Jeffrey C. Krause is a partner in the Los Angeles office of Gibson, Dunn & Crutcher.  He is a member of the firm’s Business Restructuring and Reorganization Practice Group.  He has a broad corporate restructuring practice and has handled significant debtor and creditor representations, as well as representations of acquirers of assets from chapter 11 debtors, lessors and secured and unsecured creditors.  He is a fellow of the American College of Bankruptcy.  Mr. Krause was listed as an Outstanding Restructuring Lawyer by Turnarounds & Workouts in 2018 and was named Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Lawyer of the Year 2017 for Los Angeles by Best Lawyers.

Mr. Krause frequently advises boards and shareholders on fulfilling fiduciary duties and minimizing litigation risks when the companies they serve encounter financial distress.  He also advises lenders in structuring transactions to minimize risks that are likely to arise when borrowers become financially distressed and parties seeking to acquire debt of troubled borrowers in order to drive the restructuring process or acquire assets of the borrower.  Mr. Krause has represented defendants in preference actions, fraudulent transfer actions and large, complex commercial disputes, including lender liability claims.  He has represented landlords in large complex chapter 11 cases and out-of-court restructuring transactions.  He also has represented both debtors and creditors in chapter 9 municipal restructuring cases.

Mr. Krause has represented secured lenders in chapter 11 cases and out-of-court restructuring transactions, including the mortgage holders in recent chapter 11 cases of the owners of the Fairmont San Jose and Bishop’s Lodge, as well as PDL BioPharma, Inc., Deutsche Bank, Kayne Saybrook, FINOVA Capital (after Berkadia acquired the right to manage FINOVA), Lend Lease, Beal Bank, Home Savings and Loan, Bank of Hawaii, CapitalSource, and the Colonial Williamsburg Foundation, as a secured creditor in the chapter 11 case of Carter’s Grove, LLC.

Mr. Krause has represented debtors in chapter 11 cases and out-of-court restructuring transactions, including the following:

• Mac Acquisition, LLC, dba Romano’s Macaroni Grill, in chapter 11 in Delaware
• Daughters of Charity Health System in an out-of-court restructuring
• Standard Register Co., a printing and marketing company, in chapter 11 in Delaware
• Real Mex Restaurants, as a reorganized debtor after it exited from chapter 11
• THQ Inc., a video game developer, in chapter 11 in Delaware
• Specific Media in its out-of-court restructuring and transfer of assets to Time, Inc.
• R.E. Loans, LLC, a real estate lender, in chapter 11 in Texas
• Pacific Monarch Resorts, Inc., a time share developer, in chapter 11 in California
• Falcon Products, a furniture manufacturer, in chapter 11 in Missouri
• Boston Chicken, dba Boston Markets, a restaurant chain, in chapter 11 in Arizona
• Lindquist & Craig Hotels, a hotel and resort owner/operator, in chapter 11 in California
• DeKalb Poultry Research, Inc., an egg producer, in chapter 11 in Illinois
• Watts Health Foundation, Inc., an HMO and clinic operator, in chapter 11 in California

Mr. Krause has represented multiple ad hoc creditor groups and official committees, as well as key members of committees, including the following:

• Member of the ad hoc group of subrogation claimants in the chapter 11 case of Pacific Gas & Electric
• Ad hoc group of unsecured noteholders in the chapter 11 case of Briggs & Stratton
• Ad hoc group of first lien lenders in the chapter 11 case of NPC International, Inc.
• Member of the Official Creditors Committee in the chapter 11 case of Verity Health System
• Official Committee of Unsecured Creditors in the chapter 11 case of Azabu Buildings
• Official Equity Committee in the chapter 11 case of AMERCO
• Member of an unofficial committee of secured bondholders in the chapter 11 case Eastern Airlines

Mr. Krause also has represented multiple investors in various chapter 11 cases, distressed acquisitions and out-of-court restructuring transactions, including the following:

• Monarch Alternative Capital as the acquirer of assets related to the Shopko chapter 11 cases
• Acquirer of Boston Markets in out-of-court distressed transaction
• Woodridge Capital in connection with proposals to acquire assets from chapter 11 debtors
• Aurora Capital in connection with potential distressed acquisitions
• Stone Canyon Capital in assessing potential acquisitions from chapter 11 debtors
• Ranch Capital, LLC in multiple matters, including Seitel, Inc.’s chapter 11 case in Delaware and as the sponsor of a chapter 11 plan for Hawaiian Airlines, Inc.

In 2021 and 2022, Mr. Krause was selected as a Band 1 lawyer in Chambers USA: America’s Leading Lawyers for Business.  He was selected in the 2022 edition of the Lawdragon 500 Leading U.S. Bankruptcy & Restructuring Lawyers and has been recognized by The Best Lawyers in America® in the area of Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law for more than a decade, and by Who’s Who Legal Restructuring & Insolvency.

Mr. Krause has served as an Adjunct Professor, University of Southern California School of Law, 1994-2000 and 2002; Loyola School of Law, 1987 and 1988.  He is a member of the Los Angeles County Bar Association (Former Member of Executive Committee of Section on Commercial Law and Bankruptcy and Past Chair of Pro Bono Debtor Assistance Project) and the American Bar Association (Member, Sections on Litigation and Business Law; Past Co-Chairman of Bankruptcy and Insolvency Committee of the Litigation Section); The State Bar of California (Former Member, UCC Committee, Business Law Section, 1987-1990; Former Member, Debtor-Creditor Committee, Business Law Section, 1992-1995); Los Angeles Bankruptcy Forum (Past President); California Bankruptcy Forum (Former Director); Financial Lawyers Conference (Former Board Member, 1999-2002).  He served as President of the Turnaround Management Association, Southern California Chapter in 2017 and was Co‑Chair of the 2017 Turnaround Management Association Western Regional Conference.  He served as a member of the TMA Distressed Investing Conference Planning Committee during 2022 and was named as a Trustee of the TMA Global Leadership for 2022.

Mr. Krause is the author of: “California Real Property Financing: Bankruptcy and Secured Real Property Transactions,” CEB, 1989 (Contributing Author); Steinberg, Bankruptcy Litigation, 1989 (Contributing Author); “Whose Lawyer Are You: Fiduciary Obligations of Debtor in Possession’s Counsel,” 31 Beverly Hill Bar Ass’n Journal, Vol. 2 (1997); “In a Class All Their Own,” Vol. 20, No. 5, Los Angeles Lawyers 42 (July-August 1997); “Appellate Practice Educational Materials for Federal Judicial Center Programs for New Bankruptcy Appellate Panel Judges,” (1996 and 1997); “The Bias of the Courts Against Single Asset Real Estate Cases is Creating Bad Law in the Area of Classification,” 22 Cal. Bankr. J. 45, 1994; “United States Trustee Guidelines Regarding Prepetition Retainers,” 18 Cal. Bankr. J. 135, 1990; “Treatment of Prepetition Retainers,” 17 Cal. Bankr. J. 153, 1989; “Foreclosure Sales Should Not Be Treated As Fraudulent Transfers,” 1 ABA Bankr. Litigation Newsletter 7 (1993); “Non-Collusive Foreclosure Sales of Real Property Are Not Avoidable As Fraudulent Transfers,” 3 ABA Bankr. Litigation Newsletter 18 (1995); Consultant, Bernhardt, California Mortgage and Deed of Trust Practice (2d ed. 1989 CEB).

Mr. Krause is a frequent speaker on restructuring topics.  Mr. Krause has participated in the following educational programs: American Bankruptcy Institute Complex Financial Restructuring Program in 2019, 2020 and 2022; UCLA School of Law School and Financial Lawyers Conference: Bankruptcy Nuts and Bolts all day seminar: Asset Sales under Bankruptcy Code section 363 and Executory Contracts under Bankruptcy Code section 365; USC Gould School of Law Real Estate Law and Business Forum: Real Estate Valuation in Workouts and Chapter 11 Bankruptcy Cases and Other Valuation Triggering Events; Los Angeles Bankruptcy Forum: Be WARNed: Risks of Liability for Insiders, Secured Lenders and Buyers for Unpaid Employment Related Claims; Turnaround Managers Association, Southern California Chapter: Distressed Valuations – “What is the Right Real Estate Valuation Approach and How to Plead Your Case!”;  ; Turnaround Managers Association, Annual Western Regional Conference: Litigation of Valuation Issues for Operating Businesses and Cramdown Interest Rates After Momentive; California Receiver’s Forum: Labor and Employment Issues for Receivers Administering Operating Business; American Bankruptcy Institute Battleground West: Healthcare Restructuring; and Los Angeles Bankruptcy Forum: Recent Developments Debate Program.

Mr. Krause attended the University of California at Los Angeles, where he received his B.S. in Economics in 1977, and his J.D. in 1980.  Mr. Krause served on the UCLA Law Review, and was elected to the Order of the Coif.