopping Center Legal Update, Summer 1991; and "Importers, Brokers and Chapter 11," American Shipper, May 1990.