Jennifer L. Nassiri

A partner in the Finance and Bankruptcy Practice Group in Sheppard Mullin's Los Angeles office, Nassiri advises clients in pre-bankruptcy planning, bankruptcy-related litigation matters, restructurings, liquidations and Chapter 11 bankruptcies.

She represents parties on all sides of bankruptcy matters, and enjoys the collegiality that might not be found in other, more adversarial practice areas.

"Being involved in a Chapter 11 case--no matter which side you're on--is all about making a deal, and getting to a place that benefits debtors, in its reorganization goals, and creditors, in terms of maximizing whatever return they're entitled to," she said.

At the outset of the pandemic, many businesses, particularly those in retail, hospitality and energy sectors, experienced a sudden drop in demand for their products and services. Bankruptcy filings soared during the second and third quarters of 2020. However, Nassiri noted, some conditions that led to those filings were in place before the pandemic.

"For example, with retail, spending habits had already been changing, and brick and mortar stores were suffering," she said. "Anybody that was teetering on the edge before the pandemic, having things shut down, pushed them over."

One of those businesses was luxury retailer Nieman Marcus, which had been struggling with competition from online rivals and dwindling cash. The pandemic exacerbated its problems, and Nieman filed for bankruptcy in May 2020.

Nassiri is one of the lead counsel representing the liquidating trust tasked with resolving all general unsecured claims against Neiman and its affiliates in their pending Chapter 11 cases. Neiman Marcus Group LTD LLC, et al. 20-32519 (Bankr. S.D. Tex., filed May 7. 2020). Approximately $3.5 billion of general unsecured claims were asserted against Neiman at the outset. In less than one year, Nassiri has narrowed the general unsecured claims pool to under $500 million, which significantly increases recoveries to the remaining beneficiaries.

One of the biggest complexities in any Chapter 11 case is the variety of constituents, such as employees, landlords, intellectual property holders, vendors and personal injury claimants, each with their own set of unique facts and legal issues. In the Nieman matter, Nassiri and her team have addressed thousands of claims. She has filed nearly 30 omnibus claims objections addressing hundreds of claims, negotiated dozens of complex stipulations with claim holders, and otherwise avoided litigation with numerous litigation claimants and third parties by working to resolve disputed claims.

"Litigation claims are the most challenging, because it's not like the sale of widgets, where you know the cost of 100,000 widgets and that's what you owe me for," she said. "We have to estimate what these claims are worth, and for that, we're dealing with insurance agencies."

Nassiri said her team is getting close to concluding the Nieman case, with just a handful of claims left.

- JenniferChungKlam